Connect with us

Telecom

Worries as N30Bn Debt Threatens Telecom Sector

Published

on

Debt.jpg
Kindly share this post

The telecoms sector already contending with many problems hindering quality of service; may be finally knocked down by the huge interconnect debt profile which is growing by the day, according to Daily Trust.

Also known as termination rates, interconnect fee is the charge paid by telecoms companies to each other for terminating voice, data or other services over or across each other’s network.

The interconnectivity debt rose which has hit N30 billion, according the operators in the industry, is giving them sleepless night. 

The operators said this together with the rising capital expenditure (Capex) and operational expenditure (Opex) may kill the industry
.
These debts in the industry, according to industry experts, are capable of threatening the stability of the Africa’s largest telecoms market, if the consequences of not settling the debts are not effectively managed by the government.

Daily Trust findings showed that the Interconnect debt profile increase was due to inactive status of majority of the debtors who are mainly Code Division Multiple Access (CDMA), fixed line networks operators as well as Internet Service Providers (ISPs).

Already, about 14 licensed telecoms operators who are among the debtors of interconnect charges have been declared inactive by the Nigerian Communications Commission(NCC).

Some of these operators which had gone moribund include Starcomms, Reliance Telecoms (operating as Zoom), Intercellular Nigeria, MTS First Communications, Disc Communications, WiTel, O’Net (Odua Telecom), Rainbownet, Monarch Communications, XS Broadband, Webcom and IPNX.

Investigations also revealed that various active operators failed to settle their interconnect payment for calls initiated on their networks and terminating on competitors’ networks, a development that has increased the interconnectivity debt profile in the country.

Concerns over this huge debt profile and its implications on business activities in the sector brought the issue into discussion when Minister of Communications, Barrister Adebayo Shittu, recently made an official visit to some telecoms companies in Lagos where he promised government commitment to address the matter.

Shittu said the government would look into the issue “to see how the issue of the debt may be resolved” in the interest of industry stability.

Bearing the highest consequences of the interconnectivity debt is MTN Nigeria being owed the lion’s share to the tune of N13.6 billion.

This amount owed MTN represents about 40 per cent of the total debts as the largest operator with 63 million subscribers and as such, often receive more terminations on its network has incurred more unsettled interconnect rates from other players.

Oyeronke Oyetunde, general manager, Regulatory Affairs, MTN Nigeria lamented that, “The issue of the rising profile of interconnectivity debt is something we need to discuss in the industry. Otherwise, it may pose questions around sustainability of the industry.”

An official of the Association of Licensed Telecommunications of Nigeria (ALTON) also told Daily Trust that the issue of rising interconnect debt is giving the association a serious headache.

The official who pleaded to remain anonymous blamed the poor economic situation in the country as the cause. He called on the Nigerian Communication Commission (NCC) to do something urgent about the issue.

Charles Ike Nnamani, managing director, Medallion Communications, blamed the situation on the lack of clear settlement mechanism in the industry.

According to him, one of the core functions of inter connect clearing house is billing and settlement among operators but some services providers used to handle traffic exchange directly.

He said interconnect debts are a major factor against good quality of service as some operators deliberately deny competitor access to their networks if they owed terminating charge.

Nnamani stressed the need for a clear interconnectivity settlement scheme in industry to address the problem.

He said, “The truth is that, at the moment because of the way the major dominant operators have handled inter connectivity, there is no clear settlement in the industry and that is one of the things we are working at creating, within the next few months we hope to have a proper settlement scheme for the telecom industry in Nigeria. There is a lot of debt out there among the operators.”

Other industry analysts expressed concerns that while the government intervention may signal a possible resolution towards preventing the development from resulting in cutting off the networks of the debtor companies, it remains unknown how a company such as MTN and others being owed will recover their money from debtors’ organisations that are out of operations.

But a telecoms right activist, Chief Deolu Ogunbanjo said whatever happens between the operators as regards the debt issue should not be passed on to the consumers.
 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

Telecom

Lebara Nigeria Becomes Member of GSMA Network

Published

on

Kindly share this post

Lebara Nigeria has become a member of the Global System for Mobile Communications Association (GSMA) as it expands operations in the West African country.

Lebara Nigeria Becomes Member of GSMA Network

The membership places Lebara Nigeria within a global network of more than 1,000 mobile operators, device manufacturers, technology companies and digital service providers.

Through the GSMA, the company will have access to industry research, technical standards, policy engagement and industry initiatives.

Lebara Nigeria said the move reflects its participation in the wider telecommunications ecosystem as it develops its operations in Nigeria’s mobile market.

Nigeria’s telecommunications sector plays a central role in the country’s digital economy, with more than 170 million active mobile subscriptions supporting services such as digital payments, e-commerce, education and healthcare.

