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Increase in tariff for voice calls and data looms

There are indications that Right of Ways for telecommunication companies issues with state governments in Nigeria may cause increase tariff for voice calls and data.

Sources revealed to YOU NEWS that some states have seen telecoms sector as cash cow that should milked, adding that they come with very spurious taxes, charges and levies.

Telcos may have no choice but increase tariff for voice calls and data over the decision of 14 state governments to increase the cost of right of way (RoW) for telecommunication infrastructure.

The telcos, acting under the aegis of Association of Licensed Telecoms Operators of Nigeria (ALTON) had warned that the regime of discriminatory tariff regime may become inevitable as they operate under diffrent conditions in some states.

The RoW charge is the levy paid to state governments for laying of optic fibre on state roads.

At present, the cost of RoW on federal roads is N142 per linear metre.

The 14 states, however, increased RoW fees from between N300-N500 per linear metre to between N3,000-N6,000 per linear metre.

For example the new management of the Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA) increased RoW fee from N500 per linear meter to N5,000 per linear metre.

A single telecoms operator needs RoW covering thousands of kilometres.

Telcos across the country have previously blamed the poor service experience of subscribers on the refusal of federal and state agencies to grant RoW licence to lay more fibre optic cables in cities.

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