The Nation Newspaper

Tag: Airtel

  • NCC’s ban on MTN, Airtel, Glo remains, says Commissioner

    NCC’s ban on MTN, Airtel, Glo remains, says Commissioner

    The Nigerian Communications Commission(NCC) has said the ban it imposed on three major telecoms firms for failing to meet key performance indicators (KPI) remains in force.

    Speaking through its Executive Commissioner, Stakeholders Management, Okwchukwu Itanyi, in Lagos at the weekend, the regulator said it was irrevocably committed to using its regulatory powers to ensure that operators do the needful so that subscribers could enjoy the full value of their money.

    In February, the regulator imposed a fine of N467million on Airtel, MTN and Globacom. It barred them from taking in new subscriber identity modules (SIMs) for one month so that they could put some measures in place. But the one month has since elapsed without any official statement from the regulator concerning whether it has been lifted or not.

    Itanyi said the ban has been extended. “The ban on the sale of new SIM cards is on. We have not lifted the ban. (If the operators are still selling) it is something that we will investigate and if any of them is found to have fallen short of our regulation, it is something we can sanction them for.  It was for a month and we extended it. We have not lifted that sanction. It is still on,” he said on the sideline of CyberAfrica Awards night held at Lagos Sheraton Hotel and Towers, Ikeja where the regulator bagged two awards.

    On the efficacy of fines, he said it is one way of allowing the operators to know that the regulator is dissatisfied with the standard of the services they render to Nigerians.

    He said: “Basically, the fines are to put the operators on their toes. We are not happy with the standard of the services they are giving to Nigerians. There are KPIs and whenever they fall short, we have to sanction them by imposing fine. The fine is meant to put them on notice; we are also talking to the operators because part of the problem is that their network cannot carry the traffick of the customers available on their network. So, we are trying to ensure that they improve their network.”

    The Association of Licensed Telecoms Operators of Nigeria (ALTON) said the sanction will make the affected operators to do more to meet the parameters set down by the regulator.

    Its Chairman, Gbenga Adebayo said as responsible corporate citizens, the affected operators  have complied with the regulator’s directive.

    He said: “As responsible operators, those affected complied with the directive of the NCC as it were. NCC gave some conditions precedent to lifting the ban and we are hoping that in their next review in terms of QoS and other parameters, the NCC will consider lifting the ban, they will find reason to lift the ban, by the time the next measurement is done, I am hopeful.

    “In terms of its impact on business, I think for the affected players, it is an opportunity for them to go back in-house see what efficiency measures to put in place in order to comply with the directive of the regulator. So, the consideration is not in terms of income or loss of business but putting in efficiency in the interest of the subscribers.

    “In essence, we are not counting losses on this account we are rather looking at the efficiency that can be put in place  So, we are not counting losses.”

  • Airtel showcases customers’ elite club

    Airtel showcases customers’ elite club

    Airtel Nigeria has launched the Airtel Premier Club, a special VIP programme designed to offer exceptional and personalised services.

    The event attracted several important dignitaries, including the Minister of Agriculture and Rural Development, Akinwunmi Adesina; Indian High Commissioner to Nigeria, Shri A. R. Ghanshyam; former Governor of Cross Rivers State, Donald Duke; wife of Ogun State Governor, Mrs Funsho Amosun, foremost British Economist, Jim O’neill and Arsenal legend, Ray Parlour.

    Managing Director/Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya, described the club as a platform for offering exceptional and personalised service to High Networth Customers and VIPs.

    According to Ogunsanya, customers who enrol in the Airtel Premier platform will enjoy several benefits, including dedicated helpline, exclusive emails and website, dedicated Relationship Manager, enrolment into Airtel Rewards Programme, exclusive access to designated service points at Airtel showrooms and access to over 600 premium lounges across the world, among other benefits.

    The event, however, hit a high point when the Airtel Premier logo was unveiled.

    Ghanshyam commended Airtel for turning threats into opportunities and for leveraging on innovative mobile telecoms solutions to empower the local communities it served. He cited how the mobile phone revolution transformed the lives of poor farmers in India, making them complete entrepreneurs.

    On his part, O’neill urged the government to pay attention to education, saying it is only a skilled population that can bring about the level of productivity that will improve an economy.

