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Telcos Lose N119Bn Monthly as Subscribers Abandon SIM Cards

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MTN Nigeria, Globacom, Airtel, 9Mobile and ntel, the country’s main mobile network operators (MNOs), are losing monthly a handsome sum of potential revenues running into billions of naira to the rising profile of abandoned subscriber’s identity module (SIM) cards in the country.

Telcos Lose N119Bn Monthly as Subscribers Abandon SIM Cards

According to report by business a.m., online news medium, as the total number of inactive SIM cards peaked at 85.49 million at the end of October this year, the total monthly amount lost by operators of global service for mobile communication (GSM) amounted to N118.983 billion.

Business a.m. said it arrived at the figure using the current average revenue per user (ARPU) in the industry which stands at $3.85 monthly at N362.464 to one dollar as benchmark exchange rate.

Experts in the industry have explained that by the Nigerian telecoms industry standard, a SIM card is labelled inactive after the subscriber failed to use it to access any telecommunications services for a period of 90 days at a stretch.

Data obtained from the industry regulator, the Nigerian Communications Commission (NCC) revealed that since inception of GSM services in the country, a total of 265.61 million telephone lines have been sold and connected by the MNOs including MTN, Globacom, Airtel, 9Mobile, nTel.

Analysis of latest industry figure from the NCC shows that within the first 10 months of 2019, a total of 6.33 million lines were made redundant by their holders despite 7.63 million new lines that were activated.

The trend of inactive lines continued in the country despite the rise in active mobile phone lines and tractions recorded in teledensity which at the end of October stood at 180.12 million and 94.50 per cent respectively.

In January this year, out of 249.22 connected lines, 75.59 million or 30.33 per cent were inactive. In February, 75.17 million, an equivalent of 30.26 per cent of total 248.45 million connected lines went completely offline, and as at March, out of a total 250.26 million lines that have so far been issued by operators, 76.83 million or 30.7 per cent were inactive.

The percentage went up in April (31.49 per cent), May (31.98 per cent) and June (32.78 per cent) when 79.67 million, 81.51 million and 84.74 million of total 253.05 million, 254.92 million and 258.49 million SIM connections were redundant respectively.

In July and August, out of 259.14 million and 263.62 million connected lines, 84.74 million or 32.55 per cent and 87 million or 33 per cent in that order were inactive.

As at the end of September, 85.5 million or 32.34 per cent of 264.40 million total connected lines had been abandoned for at least 90 days, while in October, 85.49 million subscriptions or 32.19 per cent out of total 265.61 million were inactive, leaving 180.12 million as the current active subscriptions in the system.

Telecoms consumers in Nigeria have been found to live multi-simming lifestyle where one person is in possession of more than one SIM card registered to his identity.

This trend is further promoted by the design and configuration of mobile devices type-approved by the NCC as many of the devices are made to accommodate more than a SIM card conveniently.

The operators have also been  accused of contributing to the rising trend of inactive telephone lines in the system as their sales agents are often seen aggressively giving out SIM cards to existing and potential customers for free, or selling and registering the lines at ridiculously low prices.

Some subscribers told business a.m. during informal chats with them that they sometimes activated a SIM card just to enjoy a promo service being offered at that time by the operators, after which they ditched the telephone lines.

While telephone numbers assigned by the NCC to operators in ranges is seen as a scarce national resource, some industry experts hold that the situation is still normal since total active lines outnumber abandoned ones.

According to Olusola Teniola, the president of Association of Telecommunications Companies of Nigeria (ATCON), loyalty of prepaid customers to their networks is minimal, hence, it is easy for them to drop a line and go for another one.

He said: “With increasing migration of prepaid subscribers, from a usage basis, this means that there is far less loyalty to remain with an operator and easy for expats and mobile road warriors to dispense with SIM cards and return to obtain another SIM card when they return to Nigeria.

