NCC approves 50% tariff hike for Telcos
The Nigerian Communications Commission (NCC) has approved a limited increase in telecommunication tariffs for network operators. The decision was made after engaging with stakeholders to address the rising costs of operations while maintaining consumer interests. The adjustment, capped at a 50% maximum increase, is lower than the requests made by some operators. The aim is to enable operators to manage operational expenses, invest in infrastructure, and improve service quality. Telecom tariffs in Nigeria have remained unchanged since 2013, despite economic challenges such as inflation and the depreciation of the Naira. This has strained operators like MTN Nigeria and Airtel, which have reported significant financial losses due to escalating costs and regulatory restrictions on tariff changes. To protect consumers, the NCC has directed operators to implement the adjustments fairly and transparently. They are also required to inform the public about the new rates and ensure measurable improvements in service delivery. The Commission assured Nigerians that it remains committed to creating a balanced environment where consumer protection, industry sustainability, and sector growth are prioritized.
NCC Targets 22% Telecom Contribution To GDP By 2027
The Nigeria Communication Commission (NCC) is set to increase the contribution of the telecommunication sector to the Gross Domestic Product (GDP) contribution to 22 per cent by the year 2027. The telecommunications sector contribution to the nation’s Gross Domestic Product (GDP) increased significantly to 16 per cent in the second quarter of 2023 from a 14.13 per cent contributed in the first quarter of 2023, and up from the 15 per cent recorded in the second quarter of 2022, Executive Vice Chairman/Chief Executive Officer of NCC, Mr Aminu Maida who disclosed this in Lagos at a conference on how to reposition the nation’s economy said the Commission planned to increase the annual net revenue of the telecommunications sector to the Federal Government by 100 per cent over the next four years, achieve at least 15 per cent year-on-year increase in investments into the telecommunications sector. Another target set by the Commission according to him is to have a 50 per cent improvement in Quality of Service (QoS) by the end of next year, and reduce the access gap in rural areas to less than 20 per cent by 2027. He said that the reimagining of the communication sector is driven by five pillarswhich are interwoven with each other to deliver on the goal of fostering economic growth and development. He said that these pillars which include policy, infrastructure, innovation, entrepreneurship and capital, trade, and knowledge, are the bedrock of the Strategic Vision Plan (2023 – 2025) and form the guide to channel our efforts to harness the potential of the telecommunications sector and drive positive change in Nigeria. He said the vision aimed” to accelerate the growth of Nigeria as a global technical talent hub and a net exporter of talent, to deepen and accelerate our position in global research in key technology areas and raise the complexity and dynamics of our economy by significantly increasing the level of digital literacy across Nigeria.” He said the programme which has already commenced with over one million applications by potential trainees is expected to increase the level of digital and technical skills among Nigerians, especially young and middle-level talents, to 70 per cent by the end of 2027. This he said will position Nigerians to productively contribute to the economy and place the country in the top 25 percentile of research globally in the key areas of Artificial Intelligence (AI), Unmanned Aerial Vehicles (UAVs), IoT, Robotics, Blockchain, and Additive Manufacturing in keeping with the strategic plan unveiled by the Honourable Minister. Speaking further he said “We believe that attaining these targets will increase our pool of technically skilled persons to the global market. With more talents in these areas, we expect that potential employers of digital and technical skills in the international scene will begin to engage more Nigerians.”
