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Telecos plan voice, data services tariff increase for GSM subscribers

Telecommunication companies operating in Nigeria have proposed increase in the tariff charges for voice and data services by Global System for Mobile Communication Subscribers.

The ongoing study conducted by KPMG, which was commissioned by the Nigerian Communications Commission (NCC) has said.

The cost-based study, according to o multiple news sources, is recommending higher tariffs to help the telecommunication companies stay in business.

Citing growing cost of doing business in Nigeria arising from high cost of diesel, otherwise called AGO, including the depreciation of the Naira that affect purchase of equipment, the KPMG study is exploring the right pricing structure suitable for the industry based on its findings.

According to reports, some officials, of the telecommunication companies had expressed support for adjustment of prices upwards.

A telecommunications official privy to the meeting said was essential in order to sustain the telecom business amidst prevailing economic challenges,.

“We are earning in Naira and about 80 percent of our costs are in dollars.

“There’s no way we can have a sustainable business without increasing our prices with the value of the Nigerian currency falling every day.

“Already, it’s becoming very difficult to import equipment as costs continue to increase.

“So, increasing tariffs is no longer a matter of choice. It is a matter of urgency because a further delay will be at the detriment of the industry.”

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