Nigeria: Telecoms Services Remain Poor Despite Promises From Operators, Regulatort

Despite promises of improved telecoms services from both the regulator and operators, it appears that the over 174 million active subscribers in Nigeria have been scammed by those promises, as telephony services across the country remained at its lowest ebb.

From Lagos to Abuja, Ondo to Port Harcourt, Jos to Enugu, Borno to Sokoto, the profile of the quality of service, especially from the GSM operators, the quartet of MTN Nigeria, Globacom, Airtel, and 9Mobile leaves much to be desired.

To make matters worse, operators are currently mulling increase in voice tariff, which they tied to increasing harsh business environment.

Checks by The Guardian confirmed the barrage of complaints by subscribers, who experienced increased dropped calls, aborted and undelivered short message services (SMS), and countless failed calls. Equally, Internet services remained a challenge; just as much as uploading and downloading activities, all of which make 4G services nothing to write home about, despite promises from Smile, nTel, Swift, and others, which claimed superiority.

Subscribers are also groaning under what they described as frustrating porting experiences. Besides, The Guardian gathered that about 40 per cent of subscribers data are not been rolled over by the operators, which further compounds users woes. The Minister of Communications, Adebayo Shittu, had two years ago in Lagos, directed operators to roll-over unfinished data.

While subscribers piled up complaints over these lingering failures, watchers of the unfolding development in the telecommunications industry wondered why, despite repeated sanctions by the Nigerian Communications Commission (NCC), the sector’s regulator, poor services are rising in the industry, 17 years after the telecoms revolution in the country. This is even as operators insist they have continued to make almost yearly investments on network roll outs and facilities upgrades nationwide.

Speaking with The Guardian, a telecoms expert, Kehinde Aluko, wondered how long Nigerians would continue to suffer, despite spending between N2 trillion and N3 trillion on telecoms services, especially on airtime annually.

Aluko noted that the Key Performance Indicators (KPIs) set by the NCC do not reflect their performance and challenges of the industry, “I think something drastic needs to be done. There is serious rip-off in the sector; how will I send a text, money will be removed and the message will not get to destination? Or how do you explain dialling a number, the number is not connecting and your money is removed. The situation is disheartening!”

Narrating her experience in Abuja, a Globacom subscriber, Toyin Adebisi, complained that she had been experiencing drop calls and undelivered SMS in the last one month, and wondered if the NCC still monitors operations of the operators.

According to her, drop calls; uncompleted calls; illegal credit deductions, and the menace of unsolicited SMS remain the order of the day with the networks.

Another subscriber, Chukwuka Maria, a business woman, an ‘MTN loyal customer’ also complained of drop calls and connection failures. She lamented that her clients now find it difficult to reach her for business transactions; “on a more serious note, sometime last year, I almost lost a business worth N3.5 million because they claimed I could not be reached, whereas my phone had the 4G network signal bars on. It is really annoying.”

A postgraduate student of the Federal University of Technology (FUTY), Yola, Emmanuel Gbenga, admitted that all the service providers have issues.”Using my Glo line for calls here is really stressful and data speed can be very slow at times. MTN is fair sometimes, but not dependable. For some days now, I have to tried a number more than once before it goes through. Maybe we can say that network is unstable or what is really happening?” he queried.

A Media Consultant, Ogunmoroti Funsho, said MTN call network had offered pockets of failure, but the rate of failure is minimal for data.

Meanwhile, another customer, Damilola Sunday, said MTN data had been terrible. “We don’t get the data value of our money but voice services are okay for calls. There was one day that a call was on and the person couldn’t hear me. The person called back because the network was fluctuating. It has happened many times like that,” he noted.

Sunday added that Glo data in terms of volume is larger but it is only good at night. “I live in Ikorodu, but work at Ketu. The only time I have good network in Ikorodu is at night. The speed in the Ketu area is okay during the day though. I think this network issue also has to do with location,” he added.

While some subscribers belonged to all the four networks due to the multi-SIMs services, others that either belonged to one or two of the networks lamented that they are being denied access to port.

A Globacom subscriber in Lagos, who spoke with The Guardian and had actually planned to port from the network to another, alleged that Glo has refused to allow the transaction to sail through.

One of the subscribers, Joseph Onyekwere, said he had wanted to port from Globacom to 9Mobile, but “that process was frustrated from Globacom. The 9Mobile officials tried severally for about four attempts, it wasn’t successful, till this moment. I think the regulator should look into matter. The process appears not seamless anymore.”

Consumers generally also complained of data roll over challenges due to service fluctuations and poor customer response to issues.

Speaking with The Guardian, the President, National Association of Telecoms Subscribers of Nigeria (NATCOMS), Chief Deolu Ogunbanjo, said the issue of poor QoS has become an embarrassment to the industry. He said both voice and data services are currently at the lowest ebb, stressing that the mood in town is not palatable at all.

