Transforming the Telecoms Industry Landscape

....2019 NCC achievements

Innovative ideas from Nigerian Communications Commission (NCC) in 2019 have become a beckon of admiration as they have set the pace for transforming the Nigerian telecom sector to global standard. With these steps, the Nigerian telecom sector have already become a brand leader in the Africa telecoms industry and are on the way to taking up a permanent space and becoming influential in the international telecoms sphere

It is good to point out that the telecoms sector has remained consistent, recording greater feats courtesy of regulatory excellence of the Nigerian Communications Commission (NCC) under the leadership of Prof. Umar Garba Danbatta. For the Commission, 2019 has been particularly eventful.

The Nigerian Communications Commission (NCC), in 2019, carried out a number of regulatory activities towards ensuring increased access to telecoms services,  increased consumer education and protection, boosting security of lives and property, sanitising the industry while also driving other initiatives aimed at boosting innovation in the telecoms sector and continuously galvanising the country’s overall economic growth.

Impressive growth statistics, despite challenges

Generally, despite challenges confronting the telecoms sector, the sector was able to recording impressive statistics during the year, courtesy of smart and effective regulatory role of the Nigerian Communications Commission (NCC), resulting in greener outlook from January 2019 till date.

Telecoms continues to be a major contributor to the nation’s economy, according to data from the National Bureau of Statistics (NBS). Telecom’s contribution to national gross domestic product (GDP) for the 1st Quarter and 2nd Quarter of 2019 stood at 10.11 percent and 11.39 percent respectively.  These contrast with 9.19 percent and 10.43 percent contribution in the 1st Quarter and 2nd Quarter of 2018 respectively. Broadly speaking, general Information and Communication Technology (ICT) contribution to GDP has increased to 13.8 percent currently.

Active mobile voice subscribers increased from 174,012,136 in January, 2019 to 180,386,316 at the end of October, 2019 (which is the latest data in the industry, as posted on the NCC official website). Teledensity has also increased to 94.50 percent while internet subscribers increased from 114,306,598 to 123,559,596 during the period under review.

Upward trajectory of broadband penetration

Broadband penetration increased from 32.34 percent (indicating 61,732,130 Nigerians on 3G and 4G networks) to 37.87% (indicating 72,289,389 on 3G and 4G networks) between January and October, 2019. Various efforts of the Commission in licensing new spectrum bands, re-farming certain frequency bands and driving initiatives for increased broadband infrastructure in the country have also been responsible for this feats.

With increase in broadband penetration being recorded on a monthly basis, stakeholders have said that the NCC is well positioned and must be supported by the government through relevant policies to drive the actualisation of the country’s digital economy policy strategy, going forward. This has become necessary since, as usual, the Commission is expected to take the driver’s seat in the actualisation of the new broadband target being worked on by the Ministry of Communication and Digital Economy.  Just recently, the new National Broadband Plan Committee was inaugurated to come up with the new broadband target for 2020-2025.

With regards to the uptake of Mobile Number Portability (MNP), 110, 500 numbers were ported between January, 2019 and October, 2019, as against 71, 723 subscribers who ported their lines between the same 10-month period in 2018. This increase in porting activities in 2019 is attributable to increased public education and awareness by the Commission’s head office and its zonal offices, as they intensified awareness on the availability and usage of MNP across geo-political zones.

Stepping up consumer complaints resolution management

Also, in terms of consumer complaints management, the Commission received a total of 19,841 complaints from telecoms consumers across its various consumer complaints channels. Of these, the NCC successfully resolved 17,851, representing a 90 percent success rate of consumer complaints resolution during the period under review. Specifically, a total of 18, 717 complaints were lodged through the NCC Contact Centre by the customers to the Commission with a larger percentage satisfactorily solved. Little wonder, therefore, that based on their satisfaction with all these facilities provided for them to resolve their issues, a total of 19,345 satisfied consumers sent notes of commendation/appreciation to the Commission through calls made to the NCC Contact Centre and e-mails received via the NCC Consumer Portal. All of these were to appreciate the various regulatory interventions that helped in satisfactorily resolving their telecoms service-related issues.

Also in 2019, exposure to unsolicited text messages by the consumers declined drastically through the popularisation by the Commission and the resultant activation of the Do-Not-Disturb (DND) Short Code 2442 facility by the subscribers. Though, a voluntary service, a total of 22,356, 919 subscribers have now activated the DND service either fully or partially.

Aside all these impressive statistics, the Commission, in 2019, focused more on some key initiatives that have put the industry and the economy on a growth trajectory.

Telcos’ listing on NSE and boost in capital market operation

Year 2019 will go down in history as a memorable one when the yearnings of most Nigerians to have increased stakes in the telecoms sector got an unprecedented boost through smart regulatory activities NCC. Indeed, one of the remarkable achievements of the NCC in 2019 which has not only impacted the industry but also bolstered the entire economy was the Commission’s regulatory efforts in seeing to fruition, the listing of MTN and Airtel Africa on the Nigerian Stock Exchange (NSE).

Speaking at a forum in Abuja, the Executive Vice Chairman, NCC, Prof. Umar Danbatta, said “The MTN listing has helped to translate into action, an important objective of the Commission, which is to promote local investment and ownership in the telecom sector. Also, with MTN’s shares available in the capital market, it is expected that Nigerians will buy shares and by purchasing the shares of MTN, they will be financially empowered and be socially transformed.”

According to Danbatta, “One of the benefits of MTN listing and those of other operators to follow, therefore, is that the telco would be able to raise more capital for network expansion which, in turn, will bring about an improvement in the quality of service (QoS) and quality of experience (QoE) for the consumers of telecoms services, which is also a cardinal function of the Commission.”

Undoubtedly, despite the initial volatility seen in the Nigerian capital market earlier in 2019, the listing of the biggest telecommunication company, MTN Nigeria and Airtel Africa, has helped in increasingly making the market capitalisation bullish. Today, capital market regulator and shareholder bodies have commended the effort of the NCC in making the capital market more resilient through facilitating the listing of MTN, a move that was fallout of the conditions the telecom regulator gave MTN following the telco’s violation of Subscriber Identification Module (SIM) registration rule in the telecommunications sector.

More details on NCC’s 2019 achievement will be published in subsequent publication. In additional JackieOparamedia have packaged the full 2019 achievement in a power-point presentation. Please do contact us at fatoye4me1@yahoo.com or angelgabriel@jackieoparamedia.com for a copy.