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Consumer, NCC Hold Solution to ‘Crying’ Telcos, Bleeding Industry– Allen

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The consumer and the Nigerian Communications Commission (NCC) are the principal actors that can save telecom operators and the industry from imminent collapse.

This is the view of Tom Allen, a highly experienced telecom consultant and currently, managing partner at CUBE Consulting (CubeUltra Ltd.).

Allen who was reacting to the recent news story where Broadband companies- Tier II telecoms operators, literally, cried to the Nigerian Communications Commission (NCC), urging the regulator to save the industry from imminent collapse, said unequivocally that the regulators have no power to determine quality of service versus price.

Recall the Broadband companies- Tier II telecoms operators recently sent a Save-Our-Soul message, and warned that factors crippling their operations could also derail the National Broadband Plan (NBP) of the federal government, if not addressed.

The operators made this known when they visited Prof. Umar Garba Danbatta, executive vice chairman of the NCC, in Abuja recently.

The operators therefore asked the NCC, to take immediate and decisive steps to avert the looming threat of strangulation, which its members currently face.

In the delegation were, Mr. Godfrey Efeurhobo, managing director, Smile Communications; David Venn,  managing director, Spectranet; Mr. Osondu Nwokoro, director Regulatory and External Affairs of nTel;  and  Mr. Chuma Okoye, chief commercial officer, Swift Networks,.

They warned the regulator of a looming systemic industry failure which will have catastrophic effect on the socio-economic development of the country.

According to them, the industry is in a situation where all operators are finding it difficult to justify the required investment case for additional capital expenditure (capex) for network capacity expansion to improve quality of service to customers.

They further noted that the network operating expenditure (opex) of operations have sky rocketed in the last 15 months by over 85 per cent with revenues remaining relatively flat.  Most operators, they lamented, are currently struggling with meeting obligations to their suppliers particularly network vendors, tower firms and servicing loan obligations.

This worrisome trend, they noted, extend to even some of the Tier I Operators.

According to them, a storm is raging in the industry which if unchecked, will result in the collapse of key players in the industry.

“This is because the domino effect of bankruptcy of any of the Tier I or Tier II Operators on the entire ecosystem particularly, banking, employment, corporate and SMEs constitutes a major threat to the Economic Recovery and Growth Plan (ERGP) of the current administration. Such bankruptcy and consequent collapse will also substantially lessen competition with its attendant deleterious impact on consumer choice and attainment of the Broadband objectives of the country,” they warned in a statement yesterday.

But commenting on the matter via LinkedIn, Allen, who played key role as Group COO of Smile Communications for four years, said, “The answer is in the hands of the consumer, buy cheap and get nasty service or pay the fair price for a quality service. “Unfortunately regulators have no power to determine quality of service versus price. The major MNOs have put the price of data at less than the cost to produce it in order to protect their voice subscriber numbers. It is only the consumer that can force a change by paying a sensible price for a good service, rather than a cheap price for an almost unusable service”.

He warned that Nigeria will continue to fall behind in terms of the application of data related services as the operators are all unable to generate revenues to invest in the data services which the country desperately needs and deserves.

“The answer is in the hands of the consumer, buy cheap and get nasty service or pay the fair price for a quality service. The regulator could put in a floor data price that protects the small players, but that was tried and reversed within a day. If it was me….. I would merge some of the smaller players to give them a spectrum holding that would match or exceed the big MNOs, reduce costs through a larger scale, finally find the price somewhere between the current MNOs and the good service providers.

“That price being one that will tip most of the subscribers stuck with the MNOs poor service over to a great service provider…. instead of divide and conquer, combine and conquer”.

Also, the CEOs stated that the NCC’s declaration of 2017 as the Year of the Telecoms Consumer can be derailed by failure of operators to deliver on the expected quality of service particularly on data throughput and experience due to the weak investment case to support additional capex as a result of deteriorating market conditions.


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5G Subscriptions Hit 2.7m in Nigeria –NCC

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Nigeria’s mobile network landscape is seeing a gradual shift towards newer technologies, with 5G subscriptions reaching 2.7 million in March 2024, according to the Nigerian Communications Commission (NCC).

5G Subscriptions Hit 2.7m in Nigeria –NCC

This translates to a 1.24 per cent penetration rate.

While this represents steady growth compared to December 2023 (1.04%), 2G remains the dominant network choice, accounting for over half (56.97%) of all connections. 3G holds a 9.04% share, while 4G subscriptions have grown significantly from 25.06% in May 2023 to 32.74% in March 2024.

The high cost of 5G-compatible smartphones is a major barrier to wider adoption. Although all three major operators – MTN, Airtel, and Mafab Communications – offer 5G services in select cities, expanding coverage and affordability remain key challenges.

MTN launched the first 5G network in September 2022, followed by Airtel in June 2023. Mafab entered the market later in 2023. All three companies are aiming to expand their reach, but the high cost of 5G devices is a significant deterrent for many Nigerians.

According to Mohammed Rufai, chief technical officer, MTN, maintaining older networks (2G and 3G) alongside newer ones is necessary due to device compatibility issues.

This highlights the need for a wider range of affordable 5G-compatible phones to truly unlock the potential of this next-generation technology in Nigeria.

 

 

 

 

 

 


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Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

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Experts have called for stronger laws and stricter regulation to tackle security issues around call masking and Subscriber Identity Module (SIM)-boxing-related fraud in Nigeria, according to the Nation.

Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

Call masking or refilling is a practice in which international calls are terminated in Nigeria as local numbers, using illegal SIM boxes loaded with several numbers.

It is a deliberate attempt by fraudsters to avoid paying the correct International Termination Rate (ITR) for international calls, paying instead the Local Termination Rate (LTR).

For example, when the number is masked as a local call, an operator pays N3.90 LTR and not N24.40 ITR.

The process allows operators to terminate inbound international telecoms traffic as local calls, so they do not have to pay ITR, which is the interconnection charge set by telecoms traffic carriers as carrier-to-carrier charges.

A SIM Box fraud is a setup where fraudsters install SIM boxes with multiple prepaid SIM cards.

A fraudster can bring calls through VOIP (through the internet) and terminate international calls through local phone numbers from a country, to make it appear as a local call, by initiating the call through a local SIM installed in the SIM box.

About three years ago, when the issue came to the limelight, the Nigerian Communications Commission (NCC) carried out some investigations, leading to the sanctioning and suspension of some operators earlier this year.

Some of these suspensions were later lifted.

The Office of the National Security Adviser (ONSA), the National Intelligence Agency (NIA), the Department of State Services (DSS), and Committees of the House of Representatives and Senate have on several occasions expressed concern about the menace.

While many stakeholders believe that the menace has been nipped in the bud, it has continued to rear its ugly head to the bewilderment of experts and stakeholders.

Ikechukwu Nnamani, president/chief executive officer of Medallion Communications Limited, lamented that it is a subject matter, which NCC should address completely.

Nnamani, who is an executive member of the premier telecom body in Nigeria – the Association of Telecommunications Companies of Nigeria (ATCON), said almost all calls he received recently are masked.

“Sometimes, I don’t pick up calls because I do not know the number only to find out later it was an international call.

“The truth is that I don’t know why this has not been resolved, I expected it to have been solved.

“Honestly, I would not know why. One would have expected them to have sorted all these out by now,” he said.

Chief Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers of Nigeria (NATCOMS) said there was no need to relent in reporting the menace to the right authority.

He said it could be a plan to ensure that gain accrued to some people. “I don’t know whether call masking favours the operator or it is being done deliberately.

“It is a situation that the telecoms should deal with because it is a technical problem. I think it is some of those unlicensed operators doing all these.

“Some of these operators’ facilities are being tapped into; they need to look into their operations, so they can be taken care of.

“If they are still in the habit of doing it, proper sanctions should be meted out to any erring service provider.

“There should be heavier sanctions. They can’t be short-changing subscribers and at the same time, the government,” he said.

Mr. Ajibola Olude, executive secretary of the Association of Telecommunications Companies of Nigeria (ATCON), believes the issue can be addressed.

“When it comes to technology, you can only address it maximally. It is not as rampant as before and it is an international issue.

“We have addressed it before and we will look at it again.

“About four years ago, when it happened, we deployed all the resources within our capacity to address it and I think it was addressed maximally.

“I have not seen any operator complaining, except now that you are raising the issue, but as far as we know, call-masking is no longer a problem.

“I am going to contact our compliance monitoring to enlighten me about what is going on, but it is no longer an issue,” he said.

Mouka Reuben, director, Public affairs, NCC, said the situation has been tackled before and he does not think it was a major issue again.

He, however, promised that the commission would look into it again to find a way out.

NCC recently put the revenue lost to call-masking and SIM-boxing activities in the country at $3 billion.

This is as telecom operators lamented during the 85th edition of the Telecom Consumer Parliament in Lagos that they were losing about N2.5 million minutes per day to these fraudulent activities.

On actions that had been taken by the commission to combat the menace, Prof Umar Danbatta,  former Executive Vice-Chairman, NCC, said the NCC had tightened the SIM registration process across all networks to reduce the availability of SIM cards for SIM-boxing as well as address the security issues around the availability of pre-registered SIMs.

According to him, the action was necessary as some arrests made in Lagos two weeks ago showed that the perpetrators of SIM-boxing had over 100 SIM cards registered with fictitious names and used them to divert international calls.

Credit: The Nation


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Telecom Management Company Appeals for Cooperation and Safety Measures Over Abaranje Base Station Fire Incident

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Carville Integrated Ventures Limited, a telecoms facility management services provider, has expressed deep sadness by the recent fire incident at Abaranje Base Station, one of the several base stations it manages on behalf of Airtel Nigeria.

The incident, which occurred during maintenance operations on a leaking part of a diesel tank, resulted in injuries to some individuals from the local community who forcefully gained unauthorized access into the facility hosting the base station during the maintenance work.

Despite this breach of access control by the impacted individuals, Carville, who has responsibility for the site management expresses its sympathy to the victims and has offered to provide healthcare support to them.

The management of Carville Integrated Ventures, extends her condolences to the affected individuals and their families, stating, “Our hearts go out to those injured in the unfortunate incident. We are committed to providing support and assistance during their recovery process.”

Carville also emphasizes the company’s dedication to corporate social responsibility, stating, “We stand by our commitment to the communities we serve, and we will continue to prioritize their welfare in all our operations.”

Furthermore, Carville appeals to community leaders and members to cooperate with the company in implementing safety measures to prevent similar incidents in the future. “Safety is our top priority, the management affirmed. “We urge everyone to adhere to safety protocols and guidelines to ensure the well-being of all.”

Carville is working closely with local authorities and regulatory bodies to conduct a thorough investigation into the incident and implement necessary measures to prevent recurrence.


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