The Chief Executive Officer of MTN Nigeria, Karl Toriola has said that the country’s telecommunications sector is “in intensive care unit”.
Toriola stated this on Tuesday at the telecom investment forum organized by Financial Derivatives Company, FDC, in Lagos, adding that a hike in cost of services was inevitable.
The MTN boss said although the sector had grown over the past two decades, it is now threatened by rising costs and unsustainable pricing.
Toriola said “qualitative action needs to be swift and decisive to prevent the collapse of this industry” as time is of the essence.
The MTN Nigeria CEO said: “There’s no way under the surface of the earth, in the kind of inflationary environment and forex devaluation that we’ve seen, that an industry can maintain prices the same for 11 years.
“The telecoms sector has faced escalating costs across the board — from the cost of capital to the soaring expenses of maintaining infrastructure like base stations and diesel generators.
“Without adjustments to pricing, the industry’s ability to function and attract investment is in jeopardy.”
READ ALSO: NCC directs Telcos to simplify tariff templates
Recall that the Nigerian Communications Commission, NCC, ordered telecommunications operators to simplify their tariff plans, bundles, and promotional activities.
This move aims to provide clear, easy-to-understand, and accurate information about the cost of voice, short messaging service and data services to subscribers.
A statement signed by NCC Director of Public Affairs, Rueben Mouka noted that the directive mandates Mobile Network Operators, MNOs, to publish a comprehensive table showing the features of their tariff plans and bundle offers.
It noted that the table should contain all necessary information for subscribers to make informed decisions, including details on add-ons, their prices, how consumers can opt-in or out, terms and conditions for renewal, and rollover policies.
“The guideline is the outcome of consultations with industry stakeholders, including MNOs and Consumer Focus Groups, and extensive data analysis on consumer preferences and expectations.
“The objectives of the simplification guidelines are to reduce the complexity of tariff plans and bundles, ensure transparency and fairness of promotional elements of tariff plans, protect consumers’ interests by providing clear and understandable tariff information so that they make informed decisions, and promote fair competition among licensees by standardizing tariff structures,” it read.
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