Telecommunication companies under the aegis of The Association of Licensed Telecommunications Operators of Nigeria (ALTON) have warned that its members may begin to shed services amid the clamour for an upward review of tariffs in the sector.

The association also raised fresh alarm that the Nigerian telecommunications industry is facing a critical challenge that requires urgent attention.

The ALTON chairman, Gbenga Adebayo, stated these in a statement in Lagos on Monday.

He said the operators are struggling to survive due to rising operational costs and stagnant tariffs.

He, therefore, called for immediate reforms to ensure the survival and sustainability of the industry.

The ALTON chairman said soaring energy prices, persistent inflation, and fluctuating exchange rates are key factors affecting the operators and threatening the survival of the industry.

Adebayo said: “As we reflect on the end of year 2024, there is a need to issue an urgent and critical call to action for the future of our telecommunications industry.

“The survival of the sector demands immediate and bold reform for its sustainability.

“Tariffs must be reviewed to reflect the economic realities of delivering telecoms services at a minimum for industry sustainability.”

He warned of dire consequences if the necessary tariff adjustments are not made, including service shedding, economic fallout, and national economic disruption.

Adebayo explained that service shedding would mean that operators may be unable to provide services in certain areas or at specific times, leaving millions of Nigerians disconnected.

The ALTON boss said key sectors such as security, commerce, healthcare, and education, which depend significantly on telecom infrastructure, would experience major disruptions due to service shedding.

“This will have significant economic fallouts, as businesses will suffer from a lack of connectivity, stalling growth and innovation,” he added.

By: Babajide Okeowo

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