Telecommunications operators have harped on the challenges confronting the $76 billion sector, saying they cannot be swept under.Under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), the telcos have demanded urgent actions to tackle the perennial problems.
ALTON Chairman, Gbenga Adebayo, said the telecoms sector should not be a palliative to solve economic woes. He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch in Abuja.
According to Adebayo, an engineer, the telecoms industry faces numerous challenges that hinder its growth and development. He emphasised the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.
The GSMA digital report highlighted the telecom’s eight per cent contribution to Nigeria’s GDP and 13.5 per cent when considering the broader ICT ecosystem.
The report also highlighted the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.
Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right-of-way costs. He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services. He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.
“The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concerns. While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” Adebayo said.
