Leaders are burden-carriers. So, it was not surprising that the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) Engr. Gbenga Adebayo, used the occasion of ALTON’s End-of-Year Dinner with Industry Stakeholders on Sunday 29th December 2024, to throw more bright light on the kind of burden he is carrying, what needs to be done to eliminate and or bring the burden to the barest minimum and those required to do something to lessen and or eliminate the burden, since he can’t go it alone.
Engr. Adebayo began: “As we reflect on the ending of year 2024 there is a need to issue an urgent and critical call to action for the future of our telecommunications industry.
This is not a time for further deliberation or delayed decisions. The survival of the telecom sector demands immediate and bold reform for its sustainability, our tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability. Without this, operators cannot continue to guarantee service availability.
I must say it again with even greater urgency that we are in the last days for the survival of this sector and if immediate and decisive action is not taken, the hope for a better 2025 will remain just that—a hope.”
According to Adebayo, the telecommunications sector is under siege. And, not a few watchers will agree with him on this characterization. He explains: “The challenges we face are not new, but they have become more acute and more threatening with this passing year. Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst others, have all placed an unsustainable burden on network operators. Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernize our networks are simply no longer available. Without intervention, the future of this sector is at grave risk.
“If nothing is done, we might begin see in the new year grim consequences unfolding, such as Service Shedding; Operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic Fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation. There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions.
“As we navigate this near turbulent year for the sector, we are confident that history will judge us right for the role we have played in an attempt to rescue this sector. Stakeholders have stood together to uphold the values and importance of telecommunications in our society.
However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.
Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector.
If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardize one of the most critical pillars of Nigeria’s development. But if we succeed, 2025 can be the year we turned things around—a year of hope, resilience, and sustainability for the telecom industry.
The time for action is now. Let us not wait until it is too late. ALTON stands ready to work with all stakeholders to ensure the survival and prosperity of this sector.
Thank you, and let us move forward together with determination and urgency. Happy New Year 2025.”
Now, from a cursory look at the address of the ALTON Chairman, it would appear the problem has properly defined and some of the curative measures are reasonable and should be pursued. However, it would also appear that ALTON expects the bulk of the corrective measures to be addressed from without and not within its fold. There are three critical stakeholders whose interests must not be toyed with if a sustainable telecommunications services environment is to be attained namely: the industry, government and consumers. Government interests are largely protected by the telecommunications umpire(regulatory front) and the Ministry of Communications, Innovation and Digital Economy(FMoCIDE-policy front).
In recent times at many an ICT fora, the survival of the telecommunications industry has crept up with many analysts supporting the idea of raising tariffs while others opposing it. Even as we write, there are sponsored stories in both conventional and social media suggesting that the NCC has okayed the idea of raising tariff as one of the options out of the current challenges faced by the industry. Interestingly, the sector regulator has not yet officially stamped tariff increment. It is being speculated that it might yield to industry pressure and allow this happen early next year. We are glad to note that the NCC is competent and knows what to do to keep the industry sustainable and the public has been repeatedly assured the regulator is not thinking of doing anything that will jolt the consumers, who are the ones heavily under siege.
Consumers are to be encouraged to be eternally vigilant and proactively defend critical national information infrastructure, from bandits, vandals and thieves bent on making our lives and livelihoods unbearable. While tweaking the tariff structure on the national network to reflect current operational realities, is plausible, we caution that no extra burden be placed on the shoulders of telecoms consumers.
ALTON and the Association of Telecommunications Companies of Nigeria(ATCON)among others, should encourage their members to take the industry Code Of Corporate Governance seriously. Telcos cannot continue to flout the code and expect the regulator and other stakeholders to intervene. This, surely, would amount to going to equity with dirty hands.
We urge and advise telcos to take the opportunity of these trying times to iterate. Iteration is a time-tested prescription from investment experts to beat trying times. In business, iteration refers to the process of repeating a process, analyzing the outcomes each time, and modifying for ultimate efficiency in hopes to achieve a certain objective or outcome. Iteration is commonly used in product development, problem-solving, and decision-making, allowing for continual adjustment and adaptation based on feedback and results. Iteration in Business Intelligence involves repeatedly analyzing data, refining strategies and adjusting business practices based on insights.
ALTON’s readiness to work with all stakeholders to ensure the survival and prosperity of this sector is commendable. A sure way to verify its seriousness, however, is to cause its members to self-regulate, avoid observing the Code of Corporate Governance in the breach and to iterate, iterate and iterate, as a lasting panacea to emplace a sustainable telecommunications sector in the country.
