The Nigerian Communications Commission (NCC) has sanctioned a significant 50% surge in call tariffs, effective immediately. This drastic increase is projected to escalate the average cost of calls to a staggering N16.5 per minute.
According to the NCC’s 2023 national telephone traffic data, this tariff hike is anticipated to yield a whopping N6.74 trillion in revenue for telecom operators by 2025, assuming call volumes remain steady. Consequently, Nigerian consumers may bear the brunt of this increase, potentially shelling out this substantial amount to telecom firms.
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However, it’s essential to note that this projection excludes the potential impact of free and discounted call promotions, which may significantly alter actual revenue figures. These promotional offerings could cushion the financial blow to consumers, potentially reducing the overall revenue generated for telecom operators.
Analysis of Nigeria’s 2023 Telephone Traffic Report
A recent analysis of the Nigerian Communications Commission’s (NCC) 2023 Subscriber/Network Performance Report reveals intriguing insights into the country’s telephone traffic patterns. The report indicates that Nigerians spent a staggering 408.5 billion minutes making local calls in 2023.
Key Findings
- Total outgoing telephone traffic reached 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
- MTN dominated the market, recording 122.7 billion minutes of outgoing traffic and 123.8 billion minutes of incoming traffic.
- At the new rate of N16.5 per minute, MTN’s combined revenue from outgoing and incoming calls is projected to exceed N4 trillion.
Market Projections
The analysis projects the following revenues for telecom operators in 2025:
- MTN: N4 trillion
- Airtel: N1.78 trillion
- Glo: N536.2 billion
- 9mobile (EMTS): N105.6 billion
- Smile: N5.7 billion
- Ntel: N13.1 billion
- Impact of Tariff Increase
The projected N6.74 trillion revenue highlights the significant impact of the tariff increase. Outgoing calls alone are expected to bring in N3.28 trillion, while incoming calls will contribute an estimated N3.23 trillion.
Market Trends
Despite the growing popularity of data services and over-the-top messaging platforms, voice calls remain a significant revenue driver for telecom operators. MTN’s dominance in outgoing and incoming traffic reinforces its leadership position, with Airtel and Glo following as major contributors. In contrast, smaller operators continue to face challenges, with limited market penetration and a smaller customer base impacting their revenue potential.
The Nigerian Communications Commission (NCC) has approved a 50% tariff adjustment for telecom operators to help them cope with rising operational costs and challenging market conditions. This decision, made under the NCC’s regulatory powers, allows operators to increase their tariffs but at a lower rate than the over 100% hike some had requested.
The NCC’s Director of Public Affairs, Reuben Muoka, announced that the adjustment aims to bridge the gap between operational costs and current tariffs, ensuring that operators can maintain service quality and invest in infrastructure and innovation. The commission has also mandated operators to implement the adjustments transparently and fairly, educating consumers about the new rates and demonstrating improved service delivery.