“So it is still okay that number of active SIM cards exceeds the number of inactive SIM cards. If it happens otherwise, it signifies saturation or heavy churn due to alternative offerings over Wi-Fi or other non-based SIM devices,” Teniola said.

He, however, observed that the telcos needed to win more post-paid subscribers to reduce the number of inactive lines.

“With more post-paid accounts the number of inactive SIM cards should decrease, as the SIM is usually provisioned subject to a tenured contract being in place,” he said.

Meanwhile, in a recently released numbering plan regulation, NCC said it would henceforth withdraw inactive lines after 12 months.

“Subscriber numbers that have not generated revenue by originating calls will automatically be recovered after 12 consecutive months,” part of the new numbering plan read.

In the new plan, NCC said it would conduct regular audit in order to ascertain the level of utilisation of numbers assigned to operators.

“The numbers issued will be categorised as follows: Assigned i.e. total number assigned by the regulator including operator codes; Quantity of numbers already assigned and sold to subscribers (SIM cards); Quantity of numbers in trade channels i.e. numbers with assigned SIM cards but not yet sold; Revenue generating subscribers during the preceding 90 days prior to the reporting period; and Quantity of numbers in quarantine,” the commission said.


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Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

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Bismarck Rewane, managing director/chief executive officer, Financial Derivatives Company Limited has backed telecommunication companies’ move to increase tariffs.

Rewane, Financial Expert Backs Telcos’ Move to Hike Tariff

Recall that telecom companies recently reiterated calls for an increase in prices of calls, data, and other services.

They argue that current prices are insufficient to maintain their business operations.

This request is contained in a communique signed by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON).

The telecom providers are advocating for cost-reflective tariffs, claiming that adverse economic headwinds are threatening their financial viability.

The operators stated that its general service pricing framework has not been reviewed upward in the last 11 years because of regulatory constraints.

“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the telcos said.

The telcos called on the government to facilitate a constructive dialogue with its industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with their financial viability.

This push for higher prices coincides with MTN Nigeria reporting a loss due to foreign exchange losses in 2023 and Airtel experiencing declining profits amid an economic downturn in the country.

While the development has triggered a backlash in some quarters, Rewane said telco pricing needs to reflect current realities.

He was a guest on weekend’s edition of Channels Television’s Politics Today

 

 

 

 


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Africa Data Centres Unveils ADC Channel Programme

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Africa Data Centres, a division of the Cassava Technologies group, is excited to announce the launch of its exclusive channel partner programme, ADC Channel.

Africa Data Centres Unveils ADC Channel Programme

This programme is designed to establish colocation and ecosystem partnerships, empowering members to expand their product portfolio & offerings alongside their market presence including an expanded data centre footprint.

ADC Channel presents a unique opportunity for global carriers, Internet Service Providers (ISPs), system integrators, Data Centres, Mobile Network, Content Developer, telecommunications companies, network infrastructure operators, hyperscalers and others to deliver state-of-the-art, sustainable and cost-effective digital solutions to their clients.

The primary objective of ADC Channel is to foster collaboration amongst partners, facilitating the delivery of optimised solutions and comprehensive support to clients. Partners enrolled in ADC Channel will benefit from a flexible approach that accommodates various partnership and go-to-market (GTM) models.

Finhai Munzara, CFO of Africa Data Centres, emphasises that the benefits of the ADC Channel programme extend to all types of partners.

“Our facilities are designed with the needs of hyper-scale, wholesale & enterprise clients in mind, catering to their technical, operational and commercial requirements. Whether it’s greenfield projects, built-to-suit facilities, powered shells, dedicated halls, or hybrid colocation, we offer flexible, scalable and sustainable solutions that suit partners of every kind.

He elaborates on the advantages of becoming an Africa Data Centres Partner.

Firstly, clients gain an additional product offering & footprint to augment their existing portfolio, enabling them to offer bundled solutions. This not only enhances their current revenue streams but also positions them for further growth & retention with both existing and future customers.

