Telecom operators had clamoured for increase in telephone tariffs, lamenting high cost of operations posing as major challenge to quality of service delivery. The Nigerian Communications Commission (NCC), after persistent calls by operators, approved a 50 per cent increase in tariffs, raising costs of phone calls, SMS, and data bundles nationwide. Consumers have described the hike in tariffs as highly insensitive, arguing that the increase may not eventually reflect in telephone service quality.

Considering the increasingly critical need for access to quality service delivery nationwide in a growing digital economy, improved service quality delivery by operators is central to this development. But to achieve this, the place of collaboration within the ecosystem has been emphasised. OLUDARE RICHARDS writes.

In an ever growing data-driven digital age, the need for quality telecommunication services is essential. However, the poor network services users are facing may have queried the justification of their recent 50 per cent tariff hike. Nigerian Communications Commission (NCC) had granted telecom service providers the permission to effect the price increase.

While service providers are gradually smiling to the bank, subscribers around the country are lamenting the persisting poor service delivery despite increase in tariffs. A few weeks ago, protesters in Anambra, Ebonyi and Enugu rued the recent hike in call and data tariffs by the telcos as permitted by the Federal Government, noting that it is not commensurate with the services provided.

Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, told The Guardian that while the telecommunications sector in Nigeria remains one of the most critical pillars of national development, the reason mobile network operators struggle to deliver improved service delivery is because service quality is intricately linked to infrastructure availability, security, power, and regulation.

Adebayo said: “The tariff increase was both necessary and long overdue. Nigeria has one of the lowest voice and data tariffs globally, yet telecom operators face some of the highest operating costs due to inflation, currency depreciation, diesel costs, and capital expenditure burdens.

“For years, the sector has borne these costs without corresponding tariff adjustments, putting sustainability at risk,” he explained.

He stressed that many of the issues affecting service delivery stem from factors beyond the control of operators. These include frequent fibre cuts (often due to road construction and vandalism), high energy costs from powering base stations due to poor national grid supply, multiple taxation and regulatory bottlenecks across states and local governments, and insecurity leading to restricted access to sites.

According to him, Nigerian telecom industry is at crucial crossroad and for consumers to enjoy world-class services, infrastructure challenges, implementation of cost-reflective tariffs, and creation of enabling policies that foster innovation and investment must be addressed.

He noted that it is important to emphasise that tariff adjustments are not aimed at profiteering but ensuring the survival of operators who continue to deliver services in a challenging business e environment.

He pointed out though that tariff reviews would not result in overnight improvements, but they are a critical enabler. With improved revenue inflows, operators will be better positioned to invest in network modernisation, 5G rollout, site densification, and redundancy infrastructure.

“That said, service delivery also depends on the overall ecosystem, including other government policies, infrastructure security, impact of multiple taxation, and right-of-way policies. Tariff review is one part of the solution, government and stakeholders must address the ecosystem issues holistically,” he said.

Adebayo agreed that the future of telecommunications lie in diversification and operators are already exploring and investing in adjacent areas like financial technology (FinTech), data centers, content delivery networks (CDNs), edge computing, and Internet of Things (IoT) services.

These areas offer sustainable income models and help reduce reliance on voice and data, which are fast becoming commoditised services. Expanding into these verticals also aligns with Nigeria’s digital economy aspirations and opens new frontiers for innovation, job creation, and revenue generation.

He further noted that partnerships and collaborations with startups and tech innovators are not only desirable, they are imperative for telcos because they bring infrastructure and scale, while startups bring agility, innovation, and niche solutions.

According to him, the synergy can drive digital inclusion, local content development, and creation of new value-added services that meet the evolving needs of consumers.

“We need a robust ecosystem where telcos act as enablers, platforms, and collaborators in a broader digital value chain. Such partnerships can accelerate innovation, reduce time-to-market for new services, and deepen digital penetration across the country,” Adebayo stated.

