Telcos Raise Data Rates

Two major telecommunications companies in Nigeria, MTN Nigeria Communications Plc and Airtel Nigeria, have increased prices for their internet data services by about 10 per cent.

Both companies confirmed the increase on their separate verified Twitter pages (@AirtelNigeria and @MTN180) in response to inquiries by their customers.

In the Nigerian National Broadband Plan 2020 to 2025, the Federal Government seeks to ensure cheaper data services in the country.

The government plans to achieve N1000 for 1Gb by 2023 and N390 for 1Gb by 2025.

Although this target has been met and surpassed, it is now threatened by the recent hike in data services by MTN and Airtel.

The recent 10 per cent hike is still less than the 40 per cent increase in the cost of calls, SMS, and data initially proposed by telecommunication companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria

In a letter to the Nigerian Communications Commission, the telecom companies had said that there had been a 40 per cent increase in the cost of doing business in the nation, which necessitated the proposed increase in services.

The letter read, “Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”

However, the NCC responded that there was a need to follow certain processes before an increase can be implemented.

During the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja, the Minister of Communications and Digital Economy, Isa Pantami, said that with the increase in operating costs due to inflation and rising diesel, among others, there were more than 15 attempts to increase the price of telecommunication services within three years, which he kicked against.

The minister also noted, “In spite of the contributions and achievements of the sector, we have been recording some challenges coming up from time to time that if care is not taken these challenges could be a barrier to the development of this sector in the next few years to come. One of them is the issue of excessive taxation and sometimes, multiple taxations in the sector.”

In the NNBP 2020–2025, the Federal Government targets at least one locally assembled smart device by 2023 with a target price of N18,000 and three locally assembled smart devices by 2025 with a target price of N9,000 each.

However, in a document obtained by our correspondent, it was noted that economic realities might hamper the government from meeting this target.

The document read in part, “Ongoing discussions suggest the targets may not be achieved based on economic realities.”