Airtel Nigeria Supports Higher Prices as Costs Rise by Over 300%

Airtel Nigeria has joined other companies in the telecommunications industry in asking for higher service charges because their costs of operation have risen by over 300%.

Mr. Dinesh Balsingh, the CEO of Airtel, explained in an article that prices need to increase to keep offering good digital services and to support Nigeria’s progress in becoming more digital.

He pointed out that prices for telecom services haven’t changed in over a decade, even though the costs to run these services have jumped significantly in the last two years.

Balsingh stated that adjusting prices to match economic conditions is crucial to continue providing quality services and to handle the increasing demand for digital connections.

Balsingh also highlighted the need for more investment to improve and expand telecommunications infrastructure, which is essential for supporting key sectors like education, banking, and healthcare.

He said, “As demand for digital services grows, we must upgrade our networks to provide better service, but these upgrades are expensive. The cost needs to be shared fairly to keep the telecom sector stable in the long run.”

The changes in prices are not just to keep the company running but also to improve the services, allowing the company to expand coverage, strengthen network security, and introduce new technology, improving how people connect in Nigeria.

Similarly, Mr. Karl Toriola, the CEO of MTN Nigeria, mentioned last week that telecom companies have asked for a price increase of about 100% to keep the industry stable, not just to make more money in the short term.

However, he noted that the Nigerian Communications Commission (NCC) might not approve such a big increase because they are considering the economic situation in the country.

The request for higher prices has been supported by two major telecom industry groups in Nigeria, the Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), for over two years.

They argue that the increase is necessary because the cost of running their operations has gone up.