tariff adjustments Archives | Tech | Business | Economy https://techeconomy.ng/tag/tariff-adjustments/ Tech | Business | Economy Tue, 12 Aug 2025 09:17:27 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png tariff adjustments Archives | Tech | Business | Economy https://techeconomy.ng/tag/tariff-adjustments/ 32 32 From Etisalat to 9mobile to T2: A Journey of Reinvention https://techeconomy.ng/from-etisalat-to-9mobile-to-t2-a-journey-of-reinvention/ https://techeconomy.ng/from-etisalat-to-9mobile-to-t2-a-journey-of-reinvention/#respond Tue, 12 Aug 2025 09:17:27 +0000 https://techeconomy.ng/?p=164877 Quick facts about T2 Etisalat Nigeria (2008–2017): Entered the market with strong youth-focused branding and rapid growth, peaking at over 23 million subscribers. 9mobile (2017–2025): Rebranded after Etisalat Group exited due to $1.2 billion debt. Struggled with declining subscriber base, infrastructure decay, and ownership instability. T2 (2025): A bold rebrand under Lighthouse Telecoms, signaling a […]

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Quick facts about T2
  • Etisalat Nigeria (2008–2017): Entered the market with strong youth-focused branding and rapid growth, peaking at over 23 million subscribers.
  • 9mobile (2017–2025): Rebranded after Etisalat Group exited due to $1.2 billion debt. Struggled with declining subscriber base, infrastructure decay, and ownership instability.
  • T2 (2025): A bold rebrand under Lighthouse Telecoms, signaling a digital-first transformation with ambitions to become leaner, smarter, and more customer-centric.
  • In July 2025 the NCC approved a three-year national roaming agreement between MTN Nigeria and 9mobile (now T2), enabling T2 subscribers to use MTN’s network while T2 rebuilds/optimises coverage.
9mobile rebrands to T2
L-R: Michael Ikpoki, Ibrahim Puri, both Members of the T2 Board (formerly 9mobile); Thomas Etuh, Chairman of T2 (formerly 9mobile); Barr. Bimbola Salu-Hundeyin, Secretary to the Lagos State Government; Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy; Gloria Danjuma, Member of the T2 Board (formerly 9mobile); Obafemi Banigbe, CEO of T2 (formerly 9mobile); Femi Edun and Emmanuel Etuh, also Members of the T2 Board (formerly 9mobile),at the official unveiling of T2 at Eko Convention Centre Victoria Island, Lagos yesterday, Friday, August 9, 2025

Will the rebrand cause market disruption?

My quick response to that is that major disruptions are unlikely, but industry observers should expect transitional friction.

Why?

The MTN-9mobile (now T2) national-roaming pact, NCC-approved, significantly reduces the risk of mass service outages for customers, because subscribers can fall back onto MTN’s nationwide footprint while T2 stabilises.

That arrangement is explicitly meant to prevent service gaps.

Also, market disruption to competitors (Airtel, MTN, Glo) will be minimal in the near term because they already operate at much larger scale; any short-term customer movements will be incremental.

However, localized service quality issues, billing glitches, or porting/branding confusion could produce customer complaints and temporary churn. T2 must address these with immediate effect.

The bottom line is that the roaming deal blunts immediate disruption, but execution risk such as network fires, customer service breakdowns can still create noise and short-term churn.

Can T2 woo back 9mobile’s lost subscribers?

This is very possible. T2 is already perceived as vibrant, and the name appears forward-thinking. However, the porting of subscribers back to Ts won’t be automatic. They need reassurance of consistency of network availability. In fact, the handlers understand they need to do a lot of ‘give-away’ (incentives).

Key considerations:

Branding alone won’t bring customers back. Subscribers left for reasons like poor coverage, dropped calls, poor data speeds, perceived instability, and billing/customer care issues.

A new name helps perception, but must be paired with tangible improvements.

Coverage and quality are the primary determinants of return. With roaming on MTN, T2 can promise better immediate coverage, that’s necessary but not sufficient.

