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Telecoms Subscribers Blame NCC for Poor Quality Service

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  • Telecoms Subscribers Blame NCC for Poor Quality Service

Telecommunications subscribers have said that the increased adoption of mobile number portability services in the country, being encouraged by the Nigerian Communications Commission, is an indication of the poor level of service quality on telecoms networks.

Some of the subscribers spoke to our correspondent on Friday, while reacting to the NCC’s declaration of a state of emergency in the quality of service being provided by mobile network operators and others.

Prior to declaring the state of emergency on Monday, the commission had expressed worry about the degenerating service quality and vowed to sanction any errant operator.

The Executive Vice Chairman, NCC, Prof. Umar Danbatta, had said, “The consumer has to be treated with dignity. The eight-point agenda drives this point home.”

However, a subscriber based in Lagos, Mr. Lanre Oguntade, said that as long as the NCC continued to encourage porting, “then it (NCC) shouldn’t expect the quality of service to drastically improve.”

He said, “The networks on all the major GSM companies are terribly bad; so where is the NCC asking us to port to? The implication is that Nigerians will end up porting to all the four networks of MTN, Glo, Airtel and Etisalat that are providing us with poor service.

“In other parts of the world, even in some parts of Africa, it is rare to find people with multiple mobile lines and smartphones. This is so because the quality of service in their various countries is superb and to ensure that the subscribers don’t resort to porting, the regulators and telecoms firms in these countries keep making the service quality better.”

Another subscriber, Victor Okechukwu, said, “The NCC’s declaration of a state of emergency is only a waste of time. It should instead collaborate with the telecoms companies and concentrate its effort on improving the quality of service.”

He added, “And one of the things it has to do in this direction is to stop porting. By encouraging porting, the NCC is simply telling subscribers to port to another network if the other defaults, rather than looking at ways of improving the situation.”

Subscribers under the auspices of the National Association of Telecommunications Subscribers shared Oguntade and Okechukwu’s views.

NATCOMS said that there should not have been any reason for number portability at all, if the NCC had ensured many years ago that telecoms operators achieved the minimum coverage to be able to provide high quality of service to subscribers across the country.

The President of the association, Mr. Deolu Ogunbanjo, said though the industry had attracted a lot of infrastructure investment, majority of which has been channelled into building of telecoms infrastructure, more investment is still needed to achieve ubiquitous telecoms infrastructure to drive the economy.

“Unfortunately, the MNP will continue to be an option for subscribers using the over 153 million active lines in the country until we are able to achieve the quality of service that is satisfactory to all telecoms subscribers on their respective mobile networks,” he said.

Commenting on the development, the Director, Public Affairs at the NCC, Mr. Tony Ojobo, said, “The MNP is not a compulsory service that people must subscribe to. If some subscribers see a need for it, they may switch from their current network to another; and if not, they remain on their current network.”

According to him, as a need-based value-added service for willing subscribers. “It is not expected that the MNP will witness a surge in uptake over time,” he said.

He added, “Since the MNP is based on the decision of the subscribers to either port or not to port, I believe we are having impressive uptake, coming mostly from individuals who have seen a need to migrate. The beauty of porting services is freedom of choices.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Multichoice Nigeria Rolls Out Tariff Increase Despite Tribunal’s Interim Order

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Multichoice Nigeria, a prominent Pay TV provider, has proceeded with the implementation of tariff adjustments for its DStv and GOtv subscribers, despite an interim order issued by a competition and consumer protection tribunal (CCPT) in Abuja.

On April 24, Multichoice announced plans to increase prices for its cable services, scheduled to take effect from May 1.

However, the CCPT ruled that the company should refrain from raising rates as initially scheduled, following an ex-parte motion presented by the applicant’s counsel.

Despite the tribunal’s interim order, checks conducted by Nairametrics revealed that Multichoice Nigeria has forged ahead with the tariff increase, with the new prices being displayed and enforced on its official website.

For DStv Premium subscribers, the price has surged from N29,500 to N37,000, while Compact Plus subscribers now face an increase from N19,800 to N25,000.

Similarly, Compact, Confam, and Yanga subscribers witness price hikes, ranging from 20% to 25% compared to previous rates.

GOtv subscribers also experience a similar fate, with tariff adjustments reflecting significant increases across various subscription packages.

Despite legal injunctions, Multichoice Nigeria’s decision to proceed with the price hike signals a bold move in a highly contested legal battle.

The Acting Chairman of the Federal Competition & Consumer Protection Commission (FCCPC), Adamu Abdullahi, disclosed that Multichoice had provided a detailed explanation for the price adjustments in a four-page letter to the commission.

