Tuesday, 30 May 2017

Telcos urges NCC for intervention



Charity Nnaji:

Broadband companies- Tier II telecoms operators have urged the Nigerian Communications Commission (NCC) to intervene in their business to save the industry from imminent collapse.

The operators made this known when they visited Prof. Umar Garba Danbatta, executive vice chairman of the NCC, in Abuja recently.
The operators therefore asked the NCC, to take immediate and decisive steps to avert the looming threat of strangulation, which its members currently face.

Those in the delegation were, Mr. Godfrey Efeurhobo, managing director, Smile Communications; David Venn, managing director, Spectranet; Mr. Osondu Nwokoro, director Regulatory and External Affairs of nTel; and  Mr. Chuma Okoye, chief commercial officer, Swift Networks,

According to them, the industry is in a situation where all operators are finding it difficult to justify the required investment case for additional capital expenditure (capex) for network capacity expansion to improve quality of service to customers.

They further noted that the network operating expenditure (opex) of operations have skyrocketed in the last 15 months by over 85 per cent with revenues remaining relatively flat.  Most operators, they lamented, are currently struggling with meeting obligations to their suppliers particularly network vendors, tower firms and servicing loan obligations.

According to CommunicationsWeek, the CEOs stated that the NCC’s declaration of 2017 as the Year of the Telecoms Consumer can be derailed by failure of operators to deliver on the expected quality of service particularly on data throughput and experience due to the weak investment case to support additional capex as a result of deteriorating market conditions.


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