Alton: Telecoms industry load shedding may be last resort

The telecom industry in Nigeria is facing a looming threat of load shedding, which could potentially impact the quality of calls and data services provided to consumers. The Association of Licensed Telecom Operators of Nigeria has raised concerns about the industry's ability to keep up with operational costs, prompting the possibility of resorting to load shedding as a last option. In a recent interview with CNBC Africa, Gbenga Adebayo, Chairman of the Association, highlighted the challenges faced by telcos and proposed solutions to ensure sustainable growth for Nigeria's digital economy. Adebayo emphasized the need for immediate retail pricing adjustments, concessionary funding for capital expenditure (CAPEX) investment, and the expansion of regulatory capacity as crucial steps to address the pressing issues in the telecom sector. According to Adebayo, the current operational landscape for telecom operators in Nigeria has become increasingly challenging, with rising costs and financial constraints threatening the industry's viability. The Association of Licensed Telecom Operators of Nigeria is advocating for urgent interventions to support the sector and enable it to overcome these obstacles. Adebayo stressed that without immediate action, the telecom industry may be forced to implement load shedding measures, which could have detrimental effects on service quality and consumer experience. One of the key recommendations put forth by the Association is the adjustment of retail pricing to reflect the true costs of providing telecommunications services. Adebayo explained that the current pricing structure is not sustainable for operators, leading to financial strain and operational inefficiencies. By implementing retail pricing reforms, telecom companies can improve their revenue streams and ensure long-term sustainability in a competitive market environment. In addition to pricing reforms, the Association is calling for concessionary funding to facilitate CAPEX investment in network infrastructure and technology upgrades. Adebayo highlighted the importance of continuous investment in telecom networks to enhance service quality, expand coverage, and meet growing consumer demands for data and connectivity. Access to affordable funding options can help operators overcome financial barriers and accelerate their growth and innovation initiatives. Furthermore, the expansion of regulatory capacity is seen as a critical element in fostering a conducive environment for the telecom industry in Nigeria. Adebayo underscored the need for robust regulatory frameworks that promote fair competition, consumer protection, and industry compliance. By strengthening regulatory oversight and enforcement mechanisms, the government can ensure a level playing field for all market participants and uphold standards of service excellence and accountability. Looking ahead, Adebayo expressed optimism regarding the potential for sustainable growth in Nigeria's digital economy, provided that the necessary policy interventions and industry support measures are implemented timely. He highlighted the importance of collaboration between government agencies, telecom operators, and other stakeholders to drive innovation, investment, and development in the sector. By working together towards a common goal of enhancing digital connectivity and accessibility, Nigeria can unlock new opportunities for economic growth and social advancement. In conclusion, the telecom industry in Nigeria is at a critical juncture, grappling with financial challenges and operational complexities that require immediate attention and strategic interventions. The recommendations put forth by the Association of Licensed Telecom Operators of Nigeria underscore the urgency of addressing these issues to ensure the sector's sustainability and competitiveness in a rapidly evolving digital landscape. By prioritizing retail pricing adjustments, concessionary funding support, and regulatory enhancement, stakeholders can pave the way for a thriving telecom ecosystem that delivers value, innovation, and connectivity to all Nigerians.