Offers and trust-building (transparent tariffs, no-bait billing, simple retention bundles, easy SIM/number porting) will be required to persuade users to return.

Therefore, T2 can win back some subscribers, especially price-sensitive or loyalty-ready segments, but regaining meaningful scale requires sustained investment and service reliability over 6–18 months.

Key areas T2 should major on to regain investor & subscriber confidence

Actionable priorities (short → medium → long term):

  • Short term (0–3 months)

Service continuity & communication: Use the MTN roaming window to guarantee coverage and proactively communicate to customers what has changed and why – FAQs, SMS alerts, customer care hours.

Transparent migration plan: Clear timelines for network restoration, SIM provisioning, and any service interruptions. Transparency reduces panic and regulatory scrutiny.

Retention offers: Immediate, generous data/voice bundles for existing customers and port-back incentives for former subscribers.

  • Medium term (3–12 months)

Network investment & O&M: Recommission towers, prioritise high-traffic corridors and cities, and publish KPIs including latency, speed, dropped-call rates. Investors watch CAPEX and operational metrics.

Customer experience overhaul: Improve billing systems, complaint resolution SLAs, and digital self-service options like apps, USSD.

Partnerships: Strengthen wholesale/roaming, content, and fintech partnerships to create sticky services, bundled VAS, payments, education, OTT partnerships.

  • Long term (12–36 months)

Corporate governance & transparency: Publish audited accounts, board composition, and recovery milestones. The NCC and investors favour demonstrable governance improvement.

Product differentiation: Focus on niche segments – SMEs, youth, rural connectivity, rather than trying to replicate MTN’s full stack immediately. Bring back the ‘youth vibes’ of the Etisalat days – campus storms, etc.

Sustainable business model: Prove average revenue per user (ARPU) improvement and churn reduction while controlling opex. Investors need a credible turn-around plan with milestones; subscribers need reliable service and fair pricing.

Is this a sign of recovery for the telecoms sector?

Well, partly. The rebrand and roaming pact are signals of pragmatic consolidation and collaboration, not necessarily a broad-sector boom.

The roaming deal and the rebrand indicate industry actors and the regulator are working to avoid failures and preserve consumer service, a healthy sign for systemic stability.

Why cautious?

The sector still faces structural issues such as high spectrum costs, legacy debt, CAPEX demands, and rising operating costs.

A single operator stabilising or rebranding is encouraging, but broader recovery requires improved ARPUs, investment flows, and policy stability. Let the gains of the tariff adjustments go round.

Subscribers demand or deserve improved quality of service; the government is expecting higher taxes, and the shareholders hope to smile to the banks hence the operator, often treated as the sacrificial lamb, must be protected at all costs; without them, the whole system collapses and everyone goes hungry.

The NCC’s recent corporate governance push suggests regulators are tightening standards, both a necessary improvement and a challenge for weaker players.

What role will the NCC play in T2’s survival?

Aminu Maida | NCC } Telecoms Tariff adjustment | USPF | e-Health Project | Authorisation
Dr. Aminu Maida, EVC/CEO of NCC

NCC’s role is central. My expected actions from the NCC are in three fronts:

Facilitator of operational continuity: Approving roaming to prevent service outages (already done).

Regulatory oversight & compliance enforcement: The NCC’s corporate governance guidelines and spectrum oversight require T2 to comply on reporting, operational integrity, and consumer protection; non-compliance could lead to sanctions or loss of privileges.

Market stability measures: The regulator can encourage industry collaboration (number pooling, shared infrastructure), mediate disputes (interconnect, roaming fees), and influence the environment for investor confidence (clear rules, predictable enforcement).

NCC’s posture will likely be supportive but watchful, approving short-term measures like roaming while insisting on governance and recovery milestones.

Is the roaming arrangement with MTN working out successfully?

Broadband in Nigeria, Internet users, Smartphone, connectivity
Telecom subscriber

I think early evidence is promising but incomplete. Reports suggest operational roaming is active in many areas; other commentary suggests 9mobile (now T2) base stations were not fully active at the time the deal took effect, which would make roaming essential.