The company cited factors such as foreign exchange fluctuations, high electricity tariffs, and operational costs as drivers behind the rate revisions.

Abdullahi explained that the FCCPC would scrutinize Multichoice’s justifications for the price hike, collaborating with regulatory bodies like the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) to ensure compliance with market regulations.

The decision to proceed with the tariff increase has sparked concerns among consumer rights advocates, who question Multichoice’s adherence to legal directives.

Despite the company’s rationale for the price adjustment, critics argue that subscribers should not bear the brunt of economic challenges beyond their control.

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Nigeria’s OPay Valuation Hits $2.7 Billion Amid Digital Payments Surge

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Nigeria’s OPay, the fintech startup that has been making waves in the country’s digital payments landscape, has seen its valuation soar to $2.7 billion.

This represents over 30% since its Series C funding round in 2021.

This surge in valuation shows the exponential growth of Nigeria’s digital payments sector and the increasing prominence of financial technology companies within the nation’s economy.

The valuation update comes from recent corporate filings made by Opera, an early investor in OPay. Opera’s stake in OPay gradually declined over the years to 6.4% by 2021.

However, a strategic move in early 2023 saw Opera increase its stake to 9.4% after selling its Asian fintech subsidiary, Nanobank, to OPay in exchange for equity in the company.

According to filings with the US Securities and Exchange Commission (SEC), Opera valued its 9.4% stake in OPay at $253 million, reflecting the $2.7 billion valuation of the fintech startup.

OPay’s meteoric rise can be attributed to several factors, including Nigeria’s increasing adoption of digital payments and the company’s innovative services.

The surge in digital payments volumes, driven in part by an ill-timed currency redesign that led to cash scarcity, has propelled OPay’s growth.

As more Nigerians turned to fintech apps like OPay for transactions, the company experienced a quadrupling of its user base in 2023, accompanied by a revenue growth of over 60% on a constant currency basis, according to Opera.

Despite its rapid growth, OPay, like other fintech companies, faces challenges related to fraud and customer safety concerns.

Regulatory bodies, including the Central Bank of Nigeria, have tightened rules on account safety, highlighting the need for OPay and similar companies to address these issues while continuing to innovate and expand their services.

As Nigeria’s digital payments ecosystem continues to evolve, OPay’s rising valuation underscores its position as a key player in driving financial inclusion and transforming the country’s economy through innovative technology solutions.

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ALTON and ATCON Call for Tariff Review and Regulatory Independence

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The Association of Licensed Telecoms Operators of Nigeria (ALTON) and The Association of Telecommunications Companies of Nigeria (ATCON), representing Mobile Network Operators (MNOs) and telecommunication firms in Nigeria, have jointly raised concerns over the current state of the telecom industry.

In a unified call to action, they have urged the federal government to address critical issues such as tariff review and regulatory independence to ensure the sector’s sustainability and growth.

Despite facing significant economic challenges, Nigeria’s telecommunications industry has not adjusted its general service pricing framework upwards in over a decade.

ALTON and ATCON attribute this stagnation to regulatory constraints that have hindered the industry’s ability to align pricing with economic realities.

They argue that the current price control mechanism, which does not reflect market conditions, poses a threat to the sector’s viability and investor confidence.

In a statement released over the weekend and jointly signed by ALTON Chairman Gbenga Adebayo and ATCON President Tony Izuagbe Emoekpere, the associations highlighted a range of challenges plaguing the telecom sector.

These include unsustainable tariff structures, lack of regulatory independence, infrastructure deficits, a harsh business environment, multiple taxation and regulations, prohibitive Right of Way (RoW) charges, inadequate power supply, and vandalism of telecommunications infrastructure.

The industry leaders stressed the urgent need for collaborative efforts between the public and private sectors to overcome these obstacles.

They called for constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Furthermore, ALTON and ATCON emphasized the importance of regulatory independence in fostering a conducive environment for the telecom sector.

They advocated for the sustenance of a culture of independence within the regulatory landscape to safeguard against undue influence and ensure the impartiality of regulatory decisions. Regulatory neutrality and independence, they argued, are crucial for maintaining public confidence and encouraging investment in the sector.

ALTON and ATCON reaffirmed their commitment to working collaboratively with the government to address the challenges facing Nigeria’s telecommunications industry.

They urged the government to prioritize infrastructure development, enhance security measures, and facilitate pricing adjustments to unlock the sector’s full potential.

The call by ALTON and ATCON underscores the pressing need for regulatory reforms and policy interventions to drive sustainable growth and development in Nigeria’s telecom sector.

As stakeholders await government action, the industry remains hopeful that concerted efforts will pave the way for a more resilient and competitive telecommunications landscape.

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