TheNewsGuru

Tag: NCC

  • A mobile industry in need of help – By Okoh Aihe

    A mobile industry in need of help – By Okoh Aihe

    As the global community gathers at the Mobile World Congress (MWC25) in Barcelona, from March 3 – 6,  2025, with the theme: Converge. Connect. Create, it will be interesting to find out how well the mobile industry is doing at home, I mean in Nigeria, and whether we are close to having any serious relationship with those three generic words with broad meanings and implications.

    Activities in Barcelona will feature huge exhibitions and 48 keynote speakers at the Fira Grand Via, venue of the Congress, including some other major activities like the Ministerial Programme, Partner Event and Professional Training Sessions. It is always a big opportunity for big deals, business breakthroughs and tech catch-up.

    I am unable to confirm the attendance of the Ministry of Communications and Digital Economy, and the Nigerian Communications Commission (NCC) but it will be a big opportunity to be missed if Nigerian officials were not there for whatever reason. As I railed last year when I found out we did not have the National Broadcasting Commission (NBC) at the National Association of Broadcasters Conference in Las Vegas, I want to reiterate here that industry shows that serve as barometers for measuring tech advancement should be a priority to regulators no matter the state of the economy.

    Anyway, there will be time to look at the activities at the Mobile World Congress but I think the focus at the moment should be to take a look at some of the developments in the nation’s mobile industry. Quite a lot of developments, some not too interesting but overall the progress being made is worth noticing.

    For most of last week, the trending story was the collapse of the 9MOBILE network which threw a number of subscribers into confusion without explanations from any quarters. Some could swear on the graves of their forebears that the network was down and out and actually just vented frustrations on why a thing like that should happen without a word from the operator or regulator. But was there a network outage?

    Nothing seems to be beyond 9MOBILE as the glory days of the operator seem to be impaired. Even an NCC source told this writer that 9MOBILE was going through a very difficult situation. The figures are not even giving the organisation a good hiding. From about 23m lines in 2016, the subscriber base has plunged to as low as 3.3m which the NCC has recorded on the telecoms dashboard. This is only about 2.15 percent share of the market. But was there a network outage?

    A 9MOBILE source told this writer that there was indeed an outage last week that has since been fixed, the proof being that the source was calling on a 9MOBILE number. There was the acknowledgment however, that the operator was going through a rough patch which was noticed by the critical stakeholders – regulator, operators and subscribers. Ownership has changed hands severally and there were some needless controversies in the past. There was the promise that 9MOBILE was clawing its way back and that it would soon be standing to offer good services and take a respectable place in the industry.

    An NCC source was not overtly optimistic but acknowledged that the new owners of the service provider seems to be making some investments but since there was no major fund injected over a long period of time, leaving the network really degraded, subscribers may have to accommodate the kind of glitch they witnessed last week. The source made the observation that there are some activities at 9MOBILE  as the owners, LH Telecommunications Ltd, are demonstrating a seriousness to breathe life into the challenged operator. But the turnaround, the source warned, will not happen in a flash.

    There was another source of good news however, which may bring a new lease of life to the various mobile networks which don’t seem to be doing well in terms of quality service provisioning. Without exception and in most locations, calls cannot be sustained without a drop, and internet speed can be very frustrating. The regulator is aware of the frustrations as it says that it will have to rely on quality of experience by subscribers as a measurement tool, plus other metrics to determine how well operators are doing.

    However, the NCC source was optimistic that network challenges may soon be over as it noted that some operators are investing heavily in network expansion, and also to improve the quality of services being provided. In the past, operators had complained that Forex volatility and other economic pressures have made it impossible for them to do needed investment on their operations. They agitated for a tariff increase which they got recently. Things may not have turned the corner yet but their efforts to improve and expand their services have been noticed by the regulator. It is good news for the industry. It is even better news for the subscribers who may soon begin to get the real worth for money spent on telecommunications services.

    An industry source was not so charitable or lavish with praises and expectations. The source is of the opinion that time has come for the regulator to engage in creative regulation in order to activate the kind of industry that will meet the needs and expectations of the subscribers. The source urged the regulator to take a dispassionate and professional look at the operations of both 9MOBILE and NTEL, operated by NATCOM Development and Investment Limited (NatCom), and take a decision that will enable their bouquet of licenses to be put to better use, according to the source, in order to deepen the competition in the telecommunications industry.

    But there is competition already in the industry, I reminded my source. No, not the kind of competition that was introduced in 2001, or even thereafter. Some have since fallen on the wayside, while, of the three operators that are still in competition, one is in clear lead, creating a distance that is too discomforting to be acceptable. The regulator needs to be very creative in dealing with the situation.

    When we were in primary school, we told a lot of stories as small children where the tortoise would usually enjoy an unhealthy advantage with its crafty ingenuity. At that time, we were told of the wisdom in not putting all your eggs in one basket. I do not want to engage in the laborious enterprise of linking the nation’s telecom industry to the egg story. But from all indications, the regulator can do better. And that is why events like the Mobile World Congress are important as they provide channels for regulators to learn from each other in peer review relationships. It is only then the regulator can cause the industry to really Converge. Connect. Create.