60.3% Nigerian Telecom Subscribers Still Use 2G —NCC
*4G Users Stand At Just 22% The Nigerian Communications Commission (NCC) has revealed that as at August 2023, 60.3 per cent of telecoms subscribers in the country are still on 2G. The telecom industry statistics further show that 10 per cent of the over 220 million subscriptions were on 3G, a higher generation of network launched in Nigeria in 2007. 3G ushered in the use of video calls and had significantly higher data transfer, operating at a speed of up to 2mbs, and increased bandwidth compared to the 2G network. 3G is the third generation of wireless mobile telecommunications technology which was first rolled out commercially in mid-2001 and was an upgrade over the 2G, 2.5G, GPRS, and 2.75G networks. According to the Commission, subscriptions for 4G, which the operators started rolling out in 2016 still stood at 28 per cent as of August, while the latest technology launched in 2022 accounted for 0.83 per cent of subscriptions in the country. While the operators said they have achieved over 80 per cent of 4G coverage, the slow pace of migration by subscribers is attributed to device constraints. Recently on the back of the company’s acquisition of a 3G license, the Chief Technical Officer of MTN Nigeria, Mohammed Rufai, also pointed out the fact that many Nigerians are still on 2G and 3G. “So, while we are investing in new technology, we must also maintain the other technologies that are needed by the people that use them and the people that don’t yet have the devices for the newer technologies. This is the reason why we are still investing in and expanding on the old technologies, and also because the spectrum, the license allocated by NCC, and the network resources that are used for 3G can also be used on other technologies in the future, so the investment is still usable for the higher technologies when the devices are ready.” Globally, the expansion of 5G has pushed internet service providers like AT&T and T-Mobile to shut down 3G services earlier in 2022, and most recently, Verizon and Vodafone have notified customers that they intend to cut off 3G-enabled devices from their networks from December 2022 and December 2023 respectively. At the moment, it has been succeeded by the launch of 4G, 5G, and most recently, a test run of 6G in China which is a super upgrade to the service.
Despite Challenges Telcos Meeting KPIs—NCC
The latest data from the Nigerian Communications Commission (NCC) shows that the four mobile network operators, MTN, Globacom, Airtel, and 9mobile, are meeting their Quality of Service (QoS) Key Performance Indicators (KPIs). According to the Nationwide QoS data released by the Commission, the telcos met their KPIs between July 2022 and June 2023. The operators’ performances are measured by the regulator based on parameters such as Call Setup Success Rate (CSSR), Drop Call Rate (DCR), and Traffic Channel Congestion (TCH CONG). According to NCC, these QoS standards ensure that consumers continue to have access to high-quality telecommunications services by setting basic minimum quality levels for all operators. Based on the latest report, all the mobile operators crossed the threshold of 98 per cent call setup success rate in the 12-month review period. The Call Setup Success Rate (CSSR) is calculated by taking the number of unblocked call attempts divided by the total number of call attempts. In terms of drop call rate (DCR), which is fixed at 1 per cent or less, all the operators performed well as they recorded less than 1 per cent drop calls in the period, according to NCC’s record. A dropped call is a call that is prematurely terminated before being released normally by either the caller or the called party. In terms of Traffic Channel Congestion, (Standalone Dedicated Control Channel Congestion SDCCH), all the operators also met the KPI as they all recorded less than 2 per cent congestion within the period. The regulator’s parameter in this regard is that the congestion rate for the networks should be equal to or less than 2 per cent. The Traffic Control Channel Congestion Rate is the probability of failure to access a traffic channel during call setup. The technical result of operators’ quality of service may, however, be different from the reality based on subscribers’ experience in the period covered by the report and even now. The President of the National Association of Telecoms Subscribers (NATCOMS), Mr. Deolu Ogunbajo disagreed with the regulator. According to him, NCC is looking at the quality of service from the technical aspect and not from the subscribers’ angle. “The KPIs are measured technically and are far from the reality of what the subscribers are experiencing. We disagree with NCC on this. There are lots of complaints on Dropped calls, and even the call setup success rate is nothing to write home about. “There are times you want to call and the call is not just connecting, the call setup rate is poor, all is not well in terms of quality of service as the report suggests” he said. Based on the huge number of mobile subscriptions in the country, the minute percentage of errors allowed the operators to cover a large number of subscribers facing the quality of service challenge.
