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MTN Threatens to Hike Tariff If…

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MTN Group Ltd., Africa’s biggest phone operator, has threatened to hike its tariff if Nigeria’s government made its licence conditions more stringent as its licence expires in 2016.

Andrew Bing, chief financial officer of MTN Nigeria told Bloomberg that “Tougher rules, tougher regulations, greater demands ultimately will impact price, the more you charge up front or the more you demand over a period of time. Well, somebody has to pay for it. Ultimately, the subscribers are the people who will have to pay.”

“It’s bigger than the power sector combined; it’s bigger than the cement industry, but they get away with everything,” said Bing, 49, who will go on sabbatical leave from the company at the end of this month. “Yet everybody wants a piece of us.”

The Nigerian Communications Commission (NCC) had in February fined the three biggest mobile operators, including MTN, for the quality of their service and prohibited them from selling new SIM cards in March, the first time the punishment was imposed along with a financial penalty.

Omobola Johnson, communication technology minister,  had said in a February interview that Nigeria would probably revalue the Johannesburg-based company’s phone spectrum and would push to have improving service and infrastructure written into the contracts,

With a population of about 170 million, Nigeria had 167 million mobile-phone subscriptions as of

February 2013, according to the Nigerian Communications Commission and with many subscribers owning more than one phone, it is estimated that user numbers will probably grow to more than 200 million in 2017, according to a London-based research company, Informal Telecoms & Media. 

Michael Ikpoki, CEO, MTN Nigeria said that prices of MTN’s services have come down in the past three years in Nigeria,  adding that the company had spent about $5 billion to $6 billion in expanding capacity in the past three years.

Nigeria’s regulators have to allow phone companies to make “decent margins” or it will negatively affect investment, said Ikpoki.

“We are already operating under fairly stringent conditions,” Ikpoki said. “I don’t know what can be tougher than this.”

MTN has fallen 1.9 per cent this year in Johannesburg and closed Monday at 212.85 rand, giving it a market value of 398.7 billion rand ($37.9 billion).

The company struggles with power supply and cuts to its fiber-optic network, making it a challenge to meet the regulators’ standards.

Hundreds of cuts are made a week to MTN’s cables in the country due to negligence as roads are constructed or dug up, as well as malicious damage, said Bing.

Last year, MTN spent about N34 billion ($214 million) on diesel to power its base stations across the country due to a lack of regular electricity in Nigeria, said Ikpoki.

The government of President Goodluck Jonathan sold 15 state-owned power generation and distribution companies last year and is spending $3.5 billion to boost transmission capacity this year by 50 percent from 4,000 megawatts, less than a 10th of South Africa’s full capacity.

“We are very concerned and very keen to see that the whole power privatisation actually succeeds because it’s going to be really, really good for our business,” Ikpoki said.

MTN is looking to grow revenue from data as the use of smartphones, tablets and TV’s increases in Africa’s most populous nation to offset a slowdown in the growth in subscription numbers.

While users in Nigeria, MTN’s biggest market, rose only “marginally” to 57.2 million in the quarter ended March 31, data revenue in local currency rose 21 per cent. At the end of last year, 15 per cent of MTN Nigeria’s revenue came from data, said Ikpoki.

“Voice is getting cheaper and people are now using more data,” said Bing. “Will it ever overtake? It probably will, but it’s going to be a long way, because a lot of people in this country still haven’t made a phone call.”


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Telecoms Workers Begin Nationwide Strike

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Workers in the nation’s telecommunications industry under the aegis of the Private Telecommunications and Communications Senior Staff Association (PTECSSAN) will today (Monday) begin an indefinite nationwide strike over sack, and poor working conditions among others.

Telecoms Workers Begin Nationwide Strike

Among the employees going on strike include field maintenance engineers, transmission engineers, customer service engineers, fibre engineers, and other critical staff.

There are fears that strike could disrupt telecommunications services nationwide if not resolved quickly.

PTECSSAN had given notice of the strike in a statement signed by Mr Okonu Abdullahi, its general secretary.

Abdullahi said the strike had become necessary following alleged anti-labour practices including the refusal of the employers to recognise and respect the workers’ constitutional rights to freely associate with the union.

He alleged also that three members of the union were unjustly sacked. He said: “We shall not be suspending the planned indefinite strike action until our demands, which are as follows, are met:

“Immediate reinstatement of the three unjustly sacked workers: Sotola Sunday Kolawole, Ulu Ikechukwu Christopher and Alex Franklin C.”