    Ogayoloo, a hit single

    I am told Ogayoloo, in lgala language, is a shout of Hallelujah or even plain and pure exclamation of, and excitement in appreciation of some benevolence received. But at a Healing and Deliverance Crusade in Idah, Kogi State, a few weeks ago, Dr Pastor Pastor Paul Enenche, Senior Pastor of Dunamis International Gospel Centre, got such a spontaneous creative burst and Divine inspiration that Ogayoloo, became an energetically danceable music which literally dropped. See the beauty of good music – keep the lyrics simple, preferably in local language with a resonating refrain. Then you have a monster hit in your hands. I do not understand Igala but as I watched the Crusade that night, I could see the vibrating connection between the local folks and the Almighty God through the Crusade platform provided by Dunamis, and the tears came to my eyes. Ogayoloo is a hit single that plays with freshness all the time and provokes righteous gyration. I recommend it without reservations.

  • Subscribers ask NCC to sanction MTN, others for breach of agreement

    Subscribers ask NCC to sanction MTN, others for breach of agreement

    The National Association of Telecommunication Subscribers (NATCOMS) has urged the Nigeria Communications Commission (NCC) to sanction any telecom operator which may have already implemented the tariff hike, for breach of agreement.

    The National President, NATCOMS, Mr Deolu Ogunbanjo told the News Agency of Nigeria (NAN) on Wednesday that any telecom operator which had implemented the tariff hike was actually breaching the agreement by the NCC and the Nigeria Labour Congress.

    Following the NLC objections to the tariff hike, the Federal Government established a 10-man committee to deliberate on the proposal and report back to it in two weeks before any final decision would be made on the new telecom tariff structure.

    Ogunbanjo said that the NCC had agreed to hold a stakeholders’ meeting with the Nigeria Labour Congress (NLC),  subscribers and the telecoms operators represented within two weeks to discuss the issue of tariff hike.

    He said that the stakeholders meeting  was yet to be held neither had the two weeks elapsed before the telcos started implementation of the 50 per cent tariff  hike. According to him, this is an affront and defaulters should be sanctioned.

    “I am sure you are aware that NATCOMS  was prepared to head to court to challenge the 50 per cent tariff hike but decided to wait for the outcome of the stakeholders’ meeting.

    “This is the advice that was given to the subscribers association by its national general secretary who happens to be a lawyer. So why should the hike be implemented  when the stakeholders’ meeting is yet to be held?

    “The NCC should, as a matter of urgency, sanction the telcos for implementing an upward review of tariffs,’’ he said.

    Checks using the *312# code on the MTN network showed that the telco had revised its data prices. For the monthly plans, MTN 1.8GB now goes for N1,500, replacing the previous 1.5GB plan priced at N1,000; the 15GB plan now costs N6,500, a rise from N4,500. The 20GB monthly plan has been adjusted to N7,500, up from N5,500, among others. Further checks show that all the networks had reviewed their text messaging price from N4.00 to N6.00.

    The Nigerian Communications Commission (NCC), the industry’s regulatory body had approved a maximal increment of 50 per cent tariff adjustments to operators in January.

    The Commission said its approval, though less than the 100 per cent hike demanded by operators, was in response to prevailing operational costs.

    It said that its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

    However, NATCOMS had threatened to sue the NCC, while the Nigeria Labour Congress had pledged to start an industrial action if the 50 per cent proposed tariff hike was not reviewed downwards.

    This prompted the Federal Government to constitute a 10-man committee to deliberate on the tariff hike within two weeks and report back before any final decision was made on the new telecom tariff structure.

    Despite this agreement, telecom firms have proceeded with the increase, prompting the NLC to issue a March 1 deadline for a total shutdown of their operations if the tariff hike are not reversed.

  • Mr President, NCC Board too important to be ignored – By Okoh Aihe

    Mr President, NCC Board too important to be ignored – By Okoh Aihe

    The other day the government announcement the board appointments of forty-two government agencies and parastatals. Very good news it was for me, hoping that at last, my silent and open prayers must have been answered. I nearly reached for a magnifying glass incase my reading glasses were getting too weak to enable me read the press statement with understanding; alas, the Nigerian Communications Commission (NCC) wasn’t on the list.

    “President Bola Ahmed Tinubu has appointed board chairpersons for 42 federal organisations and a secretary to the board of the Civil Defence, Immigration, and Prisons Services.

    “The President has also appointed a new managing director for the Nigerian Railway Corporation and a director general for the National Board for Technology Incubation (NBTI).

    “President Tinubu directs the board chairpersons not to interfere with the management of the organisations, emphasising that their positions are not executive,” the statement signed by Bayo Onanuga, Special Adviser to the President (Information & Strategy), said in part. This was January 23, 2025.

    Ironically, I wasn’t too disappointed. The President of any country is a very busy person. For the Nigerian President, the basket of worries is heavier because there are too many things he has to sort – poverty in the land, the purity of data from the National Bureau of Statistics about the rightness and wrongness of data – whether headline inflation is 34 percent and food inflation is 40 percent; insecurity and daily carnage on our roads, the inability of previous administrations to communicate effectively that Nigeria doesn’t really have enough money to provide all the infrastructure, including roads, and that it must work through Public Private Partnership (PPP) to deliver some services,  that the energy sector remains a shame and can really not cater for the development needs of the people, and that life expectations in Nigeria will remain a mirage except all parties are able to come to the reality that the nation must move ahead on a clean slate without bitterness, mistrust and festering acrimonies. There are other sundry issues too numerous and troubling to be listed.

