Operators of telecommunication services in Nigeria has bemoaned the exorbitant cost of running telecom services in the country.
The operators under the umbrella Association of Licensed Telecoms Operators of Nigeria (ALTON) said they spend about N360 billion annually in diesel every year.
The association, however, cited the high cost of diesel for their recent proposed tariff increase in calls, SMS and data.
They added that the hike in diesel price has affected the cost of running network towers, base stations and offices, that diesel has increased from N225 per litre to N750 per litre as of March 2022.
Industry sources said that mobile telecommunication operators use an average of 40 million litres of diesel monthly to run telecom sites. By the current diesel cost, the price of powering telecoms services will be about N30bn monthly and N360bn annually. Reason for proposed tariff increase.
The telecom operators cited this and other reasons for the reason for the current proposed 40 per cent tariff hike for calls, SMS and data. Because of the development, ALTON for telcos is inching to increase the base price of calls from N6.4 to N8.98 and the price cap of SMS from N4 to N5.61.
The ALTON President, Gbenga Adebayo stated that the industry was one of the largest consumers of diesel in the country. The operators base their network planning, operational expense and projection plans on diesel prices. Cost of data, calls to increase as telecommunication companies.