Those reports are mixed and partly anecdotal.  What matters for “success” are seamless handoffs, consistent QoS, correct billing settlement, and clear customer communication.

If MTN and T2 resolve these without frequent dropped sessions or billing errors, the arrangement will be judged successful. If customers face degraded experience or confusing charges, the reputational damage could be high.

So, the framework is the right one and reduces immediate risk, but the real test will be operational KPIs and customers’ actual experience over the next 3–6 months.

Quick risk checklist: What to watch this quarter

  • Clarity (or lack) on T2’s funding plan for CAPEX and debt servicing.
  • MTN’s commercial terms. If roaming is priced poorly for T2, sustainability will be strained.

Recommended immediate communications/PR points for T2

With the rebranding comes more pressure on the communications team. Publish a one-page recovery timeline with measurable milestones.

Also run an SMS/call campaign explaining roaming, what customers should expect, and a helpline for issues.

Launch a “welcome back” package for former 9mobile, sorry T2, customers. Make it simple, no-surprises bundles.

Commit to monthly public KPI updates for three quarters – coverage %, average speeds, complaints resolved – to rebuild investor trust. Make sure your (accurate) data are updated on NCC’s Industry Statistics Page.

At the end, T2’s success hinges on execution, transparency, and innovation. If it can deliver a superior digital experience, rebuild trust, and stay lean, it could become Nigeria’s most agile telecom player. But the road is steep, and the market is unforgiving.

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OPINION: Telco’s Tariff Increase and NCC’s Patriotism https://techeconomy.ng/telcos-tariff-increase-and-nccs-patriotism/ https://techeconomy.ng/telcos-tariff-increase-and-nccs-patriotism/#respond Thu, 30 Jan 2025 15:36:27 +0000 https://techeconomy.ng/?p=152197 In the heart of Nigeria’s digital economy, a story of patriotism and resilience unfolds. The telecommunications sector, a driving force behind the country’s growth, has been facing unprecedented challenges. Despite its significant contributions to Nigeria’s social and economic development, the sector has been struggling to keep up with the rising costs of operations. For nearly […]

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In the heart of Nigeria’s digital economy, a story of patriotism and resilience unfolds. The telecommunications sector, a driving force behind the country’s growth, has been facing unprecedented challenges.

Despite its significant contributions to Nigeria’s social and economic development, the sector has been struggling to keep up with the rising costs of operations.

For nearly a decade, telecom tariffs in Nigeria remained unchanged, while the demand for data and voice services skyrocketed.

The cost of operations, however, surged due to rising energy costs, inflation, currency devaluation, and increased costs of importing telecom equipment.

These mounting expenses threatened the very foundation of the sector, making it difficult for operators to maintain infrastructure and deliver high-quality services.

In the face of these challenges, telecom operators requested tariff adjustments to reflect the current cost of delivering services.

The Nigerian Communications Commission (NCC) carefully considered these proposals, balancing the needs of operators with the interests of consumers. Instead of approving the suggested 100% rate increase, the NCC authorized a maximum adjustment of up to 50% within the current tariff bands.

The NCC plays a vital role in regulating the telecommunications industry in Nigeria, and its actions are guided by the Nigerian Communications Act of 2003. This act empowers the body to regulate and approve tariff rates and charges by telecom operators, ensuring a balance between consumer protection and industry sustainability.

The NCC’s decision to approve tariff adjustments was not taken lightly. It was based on extensive consultations with stakeholders from both the public and private sectors.

The goal was to strike a balance between the financial realities of telecom operators and the economic pressures faced by Nigerian households and businesses.

The approved tariff adjustments were capped at 50%, significantly lower than the 100% increase requested by operators. This decision showcases the NCC’s commitment to creating a telecommunications environment that works for everyone.

To further protect consumers, the NCC mandated telecom operators to implement the approved adjustments transparently and fairly. Meanwhile, operators were also required to educate and inform the public about the new rates, ensuring customers are fully aware of any changes to their billing structures.