    The Nigerian President has too many things to think about and board appointments, though an issue for the loyalists, may not be so compulsive as to serve as distraction or inordinate concern.

    However, I want to reiterate my appeal that President Tinubu should appoint a Board for the NCC as a matter of urgency in order to put developmental expectations in the telecommunications sector on a seeming virtual accelerator. As we say in this part of the world, to move the industry forward but moving the industry forward might be too slow to deliver on the promises by this government which has a psychedelic commitment to a digital economy.

    The Nigerian Communications Act 2003 does not envisage any day NCC will not have a Board, as it states very clearly that “the President shall ensure at all times there are a minimum of 6 serving Commissioners on the Board at any and all times, made up of – the Chief Executive, 2 Executive Commissioners and three non-executive Commissioners.

    A fully composed Board, according to the Act, should consist of 9 Commissioners which include:  a chairman, a chief executive who shall also be the Executive Vce Chairman, 2 Executive Commissioners, and 5 non-executive Commissioners, who shall be appointed by the President of the Federal Republic of Nigeria.

    Those who are advocating for the Board to be constituted, including this writer, harbour the opinion that the diversity of background, experience and knowledge of the members may encourage fresh thinking, hopes, aspirations and fresh drive to the activities and programme implementation at the NCC.

    Their expectations are anchored on a provision of the Act which states as follows: Commissioners shall be persons of recognised standing, qualification and experience in one or more of the following fields – finance or accounting; law; consumer affairs; telecommunications engineering; information technology; engineering generally; economics; and Public Administration.

    The dream of having all these professionals in one board can be too tantalising to be real but it has happened before and can still happen again if the President picks well irrespective of party affiliations. Unfortunately, these professionals can quickly morph into the garb of politicians and begin a ruination of the system. That is what happened under the last administration which inflicted so extensive a damage on the Commission from which it is still struggling to recover.

    But the President, in the statement, warned the newly appointed chairpersons and board members not to interfere with the management of the organisations. Same should be said of the NCC when the Board is constituted because of antecedents that are too ugly to always recall.

    But some voices at the NCC are not in a hurry to forget yesterday. A particular source told this writer, “We pray not to have a transactional Board. The last Board was horrible. We want a chairman with capacity.”

    All the same, a Board is needed to help the policy thrust of the Commission and facilitate good decision making. A Board that can take the Commission to the next level and bring various experiences to bear on its operations, according to another source.

    At the moment, there are only three Commissioners, one of which is the Executive Vice Chairman ((EVC), and two Executive Commissioners, all from a part of the country, which strains a provision of the Act that states clearly that they must be drawn from the 6 geo-political zones of Nigeria subject to confirmation by the Senate.

    I do not have the boldness to ever insinuate that the NCC is running in breach of the Act. My only appeal is that the President should constitute the Board and remove the Commission from a needless cul-de-sac and avoidable hermetic strictures.

  • MTN implements NCC directive, hikes prices of data, SMS

    MTN implements NCC directive, hikes prices of data, SMS

    MTN, Nigeria’s largest telecommunications operator on Tuesday commenced implementation of the Nigerian Communications Commission’s approved tariff hike by increasing its data prices.

    A check by NAN using the *312# code on the MTN network showed the revised MTN data prices.

    For the monthly plans, MTN 1.8GB now goes for N1,500, replacing the previous 1.5GB plan priced at N1,000; the 15GB plan now costs N6,500, a rise from N4,500.

    The 20GB monthly plan has been adjusted to N7,500, up from N5,500, among others.

    Text messaging on the network has also increased to N6.00 reflecting the 50 per cent hike, while hike in voice calls rates are yet to be ascertained.

    Other mobile operators comprising Airtel, Globacom, and 9mobile are yet to update their data prices as at the time of filing this report.

    Some subscribers, who spoke with NAN, said they were surprised by MTN’s haste in implementing the tariff increase.

    An Educationist and MTN Subscriber, Mrs Halima Balogun, lamented MTN’s haste in adjusting its tariff.

    Balogun said that other networks were yet to implement the hike.

    “We, the subscribers, are yet to come to terms with the announcement of proposed hike, only for the increase to be implemented.

    “I was about purchasing my 1.5GB at N1000, only to discover that it has been increased to N1,500, this left me stranded because I had planned on spending only N1000.

    “It would have been ideal if we were given a week’s notification before the new prices were made public to enable one to be prepared,” she said.

    A 200-level Student of University of Lagos, Mr Edoziem Olunwa, described the increased MTN tariff as frustrating.

    Olunwa said that the increase was coming at a time when things were becoming increasingly difficult, even as students.

    “As a Computer Science student, I was struggling to help myself with the 20GB which was N5,500 but the additional N2000 is like a burden.

    “Over the weekend, there was outage on the network, which was addressed but could still be better. These are the things we want the network to address,” he said.

    Another Subscriber, Mr Abdulwahab Fatoki, expressed optimism that the increase would herald effective and efficient service.

    Fatoki said that from the day the announcement of the proposed tariff hike was made, it was obvious that there was no going back so the best bet was to be prepared.

