Business

Airtel CEO Give Reasons for unavoidable Tariff Increases

Published by admin on January 7th, 2025.

Airtel CEO Give Reasons for unavoidable Tariff Increases

Airtel Nigeria’s CEO, Dinesh Balsingh, has stated that the telecommunications sector is facing an unavoidable tariff hike due to a 300% rise in operating costs over the past 18 to 24 months. This surge in expenses, he explained, is essential for the long-term sustainability of the industry.

In a statement shared with The PUNCH on Monday, Balsingh shed light on the economic challenges that have been impacting the telecom sector. He noted that while operating costs have escalated sharply, tariffs have remained unchanged for over a decade.

Nigerian telecommunications companies have formally submitted a proposal to the Nigerian Communications Commission (NCC) for a 100% increase in tariffs.

“For more than ten years, tariffs have been stagnant despite a dramatic increase in operating expenses, which have surged by over 300% in the last two years alone,” Balsingh explained. “To maintain high-quality services and meet the growing demand for digital connectivity, it’s crucial to adjust pricing in line with economic conditions.”

Balsingh also pointed out the need for significant investments in telecom infrastructure, emphasizing the importance of continuous upgrades to meet the increasing demand for digital services across various sectors such as education, banking, and healthcare.

“As demand for digital services rises, we are forced to invest in and upgrade our networks. These investments come with a cost, and to ensure long-term viability, this burden must be shared fairly,” he added.

The proposed tariff changes, according to Balsingh, will not only safeguard the sustainability of the telecom industry but also result in enhanced service quality for consumers. These adjustments, he said, will help expand network coverage, improve security, and enable the introduction of advanced technologies that will elevate the connectivity experience for Nigerians.

“Our goal is to ensure that every Nigerian benefits from the country’s digital transformation,” he noted, reiterating that the tariff increases would be introduced gradually to minimize the impact on consumers.

Balsingh reaffirmed Airtel’s dedication to supporting Nigeria’s vision of becoming a leading digital economy in Africa. He also emphasized that these changes are necessary to remain competitive globally.

“Airtel is committed to providing top-tier services. While the tariff adjustments are vital, we understand the need for a careful and gradual approach to support our customers financially, enabling us to continue investing in our infrastructure and delivering better services,”

Balsingh concluded.