Telecom
ICAF Says NCC, Operators Need Stakeholders’ Support for Improved QoS
Industry Consumer Advisory Forum (ICAF) has advocated the need for stakeholders at the federal, state and local levels, both in public and private sectors, to work with the Nigerian Communications Commission (NCC) and Mobile Network Operators (MNOs) to collectively contribute towards improving the Quality of Service (QoS) delivery by MNOs in the country.
L-R: Hafsat Lawal, Head, Consumer Protection and Policy Development, Nigerian Communications Commission (NCC); Igho Majemite, Chairman, Industry Consuemr Advisory Forum (ICAF) and Aliyu Ibrahim, Head, Consumer Protection and Advocacy, NCC, during the ICAF first quarter meeting in Abuja.
The advocacy group stated this during a presentation made at its first quarter 2020 meeting held in Abuja.
At every meeting of ICAF, a corporate member is required to make a presentation about a topical issue in the sector.
At this meeting, the Association of Licensed Telecoms Operators of Nigeria (ALTON) made the presentation focused on challenges of quality of service delivery in telecoms sector.
In the presentation, ICAF noted that the challenge of poor QoS in the telecom industry is an issue that requires collaborative efforts of the National Assembly as well as state and local governments, to tackle.
Explaining further, ICAF stated that the collaboration is both urgent and necessary because telecoms has long migrated from being a mere enabler of communication, to an industry that has become widely acknowledged as being the most important enabler of socio-economic activities in contemporary society.
The advocacy body said as with every other sector of the economy, the telecommunications sector has its own peculiar challenges that impact on the ability of telecoms operators to deliver seamless services to customers.
ICAF listed the challenges to include infrastructure damage, bombed sites due to insurgent activities, illegal site lock-outs, unstable power supply and prolonged power outage, denial of statutory permits for infrastructure roll-out, high cost of Right of Way (RoW), and use of substandard devices by the consumers, among others.
Elaborating further, ICAF presentation indexed a situation where telecommunications operators continue to suffer various forms of infrastructure damage across the country, and noted that such a challenge usually leads to sudden outages or poor QoS.
ICAF recalled that at the onset of the insurgency in the North-East region, operators were also at the receiving end of the destruction that was visited on the infrastructure in the region. He cited Adamawa, Borno and Yobe states as areas where hundreds of BTS sites were either bombed or affected due to dependence on a bombed site. Such vandalism resulted in loss of coverage in so many places including Dikwa, Gamboru, Monguno, Bama, Konduga and Damaturu.
“Operators have been able to restore a lot of these sites, while restoration at other facilities are still pending due to security concerns. In some cases those that were restored have been bombed again, but efforts are currently ongoing in collaboration with agencies in the security services and state governments, to secure sites,” ICAF noted in the presentation. It also assured participants that “with these efforts it is hoped that there will be noticeable improvement in coverage, leading to reduced dropped calls in the affected areas.”
The presentation further explained that the failure of some governmental authorities and their subsidiary agencies to grant the statutory approvals required by operators to build more sites is another problem. ICAF affirmed that “as the existing infrastructure get to full capacity, operators need to build more facilities to accommodate excess call, SMS, data and Unstructured Supplementary Service Data (USSD) traffic. Unfortunately, in the past seven years, the FCT Administration, in particular, has not granted approvals for telecommunications sites to be built in the Territory.”
On vandalism and theft, the ICAF presentation observed that this has been a recurring experience of the operators as unknown hoodlums increasingly break into sites, kill or injure the guard on duty and cart away valuable equipment such as the power generating sets, base transceiver station (BTS) equipment and air conditioners among other facilities. It said these criminal activities immediately lead to network outages in the area covered by facilities that suffered vandalism.
ICAF, however, noted that no operator desires to have poor service delivery because of the increased competition that has been engendered by the telecoms regulator.
According to ICAF, “we are in a highly competitive market, where we have multiple players and we should understand that there is no operator that wants to have downtime on its network as that can lead to loss of subscribers to rival operators. The NCC has heightened this with the introduction of the Mobile Number Portability, which makes it easier for a subscriber that is not satisfied with his or current network in terms of service delivery to migrate to other preferred network.”
The presentation further said: “This means if there is any challenge that is affecting any operator’s ability to deliver better experience to its numerous customers, the logical thing is for that operator to take steps to address the challenge so that it will be able to retain its customers. But most of these challenges are far beyond what operators can control. The NCC has been doing a lot to get the buy-in of all relevant stakeholders to address some these challenges, but not much inroad has been recorded because not all stakeholders in the ecosystem are fully supporting the regulator’s efforts at addressing these issues in order to ensure that telecom consumers get top-notched services.”
Proffering solutions to the challenges, ICAF said while the regulator has been taking QoS measurements and sanctioning the erring operators, it must also be acknowledged that it has been making efforts toward addressing all the identified challenges faced by the operators in order to improve service delivery on the networks to telecoms consumers.
“However, if we all agree that telecoms is central to our socio-economic development, then the NCC’s efforts need to be supported by all stakeholders, especially the National Assembly through the passage of the Critical National Infrastructure (CNI) Bill and; we at ICAF also urge the state governors to be considerate about policy measures in order to encourage massive deployment of telecoms infrastructure in their states, as being championed by the NCC,” the advocacy group recommended in the presentation.
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
In a bid to build AI-enabled data centres, Brad Smith, vice chair and president, Microsoft has disclosed the company’s plan to spend approximately $80 billion in its current financial year (to end in June), with more than half of that investment designated for the US.
Smith in a blog post, explained the tech giant plans to use the data centres “to train AI models and deploy AI and cloud-based applications around the world.”
Smith welcomed U.S. President Donald Trump to his second term in office, he cautioned against “heavy-handed regulations” that could slow down the private sector.
“The most important US public-policy priority should be to ensure that the US private sector can continue to advance with the wind at its back,” Smith stated.
He further explained that the U.S. “needs a pragmatic export control policy that balances strong security protection for AI components in trusted data centers with the ability for U.S. companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends.”
Stating that the US is well-positioned to flourish in its development of AI due to solid technology development and an innovative private sector.
“If the Trump Administration can develop a strong national AI talent strategy and use AI to make the government more effective and efficient, it will put the country on a promising path.”
He stated the U.S. is in a strong position to “win the essential race with China by advancing international adoption of American AI.”
Smith further claimed U.S. “products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world.”
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