    All the subscribers, however, expressed optimism that with the increment there would also be increased quality of service.

    All efforts to speak with MTN officials before filing the report failed.

    NAN reports that the Nigerian Communications Commission (NCC), the industry’s regulatory body had approved a maximal increment of 50 per cent tariff adjustments to operators.

    The Commission said its approval, though less than the 100 per cent hike demanded by operators, was in response to prevailing operational costs.

    It said that its decision was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

    The NCC said that, while recognising the concerns of the public, the decision was made after extensive consultations with key stakeholders across the public and private sectors.

    “The NCC recognises the financial pressures faced by Nigerian households and businesses and remains deeply empathetic to the impact of tariff adjustments,’ the NCC said in a statement.

    It noted that these adjustments would support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity.

    The NCC added that consumers would benefit from better network quality, enhanced customer service, and greater coverage within the country.

  • Telecom tariffs – the rot cuts deeper – By Okoh Aihe

    Telecom tariffs – the rot cuts deeper – By Okoh Aihe

    The responses to the tariff adjustment for telecom operators on January 20, 2025, by the Nigerian Communications Commission (NCC), clearly demonstrate that Nigerians are not a conquered people yet. That, in spite of how the socio-economic conditions have impacted them harshly to endure subhuman living, they can still find their voices from the ruins of such chaotic existence. Thank God for democracy no matter how very obtuse.

    The operators wanted a hundred percent hike. The regulator granted 50 percent. The subscribers see the development as an overkill, one load too many. The Nigerian Labour Congress (NLC) is rallying its members for a nationwide protest. The National Civil Society Council of Nigeria (NCSCN) has asked the NLC to reconsider its position because of industry facts released to them by the regulator. Quite a number of people are speaking on the subject with quite a sizeable number pleading emotions as their very strong point.

    “The Leadership of NCSCN, having clearly conducted a forensic analysis of the facts and figures available on this burning national issue, sincerely sympathises with the NCC in the dilemma they find themselves, cut between a Nigerian People that have been pushed into the walls owing to biting economic hardship, and Telecom Service Providers whose businesses are equally endangered as a result of same inflationary factors and unfavourable environmental conditions,” the organisation stated.

    Quite a flurry of frenetic activities, not because of the increase in the prices of foodstuff or the hike in electricity tariffs, now denominated in bands, or the cost of petrol or diesel, but telecoms. They say the operators don’t want us to be able to communicate any more.

    As I write this material on Monday night, words came in that the Nigerian Government just had a high profile meeting with NLC, prompting the latter to backpedal on proposed protest. Some decisions had also been reached on the way forward. The meeting was at the instance of the Government.

    “So, the summary of it is that Labour and the Nigerian Labour Congress specifically and the delegation of the federal government have set up a committee of five each. We are going to meet here continuously for the next two weeks. And at the end of the second week, we will now come up with a recommendation that we will give to the government and the organised Labour for final consideration,” a government statement said.

    In the ensuing bedlam, the regulator quietly released the latest industry statistics on the Commission’s website. The figures are quite revealing and should trouble everyone who wants to continue to use telecom services in an industry that should by now have earned maturity status. The site was last updated on January 30, 2025.

    The statistics reveal some discomforting market positions and movements and, in plain summary, an industry in a clear state of hibernation needing serious motion to untangle it from that freeze. Since the Govenment and Labour will be meeting for the next two weeks on a regulatory decision by the NCC, I find it relevant that the statistics are served here with some annotations.

    By December 2024, total active lines stood at 164,926,599 while the teledensity is 70.08 on a projected population of 216m after rebasing from a previous figure of 150m.

    The stats per operator are as follows: Airtel – 56,619,381 (34.39%), 9MOBILE – 3,283,270 (1.99%), Globacom – 20,139,951 (12.23%), and MTN – 84,607,831 (51.39).

    Look at the figures closely. 9MOBILE that had over 23m in 2015 has nearly disappeared from the industry radar, thus complicating the activities and operations of the other operators. The organisation is not dreaming expansion at this time but it’s unable to even maintain its network infrastructure. It is a devastating minus for an industry that should be building for the future.

    Globacom is doing over 20m lines after it lost a significant number recently from an action by the NCC. This writer is aware that the organisation is clawing its way back. Afterall, it has a network might, including an undersea cable from Europe, so it stands in a good position to withstand every vicissitude. The place of Globacom retains a significant value in the industry.

    From the stats, MTN maintains a clear lead with Airtel running a distant second. The interesting thing is that both of them are running at a loss as stated in their annual reports previously. My concern then is, if the big players suffer losses, what happens to the smaller operators and the ones offering ancillary services, including tower operators?

    The telecoms backbone consists of the follllowing: 41.59% of 2G, 8.75% of 3G, 4G at 47.20%, and 5G, for which two operators – MTN and Mafab – paid $273.6m each in 2022, before Airtel paid another $316.7m in 2023, has hardly added much to the telecoms echo system. Rollout has been slow because of paucity of investment funds perhaps, and uptake is even slower.

