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By Chinenye Anuforo
Telecom operators have sounded the alarm over potential major service disruptions in 2025 that will affect millions of hapless subscribers
Speaking through their union, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) at a recent stakeholders’ end-of-year meeting, they said the impending crisis, though avoidable, was driven primarily by a litany of challenges.
The operators listed soaring operational costs, fueled by record inflation, fluctuating exchange rates and escalating energy expenses as the blights severely straining the sector’s financial viability.
They noted that despite these challenges, telecom tariffs remained stagnant, leaving them ill-equipped to maintain and expand their net- works.
“The telecom sector urgently requires significant reforms to ensure its long-term sustainability.
“Tariffs must accurately reflect the true cost of service delivery. Without this adjustment, operators cannot guarantee the continued availability of reliable services,” ALTON chairman, Gbenga Adebayo, noted.
He cautioned that with- out urgent intervention, service shedding could become inevitable.
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“Operators may be forced to limit services to certain areas and times, disrupting connectivity for millions. This will have far- reaching economic consequences, particularly for sectors like security, commerce, healthcare, and education, which rely heavily on telecom infrastructure.
“Businesses will face significant connectivity challenges, stalling growth and innovation. The national economy will suffer from a ripple effect of disruptions,” Adebayo warned.
Earlier in 2024, telcos had hinted at service disruption due to load shedding, stating that they are becoming incapable of providing services as they used to.
Load shedding is a deliberate practice of shutting down some or all of a telecommunications service in a specific area to prevent the entire system from failing.
In 2023, the sector grappled with foreign exchange losses, with MTN and Airtel recording a combined N1.29 trillion in FX losses. MTN reported a N514.93 billion loss for the nine months ending October 2024, despite a 33.7 percent growth in service revenue to N2.37 trillion. Similarly, Airtel’s revenue fell by 46.9 percent to $755 million during the same period. Operators have already reduced investments in the country, and according to key players, the sector is in crisis and only a tariff review can help it.
Karl Toriola, CEO of MTN while addressing a hybrid telecom investment forum had emphasised, “There should be no delusion; if the tariff doesn’t go up, we will shut down.” While highlighting the challenges facing telecom operators, he emphasized that without addressing the fundamental issues, the sector could face a severe downturn.
“The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. The telecom sector is in the ICU stage,” he stated.
