Due to a projected tariff increase that might quadruple service charges across the country, subscribers have stated that they are getting ready to sue telecom firms.
The rise has been fiercely opposed by the National Association of Telecommunications Subscribers (NATCOMS), despite telecom operators’ defense that it is necessary to offset growing operating costs. Adeolu Ogunbanjo, president of NATCOMS, stated that if the telecom operators move forward with the raise without first looking at alternate ways to make money, the group intends to bring a class-action lawsuit.
He urged the Nigerian Communications Commission to reject the operators’ request, calling the projected 100% pricing increase unsustainable and unreasonable. He said: “Initially, we were looking at a marginal increase of 5% to 10%. Then the NCC considered a 40% increase. Now, telcos are proposing 100%, and we are saying no.”
A voice call would cost N11.00 to N22.00 per minute, an SMS would cost N4.00 to N8.00 each message, and a 1GB internet bundle would cost N1,000 to N2,000 as a result of the planned pricing hike. The proposal is still being reviewed by the NCC, which has not yet reached a conclusion.
Ogunbanjo issued a warning available to BrandSpur telecom and IT news desk, saying that NATCOMS was prepared to contest any clearance in court. He said: “This is a sector of national interest, and we will not hesitate to seek legal redress to protect subscribers’ rights.”
Instead of increasing prices, he recommended that telecom companies look into the capital market.
According to him: “They can go to the Nigerian Stock Exchange to raise funds. Nigerians will buy their shares, and I am confident it will be oversubscribed. MTN has already done this successfully; other operators like Glo and Airtel should follow suit.”
Continuing, he recognized the telecoms’ financial strains, which include growing operating expenses and inflation. He did, however, stress that subscribers shouldn’t be left to deal with these difficulties without first looking into other feasible funding sources.
He had this to say: “If the operators cannot meet their financial needs after raising funds through the stock exchange, they can return to the table for discussions.”
According to the consumer group, low-income customers would be disproportionately impacted by the proposed raise, which could also make it more difficult for them to acquire necessary communication services.
However, in a previous interview on Arise TV, Karl Toriola, the CEO of MTN Nigeria, gave specifics regarding the rate proposal. Telcos had formally requested the 100% pricing hike from the NCC, but Toriola clarified that they were unsure if their proposals would be approved.
Despite the ambiguity, Toriola said he was certain the NCC will reach a fair conclusion that takes subscribers’ and the industry’s realities into account.
This year, operators have repeatedly demanded an adjustment for the first time in more than ten years, pointing to growing operational expenses brought on by inflation and macroeconomic factors.