    Here are my observations. There is hardly a growth on the telecommunications network, instead there is considerable shrinkage. It means that transition to a robust digital economy based on state-of-the-art telecom facility rollout, will remain a mirage. There must be considerable efforts to grow the 4G network while it must be stated here that there are some operations that only 5G can enable. But 5G rollout is cost intensive and operators who are struggling to return to profit may not be in such  financial health to engage in service expansion or new facility rollout.

    Before a concluding analysis, some industry facts may be necessary here for further appreciation of the unfolding situation, and I state only two. One. Operational costs for telecommunication operators have gone up by over 300% in most cases. Given microeconomic challenges, and the cost of FX, they have it tough to purchase new equipment and upgrade their services. Two. Adjustments will remain within the tariff bands outlined in the 2013 NCC Cost Study and must comply with the recently issued NCC Guidance on Tariffs Simplification (2024).

    What is the picture arising from the foregoing? Let me make the following observations. The industry is not in a good place and may not be able to power the sort of digital economy that the present administration is pushing to build. Nearly all the facilities are subpar designed only for voice communication. The NCC Cost Study on which the tariff adjustment was made was done in 2013. Since then things have really gone downhill, taking a fall that has been difficult to break. In 2013, inflation was 8.50%, the Naira was 160 to a US Dollar, and a litre of diesel cost about N165. Today, inflation stands at 34%, the US Dollar has climbed up to N1600 while a litre of diesel sells for N1200. The metrics are frightening.

    The Committee has to carefully consider everything in the basket, the good, the bad and the very depressing. The members have a cardinal responsibility to build hope where hope is in serious deficit. It is a choice between the past and the future, between reality and emotions, while also taking into consideration that a regulatory decision has been taken which the government must handle with tact in order to retain confidence in the sector and not break the spine of the regulator as was done under the last administration.

    If that decision suffers a setback, potential investors will think more than twice before considering Nigeria for future investments. While I make an appeal that emotions be confined to where they belong, I want to point out that how we treat investors in Nigeria today may decide the transformational development of the country in the future. No country ever grows alone no matter the depth of patriotism.

  • NLC suspends protest as FG set to review 50% telecom tariffs hike

    NLC suspends protest as FG set to review 50% telecom tariffs hike

    The Nigeria Labour Congress (NLC) has suspended the nationwide mass rally scheduled for today Tuesday over the 50% hike on telecom services approved by the Nigeria Communications Commission (NCC).

    TheNewsGuru.com (TNG) reports NLC President, Comrade Joe Ajaero made this known on Monday night after the federal government met with labour union leaders with a view to reaching a common ground on the recent 50% increment on telecom tariffs by the NCC.

    Recall NCC recently released a statement saying it had acceded to the requests of mobile network operators to hike tariffs by a maximal increment of 50% adjustments for calls, data and others in response to prevailing operational costs.

    Not okay with the development, NLC declared plans to embark on a nationwide mass rally on February 4. However, the FG met with the labour union on Monday with a view to reaching a common ground.

    The meeting it was learnt was at the behest of the Secretary to the Government of the Federation, Sen. George Akume and was aimed to maintain industrial harmony and to also protect the interest of Nigerians.

    After extensive deliberation, the FG and NLC agreed to set up a 10-man committee comprising five members from the government and five from the labour union to review the study by the NCC and submit its report within two weeks.

    Comrade Ajaero after the meeting said that the union will wait till the outcome of the committee to determine its next line of action.

    Speaking on behalf of the FG, the Minister of Information and National Orientation, Mohammed Idris said the purpose of the meeting was to look into the study carried out by the NCC, which led to the 50% increment on telecoms tariffs.

    “So, the summary of it is that Labour and the Nigerian Labour Congress specifically and the delegation of the federal government have set up a committee of five each. We are going to meet here continuously for the next two weeks.

    “And at the end of the second week, we will now come up with a recommendation that we will give to government and the organised Labour for final consideration,” Idris said.

    Present at the meeting were Minister Communication and Digital Economy, Bosun Tijanni; Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Executive Vice Chairman (EVC) and Chief Executive Officer (CEO) of NCC, Dr. Aminu Maida.

    Others are the Minister of Labour and Employment, Alhaji Mohammed Maigari Dingyadi; Minister of Budget and National Planning, Atiku Bagudu; National Security Adviser, Nuhu Ribadu, among others.

  • 9mobile loses 6,079 subscribers in 2 months

    9mobile loses 6,079 subscribers in 2 months

    Nigeria’s fourth mobile network operator, 9mobile, has continued to experience a decline in its subscriber base, with 6079 customers porting out of its network in two months.

    This porting loss for 9mobile occurred in the months of November and December 2024.

    The Nigerian Communications Commission (NCC) made this known in its Incoming and Outgoing Porting Activities of Mobile Networks Operators Report on its website.

    According to the NCC’s report, out of a total of 2998 subscribers which moved from one network to another in December 2024, 2188 subscribers left 9mobile to other networks in the period.

    The report stated that in November 2024, out of 4726 subscribers that switched from one network to another, 9mobile lost 3891 subscribers to other networks.

    “This brought the total number of subscribers lost by 9mobile in two months to 6079.

    “Other operators recorded insignificant outgoing porting numbers compared to 9mobile.

    “In December 2024, MTN lost 236 customers, Airtel recorded 269 outgoing porting, Globacom recorded 305, while 9mobile lost 2188.

