MTN Gives Update on Voice and Data Cost Increase Amid Regulatory Constraints

In a recent interview on Arise TV, Modupe Kadri, the Chief Financial Officer of MTN Nigeria, expressed concerns over the telecom industry’s inability to pass on increasing operational costs to subscribers. Despite inflation impacting various sectors, telecom operators, as regulated by the Nigerian Communications Commission (NCC), are currently restricted from adjusting tariffs pending a cost-based study.

Kadri highlighted the industry’s struggle for fair pricing to sustain business operations, emphasizing the potential threat to smaller players if urgent interventions are not implemented. He drew parallels with other regulated sectors, such as petroleum, where cost adjustments were allowed to reflect changes in the macroeconomic landscape.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has also advocated for a tariff hike, citing rising operational costs. However, the NCC insists on conducting a comprehensive cost-based study, led by KPMG, before any adjustments can be made.

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The telecom industry’s call for fair pricing aligns with the need for sustained business operations, infrastructure investment, and enhanced customer experiences. Kadri emphasized the importance of considering MTN within the broader industry context, urging regulators to recognize the impact on the ecosystem’s survival.

As the debate on tariff adjustments continues, the industry awaits the outcome of the ongoing study to determine the appropriate pricing framework. The challenge lies in balancing consumer interests, industry sustainability, and the need for operators to invest in infrastructure for improved service delivery.