NCC Says MTN, Airtel, Others Ordered $1bn Network Equipment From China as Drop Calls Increase
- NCC declared that telecom companies had ordered over $1 billion worth of network infrastructure from China
- The action signifies a return to capital investment in the telecom industry following a lengthy period of financial strain
- Within three months of the tariff adjustment going into effect, operators had committed to making investments in network infrastructure
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Communications Commission announced on Tuesday that telecom operators had placed orders for more than $1 billion in network infrastructure from Chinese original equipment manufacturers to improve and modernise the quality of service.
Source: Getty Images
After a protracted period of financial strain, the move represents a return to capital investment in the telecom sector, even though the equipment has not yet arrived, been cleared, or been deployed in-country.
The NCC's Executive Vice Chairman, Aminu Maida, informed industry leaders in Lagos that the telcos, which provide service to over 160 million subscribers nationwide, are increasing their investments to satisfy customer demands.
The meeting was held to update the Nigerian Communications Act 2023 to reflect contemporary technological trends.
“Our operators have committed to investing over a billion dollars in telecom infrastructure this year. This is more than double the investment from last year. But this equipment needs to be manufactured. We went to China, and the original manufacturers have confirmed the orders,” the EVC said.
The NCC's Executive Vice Chairman, Aminu Maida, informed industry leaders in Lagos that the telcos, which provide service to over 160 million subscribers nationwide, are increasing their investments to satisfy customer demands. The meeting was held to update the Nigerian Communications Act 2023 to reflect contemporary technological trends.
Prior to the approval earlier this year, telecom firms had warned on numerous occasions that their capacity to spend was being severely hampered by multiple taxes, stagnating prices, and currency pressures, which would result in deteriorating service quality and limited network growth. The lack of capital expenditures has grown to be a significant issue for Nigeria's rapidly expanding digital economy.
Source: Getty Images
To appease the irate consumers who complain about dropped calls and subpar services, operators promised to invest in network infrastructure within three months of the tariff adjustment taking effect.
MTN Nigeria's Chief Corporate Services Officer, Tobe Okigbo, emphasised the industry's increased emphasis on enhancing the customer experience.
He emphasised their dedication to improving service quality and pointed out that telecom providers lose money with each dropped call.
“We’re committed to improving the quality of service. Every time a call drops, we lose money. This is a critical issue, and we are focused on addressing it,” Okigbo said during a panel session.
Nigeria emerges second fastest-growing telecoms market
Legit.ng reported that despite the challenges facing the telecommunications sector, Nigeria has emerged as one of the fastest-growing telecom markets, according to the PwC Global Telecoms Outlook report.
The same report predicts a 9.2% annual growth for Nigeria up till 2028, second only to India, which has a 17.2% projected annual growth rate, and ahead of Malaysia’s 9% annual growth.
This projection is also higher than the projected 2.9% Compound Annual Growth Rate (CAGR) for the period, showing that the Nigerian telecoms market still has strong demand for connectivity and broadband infrastructure.
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Source: Legit.ng