    “In terms of incoming porting in the same period (December 2024), MTN gained the most customers from other operators, with 1856 subscribers joining its network.

    “Airtel recorded 835 incoming porting, while Globacom gained 290 customers.

    “In contrast, 9mobile recorded a mere 17 incoming porting in December 2024,” the report stated.

    It noted that in November 2024, 4726 subscribers ported from one network to another.

    The NCC report also showed that for outgoing porting activities for November 2024, 9mobile was the biggest loser, as 3891 subscribers ported out of the network.

    According to it, other operators lost only a few subscribers, MTN parted with 166 customers, Airtel recorded 362 outgoing porting activities while Globacom lost 307 subscribers.

    For incoming porting activities in November 2024, the report showed that MTN gained the most, adding 3019 subscribers to its network, Airtel recorded 1266 incoming porting, and Globacom gained 414 customers.

    It noted that in contrast to the others, 9mobile gained just 27 subscribers.

    The report indicated that there were more incoming and outgoing porting activities in November 2024 than December 2024

    A total of 2998 activities were recorded in December, while November had 4726 porting activities, it said.

    The report also revealed a decrease of 1728 in mobile number portability activities in December 2024, when compared to November 2024.

    “On market share, the Nigerian telecommunications sector witnessed a significant shift in market dynamics, with 9mobile’s market share declining to as low as 1.9 per cent in December 2024, according to recent data released by the NCC.

    “This decline is a far cry from 9mobile’s erstwhile dominance, when it boasted 23.4 million subscribers and a 15.7 per cent market share in 2015.

    “The company’s stagnant subscriber base, which has remained unchanged at 3.2 million for two consecutive months, further accentuated this decline.

    “In contrast, the country’s other major telecommunications operators have experienced notable growth,” the NCC report stated.

    It said that MTN Nigeria had solidified its position, increasing its market share to 51 per cent with 84.6 million subscribers in December, up from 81.2 million in November.

    It added that Airtel also demonstrated resilience, expanding its subscriber base to 56.6 million in December, up from 55.4 million in the preceding month.

    It showed that Globacom, which faced a decline in subscribers earlier in 2024 due to a regulatory audit, had shown signs of recovery, growing its subscriber base from 19.6 million to 20.1 million by the end of year 2024.

  • Tariffs hike: Despite complaining about high cost of doing business, Airtel reports 20.4% revenue growth

    Tariffs hike: Despite complaining about high cost of doing business, Airtel reports 20.4% revenue growth

    Airtel Africa Plc has reported a 20.4 per cent growth in revenue to $3,638 million for the nine-month ended Dec. 31, 2024.

    Airtel Africa announced the 20.4 per cent revenue growth in a report on Thursday, despite complaining about high cost of doing business in Nigeria.

    Airtel Nigeria had joined other mobile network operators in the country to complain about high cost of doing business and clamoured for tariffs hike.

    TheNewsGuru.com (TNG) reports the clamours resulted in the Nigerian Communications Commission (NCC) approving tariff adjustments for telcos in the country by 50%.

    However, the company has said its total customer base grew by 7.9 per cent to 163.1 million, with data customer penetration increasing by 13.8 per cent to 71.4 million.

    According to Airtel Africa, data usage per customer increased by 32.3 per cent to 6.9 GBs, with smartphone penetration increasing by 5.2 per cent to reach 44.2 per cent.

    The report said the company’s mobile money subscribers also increased by 18.3 per cent to 44.3 million, with transaction value in the third quarter increasing by 33.3 per cent in constant currency.

    It said annualised transaction value was $146 billion, with Average Revenue Per User (ARPU) growth of 15.0 per cent and mobile money ARPU growth of 11.8 per cent in constant currency.

    “Airtel Africa’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) during the period declined by 11.9 per cent in reported currency to $1,681 million, with EBITDA margins of 46.2 per cent impacted by increased fuel prices and the lower contribution of Nigeria to the group.

    “The company’s capital expenditure decreased by 7.8 per cent to $456 million, with capex guidance for the full year remaining between $725 million and $750 million.

    “Airtel Africa’s leverage has increased from 1.3x to 2.4x primarily reflecting the 1.2 billion dollars increase in lease liabilities arising from the extension of its tower lease agreements,” the report reads.

    It noted that Airtel Africa’s Operating Company debt was now mostly in local currency, with only 8 per cent denominated in foreign currency.

    Commenting, Airtel Africa’s Chief Executive Officer,  Mr Sunil Taldar said: “We have delivered an improvement in both the operating and financial performance in the last quarter driven by our refined strategy.

    “Our focus on speed and quality execution is enabling us to unlock the substantial opportunities for growth across our markets and business segments, where demand remains significant.

    “The scale of data traffic growth across our markets had an increase of 49 per cent over the last year, is a testament to the investments we have made and the relentless focus on our strategy to create value for all our stakeholders.

    “We continue to focus on further margin improvement. Furthermore, our capital structure remains robust with just 8 per cent of OpCo debt in foreign currency, a substantial improvement over the last year,” Taldar said.

    He noted that continued confidence in the outlook for the business, had enabled the board to announce a second share buyback programme, which will return up to $100 million to shareholders.

