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[BRANDWEEK REPORT] UPDATED

NIGERIAN TELECOMMUNICATION COMPANIES LAMENTS ON COST OF DIESEL KILLING SERVICE DELIVERY OF THEIR BRANDS.

The poor electricity supply in Nigeria has brought untold hardship to the telecoms industry as investigations
revealed that telecommunication operators spend as much.as a whooping N16 billion yearly on diesel generators that.power each Base Transceiver Station (BTS), commonly
known as base stations.

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Director, Public Affairs at the Nigerian Communications (NCC), Mr. Tony Ojobo, who confirmed this in a recent radio programme, said: “Telecommunication
operates within an eco-system, where you have other factors affecting it and one of that is power. Right now
power is a major cost for telecom operators. Now one of the major operators has about 4000 generators
across the nation and this operator has to fuel all of his generators, and one of them as at last year, spent about 4 billion naira on diesel alone.”
Going by the number of Global Systems for Mobile Communication (GSM) operators in the country, which
currently stands at four, and which constitute the major telcos in the country, it then implies that the four major telcos in the country, spend over N16 billion on diesel every year. Industry analysts said the huge amount of
money could have been channeled to infrastructure development and network expansion, to ease network congestion and poor telecoms service delivery.
They noted that the cost could even be higher, given the total number of installed base stations in the country,
which was put at over 20,000.
MTN,

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which has over 61 million subscribers on its network, with over 10, 000 installed base stations,would be spending far more than N4 billion on diesel in
one year.Lamenting the huge cost that telcos spend on diesel alone, Ojobo said such cost is transferred to the
consumers of telecoms services, whom he said, bear the brunt of it all.
“In other climes, where power is not an issue, the cost element is removed from the pricing cost that is moved over to the consumer, but of course the good thing is that with the various efforts of government in the licensing of independent power producers and now with power becoming a little bit more stable, that cost factor will be taken out, and we are beginning to see a
substantive shift from the upper end of the curve,”Ojobo said.Regarding issues relating to the tariff rates in Nigeria, in
comparison to other countries, Ojobo said: “We have actually done a study and soon we are going to come
out with the publication, looking at the pricing of the telecommunication and services in Africa, especially in
West Africa region.”Other challenges faced by telecoms operators as
identified by Ojobo, include Right of Way (RoW) issue,arbitrary levies from federal, state and local governments, including willful destruction of telecoms
equipment by social miscreants. He however said the NCC has waded into the issue of RoW in some states
and that there have been positive results from it, citing instances from Lagos State and some other states,
where the issue has been resolved.

Edited & posted by @djshyluckjimmy
facebook/instagram:jimmyadesanya

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