Additionally, the NCC’s updated Quality of Service Regulations empower it to sanction operators who fail to meet their service obligations.

Nigerians need to understand that the recent tariff adjustments in the telecommunications sector are a necessary step towards ensuring the long-term sustainability of the industry.

These adjustments will enable operators to invest in infrastructure upgrades and innovation, ultimately providing opportunities for local businesses to thrive.

A robust telecommunications sector is crucial for achieving Nigeria’s digital economy goals, including e-commerce growth, broadband penetration, and digital inclusion.

The tariff adjustments will strengthen operators’ contributions to these objectives by providing connectivity to underserved and rural areas, driving innovation, creating jobs, and boosting economic productivity.

Since 2013, telecom operators have grappled with escalating costs without corresponding adjustments to the tariff rates they offered. Without tariff adjustments, operators risk being unable to sustain their operations, leading to service degradation and potential job losses within the industry.

This would increase the rate of unemployment in the country, contributing to the hardship the government has been fighting hard to eradicate.

The telecommunications sector is capital-intensive, requiring continuous investment in infrastructure to meet growing demand and improve service quality.

The approved tariff adjustments will provide operators with the financial resources needed to invest in network expansion, upgrade existing infrastructure, and enhance customer service.

From $191.5m to $14.4m: The Alarming 87% Collapse of Nigeria's Telecommunications Investment in Just Two Quarters
Telecom Masts

This will ultimately benefit consumers by delivering better connectivity, reduced downtime, and wider network coverage.

It’s worth noting that the Nigerian Communications Commission‘s (NCC) approval of tariff adjustments aligns with international best practices, ensuring Nigeria stays competitive in the global telecommunications landscape.

By maintaining tariffs within the bands outlined in the 2013 NCC Cost Study, the Commission has ensured that the adjustments are both fair and evidence-based.

Furthermore, the NCC’s modest tariff adjustment was influenced by the financial strains that many businesses and households are experiencing. In the context of the broader economy, the long-term benefits of the slight increase in consumer bills far outweigh the immediate costs.

Benefits such as expanded coverage, improved network quality, and enhanced customer service will provide greater value to consumers, further ensuring they receive a greater telecommunications experience.

In other to mitigate the impact on vulnerable consumers, the NCC has mandated that operators simplify their tariff structures, and offer affordable plans that will be suitable to different income levels.

Additionally, the Commission will continue to monitor the implementation of the adjustments to ensure compliance with its guidelines and protect consumers from exploitation.

This action validates the Commission’s goal of ensuring that Nigeria remains at the forefront of digital innovation and connectivity in Africa.

As a regulator, it is obvious that the NCC is not only protecting consumers, but also supporting operators, indigenous vendors, and suppliers who form the pillar of the telecom industry.

It is worthy of note to state that the adjustments have no relation to the ongoing tax reform conversation. This holistic approach ensures that the benefits of a thriving telecommunications sector are felt across all segments of society.

The tariff adjustments approved by the NCC are a necessary step toward addressing the financial and operational challenges faced by telecom operators. Far from being complicit in any alleged exploitation, the NCC has demonstrated commendable patriotism and a deep commitment to balancing consumer protection with industry sustainability. The NCC’s actions in approving the tariff adjustments reflect patriotism and national progress at its finest.

By enabling operators to invest in infrastructure, improve service quality, and support indigenous businesses, the NCC is laying the foundation for a more robust and inclusive telecommunications sector that can measure up with its international counterparts all across the globe.

The adjustments are not merely a response to current market conditions but a forward-looking strategy that will ensure Nigeria’s telecommunications industry remains a vital driver of economic growth and digital transformation.

As Nigerians, it is very important to view these adjustments as a patriotic move by the NCC to secure the future of connectivity and development in the country.

The Commission’s action embodies transparency and accountability, and it serves as a reminder that effective regulation is not about appeasing one stakeholder group over another, but about creating an environment that works for everyone.

Through its efforts, the NCC is proving that a stronger, more sustainable telecommunications sector is not just a possibility but a reality within reach in no.

*Toby Prince writes from Abuja

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