    “The recent signs of currency stabilisation in some markets and the recent decision from the Nigerian Communications Commission regarding tariff adjustments in Nigeria are encouraging and signals a more stable operating environment.

    “While challenges remain, these developments provide a firm foundation for growth and improved market conditions,” Taldar said.

  • Telco’s tariff increase and NCC’s patriotism – By Toby Prince

    Telco’s tariff increase and NCC’s patriotism – By Toby Prince

    By Toby Prince

    In the heart of Nigeria’s digital economy, a story of patriotism and resilience unfolds. The telecommunications sector, a driving force behind the country’s growth, has been facing unprecedented challenges. Despite its significant contributions to Nigeria’s social and economic development, the sector has been struggling to keep up with the rising costs of operations.

    For nearly a decade, telecom tariffs in Nigeria remained unchanged, while the demand for data and voice services skyrocketed. The cost of operations, however, surged due to rising energy costs, inflation, currency devaluation, and increased costs of importing telecom equipment. These mounting expenses threatened the very foundation of the sector, making it difficult for operators to maintain infrastructure and deliver high-quality services.

    In the face of these challenges, telecom operators requested tariff adjustments to reflect the current cost of delivering services. The Nigerian Communications Commission (NCC) carefully considered these proposals, balancing the needs of operators with the interests of consumers. Instead of approving the suggested 100% rate increase, the NCC authorized a maximum adjustment of up to 50% within the current tariff bands.

    The NCC plays a vital role in regulating the telecommunications industry in Nigeria, and its actions are guided by the Nigerian Communications Act of 2003. This act empowers the body to regulate and approve tariff rates and charges by telecom operators, ensuring a balance between consumer protection and industry sustainability.

    The NCC’s decision to approve tariff adjustments was not taken lightly. It was based on extensive consultations with stakeholders from both the public and private sectors. The goal was to strike a balance between the financial realities of telecom operators and the economic pressures faced by Nigerian households and businesses. The approved tariff adjustments were capped at 50%, significantly lower than the 100% increase requested by operators. This decision showcases the NCC’s commitment to creating a telecommunications environment that works for everyone.

    To further protect consumers, the NCC mandated telecom operators to implement the approved adjustments transparently and fairly. Meanwhile, operators were also required to educate and inform the public about the new rates, ensuring customers are fully aware of any changes to their billing structures. Additionally, the NCC’s updated Quality of Service Regulations empower it to sanction operators who fail to meet their service obligations.

    Nigerians need to understand that the recent tariff adjustments in the telecommunications sector are a necessary step towards ensuring the long-term sustainability of the industry. These adjustments will enable operators to invest in infrastructure upgrades and innovation, ultimately providing opportunities for local businesses to thrive.

    A robust telecommunications sector is crucial for achieving Nigeria’s digital economy goals, including e-commerce growth, broadband penetration, and digital inclusion. The tariff adjustments will strengthen operators’ contributions to these objectives by providing connectivity to underserved and rural areas, driving innovation, creating jobs, and boosting economic productivity.

    Since 2013, telecom operators have grappled with escalating costs without corresponding adjustments to the tariff rates they offered. Without tariff adjustments, operators risk being unable to sustain their operations, leading to service degradation and potential job losses within the industry. This would increase the rate of unemployment in the country, contributing to the hardship the government has been fighting hard to eradicate.

    The telecommunications sector is capital-intensive, requiring continuous investment in infrastructure to meet growing demand and improve service quality. The approved tariff adjustments will provide operators with the financial resources needed to invest in network expansion, upgrade existing infrastructure, and enhance customer service. This will ultimately benefit consumers by delivering better connectivity, reduced downtime, and wider network coverage.

    It’s worth noting that the Nigerian Communications Commission’s (NCC) approval of tariff adjustments aligns with international best practices, ensuring Nigeria stays competitive in the global telecommunications landscape. By maintaining tariffs within the bands outlined in the 2013 NCC Cost Study, the Commission has ensured that the adjustments are both fair and evidence-based.

    Furthermore, the NCC’s modest tariff adjustment was influenced by the financial strains that many businesses and households are experiencing. In the context of the broader economy, the long-term benefits of the slight increase in consumer bills far outweigh the immediate costs. Benefits such as expanded coverage, improved network quality, and enhanced customer service will provide greater value to consumers, further ensuring they receive a greater telecommunications experience.

    In other to mitigate the impact on vulnerable consumers, the NCC has mandated that operators simplify their tariff structures, and offer affordable plans that will be suitable to different income levels. Additionally, the Commission will continue to monitor the implementation of the adjustments to ensure compliance with its guidelines and protect consumers from exploitation. This action validates the Commission’s goal of ensuring that Nigeria remains at the forefront of digital innovation and connectivity in Africa.

    As a regulator, it is obvious that the NCC is not only protecting consumers, but also supporting operators, indigenous vendors, and suppliers who form the pillar of the telecom industry. It is worthy of note to state that the adjustments have no relation to the ongoing tax reform conversation. This holistic approach ensures that the benefits of a thriving telecommunications sector are felt across all segments of society.

    The tariff adjustments approved by the NCC are a necessary step toward addressing the financial and operational challenges faced by telecom operators. Far from being complicit in any alleged exploitation, the NCC has demonstrated commendable patriotism and a deep commitment to balancing consumer protection with industry sustainability. The NCC’s actions in approving the tariff adjustments reflect patriotism and national progress at its finest.