“Immediate recognition of the fundamental right of the employees to freely associate with the union, “ he said.

According to the general secretary, other demands include immediate recognition of the union as the negotiating body for the employees on workers welfare.

He said also that the union was demanding the immediate remittance of membership dues into its account as earlier provided among others.

“We hope that these companies will utilise the seven-day window of this notice to meet our demands and avert the indefinite strike action,” Abdullahi said


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NCC Partners EFCC, Police to Track Identity Thieves

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Nigerian Communications Commission (NCC) is working closely with law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC) and the Nigerian Police Force to track and apprehend individuals involved in identity theft and cybercrime.

NCC Partners EFCC, Police to Track Identity Thieves

This is coming on the heels of rising insecurity and other criminalities which has cashed into the poorly regulated SIM card registration.

Identity theft has been a major challenge faced by Nigeria.

According to Nigeria Tribune, it is not uncommon for criminals to use SIM cards registered under different names to aid in their illegal activities.

For example, kidnappers often use unregistered SIM cards or ones registered under false names to demand ransom from their victims’ families.

Dr Rueben Mouka, director Public Affairs of the NCC, said the major step taken by the NCC to address identity theft is the initiation of the mandatory linking of the National Identity Number with individual’s sim cards., according to Nigeria Tribune.

Apart from this huge step, the NCC had also taken more steps to address this issue and secure individuals from criminal elements.

The NCC had initiated the mandatory registration of sim cards and even took more steps to ensure that all the sims are linked to the individual’s National Identity Number (NIN).

This move is very strategic because once you have a NIN, your data would have been in possession of the government. This will reduce identity theft.

The NCC mandated telecom operators to register all SIM cards with valid identification documents such as the National Identification Number (NIN).

This helps in linking phone numbers to individuals, reducing the chances of criminals using unregistered lines for fraudulent activities.

The NCC is also supporting the government’s drive to integrate SIM cards with the National Identity Number (NIN) database.

This ensures that every mobile phone user in Nigeria is properly identified, making it more difficult for fraudsters to impersonate others or engage in identity theft.

To ensure that Nigerians are carried along in this strategic move, the NCC is currently running an awareness campaign to educate the public on how to protect their personal data, avoid sharing sensitive information with strangers, and recognize common tactics used in identity theft schemes.

The NCC has also implemented policies that require telecom companies to protect subscriber data from unauthorized access.

These regulations aim to ensure that personal information is not leaked or misused by third parties.

The Commission is also promoting capacity building in cybersecurity through training and collaboration with local and international bodies. This helps improve the country’s ability to prevent and respond to identity theft incidents.

 


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MTN Refutes Allegations against CEO after Independent Report

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MTN, telecoms firm at the weekend dismissed complaints against Ralph Mupita, chief executive officer (CEO) for alleged favouritism after an independent report cleared his name.

MTN Refutes Allegations against CEO after Independent Report

It said in a statement it had noted the media reporting in the past few days regarding allegations of complaints against members of the Group’s executive.

“MTN shareholders are advised that the Group board (the Board) held a special meeting on Wednesday 4, September 2024 to deliberate on a report by an independent law firm, assisted by counsel, tasked to verify allegations contained in an anonymous complaint against members of the MTN executive.

“The independent report (the Report) stated that attempts to engage with the complainant were unsuccessful and found that there was no evidence of improper conduct by those cited in the complaint,” it said.

MTN said in its deliberations, the board had accepted the report finding and is of the view that the matter had been addressed and is now closed.

“The Board further expressed its full support for the Group Chief Executive Officer and the MTN strategy,” it said.

The Sunday Times newspaper reported on September 1 that an unspecified number of executives threatened to quit after complaining about Mupita allegedly giving preferential treatment to a woman executive.

Bloomberg reported that ten of MTN’s 15 executives, besides Mupita, responded by signing a memo backing the CEO, according to people with knowledge of the matter, who asked not to be identified because they aren’t authorised to discuss it publicly.

Mupita, whose contract is up for renewal next year, has been leading the South African telecommunications company for four years and was its finance chief previously. He sent a letter to staff earlier this week assuring them that the company has governance processes in place to address employee matters, including those concerning senior leadership, according to a memo seen by Bloomberg.

 

 

 


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