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ALTON, ATCON Seek FG’s Solution to Telecoms Industry Challenges

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The Association of Licensed Telecom Operators of Nigeria (ALTON) and The

Association of Telecommunication Companies of Nigeria (ATCON), representing

Mobile Network Operators and telecommunication companies in Nigeria, are calling

upon the government to take decisive action in addressing the numerous challenges

confronting the telecommunications industry. In a statement released today, the

associations underscored the urgent need for collaborative efforts between the public

and private sectors to overcome obstacles hindering the sector’s growth and

development.

Infrastructure Deficits: ALTON & ATCON members still lack access to essential

telecommunication services due to a myriad of challenges, including multiple taxation

and regulations and prohibitive Right of Way (RoW) charges, inadequate electric

power supply and vandalism of telecommunications infrastructure.

Protection of Assets and Network Infrastructure: Advocating for legislation that

designates telecommunications infrastructure as Critical National Infrastructure

(“CNI”): Both Associations expressed deep concern over the escalating security

threats facing telecommunications infrastructure in Nigeria. Telecommunications

infrastructure undisputedly plays a pivotal role in Nigeria’s national security and

socioeconomic growth, especially as the country currently contends with multiple

security challenges that require urgent and immediate actions in response to these

threats. Attacks on cell towers, fibre optic cables, and other critical assets disrupt

telecommunications services and result in significant financial losses for operators.

The associations urge the government to prioritize the security of telecommunications

infrastructure and collaborate with law enforcement agencies to enhance protection

measures and combat vandalism and sabotage effectively.

Cost-Reflective Tariff of Services: ALTON and ATCON respectfully reiterate that

telecommunications infrastructure development requires substantial investments in

network expansion, maintenance, and technology upgrades. Despite the adverse

economic headwinds, the telecommunications industry remains the only industry yet

to review its general service pricing framework upward in the last (11) years,

primarily due to regulatory constraints. For a fully liberalized and deregulated sector,

the current price control mechanism, which is not aligned with economic realities,

threatens the industry’s sustainability and can erode investors’ confidence. ATCON

and ALTON call upon the government to facilitate a constructive dialogue with

industry stakeholders to address pricing challenges and establish a framework that

balances consumers’ affordability with operators’ financial viability.

Regulatory Independence: ALTON & ATCON advocates for the sustenance of a

culture of independence in the regulatory landscape to safeguard against undue

influence and unwholesome incursion into the Nigerian Communications

Commission’s (NCC) or (Commission) domain, which will inspire trust in the

telecommunications sector and encourage investment. Regulatory neutrality and

independence are crucial to ensuring a thriving telecommunications sector. Statutory

provisions lend credence to this notion, as a lack of an impartial regulator will lead to

a failure to maintain public confidence in the objectivity and independence of its

decisions.

In conclusion, ALTON & ATCON reaffirms its commitment to working

collaboratively with the government to address the challenges facing the

telecommunications industry in Nigeria. By fostering a conducive regulatory

environment, prioritizing infrastructure development, enhancing security measures,

and facilitating pricing adjustments, the government can unlock the full potential of

Nigeria’s telecommunications sector, driving economic growth and societal

development.

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