Telcos Report Investment Deficiencies Behind Service Quality Issues

Telcos Report Investment Deficiencies Behind Service Quality Issues....KINDLY READ THE FULL STORY HERE▶

The ongoing issues with telecom services, such as weak signal strength and unreliable network performance, have highlighted the need for increased investment in the sector, according to major telecom operators…… CONTINUE READING 

MTN, Glo, Airtel, and 9mobile, the key players in the Nigerian telecom market, have struggled to address frequent call drops, slow data speeds, and inadequate network coverage. The situation became particularly evident on August 1 during the “EndBadGovernance” protest, when many users experienced severe disruptions in online activities due to slow and inconsistent data connectivity.

The Chairman of the Association of Licensed Telecommunications Companies of Nigeria (ALTON), Gbenga Adebayor, warned on Monday that the decline in service quality could lead to deeper industry problems if not addressed through significant investment.

Speaking to The PUNCH, Adebayor emphasized that while telecom operators are facing capacity challenges, the lack of investment is a major issue. “What we are witnessing could be the start of a larger problem. The real issue is not just capacity; it’s the insufficient investment that’s failing to support optimal service,” he said.

Adebayor noted that many telecom systems are outdated and operators are struggling to meet their obligations to suppliers, which further impacts service quality. Maintenance difficulties exacerbated by recent protests, which caused delays in upkeep and supply, have also contributed to the service decline.

National Association of Telecoms Subscribers President, Adeolu Ogunbanjo, reported that recent service quality has been unsatisfactory, with weak signal strength affecting both data services and voice calls. Despite previous discussions with telecom operators and the Nigerian Communications Commission (NCC) to resolve these issues, minimal progress has been made.

MTN has taken steps to improve service quality by extending its contract with IHS Towers, its infrastructure provider. However, the sector continues to face challenges due to high operational costs, exacerbated by the naira’s depreciation.

In response to these challenges, mobile operators, including MTN and Globacom, have sought approval from the Federal Government to raise tariffs. This move aims to counteract the significant drop in investment, which fell from $456.8 million in 2023 to $134 million, according to the National Bureau of Statistics.

NATCOM President Ogunbanjo supports a slight tariff increase if it results in better service quality. The telecommunications sector has not adjusted its pricing framework in over a decade due to regulatory constraints.

The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, also advocates for higher tariffs to attract essential investments and improve service quality, highlighting the urgency for upgrades in infrastructure to foster sector growth.

The NCC is currently evaluating whether to approve a tariff increase based on a cost-based study, which could provide relief to telecom operators and enhance service delivery.

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