TMCnet News
Telecom Growth Amid Subscriber Pain(AllAfrica Via Acquire Media NewsEdge) THE excitement expressed the other day by some senior functionaries of the Nigerian Communications Commission (NCC) projecting the country's telecommunications industry as the world's fastest growing may be founded. But there is not much cause for excitement. The general poor quality of service and consumer rip-off perpetrated by the service providers should be addressed before much fuss is made of any growth. In about 13 years of the introduction of Global System for Mobile (GSM) communication in Nigeria, the telecommunications industry has witnessed phenomenal growth, no doubt. Unlike some other sectors of the economy that experienced serious challenges in reaction to global slide, the telecommunications industry remains attractive for vendors while operators continue to expand and invest in their networks. But as they expand, so does the agony of the end-users. And this is a shame that must stop. Chairman of the regulatory agency, NCC, Peter Igho said the other day that actual telephone subscriber base as at April 2014 is 129 million with 92 per cent tele-density as against 0.4 per cent before the upsurge. Fifty million Nigerians are also now believed to have access to the Internet. Besides, telecommunications contributes 8.5 per cent to the Gross Domestic Product (GDP), up from the 4.5 pre-rebased economy. Thankfully, Igho admitted enormous challenges beyond the posted impressive figures. Similarly, NCC's chief executive, Eugene Juwah, who excitedly revealed the international approval NCC got from its oversight functions spoke of the sharp rise in investments in the industry from a $500 million in 2001 to $32 billion at present. The impressive postings notwithstanding, they are at variance with the reality of service. Indeed, the reported huge subscriber base would seem a clear result of inefficiency of the service provider leading to multiple registrations by subscribers across the networks. Indeed, very poor quality of service on parade attributed to congested switches; demand not matched by infrastructural development; expensive service provision compared to other countries where similar facilities are run make nonsense of any seemingly good news in the industry. Call drops, spurious billings for services not rendered (as in data connections), late or non-delivery of text messages through short message service, use of platforms by questionable agencies for service or product promotion to fleece unsuspecting public of hard earned money are some of the staples of what has become a growing but inefficient industry. Regrettably, NCC seems to have done much less than expected. As the regulators, NCC has only taken a few steps to sanction erring firms which appear inadequate compared to the infractions. The result is that the telecoms firms take the people for a ride. Regardless of complaints of a suffocating business climate by the operators, most importantly the acute shortage in public power supply (which is key to their operations), the telecom firms can do better and NCC should not fail to protect the interests of Nigerians who are eager to have and pay for good service. This is not to take away anything from genuine complaints of operators like multiple taxation by governments, hurdles in accessing rights of way to expand facilities and theft of operational materials on site and many more. These are genuine claims the government can assist them to overcome in the overall interest of consumers. They are in business for profit and business can only be done in a conducive environment. Thirteen years is too long a time for the operators to be contending with teething problems in the industry. The way to go is up, not down. The playing field should be level enough to attract other team players, not to scare them away from competition. Sure, GSM has revolutionized the people's lifestyles and so should be sustained just as subscribers deserve to get value for money. Apart from the NCC, other relevant agencies like the Consumers Protection Council must be alive to their duties. Technical hitches that limit operations also have to be addressed. The infrastructure has to be expanded by whatever authority is vested with that responsibility. But for now, it is suggested that operators collaborate or pool resources where necessary to reduce costs, for instance in erection of masts for wider coverage. The growth rate in the country's telecommunications industry and the large population are parameters that will continue to make the country one of the most attractive destinations for investors in Africa and the Middle East. Return on investment is assured as demand profile both for voice and data services, is high and by far the largest in Africa. By and large, to sustain all these, a sound regulatory regime is needed. Much of the focus has, however, been on the growth of mobile devices and services, at the expense of fixed telecoms markets. Growth and development should be pegged on the two sub-sectors to further drive the market and the economy. As operators in the mobile sector strive to invest in expanding their networks to offer better quality services to existing and potential subscribers, billions of dollars is expected to be expended on rolling out new infrastructure to reach untapped regions. It is nothing but an indicator of a huge industry with yet a lot more to offer the economy. With such a vast space for further growth, government must not waver in its sustainability and regulatory responsibilities. Copyright The Guardian. Distributed by AllAfrica Global Media (allAfrica.com). |