     

     

  • NCC fines MTN, Airtel, Glo N647m

    NCC fines MTN, Airtel, Glo N647m

    • Bars them from SIM cards sale

    The Nigerian Communications Commission (NCC) has imposed fines totalling N647,500,000 million on three of the four global system for mobile (GSM) comunication service providers in the country.

    The affected operators are Airtel, Globacom and MTN. They are being sanctioned for failing to meet the Key Performance Indicators (KPIs) for quality of service in the month of January this year.

    Consequently, the three companies have been barred from further sale of subscriber identity module (SIM) cards with effect from next month. They are also barred from all promotions on their networks until they improve on the failed KPIs for which they are sanctioned.

    According to a statement, the details of the sanction showed that Airtel Network Ltd, and MTN Nigeria Communications Ltd, are to pay a fine of N185 million each while Globacom Ltd is to pay N277,500. In addition, each of the operators must pay the sanction amount on or before March 7 failure upon which each will be liable to pay N2,500,000 per day as long as the contravention persists.

    The sanctions, which were communicated to the three operators in a letter signed by the Executive Vice Chairman of the Commission, Dr. Eugene Juwah, said the Commission will carry out an audit of the three companies on March 1 and March 31 to ensure that no sale of new SIM cards takes place in any of the three networks within the period.

    The letter made reference to an earlier directive of December 10 last year which warned the operators that “if the quality of service does not improve by 31st December, 2013, the Commission will be compelled to direct operators to, among others, suspend the activation of new SIMs and subscribers until such an operator can prove that it has met the KPIs specified in the regulations”.

    According to Dr. Juwah, “ the Commission after careful collation of statistics from the Network Operating Centres (NOC) of all major networks operators for the month of January, has concluded that the service provided by some of the operators during the period fell below the KPIs published by the Commission in the Quality of Service Regulations, as amended.”

    While the Association of Telecoms Companies of Nigeria (ATCON) and Association of Licensed Telecoms Companies of Nigeria (ALTON) have insisted that sanctions will not address the service quality problem, the National Association of Telecoms Subscribers (NATCOMS) has said the benefit of sanctions should go to subscribers.

    Its President, Deolu Ogunbanjo said such compensation for poor service quality could come by way of free air time to the subscribers. “The government earns revenue from the calls we make. The fines are paid to the coffers of the government without any direct benefits to the subscribers who suffer from the inadequacies of the operator,” he said.

    NCC added that the service providers shall not churn or delete inactive or (none revenue generating SIMs) from their networks during the period of March 1 to 31, warning that “any deviation or alteration of provisioning pattern (in terms of average daily number of provisioning) in the remaining days of February this year compared to the regular provisioning rates by the concerned service providers shall be construed as a breach to the directive.

  • Court fixes March 25 for judgment in suit against Airtel

    Court fixes March 25 for judgment in suit against Airtel

    Justice Mufutau Olokoba of the Lagos High Court, Igbosere, will on March 25, deliver judgment in a N50million suit by a telecoms firm, Globacell Nigeria Ltd, against a Global System for Mobile communication (GSM) service provider, Airtel Nigeria.

    Written addresses will also be adopted on that day, the judge said.

    Globacell asked the court to determine whether a subsisting contract between it and Celtel Nigeria Ltd (now Airtel Nigeria) empowers the communication giant to receive payment for recharge cards without supplying them to the claimant.

    The firm also wants the court to determine whether the contract empowers Airtel to unilaterally cancel the Ongoing Revenue Service Commission (ORSC) agreement between them without recourse to it.

    The court is also to decide whether an affirmative answer to the issues will not entitle Globacell to be granted judgment as per its writ of summons and statement of claim.

    Airtel, on the other hand, wants the court to determine whether the subsisting agreement between it and Globacell was governed by a letter dated September 14, 2006 or a Distribution Agreement dated February 25, 2008.

    It also wants the court to determine whether it reserves the right under the agreement to increase or reduce Globacell’s ORSC-backed credit facility, and whether Globacell is entitled to its claims.

    Globacell, through its lawyer, Mr Sunny Omoragbon had sought an order compelling Airtel to restore its existing ORSC-backed credit facility worth N3.8million, which it alleged the GSM company cancelled illegally.

    It also sought an order compelling Airtel to pay it N2.6 million, being daily earnings of N75,000 per day that it makes from sale of recharge cards, from May 27 till June 30, 2008, “and the same amount until judgment is delivered.”

