The Nation Newspaper

Tag: telecom operators

  • Telecom operators’ opex rises to N5.85tr

    Telecom operators’ opex rises to N5.85tr

    Nigeria’s mobile network operators (MNOs) total operating expenditure (opex) rose from N3,158,403,767,328.48 or about N3.16trillion in 2023 to N5,854,257,451,225.71 or about N5.85trillion in 2024, marking a significant increase of 85per percent year-on-year, according to data compiled by the regulator of the sector, the Nigerian Communications Commission (NCC).

    Operating cost in a business refers to the expenses incurred in the day-to-day functioning and maintenance of the business operations. It includes both the cost of goods sold (COGS), which are direct costs related to producing goods or services (such as materials, labour, and manufacturing expenses), and opex, which are indirect costs necessary for running the business, like rent, utilities, salaries for non-production staff, marketing, insurance, and administrative expenses.

    According to the 2024 Subscriber/Network Performance Report compiled by the Policy, Competition and Economic Analysis Department of the NCC, most licensees of the regulator complained of high Right of Way (RoW) fees, harsh microeconomic operating environment, and rising inflation.

    However, the NCC has been able to secure zero RoW fees in some states in 2024, the report added.

    “Operating cost: Five Trillion, Eight Hundred and Fifty-Four Billion, Two Hundred and Fifty-Seven Million, Four Hundred and Fifty-One Thousand, Two Hundred and Twenty-Five Naira, Seventy-One Kobo (N5,854,257,451,225.71) is the total operating cost collated in year 2024 which increased by 85% Year on Year from the Three Trillion One Hundred and Fifty Eight Billion Four Hundred and Three Million Seven Hundred and Sixty Seven Thousand Three Hundred and Twenty Eight Naira Forty Eight Kobo (N3,158,403,767,328.48),” the report noted.

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    For capital expenditure (capex)/ domestic investment, the report showed about N2.9trillion in 2024, as against N1.12trillion invested the previous year

    “The Year-on-Year (2023/2024) comparison indicates a 159.03per cent increase in CAPEX expenditure in the industry. The Unification of Exchange (Parallel Market and CBN rates) rates of Naira to Dollar, as well as inflation, impacted the value of Naira spent upgrading network facilities in the industry. Most of this network equipment is not manufactured locally but imported into the country,” the report noted.

    On the revenue side, the MNOs posted about N7.67trillion during the period under review against N5.3trillion the previous year. This showed an increase of 44.70per cent.

    On capital inflow of Foreign Direct Investment (FDI) into the Nigerian telecoms industry, the report noted that it was approximately $457million in 2024 as against $134.75million recorded in 2023, according to the Central Bank of Nigeria (CBN).

    In the area of contribution to the Gross Domestic Product (GDP), the telecoms industry’s contribution to the economy increased from 14.00per cent in the fourth quarter (Q4), 2023, to 14.40per cent in Q4, 2024, indicating a 2.86per cent growth year-on-year. “The Rebasing of the GDP is ongoing by the National Bureau of Statistics (NBS) to extract optimally the contribution of the Digital Economy from the Information and Communication Sector,” the report noted.

  • NCC orders telecom operators to notify consumers of major network outages

    NCC orders telecom operators to notify consumers of major network outages

    Concerned by the persistent network failures and poor service quality across the country, the Nigerian Communications Commission (NCC) has directed telecom operators to inform consumers promptly of any major outages or disruptions that could impact network performance and service delivery.

    The directive follows mounting complaints from users over issues such as frequent network breakdowns, rapid data depletion, and excessive dropped calls, which have led to widespread frustration among telecom subscribers.

    In a statement signed by its Acting Director of Public Affairs, Nnenna Ukoha, the NCC said the move is in line with its commitment to ensuring transparency and aligns with the effective implementation of the Executive Order signed by President Bola Ahmed Tinubu at the start of his administration.

    The statement reads, “The Nigerian Communications Commission (NCC) has mandated telecom licensees in Nigeria to inform consumers of major service outages on their networks through media channels, stating the cause(s) of the service interruption, and the area(s) affected by the service interruption/outage, as well as the time that would be taken to restore service. 

    “Consumers must also be informed one week in advance where operators have planned service outages.

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    “This development, contained in the “Directive on Reportage of Major Network Outages by Mobile Network Operators (MNOs),” is part of the Commission’s drive to ensure timely resolution of outages, enhance quality of experience for telecom consumers, and keep consumers informed.

    “According to the Directive, Mobile Network Operators, Internet Service Providers and other operators that provide last mile services will also provide proportional compensation, including extension of validity, as may be applicable and in line with the provisions of the Consumer Code of Practice Regulations, where any major network outage continues for more than 24 hours. 

    “It identifies three types of major outages to include: Any network operational condition such as fibre cut due to construction/access issues/theft & vandalism and force majeure that impacts five per cent or more of the affected operator’s subscriber base or five or more Local Government Areas (LGAs); having an occasion of unplanned outage of, or complete isolation of network resources in 100 or more sites or five per cent of the total number of sites (whichever is less) or 1 cluster that lasts for 30 minutes or more; and lastly, any form of outage that can degrade network quality in the top 10 states based on traffic volume as specified by the Commission from time to time.

    “In furtherance of this, the Commission has further directed that all Major Outages are to be reported by operators through the Commision’s Major Outage Reporting Portal, which is accessible to the public through the Commission’s website, www.ncc.gov.ng. The portal additionally discloses the identity of the culprit responsible for the disruption.

    Commenting on the directive and the major outage reporting portal, the director, Technical Standards and Network Integrity, Engr. Edoyemi Ogor stated that, “The Commission has trialled the reporting process and portal with operators for some months now before issuing the directive. 

    “By providing consumers and stakeholders in the telecommunications industry with timely and transparent information on network outages, we are entrenching a culture of accountability and transparency. This approach also ensures that culprits are held responsible for sabotage to telecommunications infrastructure.

    “This also aligns with our broader commitment to the effective implementation of the Executive Order signed by President Bola Ahmed Tinubu, which designates telecommunications infrastructure as Critical National Information Infrastructure (CNII). It reinforces the need to safeguard these assets, given their centrality to national security, economic stability, and the everyday lives of Nigerians,” Edoyemi Ogor said.