Hike in data subscription limits SMEs’ internet usage

Small Medium Enterprise (SME) owners have expressed concern over the hike in the cost of data subscription, forcing them to survive on paltry subscriptions to enable internet connectivity. Daily Trust reports that the Nigerian Communication Commission (NCC) had approved an increase in telecom tariff by 50 per cent instead of a 100 per cent hike […]

Small Medium Enterprise (SME) owners have expressed concern over the hike in the cost of data subscription, forcing them to survive on paltry subscriptions to enable internet connectivity.

Daily Trust reports that the Nigerian Communication Commission (NCC) had approved an increase in telecom tariff by 50 per cent instead of a 100 per cent hike demanded by the telecommunication operators. 

The approved adjustment, however, sparked reactions from the Nigeria Labour Congress (NLC) and other groups, demanding a reversal but to no avail.

Since the commencement of the approved 50 per cent adjustment, the increase in the cost of data has left a sour taste in the mouth of small business owners.

Hassan Alabi, a POS attendant, who uses a router, stressed how N5000 worth of data subscription of one of the major telecommunication firms finished quickly, in under a week.

He, however, said he finds solace in the use of one of the internet service providers, citing the double data and roll over plan as succour.

“Before, I used to buy 20gb for N5,500 but now it is N6,000 for 18gb but it still lasts one month and when I not able to finish it, it automatically rolls over and that is for Spectranet.

“The last time I loaded N5,000 on a major telecommunication internet provider on my router, it was not up to one week when it read finished,” he said.

Olu Ojeniyi, who runs Bikita studio said his data subscription cost has been increased to N9000 for 15gb from N2000 for the same one-week bundle. 

He described the increase as a financial strain, saying the hike in data cost has limited internet use by subscribers.

“Subscribers deserve transparency, reliability and value for their hard-earned money but we can’t say we are getting value for our hard-earned money,” he said.

In an interview with our correspondent, Prince Sina Bilesanmi, National President of the Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS), stated that the association urged telecom operators to improve their services during the meeting where the decision to increase tariff was concluded.

He expressed concern over the plight of subscribers, but also cited the rising operational cost and the risk of exit raised by the telecom operators.

“Directly or indirectly, over 60,000 might lose their jobs,” he said.

He stressed that the association will keep an eye on the telecom operators to fulfil their promises to improve their services.

“The telecom operators said they have shipped in equipment to improve the quality of their services, so we are waiting,” he said.    

As of December 2023, Nigeria had over 224 million subscribers, according to official data by the NCC. MTN boasts of over 87 million subscribers, representing 38.79% of the total market share, the highest in the country by any licensed Mobile Network Operator (MNO). Globacom and Airtel have 61 million subscribers each while 9mobile has 13.9 million users.