ALTON chair: Telecoms shouldn’t be used as palliative for economic woes

The Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, says the telecoms sector should not be used as a palliative to solve economic woes in the country.

Adebayo made the call at the Groupe Special Mobile Association (GSMA) digital economy report launch in Abuja on Thursday, May 9, 2024.

The GSMA digital report highlighted the telecom’s 8 per cent contribution to Nigeria’s GDP and 13.5 per cent when considering the broader ICT ecosystem.

The report also highlighted the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.

The ALTON boss, who said the telecom industry faces numerous challenges that hinder its growth and development, stressed the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.

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Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs, adding that it creates an unfavorable business environment, discouraging investment, and hindering the industry’s ability to deliver quality services.

He stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.

Adebayo said: “The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concern.

“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment.”

The ALTON chairman added that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators to work together to address the challenges facing the industry in order to drive economic growth and fulfil its potential as a critical sector in Nigeria’s economy.

The Star