“It is very unfortunate that we are still experiencing such. Even, the NCC is handicapped on this matter. All the operators are guilty,” he stated.

Ogunbanjo decried that despite activating the DND code 2442, “I still get unsolicited SMS from 9Mobile. I plan to approach the court soon.”

Proffering a lasting solution, the NATCOMs boss urged NCC to call a stakeholders meeting, where the issues will be tackled thoroughly with a matching order to the operators that will be backed by sanctions, which they (telcos) will agree to.

Ogunbanjo wants NCC to monitor equipment installed by operators to be sure they are genuine and up to date, “the regulator will also need to ensure that operators actually installed radio equipment on their BTS for improved 4G experience.”

Meanwhile, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said poor telecommunication services will persist as long as social problems such as wilful damage to telecommunications infrastructure, and epileptic power supply persist in the country.

He added that the operating environment is not conducive enough to maintain uninterrupted services.

Adebayo urged the Federal and states governments to synergise and come to the aid of operators in solving the issues of multiple taxes and regulations affecting the growth of the industry.

He argued that no business would thrive in an environment where resources that could have been used in network upgrade are being diverted for repairs of damaged infrastructure in violence-prone areas.

Adebayo revealed that ALTON, the industry body for all telecommunications companies in Nigeria, is proposing a cost-based tariff for voice calls, saying the new model would reflect the cost of doing business in the country.

Adebayo, who spoke against the backdrop of moves by operators to raise tariff; noted that current rates do not consider the multiplicity of taxes and levies in the telecom industry.

He said: “We are asking that tariff should be cost-based and for that to happen, we need to understand what are the costs that are being incurred due to multiple taxation and consequently, and relate that to the tariff that will be charged in those areas. That is actually what the conversation is about.

“We are going to be approaching the NCC with all the cost information, and we are going to be requesting through the established protocols for a cost-based tariff. We will not be right to say it is an increase in tariff but tariff that will reflect the cost of service provision.

“There is a base price, a minimum bottom price – that has been determined by the NCC, and that is based on general cost of service provision and operating expenditure and recurring cost. It certainly doesn’t consider issues of taxation and levies.”

However, the NCC has blamed poor telecom services being experienced by customers on poor power supply by electricity distribution companies in Nigeria.

Manager, Technical Department, NCC, Musa Diabu, said this in Okene, Kogi State, when the Commission held a sensitisation programme on the need for citizens to collectively protect telecom infrastructure in the country rather than leaving them to security personnel only.

He lamented the incessant theft of telecom facilities across Nigeria, stressing that vandalism of telecom infrastructure has become the bane of quality of service.

Source: Extensia

MTN Executives to Resign as Telco Battles FG Fines

There are strong indications that some executives of MTN Group will exit the telecom firm in the next few months as the company battles to resolve its issues with the Nigerian government over the reparation and payment of tax claims worth $10.1 billion.

Bloomberg said quoted people familiar with the matter as saying Mr Herman Singh, chief innovation officer of MTN, is expected to resign to establish his own tech venture.

If this eventually happens, the exit of Mr Singh will come as Babak Fouladi, chief technology officer prepares to join Dutch telecommunications firm, KPN NV, in a similar role next week.

MTN confirmed Fouladi’s departure, which was announced by Rotterdam-based KPN earlier this month. Singh declined to comment.

The executives are leaving after a three-year period of considerable turmoil at MTN. A shock $5.2 billion fine in Nigeria in 2015 embroiled MTN in 10 months of negotiations and prompted a management overhaul. Then earlier this year, authorities in the West African nation announced another round of multi-billion-dollar demands.

The stock has halved over the period, valuing the carrier at 169 billion rand ($12.2 billion). That’s even as demand for data services in Africa booms and MTN expands in fast-growing services such as mobile money. The company agreed to a partnership with Orange SA last week to ease payments across the continent.
The shares declined a further 2 percent on Tuesday to 88 rand as of 1.13 p.m. in Johannesburg, the steepest fall in a week.

Rob Shuter, MTN chief executive officer was hired from Vodafone Group Plc two years ago in the wake of the first Nigeria penalty, which was eventually settled for about $1 billion.
Fouladi was lured from the same company later that year. Singh, formerly with MTN’s crosstown rival Vodacom Group Ltd., was appointed in 2015.

Stephen Van Coller, another high-ranking executive, left MTN at the end of August to take the helm of technology firm EOH Holdings Ltd. Originally hired as head of mergers and acquisitions, the former investment banker was moved to run digital services before quitting less than two years into his tenure.
MTN’s latest dispute with Nigerian authorities is over an allegation the company illegally transferred $8.1 billion out of the country and owes $2 billion in back taxes. While the transaction matter looks close to being wrapped up, with Central Bank Governor Godwin Emefiele saying he’s on “the verge” of announcing an amicable resolution, the taxation claim is still outstanding.

