Monday, September 9, 2013

Is MNP a panacea to poor service quality in telecoms?

Ben Uzor Jr & Justice Godfrey

With the launch of the much anticipated Mobile Number Portability (MNP) scheme going into its third month now, some doubt has been cast upon the impact of this regulatory intervention in relation to improving service quality levels in Nigeria's telecommunications industry. Number portability, according to many analysts, is not a panacea to the prevalence of abysmal service quality in Nigeria's highly competitive telecoms industry. Prior to the launch of the scheme, the regulator had inundated the industry with claims that number portability would be a definitive solution to poor quality of service (QoS). 

How much of an impact the scheme would have on service quality is still yet to be seen? With the scheme, holders of Nigeria’s 116 million mobile lines can switch networks while retaining existing phone numbers. It is also expected to deepen competition amongst operators. Interestingly, many experts do not see a correlation between MNP and improvements in service quality. "MNP will not remove the problems associated or leading to low QoS because there is no element of operation in MNP", Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON) told Benuzorreports. 

Adebayo believes that the initiative would only increase competition amongst network operators and not address poor QoS. The most obvious QoS issues are drop calls, undelivered SMS and incoherent voice transmission. "The problems leading to poor QoS is not under the control of mobile network operators. Operators have no momentum to stop the government from closing sites. Multiple taxation, delays in site deployment approvals, issues associated with vandalism of telecoms infrastructure, as some of the challenges that hinders operators from addressing poor quality of service", Adebayo added. 

Over the years, telecoms operators in Nigeria have mortgaged service quality for subscriber acquisition. This trend, according to analysts, is likely to continue with the introduction of MNP as telcos will be compelled to further drop prices as a strong incentive to lure and retain customers on their respective networks. The struggle to acquire more subscribers, analyst say often lead to further deterioration of service quality levels by over-burdening telcos already fragile networks with promos which creates additional demand. Fundamental to the QoS debacle is the infrastructure deficit in Nigeria. 

As telecoms operators in the country line up big budgets to improve QoS, Nigeria's poor operating environment constitutes a major drawback to investment required for network expansion initiatives across Nigeria. Lending his own view, Lanre Ajayi, president, Association of Telecommunications Companies of Nigeria (ATCON), said the problem of poor  service is beyond operators' control. "MNP will only lure subscribers to other network and not solving poor quality. Operators need certain things which are beyond their reach such as permit from government to install fibers and expand networks. 

"If these permits are not being given to operators by the government, poor QoS will persist", he stated. For Bill Best, former, chief technical officer for GSMA, competition is the driving force for better QoS, new products, wider distribution and – crucially – more affordable price plans.“Mobile number portability will provide consumers with the option of choosing their network at any time while retaining their number."It will give rise to healthy competition in the industry, enhance QoS and improve customer service delivery to the consumers", according to Eugene Juwah, executive vice chairman, Nigerian Communications Commission (NCC), said at a recent industry event.

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