Dr. Ayotunde Coker, CEO of Open Access Data Centre (OADC), has urged Nigerian telecom operators to adopt a tiered pricing model. This system would allow consumers with greater spending power to pay more for telecom services, while a more affordable template would cater to the larger population with less financial means. Dr. Coker made the call during an industry webinar on Saturday, September 21, themed “Beyond Connectivity: Telcos and the Future of Financial Inclusion in Nigeria.”
Despite inflation pressures driving up the cost of goods and services, telecom companies remain restricted from adjusting their prices due to regulatory limitations from the Nigerian Communications Commission (NCC). Dr. Coker emphasized the need for telcos to adapt to economic realities and maintain service accessibility for all Nigerians. He proposed pricing models that cater to different consumer segments, stating that affluent users could pay higher rates, thereby subsidizing the costs for those relying on essential telecom services.
In comments made available to 9am News Nigeria, Dr. Coker said, “We must graduate products and services to fit different segments of society. More affluent consumers can afford certain services, which helps subsidize lower costs for others who rely on basic, essential telecom services.” He also suggested creative pricing strategies, such as offering discounted services at specific times for essential purposes like education and healthcare.
The Telecom Industry
According to Dr. Coker, is in urgent need of increased capitalization to prevent a decline in service quality, which would negatively affect Nigeria’s digital transformation agenda. He highlighted the need for investment in infrastructure upgrades and expansion to reach underserved areas, cautioning that “if we don’t invest in capital infrastructure, our broadband will keep failing, and all the benefits we talk about in terms of digital connectivity will disappear.”
Dr. Coker also addressed challenges related to the high cost of setting up telecommunications infrastructure, such as towers and data centers. He proposed that telecom companies collaborate to share infrastructure, which would reduce costs and increase sustainability for all players in the sector.
Telecom companies, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON), have been pushing for a review of tariffs to cope with inflationary pressures. However, the NCC has so far resisted these calls, leaving the telecom industry as one of the few sectors that have not adjusted service costs since inflation began surging over a year ago.
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