NCC Introduces New Format To Fixed Lines Numbering
*New Format Takes Effect January 2024 The Nigerian Communications Commission (NCC), in keeping with its responsibilities under the enabling law, the Nigerian Communications Act (NCA) 2003, to manage Nigeria’s numbering resources, has announced a new numbering format for fixed lines. According to a statement signed by Director, Public Affairs NCC Reuben Muoka, Nigeria’s Fixed-Lines Numbering Format has changed from eight digits to 10 digits by adding “02” prefix before the existing fixed number. It said that from January 1, 2024, the new numbering format beginning with “02” prefix will be operational. It however, said the change only affects the Fixed Telephone Numbers. “There is no change to the existing mobile numbering format,” it said. “The Commission hereby informs the public of the changes and also clarifies that existing numbers will continue to operate concurrently till the cut-over date of December 31, 2023. From January 1, 2024, the new numbering format beginning with “02” prefix will be operational. “In other words, the old and new number formats are allowed to run concurrently till the cut-over date (December 31, 2023). Thereafter (from January 1, 2024), the new fixed-lines format will assume full recognition across all networks. “For example, in the new order, to dial the hitherto existing number, 09461700, please dial 02094617000. “Additional examples are: For Lagos, Abuja, Port Harcourt and Kano’s current number format of 014630643, 094630643, 084460643 and 064460643, will now be 02014630643, 02094630643, 02084460643 and 02064460643 respectively in the new numbering format. “The announcement is made to give expression to a key responsibility of the NCC and it is consistent with the practices of the International Telecommunication Union (ITU), the United Nations arm supervising Information and Communication Technologies (ICT),” the statement read.
‘Shine Your Eye’, NCC sensitises traders on fraudsters’ tactics
The Nigerian Communications Commission (NCC) has sensitised traders on how to avoid falling prey to fraudsters in the country. The commission did the sensitisation at the Market Square, Kasuwar Rusau, Keffi, on Wednesday in Nasarawa State. The programme was tagged: “Shine Your Eye, No Fall Mugu”. The Executive Vice-chairman, NCC, Prof. Umar Danbatta, was represented by Mr Clement Omife, Head, Consumer Protection Advocacy Unit of the NCC. Danbatta said that the awareness was to promote initiatives such as to empower telecom consumers with knowledge and advocate for their protection within the telecom industry. He said that the menace, which follows wide acceptance of new methods of mobile money, electronic banking and payment systems has been discovered to cost the country whopping sums of money. Danbatta said that a lot of people were highly ignorant of how losing their phones to fraudsters can lead to a complete clean-up of their bank accounts. He said|: “These fraudsters do this by stealing victims’ identities; names, addresses, bank information, which they use in gaining access to their bank accounts. “They also use the stolen identity to defraud other people and even apply for loans, leaving the victim with debts.” According to him, as the telecom industry evolves, there is a growing concern over the rising trend of fraud on telecom (electronic fraud) across sectors of the Nigerian economy. Danbatta added: “CBN rates electronic fraud as the biggest risk in the sector which has widely incorporated electronic payment solutions such as ATMs, Nigeria Inter-Bank Settlement System (NIBBS) Instant Payment and mobile banking. “The telecommunications sector is not also spared in the raging storm stoked by cyber fraudsters across the country. “Attackers are now targeting telecom networks with the intent to disrupt service delivery and infiltrate their data bank SIM swaps and Unstructured Supplementary Service Data (USSD). “USSD e-payment frauds are currently some of the sensuous cyber threats in the telecom industry. Fraudsters conduct SIM swaps of individuals and then conduct USSD-based transactions which cost victims huge losses.” He said that the commission also collaborated with critical stakeholders such as the CBN, the Nigerian Police Force (NPF), EFCC, ICPC and others relevant in the fight against e-banking fraudsters. Danbatta said that effective collaboration between government agencies, private organisations and individuals was pivotal in tackling this scourge of electronic fraud. He assured consumers that the commission would intensify its regulatory efforts in protecting the interest of telecom consumers. Danbatta said that the development and deployment of robust infrastructure to support innovative technologies and services had no doubt positively transformed the socio-economic space. “One of the critical mandates of the NCC is the protection and promotion of the interests of consumers, which is majorly domiciled with the Consumer Affairs Bureau of the commission. “As part of the strategy to actualise this mandate, the department collaborates with Consumer Advocacy Groups and relevant stakeholders in creating consumer awareness. “By promoting initiatives such as this to empower telecom consumers with knowledge and advocate for their protection within the telecom industry. “Today, telecom consumers are enjoying broadband and other services driven by the quest to establish a digital economy,” he said. He urged traders to avail themselves of the necessary information required to avoid falling prey to cybercriminals. Danbatta also urged consumers to be careful not to open unfamiliar emails or respond to unfamiliar inquiries and report suspicious E-fraud to their bank and telecom service providers. The Chairman, Keffi Traders Association, Alhaji Musa Yakubu, called on traders to learn about financial frauds and the strategies to tackle them. “We appreciate NCC for coming to enlighten our people on how to manage our money. “I have mandated my members to be here to be able to learn how not to fall victim to financial frauds,” he said.