Other headaches for MTN include problems extracting cash from Iran, its third-biggest market, after U.S. President Donald Trump reinstated sanctions against the country. The carrier has also come under pressure to list country units on local stock exchanges, with Uganda the latest to link a share sale to license renewals.

Source: NigerianCommunicationWeeks

TD Africa Inks Distribution Agreement with Vertiv

Technology Distributions Ltd, Sub-Saharan Africa’s biggest Information and Communications Technology (ICT) distributors and Vertiv, an American multinational corporation yesterday announced their partnership to distribute Vertiv solutions in Nigeria.

Speaking at the official launch of the partnership, Wojtek Piorko, Director,Sales Middle East and Africa, Vertiv, Said that, the reason they choose Technology Distributions (TD) is because they are very experienced in IT channel distribution.

He explained that Vertiv intend to work with TD not only in Nigeria but in other countries in Africa. Today’s event is to work with our local partners to grow their business, especially in channel business.

“We need very experienced partners that have wide audience and many resellers to sale to, and that’s why we have chosen Technology Distributions, they are our IT channel distributor and we work with them not only in Nigeria but in other countries of the region.

“Technology Distributions have wide reach of the market, we have great product but we also understand each other very well, we communicate where necessary, he said.

He noted that, Vertiv products have been in Nigeria for the past 20 years delivering top quality products to its customers.

“We’ve been in Nigerian market for the past 20 years, is not that we are completely new, although Vertiv brand name is new to the market but all critical product lines that we offer are products that were already in the market delivered by Emerson Electric, but now Vertiv brand is with completely new opening, new team, new structure that is dedicated to this specific market,” he added.

Stanley Okpalaeke, Group Executive Director, Technology Distributions (TD) said that TD’s major strategy in the partnership is to build deeper relationship with its partners, and to seek how TD will help grow their businesses, adding that, if they are able to grow their partners’ businesses, TD business will grow also.

“Our major strategy is our partners; we want to build deeper relationship with our partners.

“We are seeking how TD will help you grow your businesses because if you grow, we will grow too,” he said.

He explained that their partner ecosystem cut across all Africa, adding that they also have major hubs in Dubai and UK.

He added that, they have at every point in time N12 billion worth of stocks to cater for their customers’ needs.

“At every point in time we have N12 billion worth of stocks, the reason is because we do not want to disappoint our partners,” he stated.

Speaking earlier, Mrs. Chioma Chimere; Managing Director, Operations, Technology Distributions, said that Vertiv have come to help Nigerians solve the challenges they face with power, with their range of high end UPS solutions.

She noted that, even the power we have now is not clean and that is why Vertiv is here to give us maximum protection.

TD is the first manufacturer-accredited local distributor for the sub-region, TD, with the support of the OEMs, successfully confronted the myriad challenges posed by the hitherto unstructured market.

Among the first measures they embarked on was the formulation of a clear policy on the channel of distribution that led to the adoption of the prevailing four-tier market structure comprising Manufacturer (OEM), Distributor, Reseller and End-User.

Publiseer, Nigerian Digital Publishing Startup Reports Profitability

Publiseer, Nigerian digital publisher has reported a profit for its first quarter in 2018, adding over 200 new releases in the past 30 days.

The company posts a first-quarter profit of $10,877.58, comfortably ahead of its expectations. Following the profits, Publiseer has launched its ‘Premium Distribution Service’ that will distribute books and songs for an upfront fee, allowing its authors and musical artists to keep 100% of their earnings.

Nevertheless, old and new clients can still use its ‘Freemium Distribution Service’ that gives Publiseer a 25% commission on sales.

It’s taken just 8 months for Publiseer to become a money-maker. The digital publishing company reported its first profitable quarter today, driven by a 20% rise in submissions and a faster reputation growth overseas.

Publiseer has thrived since its launch in August 2017, and traction has grown drastically. Since its international popularity is growing exponentially, the company is making moves to expand its services outside of Nigeria.

In response to this, Publiseer has distributed the works of Canadian Youtuber Heidi Shai, American Jazz musician Ragtime Joe, and Missouri producer ANB Beats.

In Africa, Publiseer has distributed the books of Cameroonian writer Juan Gutied and Zimbabwean author Godfrey Masanga.

As of writing, Publiseer has distributed 92 books and 374 tracks by 73 authors and 154 artists, having received over 1,000 submissions since August 2017.

