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Home»Technology

Telcos Warn Of Service Cuts Amid 2025 Survival Strategies

Daniel UbokuloBy Daniel UbokuloDecember 30, 2024Updated:January 1, 2025 Technology No Comments3 Mins Read
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Telephone services may anytime from now experience disruptions as telecommunications operators have reiterated the need to load shed their operations to stay afloat.

Telcos under the aegis of Association of Licensed Telecommunications Operators of Nigeria (ALTON) on Monday said service shedding is critical to their survival since tariff hike appears not in sight.

Load shedding is a deliberate practice of shutting down some or all of a telecommunications service in a specific area to prevent the entire system from failing.

The Chairman of #ALTON, Gbenga Adebayo, in a statement, said the Nigerian telecommunications industry was facing a critical challenge that required urgent attention.





ALTON

Adebayo said the challenges operators face are not new, but they have become more acute and more threatening with this passing year.

“Rising operational costs, skyrocketing energy cost, the relentless pressure of inflation, volatile exchange rates, amongst others have all placed an unsustainable burden on network operators.

“Despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire. The resources needed to maintain, expand, and modernise our networks are simply no longer available. Without intervention, the future of this sector is at grave risk,” he stated.

Adebayo, in the statement titled: “Before the Final Call– Telecom Sector under siege,” said if nothing is done, “we might begin see in the new year grim consequences unfolding, such as service shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.

“There will also be national economic disruption where key sectors like security, commerce, healthcare, and education which rely heavily on telecoms infrastructure, will face serious disruptions.”

According to him, as we navigate this near turbulent year for the sector, “we are confident that history will judge us right for the role we have played in an attempt to rescue this sector. Stakeholders have stood together to uphold the values and importance of telecommunications in our society.

He added, “However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come.”

The ALTON boss expressed confidence that stakeholders would come together to uphold the values and importance of telecommunications in the society, adding that more needed to be done to secure the future of the industry.

Adebayo called on stakeholders to acknowledge the urgency of the situation and commit to saving the sector, warning that failure to act may jeopardise one of the most critical pillars of Nigeria’s development.

He stated that ALTON stood ready to work with all stakeholders to ensure the sector’s survival and prosperity.

“Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector. If we fail to act, history will record that we had countless warnings, yet we allowed inaction to jeopardise one of the most critical pillars of Nigeria’s development.“If we succeed, 2025 can be the year we turn things around, a year of hope, resilience, and sustainability for the telecoms industry,” Adebayo said.

#Technology #Telcos #2025 #Telecoms ALTON
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