Telecommunications

Glo Lunches ALWAYS ON To Retain Subscribers’ Lines For A Year

Published

3 years ago

June 10, 2021

Globacom, one of the leading telecom operators in Nigeria, has introduced a remedy that solves the problem associated with the disconnection of network users from the Glo network after 90 days as a result of inactivity.

This was disclosed yesterday by the national phone operator when it unveiled its new prepaid tariff, tagged: ALWAYS ON, which allows subscribers to retain their phone numbers for one full year even if they do not use the lines during the period.

In a statement released in Lagos yesterday, Globacom said its subscribers no longer need to worry about their lines getting suspended or disconnected even if they have not made or received calls, used data, or sent or received SMS in one year.

According to the brand, with a token payment of just N500, “the customer will enjoy the assurance of 365 days of continuous service, even if the customer does not make or receive calls, text or browse”.

“ALWAYS ON is available to all existing and new prepaid Glo subscribers and is especially beneficial to customers who travel out of the country for long periods of time without access to the network or customers whose handsets get stolen or whose SIMs get damaged but do not have immediate means of replacement. They can now be rest assured that their lines will not be disconnected due to inactivity,” Globacom explained.

To enjoy the innovative offering, subscribers are required to simply dial *777# and select ALWAYS ON from the menu. “Upon confirmation, a one-time fee of N500 will be deducted from the customer’s main account after which he or she will be subscribed to the plan and given 365 days of uninterrupted access to the network,” the company added.

The customer can make and receive calls at any time during the 365 days as long as he or she has sufficient airtime balance in the account. There is no need to visit any Gloworld or to contact customer care for the line to be reactivated.

ALWAYS ON customers can still purchase any Glo products and services they wish and they can also subscribe to any other GLO tariff plan at any time via *777# or via Glo Café.

Towards the expiration of the ALWAYS ON subscription, Globacom explained, the subscriber will receive SMS and email reminders (where applicable) for him or her to re-subscribe to the ALWAYS ON plan.

“With this new and exciting value proposition, we have again established ourselves as the brand that gives customers the most value for money,” Globacom concluded.

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Telecommunications

MTN, Telecom Firms Urge Government Support for Tariff Hike Amid Economic Downturn

Published

5 days ago

October 17, 2024

Yetunde Olugbenga

MTN Nigeria and other telecommunication companies have requested that the federal government support their plan to increase tariffs to ensure business continuity.

The request was made due to the current economic downturn that has hindered the operations of many companies.

During a panel session at the 30th Nigerian Economic Summit on Tuesday in Abuja, titled Navigating Business Growth in a Volatile Environment, MTN’s Chief Financial Officer (CFO), Modupe Kadri, highlighted that Nigeria’s economy, impacted by foreign exchange fluctuations, has affected the effective functioning of the telecommunications industry, including MTN.

Kadri noted that with the current economic situation, the electricity and fuel sectors have experienced increases.

He therefore said for the telecom sector to remain viable, the federal government must allow similar adjustments in the telecom industry.

According to him, the telecommunications industry is also facing challenges because much of their equipment is heavily import-dependent. Despite this, the sector has not received regulatory approval to adjust its prices for over a decade.

“For ten years now, telecommunication companies haven’t been permitted to increase prices, and this regulation is not providing us with a level playing field to operate. If we are to stay in business, this policy must be reviewed, similar to how electricity and fuel prices are adjusted to reflect current economic realities,” he stated.

“Our business is mainly dependent on foreign exchange, so customers need to understand that for them to receive the services they desire, it costs money,” he added.

He noted that just like the electricity and fuel industries contribute to the nation’s GDP, the telecommunication industry also contributes to the nation’s GDP, and similar measures should be applied across sectors.

“The telecommunications industry contributes 16 percent to the GDP, and it is not something that you can mess around with,” he reiterated.

Kadri therefore sought government intervention to increase tariffs to ensure business continuity.

Telecommunications

Telecom Firms Face N56 Billion Monthly Diesel Bill Amid Power Woes

Published

4 weeks ago

September 25, 2024

Samed Olukoya

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has said telecommunication companies spend 35 percent of their operating expenses on diesel due to the unreliable electricity supply in Nigeria.

According to industry estimates, telecom operators use an average of 40 million liters of diesel per month to power their sites. The price of diesel jumped to N1,406.05 per liter in August 2024, representing a 64.58 percent increase from N854.32 per liter in August 2023, according to the National Bureau of Statistics (NBS).

This implies that the cost of powering Nigeria’s communication infrastructure surged from N34.17 billion in August 2023 to N56.24 billion in August 2024.

Gbenga Adebayo, President of ALTON, confirmed the current diesel consumption, stating, “It will be over that now.” According to Harmanpreet Dhillon, Airtel Nigeria’s chief technical officer, the telco spent N28 billion on diesel in May 2024.

During a media roundtable, Dhillon said that the company was exploring hybrid solutions—lithium batteries and solar—to lower its energy bill.

McKinsey recently noted that companies could save up to 30 percent on energy costs by adopting renewable energy solutions and other technologies.

“The biggest constraint in the telecom industry is high energy cost. If the government had continued to fulfill its part of the bargain it made in the early 2,000s to provide 18 hours of electricity, the heavy logistics and the capital we spend today from powering sites would not be there,” said Adebayo of ALTON.

Telecommunications

MTN Nigeria Revises IHS Lease Terms, Aims for N100 Billion Yearly Savings

Published

2 months ago

August 20, 2024

Samed Olukoya

MTN Nigeria, one of the country’s leading telecommunications giants, has successfully renegotiated its tower lease agreements with IHS Towers, a strategic move expected to save the company approximately N100 billion annually.

This renegotiation is a significant step in MTN Nigeria’s ongoing efforts to improve its financial performance amid Nigeria’s challenging business environment.

The revised terms of the lease agreements introduce several critical changes aimed at reducing operational costs and mitigating the impact of Nigeria’s volatile currency fluctuations.

The new agreements reduce the US dollar-indexed component of the leases, which has now been linked to a discounted U.S. consumer price index (CPI).

This change is crucial in lowering MTN Nigeria’s exposure to the fluctuating naira, providing the company with a more predictable and stable cost structure.

Also, the renegotiation removes technology-based pricing, simplifying the company’s cost framework. Payments for tower upgrades will now be based on tower space and power consumption, rather than the technology deployed on the towers.

This shift is expected to bring more clarity and control over MTN Nigeria’s infrastructure expenditure.

Another key aspect of the renegotiation is the introduction of an energy cost component indexed to the cost of diesel power.

Given Nigeria’s unreliable power supply, telecom companies like MTN Nigeria rely heavily on diesel generators to power their infrastructure.

By linking energy costs to diesel prices, MTN Nigeria can better manage these expenses, which have historically been a significant burden on its operations.

The renegotiated terms also include provisions for discounts and incentives over the life of the contracts, further enhancing the financial benefits for MTN Nigeria.

These changes are expected to boost the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, positioning it for stronger financial performance in the coming years.

MTN Nigeria’s strategic renegotiation comes at a time when the telecommunications industry is grappling with increasing operational costs and economic instability.

The savings generated from these new lease terms will not only improve the company’s bottom line but also allow it to reinvest in critical infrastructure and expand its services across the country.

As MTN Nigeria continues to navigate the complexities of the Nigerian market, the successful renegotiation of its tower lease agreements with IHS Towers underscores its commitment to maintaining financial stability and delivering value to its shareholders.

The telecom giant’s proactive approach to cost management and risk mitigation sets a positive precedent for other companies in the industry facing similar challenges.