    The court is also to order Airtel to pay interest of 25 per cent on the sum until judgment is delivered, and thereafter at the rate of 30 per cent until it is liquidated.

    Globacell urged the court to order the GSM company to pay it N50million as damages to cover the alleged trauma, embarrassment, loss of income and business opportunities suffered by its Managing Director, Mr Mark Davies “as a result of the unilateral cancellation of the ORSC agreement by the defendant.”

    Besides, it wants a declaration that Airtel’s alleged refusal to release the stock of recharge cards it paid for amounts to a wrongful and illegal cancellation of the ORSC-backed credit facility “and therefore constitutes a breach of the agreement between parties.”

    Globacell claimed that Airtel granted it the ORSC facility of N1.1million through a September 14, 2006 Offer Letter, and that due to its excellent performance, the facility was increased to N2.3million on February 9, 2007.

    Airtel, therefore, owed it the fiduciary duties of acting in good faith and acting in Globacell’s best interest, ensuring that the facility is not disrupted, stopped or cancelled without just or reasonable cause; that it supplies the claimant the cards it paid for, and that it is given “the mandatory 24 hours notice of the defendant’s intention to cancel the ORSC credit facility.”

    The claimant told the court that it paid N2,434, 705 to place an order for 2,500 units of N1,000 Recharge Cards and 50 units of N3,000 Bumper cards on the basis of the “expanded ORSC arrangement.”

    Globacell said it should have been entitled to a stock of cards worth N2.5million in line with the agreement, but to its disappointment, Airtel said it had overstretched the credit limit, and that the facility had been slashed by 70 per cent.

    The claimant said there was no basis for Airtel’s arbitrary slashing of the facility, as it never overstretched its credit limit, nor did Airtel inform it of such development.

    The claimant further averred that based on Clause 11 of the agreement, Airtel ought to give it a mandatory 24-hour notice before it could cancel the agreement.

    Failure to do so, Globacell said, engendered “serious dislocation of, and disruption to,” its business, “with attendant negative chain reactions associated therewith.”

    However, Airtel denied Globacell’s claims, saying that the “ORSC-backed credit facility or any other credit facility extended to the claimant has been fully utilised by the claimant.”

    The defendant added that the credit facility covered by the Offer Letter of September 14, 2006 had a tenor of 60 days, and had long expired before Globacell allegedly placed the order for the recharge cards.

    Besides, Airtel informed the court that with the entry of a Distribution Agreement of March 1, 2008, the Offer Letter or any other prior agreement no longer had any binding force on the parties, as the facility had expired by effluxion of time and lost its legal force.

    It said it never acted arbitrarily toward Globacell nor acted in breach of the terms of the Offer Letter, and that it was not under obligation to give the claimant any mandatory 24-hours’ notice.

    Airtel said Globacell is not entitled to its claims, and prayed the court to dismiss the suit in its entirety or strike it out with substantial cost.

     

  • Job loss over telecoms’ towers sale baseless, says Airtel chief

    Job loss over telecoms’ towers sale baseless, says Airtel chief

    Disposal of telecoms towers by telcos will not compound the unemployment situation in the country, the Chief Executive Officer Airtel Nigeria, Segun Ogunsanya has.

    He said rather, it would create more jobs.

    He spoke at the firm’s corporate headquarters in Ikoyi, Lagos.

    He said: “Yes, indeed, there are plans by operators to sell off, not necessarily outsource, the towers. It is the trend globally, and it is meant to allow operators concentrate on their core competences and allow those who are better equipped professionally to manage the towers to do so. The telcos had already outsourced their network operations to experts such as Ericsson and Huawei, whch, in turn, outsourced maintenance services such as fueling, cleaning and security to local companies known in industry parlance as ISMs.

    “It is evident that the eco-system of telecommunications business is growing a wide value-chain, which has Nigerians (locals) at the epicenter. So, more jobs would be created rather than lost, given that the new owners will definitely like to grow their businesses. Regarding the Call Centres, which were outsourced to BPOs (business process outsourcing), it is an inexactitude to say jobs were lost! On the contrary, the number of people employed in the Call Centre business has grown exponentially by over 300 per cent.”

    He averred that rather than create fears in the minds of indigenous engineers, who will be moving to the tower management firms, and disaffection in the hearts of Nigerians, who have been unapologetic beneficiaries of the global system for mobile (GSM) communication revolution started in 2001, the immense advantages inherent in this strategic business move by the telcos should be highlighted.