    By enabling operators to invest in infrastructure, improve service quality, and support indigenous businesses, the NCC is laying the foundation for a more robust and inclusive telecommunications sector that can measure up with its international counterparts all across the globe. The adjustments are not merely a response to current market conditions but a forward-looking strategy that will ensure Nigeria’s telecommunications industry remains a vital driver of economic growth and digital transformation.

    As Nigerians, it is very important to view these adjustments as a patriotic move by the NCC to secure the future of connectivity and development in the country. The Commission’s action embodies transparency and accountability, and it serves as a reminder that effective regulation is not about appeasing one stakeholder group over another, but about creating an environment that works for everyone. Through its efforts, the NCC is proving that a stronger, more sustainable telecommunications sector is not just a possibility but a reality within reach in no.

     

    Prince writes from Abuja

  • NCC faces scrutiny over remittances amid telecom tariffs hike

    NCC faces scrutiny over remittances amid telecom tariffs hike

    The Nigerian Communications Commission (NCC) on Thursday faced severe scrutiny at the National Assembly (NASS) amid the looming tariffs hike by mobile network operators.

    TheNewsGuru.com (TNG) reports the NCC was scrutinised over remittances to the consolidated revenue fund of the federal government at NASS by the Joint Committee on Telecommunications.

    At the budget defence session before the NASS joint committee, the NCC was mandated to improve on its revenue generation profile and remittances to the consolidated revenue fund.

    Representatives of NCC at the 2025 budget defence had attributed its low revenue remittances for the year 2024 to lack of patronage of its 5G spectrum by telecommunications companies.

    TNG reports the NCC was represented by its Chief Executive Officer/Executive Vice Chairman, (CEO/EVC), Aminu Maida and NCC’s Director, Financial Services, Yakubu Gontor at the budget defence on Thursday.

    The Commission disclosed that it remitted a paltry sum of N111 billion to the consolidated revenue fund last year compared to the projected sum of N332.8 billion, while blaming failure for the low revenue generation on telcos.

    Gontor said the Commission was not able to auction the 5G Spectrum primarily due to market conditions.

    “Two large operators already have 5G spectrum and they are actually underutilizing it. Now the third largest operator who were banking on to purchase this spectrum unfortunately indicated to us that perhaps this is not the right time to do it and they made it clear that their strategy was to expand their fortune.

    “So we were operating on very fine margins. We had one slot to sell and there was only one potential buyer. Because as you know 9 Mobile is currently going through a restructuring of its fortunes” he explained.

    Gontor, further revealed that, despite the 50% telecom tariff hike, the NCC may not  generate more revenues from spectrum sales this year.

    “We have also made it clear to them (telcos) that the priority is to improve service this year. Now, spectrum is one of the resources required, but unfortunately when you look at the priority of where they get to make investments, it’s not spectrum,” he said.

    He however noted that, with the introduction of new technologies including 6G, the federal government could generate a record of over $1 billion in revenue.

    “When it comes to spectrum sales, it is a 10-year cycle for two reasons. Number one, the lease, just like when you lease a piece of land, you will be celebrating when they pay you a 10-year lease. But for the next nine years, it is that money from the 10 years that you will be relying on, Gontor said”.

    On the 2025 budget, he said the NCC a projected total revenue of N272.433 billion.

    “The major component of that revenue is an operating levy of N205.7 billion and spectrum fees of N49.784 billion and then other income. And our total recurrent expenditure projection is N95.668 billion naira and our total projected capital expenditure is N10.735 billion. While for special projects we have N30.13 billion projection.

    “Total expenditure both recurrent, capital and special is projected at 136.534 billion. We project to remit to the CRF 120.836 billion while we project to remit to the Universal in 2025. Those are the highlights of our project projections for 2025,” he said.

    Shedding more light on the 2024 budget performance, the Chief Executive Officer/Executive Vice Chairman (CEO/EVC), NCC informed that, the Commission generated N195.8 billion as revenue in 2024, out of which N111 billion was remitted to the Consolidated Revenue Fund (CRF).

    According to him, N137.6 billion was earned from annual  operating fees, while N26.4 billion was earned from Spectrum fees, among other revenue sources.

    Maida however informed the Committee that, the Commission had targeted to earn N292.3 billion in the fiscal year but missed the target largely due to its inability to auction one slot of the 5G Spectrum.

    He said, “That is also what impacted on the transfer to the Federal Government because a great proportion of spectrum fees  is really limited to the CRF.

    “But if you recall in the 2024 budget, we also made an assumption that we were going to get 12.5% cost of collections from the federal government. Unfortunately, that was not approved. So in reality, the operating income, I think it was around the 20-35% mark when you actually disposal to operate last year. So hence that’s why this year we had to revise and be more realistic”.

    Recall that NCC had approved requests from mobile network operators for 50 per cent tariff adjustments in response to prevailing operational costs.

    NCC’s Director of Public Affairs, Dr Reuben Muoka said the decision was in pursuant to the regulator’s power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

    Muoka said the adjustment, capped at a maximum of 50 per cent of current tariffs, was arrived at taking into account of the ongoing industry reforms that would positively influence sustainability.