Africa Data Centres has also developed ADC Marketplace, a pioneering platform designed to empower partners and customers across the continent.

This innovative marketplace provides a dynamic space for partners to showcase their services and for customers to explore offerings, fostering collaboration and visibility within the African tech community. Offering unmatched connectivity and growth opportunities, the ADC Marketplace stands as the ultimate platform for African enterprise organisations and tech companies seeking to thrive in today’s digital landscape.

Partners stand to benefit from reduced churn, as colocation is inherently a ‘sticky’ product with minimal price erosion. By offering best-of-breed colocation services from Africa’s leading data centre provider, partners can differentiate themselves from competitors.

Partners will also enjoy seamless access to data centre experts, continuous commercial and technical support, and regular, complimentary training for their sales and product teams.

Furthermore, partners face no financial risk, as participation in the channel programme requires no investment and entails no capital expenditures for building data centres.

Partners can also leverage flexibility in setting their selling prices and receive significant upfront discounts, further bolstering their competitive advantage. Exclusive benefits include competitive pricing, dedicated sales & Presales Teams, Remote Hands support and access to joint marketing resources & activities, enabling partners to thrive in the marketplace.

Munzara emphasised that ADC Channel programme  epitomises Africa Data Centres’ commitment to fostering collaborative growth and innovation. “It serves as a platform for clients to enrich their product portfolios and seamlessly extend their business across diverse ecosystems with openness and transparency.” Africa Data Centres warmly invites partners to embark on this transformative journey towards shaping the future of digital connectivity in Africa.

“The programme prioritises mutual growth, leveraging Africa Data Centres’ profound industry expertise and extensive infrastructure,” Munzara concluded.

 


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Airtel Hosts Interactive Knowledge Session for Secondary School Girls

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As part of its commitment to empowering and mentoring women to become global leaders while breaking stereotypes and closing gender gaps, the Airtel Women Network, a platform comprising female employees of Airtel Nigeria, welcomed girls from Airtel’s adopted school, Alaba Oro Comprehensive Senior High School, Ajegunle, to commemorate International Day of Girls in ICT on Monday.

Led by the telco’s IT Director, Kemi Ariyo, the session emphasized the need for the rise of influential female role models in driving progress within Science, Technology, Engineering, and Mathematics (STEM) careers. It also served as an avenue to inspire young girls about the vast opportunities within the Information and Communication Technology (ICT) field.

During the session, Ogo Ofomata, Director of Enterprise and Airtel Business and President of the Airtel Women Network, shared insights on the significance of the 2024 commemoration with the students.

“Leadership entails leading yourself to do the things you have to do. With regard to the theme of this year’s International Girls in ICT Day, which is Leadership, our goal is to empower young girls and women to become programmers, coders, designers and to pursue careers in the ICT sector, ultimately becoming leaders in the IT sector,” she said.

The highlight of the event was a thought-provoking session led by Kemi Ariyo, IT Director at Airtel Nigeria, emphasizing the importance of technological knowledge in addressing various global challenges.

In her words, “The world revolves around technology and everything we do today has to do with technology. You can get into that space by adopting hard work, smart work, and an active involvement in internship programs. In addition, just as technology can be used in music and other sectors, learning technology can help you achieve your goals of problem- solving in this digital age.”

Also speaking at the event, Phanindra Nichanametla, Chief Financial Officer, Airtel Nigeria, restated Airtel’s tagline ‘A Reason to Imagine’, reassuring the students of Airtel’s commitment to encouraging positive imagination. “A very important note to take home from this event is that Airtel is here to change your imagination and give you opportunities to imagine more,” he said.

Airtel remains committed to promoting initiatives that promote gender equality and diversity in the workplace. By investing in the education and empowerment of young girls in ICT, Airtel Nigeria continues to pave the way for a more inclusive and prosperous future in the world of technology.


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