Telecom
$10.1Bn Fine: “MTN Targeted in State Sponsored Corporate Mugging”
The dust has yet to settle over the recent order given to MTN Nigeria by the Central Bank of Nigeria (CBN) to refund $8.134 billion illegally repatriated between 2007 and 2015; and the allegation of $2 billion tax evasion.
Telecom associations, legal experts and some Nigerians with knowledge of the workings of the telecom industry have insisted that the treatment meted out to MTN was too harsh. One said it was a” state sponsored corporate mugging”
May be by its sheer size and control of the Nigerian telecom market, MTN Nigeria has become target of every available fines and harassments.
The most notable was in 2015, when the company was hit with a $5.2 billion fine for failing to disconnect just over five million lines that were not registered.
The size of the fine—37% of its revenues and more than double its annual profits—sent shockwaves through the industry.
Then in August this year, Nigerian Communications Commission (NCC) said that MTN must list on Nigeria’s stock exchange on or before May 2019 as contained in the agreement over the 2015 fine settlement between the regulator and the telecom company.
By all intent and purposes, going public is usually the decision of the company but Nigeria is forcing the telecom firm to make that decision.
The combined weight of the recent demand by CBN and attorney general of the federation amounting to $10. 1billion has also left many wondering the intents and purposes of the legion of fines.
Mr. Gbenga Adebayo, chairman, Association of Licenced Telecoms Operators of Nigeria (ALTON), said that the burden of proof that there was an infraction on the MTN financial transactions with the four banks over funds repatriation, lies on the CBN, based on the earlier report on the investigation of MTN by Senate on the same issue, which freed MTN of any complicity.
MTN has maintained that it got the approval of the CBN for all dividends it had declared in the past, and that the Senate investigation on alleged funds repatriation had since exonerated it from any complicity in illegal funds transfer.
Oulsola Teniola, president, Association of Telecoms Companies of Nigeria (ATCON) also said that the CBN has no powers to order MTN Nigeria to refund the money.
ATCON said that the cash in question belongs to MTN in the first place and wondered what the CBN wants to achieve by its order.
He said: “A refund is very unlikely. The size of the demand and timing is unreasonable and not in the interest of the country. After all, the Naira equivalent will have to be returned to MTN Nigeria. It is then an interesting situation that this seeks to redress events that occurred when CBN had full oversight and approved the transactions. How do they intend to do that?”
Elsewhere, Chibuike Okeke, a lawyer and investment analyst, said that “I think regulators are too harsh on companies with the numerous and high amount of fines they impose on MTN, it looks like state sponsored corporate mugging”
“Effective and impartial regulation is good but if this fines continue, it ultimately could end up hurting Nigeria much more in the long term than it does MTN. Foreign investors don’t look favourably on such risk and will think twice about investing in here.” Okeke added.
Telecom
Nigerians Consume N5 Trillion Worth of Data in One Year
The 2023 Subscriber/Network Performance Report of the Nigerian Communications Commission (NCC) has shown that consumers’ telecommunication spending hit N5.30 trillion in 2023.
The recent figure is a 37.54 percent increase from the N3.86 trillion recorded in 2022.
According to NCC, the increase in spending was fuelled by a spike in data consumption, which translated to higher revenues for telecom operators including mobile network operators, fixed wired, internet service providers, and other telecom services.
“The total volume of data consumed by subscribers increased to 713,200.62TB as of December 2023 from 518,381.78TB as of December 2022. This represents an increase of 37.58 percent in data consumption within the period. The increased data consumption is indicative of the increasing appetite and use for data by consumers,” the NCC said.
This increase in data consumption coincides with only a margin increase in voice calls, with total outgoing calls hitting 205.29 billion minutes, a 0.59 percent increase from the 204.09 billion minutes recorded in 2022.
The total number of active subscriptions increased from 222.57 million in 2022 to 224.71 million, attributed to subscriber loyalty, promos, aggressive consumer acquisition drive, and competitive product offerings across all the networks.
NCC stated that internet subscribers increased from 154.85 million in 2022 to 163.84 million in 2023, and broadband penetration declined from 47.36 percent to 43.71 percent.
This growth in internet consumption has continued into 2024, thanks to increased streaming services and smartphone penetration.
It would be recalled that Karl Toriola, chief executive officer of MTN Nigeria, recently noted that telecom companies are set to benefit from increased demand for data services, which has become the primary driver of telecom revenue.
Between January and September 2024, MTN Nigeria and Airtel Nigeria reported combined data revenues of N1.63 trillion, up from N254.32 billion in the same period of 2019. Over this time, voice revenues—once the primary income source for telcos—grew by only 70.74 percent to N1.44 trillion.
Data usage per user has grown, with MTNN reporting that its average data usage per user rose to 11.3GB in September 2024 from 7.8GB in March 2023.
For Airtel Nigeria, monthly usage increased from 2.8GB in March 2021 to 8.1GB in September 2024.
“We are positioning ourselves to capture the opportunities of growth for the next 10 years. The demand for data in Nigeria is exceptional and will continue to grow,” Toriola stated.
