Dinesh Balsingh, the CEO of Airtel Nigeria, stated that pricing revisions are required for the telecom industry’s long-term sustainability due to the 300 percent increase in operating costs over the past 18 to 24 months.
Balsingh emphasised the challenging economic conditions facing the telecom sector in a statement to The Punch on Monday.
He emphasised that even though running costs have increased significantly, fares have been the same for more than 10 years.
Read also: Airtel Africa commences second share buyback program, aims to return $100 million to shareholders
The Nigerian Communications Commission, the nation’s telecom regulator, has received proposals from Nigerian telecom providers for a 100 percent pricing rise.
Balsingh claims that the telcos’ calls for tariff review are intended to guarantee the sector’s sustainability while providing substantial advantages to Nigerian customers.
He noted, “For over a decade, tariffs have remained static despite the dramatic increase in operating expenses, which have surged by over 300 per cent in the last 18 to 24 months alone.”
“To continue providing high-quality services and meeting the growing demand for digital connectivity, it has become essential to realign our pricing structure with economic realities,” Balsingh emphasised.
“Tariff hike needed to provide quality service”
The high costs of expanding and maintaining telecommunications infrastructure were also described by the CEO.
He pointed out that to provide more capacity and better service quality, the growing demand for digital services across industries like banking, healthcare, and education necessitates ongoing network upgrades.
“The increasing demand for digital services requires us to continually upgrade our networks. These investments come at a cost, one that must be shared proportionally to guarantee long-term viability,” Balsingh added.
He claimed that in addition to guaranteeing the sector’s sustainability, the proposed tariff adjustments would result in notable enhancements to service delivery.
“By enabling us to expand coverage, strengthen network security, and introduce cutting-edge technologies, these adjustments will directly enhance the quality of connectivity for Nigerians. Our priority is to ensure that no one is left behind in the country’s digital transformation journey,” he explained.
Read also: Airtel Nigeria, Mobihealth collaborate to enhance telehealth services for underserved Nigerians
Affordability consideration for consumers
Balsingh stressed that to reduce the impact on consumers, the tariff modifications would be undertaken with affordability in mind.
He reiterated Airtel’s dedication to advancing innovation, promoting inclusive growth, and helping Nigeria realise its aim of becoming Africa’s leader in the digital economy.
“Our commitment to quality service remains unwavering,” Balsingh said. “While significant tariff adjustments have become necessary, we understand the importance of gradual implementation to support our customers’ financial positions.”
“This step will enable us to invest in capacity, expand coverage, and enhance service delivery, ensuring Nigeria remains competitive in the global digital landscape,” he opined.