    According to Ogunsanya, there is a lot of cheering stories from the telecoms sector, which he said, has attracted over $20billin in foreign direct investment (FDI) over the last 12 and a half years, adding that it is the only industry that has continued to creatively take advantage of a combination of economic factors including technology, competition, outsourcing, and other economies of scale, to drive costs down hence price of telecommunications services and related products like phones and other devices.

    “The telecommunications industry has demonstrably employed more people directly and indirectly since 2001. The marketing communications industry, construction, security, petroleum marketing and several others have experienced a boom with the activities of the telcos. Indeed, telecommunications can be described as the goose that lays the golden egg in the Nigerian economy,” he said.

     

  • Reps oppose 2.3GHZ broadband spectrum auction

    Reps oppose 2.3GHZ broadband spectrum auction

    House of Representatives has decried the planned sale of 2.3GHZ broadband spectrum by the Nigeria Communications Commission (NCC).

    Its Committee on Communications has been mandated to review the pre-qualification criteria for companies wishing to participate in the proposed auction.

    The House also mandated the committee to look into future auctions of national telecommunications assets, with a view to including a requirement that interested companies be listed on the Nigerian Stock Exchange (SEC).

    The lawmakers’ decision followed the adoption of a motion by Chris Azubogu (APGA, Anambra), who said most companies, which indicated interest in the auction, cannot be subjected to certain rules.

    He said: “Most of the major players in the industry – MTN, Airtel, Etisalat and others, all of whom have indicated a desire to participate in the auction, are privately-owned companies, which are not subject to the corporate governance and full disclosure standards obligatory for publicly- listed companies.

    “It is absence of standards, which makes our prime national telecommunications assets to be transferred to companies without proper authentication of their financial status.

    “Auction of communications licences to unquoted companies is not in the public policy interest of the Nigerian state and it is dangerous to the well-being of the industry”.

    Major telecommunications companies, including MTN, Glo, Airtel, Zinox among others were reported to have bid for the 2.3GHZ broadband spectrum licence, following the announcement for the auction by NCC.

     

  • Poor service: NCC threatens sanctions against telecoms

    Poor service: NCC threatens sanctions against telecoms

    •Says poor service may attract initial N5m fine, N500, 000 per day

    All the eight telecommunication companies in the country have up till the end of this month to improve their services or start paying hefty fines to the Nigerian Communications Commission (NCC) under fresh regulations just rolled out by the agency.

    The NCC is to the telecoms what the Central Bank is to the banking sector.

    Under the new dispensation ,any errant operator could be banned from selling SIM cards from December 31.

    Each of the operators with poor service may henceforth pay fines ranging between half a million naira and N5million per day.

    The eight operators asked to buckle up are: MTN; Airtel; Etisalat; Globacom; Swift Networks; Intercellular; Multilinks; and Visafone.

    The NCC communicated its decision to the operators in a December 10, 2013 letter by its Executive Chairman, Eugene Juwah,S through the Director, Legal and Regulatory Services, Josephine Amuwa.

    The letter entitled “Notice of intention to issue Direction pursuant to Sections 53 and 54 of the NCC Act, 2003” asked the operators to sit up.

    It said: “Whereas: (a) The Quality of Service Regulations, 2012 developed and published by the Commission specified certain Key Performance Indicators (KPI) threshold to be maintainedby telecommunication service providers.

    “(b) The commission after careful investigation of the Quality of Services of all the major network operators has concluded that the present service being provided by telecommunication service providers falls below the KPI published by the Commission in the Quality of Service Regulations, 2012.

    “Now therefore, the Commission having critically reviewed the declining Quality of Service and in exercise of its statutory powers intends to issue a direction in the following terms:

    • Failure to comply with any direction that may be issued pursuant to the above notice will result in the imposition of sanction in the amount of five million naira (N5, 000,000) and a further sum of N500, 000 per day after the expiration of the notice for as long as the contravention persists and calculated from the deadline specified by the Commission for the operator to meet the minimum standard of quality of service.

    • Your comments/ submissions on this notice should be submitted on or before 20th December, 2013; failing which, the Commission shall issue the direction as aforesaid compelling you to comply.

