• October 5, 2023

Telecom Sector to Normalize Tariff

Telecom Sector to Normalize Tariff
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Due to recent hikes in the prices of petroleum products, electricity tariffs, and the foreign exchange rates in the country, the telecommunication sector is expected to normalize its tariff soon.

 

It is without gainsaying that all other sectors have adjusted their charges as a result of high cost of production but it is only the telecommunication sector that has been left unattended with tariff harmonization in sync with the current financial and foreign exchange trends.

We are of the view that if nothing is done to protect the sector from facing economic insolvent it will be counterproductive to the state that in terms of revenue generation, youth employment, and providing financial and moral support to national activities, renown telecom executive observes.

 

This sector which is being ostensibly neglected by its very regulators is currently one of the highest taxpayers in the country that has the highest rates of youth employment.

 

With no iota of doubt, if the tariff normalization does not take effect soon, there is a tendency for over 50% of staff within the sector to lose their jobs and there is also a proclivity for the sector to scale down or short down some cell-sites in remote areas where they are spending millions of Leones to provide connectivity therein. This in itself will be a burden on the people and the Government of Sierra Leone which is more the reason that the tariff adjustment is needed now to prevent such shortfalls in the sector.

 

Other areas like the media, sport, entertainment, tourism, education, child welfare, Civil Society Organization, and other sectors that are currently benefitting hugely from the magnanimity provided by the telecommunication sector will be left to suffer; particularly the media fraternity to which we belong.

 

A seasoned economist, Mr. Dennis Sankoh has argued that when the cost of producing goods or services is higher than the profit margin, it will lead to a shutdown of operation. He therefore urged the Government of Sierra Leone to intervene by factoring a new tariff adjustment to protect the telecommunication industry from falling or find a win-win situation that will lead to economic equilibrium in the sector.

 

“If the telecommunications sector continues to face serious economic challenges or crisis it will hurt the economy in terms of services, trade, Corporate Social Responsibility, and employment,” he warned, adding by applauding the telecom sector for still being committed to driving investment in the sector.

 

However, the economic expert is of the view that the constant rise in input costs whilst the tariffs are stagnated at a rate that had been fixed since January 2023, it is difficult for the sector to make more gains in terms of investment and creation of jobs in the country. He added that the situation will be further exacerbated by the devaluation of the Leone as against the dollar.

 

Due to recent hikes in the prices of petroleum products, electricity tariffs, and the foreign exchange rates in the country, the telecommunication sector is expected to normalize its tariff soon.

 

It is without gainsaying that all other sectors have adjusted their charges as a result of high cost of production but it is only the telecommunication sector that has been left unattended with tariff harmonization in sync with the current financial and foreign exchange trends.

 

We are of the view that if nothing is done to protect the sector from facing economic insolvent it will be counterproductive to the state that in terms of revenue generation, youth employment, and providing financial and moral support to national activities, renown telecom executive observes.

 

This sector which is being ostensibly neglected by its very regulators is currently one of the highest taxpayers in the country that has the highest rates of youth employment.

 

With no iota of doubt, if the tariff normalization does not take effect soon, there is a tendency for over 50% of staff within the sector to lose their jobs and there is also a proclivity for the sector to scale down or short down some cell-sites in remote areas where they are spending millions of Leones to provide connectivity therein. This in itself will be a burden on the people and the Government of Sierra Leone which is more the reason that the tariff adjustment is needed now to prevent such shortfalls in the sector.

 

Other areas like the media, sport, entertainment, tourism, education, child welfare, Civil Society Organization, and other sectors that are currently benefitting hugely from the magnanimity provided by the telecommunication sector will be left to suffer; particularly the media fraternity to which we belong.

 

A seasoned economist, Mr. Dennis Sankoh has argued that when the cost of producing goods or services is higher than the profit margin, it will lead to a shutdown of operation. He therefore urged the Government of Sierra Leone to intervene by factoring a new tariff adjustment to protect the telecommunication industry from falling or find a win-win situation that will lead to economic equilibrium in the sector.

 

“If the telecommunications sector continues to face serious economic challenges or crisis it will hurt the economy in terms of services, trade, Corporate Social Responsibility, and employment,” he warned, adding by applauding the telecom sector for still being committed to driving investment in the sector.

 

However, the economic expert is of the view that the constant rise in input costs whilst the tariffs are stagnated at a rate that had been fixed since January 2023, it is difficult for the sector to make more gains in terms of investment and creation of jobs in the country. He added that the situation will be further exacerbated by the devaluation of the Leone as against the dollar.

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