Connect with us

Markets

Telecom Operators Lose 14.3 Million Subscribers in 10 months

Published

on

Telecoms
  • Telecom Operators Lose 14.3 Million Subscribers in 10 months

Active mobile voice subscriptions on the MTN, 9mobile, Airtel and Globacom networks crashed from 154.7 million in January to 140.4 million in October, 2017.

This shows that 14.3 million active network users have been lost within 10 months, according to statistics from the Nigerian Communications Commission on the subscribers under the GSM category.

Although Airtel and Globacom gained 422,925 and 190,031 new subscribers between January and October, respectively, MTN and 9mobile lost 11,528,125 and 3,400,894 subscribers, accordingly.

9mobile started the year with 20,521,952 active subscribers and by October, it had 17,121,058 subscribers remaining on its network, representing 12.2 per cent market share.

MTN’s subscriber figures dropped from 62,248,827 network users in January to 50,720,702 subscribers in October, representing 36.14 per cent market share.

As a result of the reduction in the two operators’ subscriber base from January to October 2017, MTN, Nigeria’s largest telecommunications company by subscriber base, and 9mobile lost about N27.32bn potential voice revenue within the 10-month period under review.

MTN Nigeria’s estimated revenue from voice calls dropped by N21.1bn based on the industry’s N1,830 Average Revenue Per User while 9mobile lost N6.22bn during the period.

MTN, in its quarterly report, had attributed the poor performance of the group’s subscriber base, which declined marginally by 0.7 per cent quarter-on-quarter to 230.2 million to lower reported subscribers in Nigeria and the disconnection of about 750, 000 subscribers in Uganda as a result of regulatory SIM registration requirements.

Stakeholders in the industry have warned of a loss in revenue due to increased usage of Over-the-Top Internet voice applications such as Whatsapp, Skype, and Facebook Messenger that offer instant messaging and voice calls to subscribers globally.

A United Kingdom-based research and analytics company, Ovum, also stated in a report that about $386bn loss would accrue over a period of six years (2012 – 2018) from Nigerian customers using the OTT voice applications.

The number of porting activities experienced by telecommunications service providers in October fell to 19,419 from 33,514 recorded in September.

This is contained in the NCC’s statistics on incoming and outgoing porting activities of the Mobile Network Operators.

9mobile gained the highest number of new subscribers amounting to 4,579 while Globacom recorded the lowest, put at 762.

In the month (October) under review, MTN gained 2,394 new subscribers while Airtel added 1,978 subscribers to its network.

The total number of new subscribers gained by MTN, Airtel, Globacom and 9mobile in October was put at 9,713.

In terms of outgoing porting, 9mobile lost 3,088 subscribers to other network providers; MTN lost 2,777 subscribers; Globacom lost 2,409 subscribers; while 1,432 subscribers left Airtel, making a total of 9,706 porting activities.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Published

on

Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

Continue Reading

Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Published

on

Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

Continue Reading

Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Published

on

oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

Continue Reading

Trending