Development economist and Chairman of Board, Amaka Chiwuike-Uba Foundation, Prof. Chiwuike Uba, said primary issues associated with challenges against service delivery by telcos include inadequate infrastructure, limited investment in technology, and regulatory barriers that can impede operational efficiency.

He said several telecom companies also face high operational costs due to maintenance of existing infrastructure occasioned by harsh business environment, which can detract from their ability to invest in enhancements.

“Tariff hikes, if any, should be accompanied by tangible improvements in service quality. Consumers want to see better network performance as a prerequisite to any increase in costs.

“Without improvements, consumers may perceive the increase as unjustifiable. However, whether it was a viable resolution largely depends on how transparently and effectively these additional funds are utilised. If consumers do not see a corresponding improvement in service quality, the increase could lead to disillusionment and decreased customer loyalty,” he said.

The development economist noted that ideally, the tariff increases should allow service providers to invest in better infrastructure and technology, which could result in improved service delivery. However, without strict regulatory oversight and accountability measures, there remains a concern that the additional income may not be effectively channeled towards enhancing services.

Apparently, consumers will expect measurable and demonstrable improvements after such increases. If the funds are strategically reinvested into infrastructure upgrades and enhanced customer support, there could be positive outcomes.

“There should be a clear, transparent approach to utilising these funds by the service providers. This is necessary to avoid a repeat of what is happening with the energy sector where the discos have failed to make the right investments, yet have consistently asked for cost-reflective tariff,” he explained.

Professor Uba agrees that telecommunication companies should diversify their revenue streams beyond traditional voice and data services. He believes that the digital landscape offers numerous opportunities, including value-added services like mobile financial services, e-commerce platforms, IoT solutions, and partnerships with content providers for streaming services.

“This diversification not only enhances sustainability but also positions telcos as integral players in the broader digital economy. By exploring these avenues, telcos can build resilience against market volatility and contribute to a more sustainable business model,” he told The Guardian.

Regarding partnerships and collaborations, he said that there is significant potential for synergies through partnerships, especially between larger telecommunications companies and startups or small businesses. He believes such collaborations can foster innovation, leverage shared resources, and create new market opportunities.

“By supporting smaller players through mentorship, funding, or resource sharing, larger companies can contribute to resilience and growth in the economy, while also gaining access to fresh ideas and agile solutions in an ever-evolving digital landscape,” he said.

Chairman of Mobile Software Solutions Ltd, Chris Uwaje, said Nigeria is at the mercy of intersections and interplay of ownership and service delivery with the nation focused on consumerism rather than creativity and production/service delivery in the value-chain of the national information infrastructure. Also, ownership and exchange rate regime in Nigeria play critical roles in determining direction of policies and markets.

Therefore, the redefinition of the ownership structure, and the dynamic roles within the intersections and intrinsic interplay of telecommunications network and service providers for national development and security has become a critical obligation and imperative for the survivability of the nation.

He explained that while some experts may be right to believe that telcos should consider exploring other areas of the digital expanse for income generation and sustainability other than the traditional calls and data services, it still would not address the challenge of ownership influence on critical structures of the economy where lack of equitable government ownership and participation leaves the nation at the mercy of capitalist market determination.

“That does not resolve the critical factor of foresighted ownership structure. Indeed, other schools of thought may argue that if a nation owns the telecommunications infrastructure and hand it over to technical business managers to deliver services on commission, such nation can deliver a low cost and/or cost-free telecommunications services to 50 million citizens to supercharge production process and build large skill capacities that are exportable, just as India exports high skill manpower,” he said.

According to Founder, Jidaw Systems, Jide Awe, the issue is that telecommunication providers have been clamoring for an increase before now because their operating expenses had gone up.

“As I am talking to you, there was no power supply for nearly the whole day. This is part of what they are facing too; the power infrastructure is not reliable. We must also factor in the subsidy removal, which has increased their expenses. Cost of doing business everywhere has increased.