Industry analysts say participation in international bodies such as the GSMA supports knowledge sharing and the adoption of industry standards.

Lebara Nigeria said GSMA membership will support its engagement with industry developments and policy discussions in the telecommunications sector.

The company said it remains focused on operating in Nigeria’s mobile telecommunications market as demand for connectivity continues to grow.

GSM Association is the advocacy and lobbying organization for the mobile communications industry, representing more than 1,000 mobile operators as full members and a further 400 companies in the broader mobile ecosystem as associate members.


Kindly share this post
Continue Reading

Telecom

Vitel Wireless Warns Public, Says it Not Running any Investment Scheme

Published

on

Kindly share this post

Management of Vitel Wireless, mobile virtual network operator (MVNO), has distanced the company from a fraudulent scheme operating under the name: “Vitel Shares Services.”

Vitel Wireless Warns Public, Says it Not Running any Investment Scheme

In an official statement, the management clarified that Vitel Wireless is not selling shares or running any investment schemes.

They warned that the operators of “Vitel Shares Services” are using unauthorised websites, mobile applications, social media promotions, and bank accounts falsely linked to Vitel Wireless to mislead the public.

The statement reads: ​“The attention of Vitel Wireless has been drawn to a fraudulent scheme operating under the name ‘Vitel Shares Services.’

“We wish to state clearly that Vitel Wireless has no affiliation with Vitel Shares Services, or any platform claiming to offer Vitel shares, investments, or financial products through unofficial channels.

“We do not solicit investments through agents, social media, websites, apps, or third parties. Any platform claiming to offer Vitel Wireless shares or investments outside our official channels is fraudulent and should be treated as such.

“We urge the general public to remain vigilant and verify all information through official Vitel Wireless communication channels before making any payments or sharing personal data.”


Kindly share this post
Continue Reading

Telecom

Airtel Nigeria Deepens Focus on Data Usage Transparency @ Customer Forum

Published

on

Kindly share this post

Airtel Nigeria has concluded its second Customer Forum in Abuja, bringing together a large section of customers including high-volume data subscribers, 5G customers, and key stakeholders in another landmark engagement aimed at addressing concerns around data usage, transparency, and customer experience.

The forum themed “Understanding Your Data and Taking Control 2.0.” aimed to strengthen trust in Nigeria’s rapidly evolving telecommunications landscape. The session also featured inputs from representatives of the Nigerian Communications Commission (NCC).

Delivering the Keynote remarks, Dinesh Balsingh, CEO of Airtel Nigeria, who was represented by Femi Adeniran, Director, Corporate Communications and CSR, emphasised that trust remains the most valuable currency in telecommunications, and Airtel remains committed to strengthening customer confidence through transparency and continuous engagement.

He explained that discussions around data consumption have become increasingly important as digital lifestyles evolve, with smartphones, cloud services, video streaming and emerging artificial intelligence applications significantly influencing data usage patterns.

According to him, Airtel recently introduced the Airtel Data Calculator, an innovative tool designed to help customers estimate their data needs based on online activities such as multimedia streaming, video calls, social media usage, and gaming.

“The purpose of the Airtel Data Calculator is to provide greater visibility, support informed decision-making and place more information directly in the hands of customers. Because transparency should never be viewed as a compliance exercise. Transparency is good business,” he stated.

He further reassured customers that Airtel has no incentive to shortchange subscribers through inaccurate billing, forced spending or unnecessary data depletion, stressing that the company’s growth depends on customer satisfaction, loyalty and trust.

Adeniran also highlighted Airtel’s continued investments in network infrastructure, fibre capacity, digital platforms, artificial intelligence capabilities, customer service systems and workforce development, noting that these investments are aimed at improving service quality and enhancing customer experiences.

Oladokun Oye, Director, Customer Experience, Airtel Nigeria, while welcoming participants to the event, said the forum was created to provide customers with an open platform for education, engagement and problem-solving, noting that the customer remains at the centre of Airtel’s business.

“Data has become central to everyday life, powering work, education, commerce, entertainment, healthcare and countless opportunities. As data usage grows, so too does the desire for greater visibility and understanding.

Today’s conversation is part of an ongoing journey. A journey toward greater transparency. A journey toward deeper understanding. And a journey toward a better customer experience for every Airtel subscriber,” he said.

The forum also featured practical demonstrations on data consumption management, device settings, and usage habits that impact data usage. It also included an interactive session by which Airtel teams provided clarifications and offered feedback to customers.

The Abuja event follows the successful maiden edition held earlier this year in Lagos and aligns with broader industry efforts led by the Nigerian Communications Commission (NCC) to improve consumer awareness, transparency, and confidence within the telecommunications sector.


Kindly share this post
Continue Reading

Trending