Telecommunications companies’ investments in network expansion initiatives are expected to rise by over 200 percent this year following intense regulatory pressure over the abysmal Quality of Service (QoS) being rendered to holders of Nigeria’s 127 million mobile lines, industry insiders have said.
In 2012 and 2013, telcos spent an estimated N347 billion and N979 billion, respectively, on infrastructure expansion. These figures show a 182 percent increase in network expansion spend year-on-year.
In spite of these investments, however, subscribers are yet to feel the impact in terms of better service delivery. Poor service, characterised essentially by drop calls and incoherent transmission, still remains prevalent in the country.“I see telcos more than doubling investments in network rollout this year. The demand for telecoms services is so enormous and operators would want to take full advantage of it,” said Lanre Ajayi, president, Association of Telecommunications Companies of Nigeria (ATCON), in an interview with BusinessDay.
The Nigerian Communications Commission (NCC) last month fined three of Nigeria’s four telecoms operators the cumulative sum of N647.5 million ($3.89 million) for missing their QoS targets for the month of January. The telecoms regulator also directed telcos to stop the sale of new SIM cards, a move that is not sitting well with them.
In view of these sanctions, telcos, according to industry insiders, are already lining up big budgets for network upgrades and expansion this year, hopeful that the
operational bottlenecks hindering deployment of infrastructure will be resolved. Delays in right-of-way approvals, multiple taxation and lengthy timelines for site approvals have slowed down infrastructure rollouts in many parts of the country.
“Government at all levels needs to continuously create the environment necessary to attract more investments,” said Ajayi.
operational bottlenecks hindering deployment of infrastructure will be resolved. Delays in right-of-way approvals, multiple taxation and lengthy timelines for site approvals have slowed down infrastructure rollouts in many parts of the country.
“Government at all levels needs to continuously create the environment necessary to attract more investments,” said Ajayi.
“We have been confronted with the issue of multiple taxation and multiple regulation at the various strata of the government. This has contributed its own challenge to quality of service, as the spread of these critical infrastructure is restricted on account of some of these actions,» said Eugene Juwah, executive vice chairman, NCC, at the 25th Enugu International Trade Fair at the weekend.
According to the NCC helmsman, some state governments are becoming more discerning as they now see the benefits of having pervasive telecoms service and infrastructure in their domain. These state governments, he said, were much more cooperative at the moment and focus less on taxation.
«We urge other agencies, states and local governments that have not joined to do so,» said Juwah.
Telecoms companies are also seeking to adopt better efficiency improvement strategies this year, as operational costs mount amid growing customer demands, according to industry insiders.
BusinessDay checks reveal that some Mobile Network Operators (MNOs) have sealed network and Information Technology (IT) outsourcing deals with leading telecoms equipment vendors in late 2013 and early 2014.
Meanwhile, there are media reports suggesting imminent tower sales as mobile operators look to outsource the management of their towers to independent companies.
«We urge other agencies, states and local governments that have not joined to do so,» said Juwah.
Telecoms companies are also seeking to adopt better efficiency improvement strategies this year, as operational costs mount amid growing customer demands, according to industry insiders.
BusinessDay checks reveal that some Mobile Network Operators (MNOs) have sealed network and Information Technology (IT) outsourcing deals with leading telecoms equipment vendors in late 2013 and early 2014.
Meanwhile, there are media reports suggesting imminent tower sales as mobile operators look to outsource the management of their towers to independent companies.
“With rising smartphone penetration, there is a greater customer expectation for better quality of service,” said Jean-Claude Geha, vice president, Ericsson.
“Today, the driver is not cost; one of the drivers is cost. It is more about competence, knowledge sharing, and taking advantage of the latest technologies. It is about improving customer experience in order to grow market share,” he stated in an interview with BusinessDay.
“Today, the driver is not cost; one of the drivers is cost. It is more about competence, knowledge sharing, and taking advantage of the latest technologies. It is about improving customer experience in order to grow market share,” he stated in an interview with BusinessDay.
Telcos believe that the issues of QoS border on insufficient capacity, insecurity, unstable power supply and continued availability of capacity.
In an interview with BusinessDay recently, Wale Goodluck, corporate service executive, MTN, said the issue of capacity essentially lies in the hands of the operators, stating that it behooves operators to get a good understanding of the demand and put in the capacity to meet that demand.
In an interview with BusinessDay recently, Wale Goodluck, corporate service executive, MTN, said the issue of capacity essentially lies in the hands of the operators, stating that it behooves operators to get a good understanding of the demand and put in the capacity to meet that demand.
“The good news is that operators have the resources to install the required capacity but the reality is that it is extremely difficult to put infrastructure on the ground in our environment,» he said.
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