Chidi Nwaogu, Publiseer’s CEO said: “Starting Publiseer, we weren’t focused on profitability as an early-stage company, rather, we were focused on customer satisfaction and retention. But at the beginning of the first quarter of this year, submissions doubled and thus our releases too. It’s good building something that meets a growing need, and which eventually makes lots of money.”

Publiseer is a digital publishing platform for unsigned and independent writers and musicians with low-income or from low-income families.

However, the platform is open to well-established authors and musicians looking for new avenues to distribute and monetize their creative works on the World Wide Web.

Publiseer has distributed the works of A-list Nigerian artists like CDQ, Klever Jay, Erigga, and DJ Jozenga of RayPower FM.

MTN’S TOP MANAGEMENT GETS FACELIFT

MTN’s top management is getting a facelift today, as Rob Shuter takes up his new role as group CEO and president, and Godfrey Motsa starts as SA CEO. This as the embattled telecoms operator tries to put a challenging 18 months behind it.

Shuter joins MTN after fulfilling his responsibilities as CEO of the European cluster at the Vodafone group and brings extensive experience in the telecoms sector in Africa and Europe, as well as in financial services. He was previously CEO of Vodafone Netherlands, CFO of the Vodacom group and held senior management roles at Standard Bank and Nedbank.

Today signals a number of senior management changes at the pan-African telco. As Shuter comes in, current executive chairman Phuthuma Nhleko reverts back to his role of non-executive chairman. He says he will stay in this role until no later than December 2018, when he plans to step down.

Nhleko took over as executive chair in an interim capacity in early November 2015 after former group CEO Sifiso Dabengwa resigned from the post.

His resignation came just two weeks after the company announced it faced a $5.2 billion (R71 billion at the time) fine from the Nigerian Communications Commission for failing to disconnect 5.1 million unregistered SIM cards in the country. In June 2016, after months of negotiations, MTN agreed to pay $1.671 billion (R25 billion at the time) to the federal government of Nigeria, in six instalments over three years, to settle the fine.

However, the damage caused by the fine will likely linger for some time and has already had a heavy impact on the group’s financial results for the 2015 and 2016 financial years. Earlier this month, Nhleko called 2016 the “most challenging year in the company’s 22-year history” as the group reported a full-year headline loss per share of 77c, for the year ended 31 December, compared to headline earnings per share of 746c a year ago. This despite growing group subscribers by over 3% to 240.4 million across its 22 operations in Africa and the Middle East.

Familiar faces

MTN South Africa also has a new CEO starting today, as Godfrey Motsa takes over from Mteto Nyati, who is moving on to take up the role of Altron CEO. Motsa is moving from his role as VP of MTN’s South and East Africa (SEA) region. He was previously chief officer of the consumer business unit at Vodacom and in the past also occupied the positions of CEO of Vodacom Lesotho and Vodacom DRC.

Motsa and Shuter were colleagues at Vodacom and Shuter says he is delighted Motsa is taking up the top role in SA because they have “worked well together in the past”.

MTN’s new group CFO Ralph Mupita will start early next month, leaving his post as chief executive of Old Mutual Emerging Markets. MTN says he brings 16 years of financial services experience as well as expertise in engineering. The role became available when former CFO Brett Goschen left the telecoms operator at the end of September 2016 “to pursue other interests”. Gunter Engling, currently acting CFO, will assume the position of deputy CFO with effect from 3 April, reporting to Mupita.

Other recent appointments include Jens Schulte-Bockum, who joined the group on 16 January as group COO, replacing the retiring Jyoti Desai. Schulte-Bockum is another Vodafone hire, with his last senior role being CEO of Vodafone Germany between 2012 and 2015.

With the post of VP of the SEA now open, current VP of the West and Central Africa region, Karl Toriola, will take on the additional responsibility of the SEA region in the interim as the group searches for Motsa’s replacement.

Eight other senior executives were appointed during 2016, including Babak Fouladi as CTIO, joining MTN from Vodafone Spain.

Growth targets

MTN’s management changes come alongside its latest transformation initiative, Ignite, which aims to improve the group’s revenue growth and accelerate the diversification of revenue streams – including more digital services. Ignite has already been launched for MTN SA and MTN Nigeria, with plans to roll it out to all operations over time.

“With a strengthened management team in place and new initiatives embarked upon, we are confident and are resolved to enhance our competitive position across our markets and meet the aggressive targets set,” the group said in a statement as part of its latest financial results.

The telco said the new senior executives have the requisite skills to take MTN “into a new growth phase”.

After the Nigerian debacle, the group reinstated its regional vice-president positions “to ensure an extra layer of regional, operational and governance oversight”.

“At an opco level, we reviewed structures, introducing the position of chief operating officer in our large opcos to ensure increased operational oversight and coordination between commercial and technical teams is enhanced, allowing country CEOs to focus on stakeholder matters,” it said.

Source: IT Web Africa