Monday, November 5, 2012

Telecoms revenue nose dives on account of flood, insecurity


Ben Uzor Jr

India's Bharti Airtel has declared that operators in Nigeria's N3.9 trillion telecommunications industry is losing considerable revenues following the spate of insecurity and the recent floods that affected many parts of the country. In 2010, Pyramid Research said that telecoms companies - MTN, Globacom, Airtel, Etisalat and CDMAs earned N1.3 trillion ($8.6 billion) in revenue from billing Nigerians for using their services. The research firm predicted that revenues would hit N1.7 trillion ($11 billion) by 2013. But with the rising incidence of attacks on telecoms installations and the recent floods, industry analysts told Benuzorreports that mobile network operators might not attain this target next year.

The current situation and  its attendant impact on quality of service levels, according to Airtel has led to heightened operational burden and spiraling cost as many networks struggle to resuscitate affected facilities, "Operators are losing significant revenues across the country due the bombing of telecoms equipments. It is impacting on quality of services. "But more importantly, it is affecting our revenue because of the investment demands required to revive these facilities", Osondu Nwokoro, director, regulatory affairs, Airtel Nigeria, said at a media briefing in Lagos. "53 of our telecoms sites were directly affected during the bomb attacks in the northern east part of Nigeria.

"But 193 sites were impacted in all as huge outages were sustained. The way the network architecture is designed, we have some telecoms masts that are hubs and control other base stations. So, if a hub is destroyed then other masts that depend on the hub will be affected. However, Airtel has managed to resuscitate 112 out of the 193 sites but at great costs. "The rising rate of bomb attacks, according to Nwokoro has stalled network restoration and rollout as field operations personnel refuse to work in areas prone to violence. Speaking in the same vein, Airtel's chief technical officer, Awadhesh Kumar Kalia said, "24hr preventive maintenance is no more possible on account of insecurity, curfews, harassment of field personnel by armed groups and law enforcement agencies."

Kalia said the floods affected 41 telecoms sites in all. "Submerged fibre locations include: Lokoja-Dangana; Lokoja-Okene; Asaba-Ugheli; Ugheli-Patani; Patani-Elele". This, the Airtel CTO added has contributed significantly to poor quality of service rendered by telecoms operators nationwide. In view of this, telcos, according to Kalia have been compelled by circumstance to share infrastructure and equipment. Nwokoro however called for expanded collaboration between government and the industry to tackle the national security problem specifically as it affects the industry. "There is also need for a national alert declaration in the face of unfolding emergency brought on by flooding. This would make the restorations of telecoms facilities an important focus area for the National Emergency Management Agency (NEMA). It is also aimed at protecting telecoms infrastructure by averting further loss of capabilities and services which are indeed critical for disaster mitigation", the Airtel director explained.

Only recently, MTN said efforts to put its network in prime position to deliver best-in-class telecommunications services is been stalled by the spate of insecurity and the unprecedented flooding in many parts of the country. MTN appealed to its 45 million telecoms subscribers’ to bear with the poor quality of service rendered on its network since the commencement of its $1.3 billion modernisation and optimisation exercise. "We regret, however, that the pace of work has been considerably challenged by the spate of insecurity coupled with the unprecedented flooding being experienced in many parts of the country”, said Wale Goodluck MTN’s corporate services executive.

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