“Power supply is an issue they need to address even before the tariff increase. The issue now is that increasing the tariff may not solve the problem because they also need to address the fact that subscribers need affordable telecommunication services. The same high cost of living is affecting subscribers.

“Meanwhile, we are in a digital era. This means that we must have the ability to use digital services and they should be accessible to everybody. Digital access and digital inclusion should be a right of everybody,” he said.

Awe said in a digital economy where power is needed to empower the people and unlock the potential of everybody, progress cannot be made where the people are excluded from the digital economy in today’s era.

“It is contradictory if we say we are increasing the cost of accessing telecommunications services in a digital era while we know we actually need more participation in our digital economy so we can benefit from the digital age.

“The government should not only look at the service providers’ aspect alone but also the consumers; there must be balance.

“Another thing is that the Federal Government should have ensured that upon raising tariffs, they should have ensured that there is a commitment on the part of the Service Providers for the improvement of quality of service because what is the essence of increasing the cost of a service while the quality is still as bad or even getting worse.

“When a commitment of such magnitude is done on behalf of the public, there must be some kind of interaction, engagement and monitoring to see the impact and there must be room for measures to be taken to address the problem.”

He also agreed that the telecom industry itself must start looking beyond the traditional way of making revenue. He explained that they must look beyond phone calls, data services and start exploring more areas around digital transformation, emerging technologies, data analytics and B2B services.

He believes that such venture efforts though would require better proactivity and a swift approach to innovation and development solutions in a digital economy.

Information Technology/Telecom Engineer and Founder of techbooky.com, Paul Oluwafemi Balo, is of the view that persistent insecurity has led to vandalism of base stations, while bureaucratic delays in spectrum allocation and right-of-way (RoW) levies further cripple expansion efforts. The sector also struggles with forex scarcity, making it difficult to import critical network equipment.

He however, has the contrary perception that that the increase is not a viable resolution. He said while telcos face rising operational costs due to inflation and forex instability, increasing tariffs without first ensuring service improvements only exacerbates the economic hardship faced by consumers.

Balo said it places an undue burden on citizens already struggling with high living costs and if citizens spend less on telecom services, this results in decreased revenue for the telcos. “This is not good for business,” he said.

He also believes that the tariff increase is unlikely to lead to better service delivery. He explained that without strong regulatory oversight to ensure that additional revenue is reinvested into infrastructure, the increase may not translate into better service.

“Price hikes must be accompanied by policies that enforce network expansion, improved data speeds, and service reliability. By sampling opinions on social media platforms like X, you hear daily from Nigerians their frustrations in completing calls over the internet using services like WhatsApp,” he said.

Balo agreed that telcos should explore alternative revenue streams beyond the traditional calls and data. He explained that Nigeria’s digital economy presents vast opportunities in fintech, cloud computing, IoT, and AI-driven services. He said telcos should also leverage mobile money, e-commerce, and blockchain-based solutions to diversify income streams and reduce dependence on tariffs.

“Some like MTN and Airtel are already doing these but I encourage them to do more like providing services directly to the growing startups environment in Nigeria,” he noted.

“Strategic partnerships between telcos and startups have proven successful in various countries and can be a key driver for digital innovation, financial inclusion, and economic resilience in Nigeria.

“For instance, in the United Kingdom, BT (British Telecom) collaborates with tech startups through its Innovation Martlesham hub, fostering advancements in 5G, AI, and cybersecurity. Similarly, in the United States, Verizon and AT&T run startup incubators that support innovations in IoT, smart cities, and cloud computing, helping to enhance digital services.

“China has demonstrated how large corporations can integrate with startups, as seen with Huawei and Alibaba partnering with small tech firms to expand AI capabilities, cloud computing, and digital payments, ultimately driving financial inclusion and e-commerce expansion.

“In Africa, countries like South Africa have embraced telco-startup collaborations. MTN’s supersonic initiative and Vodacom’s partnerships with fintech startups have significantly boosted mobile payments and digital financial services, improving accessibility for underserved communities,” he said.