    •Your comments/ submissions on this notice of intention to issue a direction should be forwarded to the Executive Chairman, NCC.”

    This is the second time the NCC will be forced to call the operators to order on poor services.

    All the operators were sanctioned N1,170,000, 000 in May 2012 for failing in different KPI s.

    Each of the operators was sanctioned as follows: MTN Nigeria Communications and Etisalat, N360,000,000 ( Three Hundred and Sixty Million ) each; Airtel -N270,000,000 (Two Hundred and Seventy Million Naira); and Globacom attracted a penalty of N180,000,000 (One Hundred and Eighty Million Naira).

    An NCC said that the commission had no choice than to wield the big stick again in light of persistent complaints by Nigerians.

    “The ultimatum on the improvement on Quality of Service is from December 31st, implying the Commission would take another measurement on this date,” the source said.

    “These operators have not improved in spite of the sanctions imposed on them in 2012.

    “The implication is that if any of the operators failed in KPI by 31 December , it would warrant stoppage of sale of SIM cards by the offending operators.

    “ All the operators may be affected as most of them are not performing to the satisfaction of the key consumers especially in the area of drop calls which has become more rampant in recent times.

    “The failure of the operators to meet with the terms of agreement with the Commission in 2012, will warrant implementation of the Key Performance Indicators early instituted by the Commission, which would imply much more drastic action.

    “The stoppage of SIM card, would not preclude issuance of sanctions as done in 2012 as the Commission is angered by the fact that the KPI’s were lowered after the sanctions but the operators did not meet to the terms of agreement it entered with the Commission to improve quality over a 12 months period during which it promised to meet with the KPI’s.”

  • Airtel donates borehole, materials to Ogun school

    Barely six months after donating a set of classrooms, three offices and furniture to St. John’s Primary School, Ijebu-Igbo under its Adopt-A-School initiative, Airtel Nigeria has added a borehole and some education materials.

    The materials, comprising school uniforms, bags, text books, note books and other materials were presented by the firm’s Chief Executive Officer, Chief Segun Ogunsanya, who said the donations constitute part of Airtel’s Corporate Social Responsibility (CRS) to the development of education in Nigeria.

    “In Airtel, we are passionately committed to partnering with organisations to improve the society. That is why our CSR initiative is committed to adoption of government owned primary schools nationwide,”he said.

    Ogunsanya said that the provision of safe drinking water for the pupils and their teachers would keep the children within the school premises during school hours and also prevent them from contracting water borne diseases.

    He recalled that six months earlier, the wife of the Ogun State governor, Mrs Olufunso Amosun, inaugurated the school’s block of four-classrooms and offices fully furnished with desks, tables and electrical appliances donated by Airtel.

    The Ogun State Commissioner of Education, Mr Olusegun Odubela said the initiative has helped to bridge the gaps between private and public schools, especially those in remote locations, and would leave a lasting impression on the school, pupils and the community.

    He said: “The Ogun State government cannot but continue to appreciate Airtel for the adoption of one of the schools in the state under her CSR initiatives. This shows the degree of love Airtel has for the state. This complimentary effort of Airtel in the field of education will indeed go a long way to complementing the delivery of qualitative education in this community.”

    He implored the pupils to justify the company’s financial investment by making the best use of the donations offered them by aspiring for greater academic excellence.

     

  • Photo: Dame Jonathan, Minister at Telecom World

    Photo: Dame Jonathan, Minister at Telecom World

    First Lady, Dame Patience Jonathan and the Minister of Communications Technology, Omobola Johnson were at the International Telecommunication Union Telecom World 2013 was held in Bangkok recently.
    Picture shows the Minister, Dame Jonathan and Airtel’s Director: Regulatory Affairs & Special Projects, Osondu Nwokoro at the programme.
  • Olu Akanmu back in banking world

    Olu Akanmu back in banking world

    OLU Akanmu, ex- Chief Marketing Officer, Airtel Nigeria, who left the services of the telecoms company in a rather curious and hazy circumstance last May barely one year after taking up the appointment, has returned to the banking world.

    The one-time Managing Director/ Chief Executive, Retail and Consumer Banking, Bank PHB, is now Divisional Head, Retail Banking of First City Monument Bank Limited.

    Akanmu has over 23 years of experience spanning marketing, banking, telecommunications, and consulting, manufacturing, advertising, pharmaceutical and health care sectors.