MTN mulls price increase over ‘elevated inflation’
Telecoms group, MTN, has disclosed that it is planning to increase prices in some African markets due to the elevated inflation in the operating environment. Nigerian Anchor reports that the telecom company operates across 19 countries, including South Africa, Nigeria and Ghana. MTN disclosed this in its first quarter report filed with the Johannesburg Stock Exchange on Thursday. “We anticipate that trading conditions across markets will remain challenging for the remainder of 2023 and we will continue to execute on our proactive measures to manage the near-term challenges and risks. “Within this environment of elevated inflation, implementing selective price increases across the portfolio remains a critical priority to ensure that operations generate sufficient cash flows to fund future capital expenditure needed for building world-class networks. “We will continue to have the necessary engagements with the regulatory authorities on such needed increases,” it said in its outlook for the rest of 2023. The telecom company said that the blended inflation across its footprint remained elevated and averaged 18.5 per cent in Q1 2023, compared to 11.5 per cent in Q1 2022. Interest rates increased during the period as central banks acted to curb inflation. Higher inflation and interest rates weighed on consumers’ spending power and impacted business activity, the company said. “MTN’s resilient business model and operational execution enabled us to continue to successfully navigate difficult macroeconomic, geopolitical and regulatory conditions in Q1 2023. “Local currencies generally weakened against the dollar, and foreign exchange availability was limited in several of our key markets affecting the pace of capital expenditure and our ability to upstream dividends and management fees. “Over and above reduced economic activity in South Africa, MTN South Africa’s (MTN SA) network availability remained under pressure due to ongoing power outages across the country: there were approximately 90 days of load shedding in Q1 2023 compared to 14 days in Q1 2022,” the MTN Chief Executive Officer, Ralph Mupita, said in the statement. The Group spoke on the Nigerian market. MTN Nigeria drove strong commercial momentum in a challenging operating environment to deliver a strong financial performance in the period. “In addition to higher inflation and interest rates as well as challenges with the availability of hard currency liquidity, the Nigerian economy was also impacted by the Central Bank of Nigeria’s redesign and introduction of new naira notes from 15 December 2022. The limited availability of new notes resulted in cash shortages, which impacted customers’ ability to recharge through physical channels and transact within the MoMo agent network,” it said. MTN Group disclosed that in line with its Ambition 2025 strategy, it continuously assesses investments, to improve returns and reduce risk. Thus, MTN Group is evaluating an orderly exit of three operations in West Africa over the medium term; namely MTN Guinea-Bissau, MTN Guinea-Conakry and MTN Liberia. The Group has received an offer for our equity interests in these Opcos, from Axian Telecom, which is being evaluated. The company is also in the process of exiting Afghanistan through the sale of MTN’s entire shareholding to a wholly-owned subsidiary of M1. According to the report, MTN revenue rose 15.6 per cent to 53.83 billion rand ($2.8 billion) in the first quarter of 2023 compared to 45.69 billion rand in the first quarter of 2022, the company said. Total subscribers increased by 5.2 per cent to 290.6 million, active data subscribers up by 11.9 per cent to 140.4 million, Data traffic increased by 19.3 per cent to 3221.26 PB and fintech transaction volumes increased by 38.8 per cent to 4.1 billion.