Telecom
Glo Festival of Joy Promo Draws Lucky Winners in Abuja
Globacom’s Festival of Joy promo took the centre stage in Abuja on Friday as the company held a draw to select lucky winners of exciting prizes.
The event, held at the Gloworld office on Aminu Kano Crescent, Wuse, was witnessed by officials of the National Lottery Regulatory Commission (NLRC), Glo subscribers, and media representatives.
This draw marks another milestone in the Festival of Joy promo, which has been rewarding subscribers across Nigeria since its launch in October 2024.
Lucky winners in Abuja will receive their prizes, including a brand-new Toyota Prado, tricycles, sewing machines, generators, and grinding machines, on Wednesday, January 22, 2025.
To participate in the promo, new and existing subscribers can dial *611# and recharge their lines (voice and data) during the promo period.
Globacom explained that, “Customers are required to recharge up to N100, 000 cumulatively during the promo period to qualify for the draw for the Prado Jeep, N50, 000 cumulative recharge for Kia Picanto, N10, 000 in a month for tricycle and N5, 000 total recharge in a month to win a generator.
“For the sewing machine, a total recharge of N2, 500 in a month is required, while for the grinding machine, a recharge of N1000 in a week will be eligible for the draw,”.
Telecom
MTN Subscribers Enjoyed Best Internet Performances in 2024 – Report
The subscribers of MTN Nigeria enjoyed the best mobile Internet performances in 2024, according to nPerf’s 2024 report, which analysed mobile internet performance across Nigeria.
nPerf, a French company has been a trusted partner for both fixed and mobile operators, providing comprehensive network testing solutions and analysis.
According to nPerf, in 2024, the mobile market in Nigeria saw significant developments and the leader for this period is MTN, maintaining its position as the global winner.
From January 1 to December 31, 2024, MTN led mobile internet in Nigeria across every measurable category, with great performance. Its subscribers enjoyed an average download speed of 17.82 Mbps, leaving Airtel at 9.98 Mbps and Glo at a distant 5.66 Mbps.
“This period highlights MTN’s continued dominance as the market leader, with no new entrants taking the lead in 2024. MTN emerged as the sole leader, showing impressive advancements across various KPIs and focus areas. The analysis showcases MTN’s superiority in Download speed, Upload speed, and Latency.
Upload speeds were similar, with MTN averaging 8.05 Mbps, Airtel 4.35 Mbps, and Glo 3.43 Mbps, even as reliance on solid internet connectivity never stopped increasing.
Latency, an important metric for real-time applications such as video calls and gaming, further enhanced MTN’s place in the market. The network achieved an average latency of 79.44 ms, comfortably outperforming Glo’s 89.44 ms and Airtel’s 119.85 ms.
These figures are particularly important during peak periods (6 PM to 11 PM) when the network issues are at the highest. MTN’s ability to maintain consistent latency levels during these busy hours speaks to its superior infrastructure.
Beyond raw speeds, the quality of experience (QoE) was also analysed. In browsing performance, MTN scored an average success rate of 36.08%, surpassing Airtel at 28.86%, while Glo lagged at 29.42%.
This difference was also seen in video streaming, where MTN recorded an average streaming success rate of 72.35%, overshadowing Airtel’s 67.04% and Glo’s 53.81%.
Airtel, despite being a distant second in most metrics, delivered a commendable performance in specific areas, particularly video streaming.
Its streaming rate, at 67.04%, shows a strong emphasis on delivering quality experiences in this domain.
However, Airtel’s inability to match MTN’s speeds, browsing performance and latency asserted the gap between the two providers.
Glo, on the other hand, had steady progress throughout 2024. Although it lagged in download (5.66 Mbps) and upload speeds (3.43 Mbps), its performance in latency (89.44 ms) revealed some improvement in network responsiveness.
Glo’s focus on enhancing connectivity is obvious, but it remains apparent that the provider has some ground to cover before it can challenge the likes of MTN or even Airtel.
The data disclosed that whether downloading, browsing, or streaming, MTN subscribers always enjoyed the best experiences.
In the 4G focus area, MTN also stands out as the leader. These achievements underline the positive trends and strong market dynamics” according to nPerf.
The report also said that not only does MTN excel in download speed, upload speed, and latency, but it also leads in Video streaming.
nPerf’s report added that MTN dominates the 4G focus area, reinforcing its pioneering position in the mobile technology sector.
“Significant improvements include a remarkable enhancement in Upload speed. MTN’s consistent contributions have greatly strengthened the overall market landscape” it said
On Airtel, nPerf reported excellence in browsing and streaming, adding that Airtel, while not the market leader, demonstrates excellence in specific categories.
“With a strong performance in browsing and video streaming, Airtel secures its place as a key player. The operator’s contributions are vital to the market’s competitiveness, and its focus on enhancing user experience is evident” nPerf reported.
nPerf further reported that Glo showed steady progress with a commendable improvement in its overall score.
Although not a market leader, Glo has shown improvements in various areas, contributing positively to the market’s dynamics. The operator’s focus on enhancing connectivity and customer satisfaction is noteworthy, according to nPerf.
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