Etisalat Nigeria to invest $500 million to improve network quality (Nigeria)
Mobile operator Etisalat Nigeria is looking to spend $500 million in this year, in an attempt to improve the quality of network services offered to its users.
As per the company, Steven Evans, Chief Executive Officer, Etisalat Nigeria said the company in its over three years of rendering quality telecommunications services in the country has invested over two billion dollars in building and expanding its network and will continue to invest in upgrading and expanding its network and capacity in order to meet the communications need of its customers.
As reported by Wireless Federation earlier, Etisalat was fined $2.29 million by the National Communications Commission (NCC) for offering users poor quality of services.
Evans said that this year alone they are investing more than half a billion dollars in expansion of their network capabilities and capacity and this expansion which is currently in progress will reflect positively on the quality of their network.
He further explained that the failure to hit some of the quality measures could not be attributed alone to capacity expansion but also by other factors which represent industry-wide challenges. Foremost amongst these is the absence of reliable power which necessitates that every one of over 3000 cell sites needs to be served by two generators which run 24 hours a day and need regular maintenance and provision of weekly supplies of diesel.
Allied to this challenge is the regular damage and cuts to the fiber networks due to roadwork’s and in some cases sabotage. These factors are unique to the operating environment in Nigeria and pose a tough challenge for operators to deliver quality of service levels equal to that of other countries.
He added that they would like to re-iterate their commitment to delivering quality telecom services to Nigeria and to all their customers and they will not relent in their quest to remain number one in terms of Quality.
MTN, Glo, Etisalat and Airtel fined $10.8 million for poor network services (Nigeria)
The Nigerian Communications Commission (NCC) has fined telecom operators MTN, Etisalat, Airtel and Globacom, a total amount of $10.8 million, over poor quality of telecom services, according to a report by This Day.
As per the report, the Nigerian Communications Commission (NCC) had informed the Chief Executive Officers of the telecom operators via letters. The penalties imposed on the operators’ amount to $2.29 million for MTN and Etisalat, $1.71 million for Airtel and $1.14 million for Globacom.
The letter sent by the Commission said that all the operators are to pay the penalties on or before May 21, 2012 or be liable to payment of additional $15,900 per day for as long as the contravention persists. The penalties were imposed as the operators failed to meet with the minimum standard of quality of service including the key performance indicators (KPIs).
According to NCC, it monitored the performance of the operators on the different parameters, in line with the provisions of the regulation, and discovered that operators were in contravention of the provisions.
The report reveals that monitoring of the quality of service from the different operators in the month of March 2012, NCC statistics in some crucial parameters showed that Call Set-up Success Rate (CSSR) for all operators was 97.07 percent and the Commission’s target was greater than or equal to 98 percent.
Also during the period, Call Completion Rate (CCR) for all operators was 95.78 percent and the commission’s target was greater than or equal 96 percent. Drop Call Rate (DCR) for all operators was 1.33 percent and the commission’s target was less than or equal to 2 percent. The statistics showed that the four operators did not measure up to NCC’s target in certain parameters.
Airtel announces Q4 results: customer base crosses 250 million, net profit down by 28% (India)
Leading telecom operator in India, Bharti Airtel announced its consolidated IFRS results for the fourth quarter and year ended March 31, 2012. According to the company report, the revenue growth in the fourth quarter was fuelled by increased customer additions and strong minutes growth in India. Despite a national strike for 9 days in Nigeria, Africa revenues continued its growth trend.
The consolidated net profit declined 28 percent to $190.6 million, in the fourth quarter ended March, from $265 million a year earlier, resulting in the ninth consecutive quarter for which the operator witnessed a profit decline. The company added that the net income was impacted by higher costs on account of 3G license fee amortisation, 3G interest costs, forex fluctuation losses and tax.
Consolidated EBITDA margin was sustained at a robust level of 33.3 percent benefitting from scale and cost efficiencies. Further, revenue growth of 11.6 percent for the full year in India and South Asia was mainly contributed by stability in pricing accompanied by robust growth in customer numbers. The company’s Africa revenues stood at $1,071 million, up by 15.9 percent from the previous year.
In a statement, Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel Limited, said that he is pleased that the year has ended with the Company’s customer base crossing 250 million across twenty countries, the twentieth country being Rwanda. Their launch of 4G LTE, the first in India, is testimony to their commitment to the broadband agenda.
Further, the recent regulatory developments in India will have significant implications on the future of telephony and broadband, as well as India’s global competitiveness. The entire industry looks to the Government for a fair, transparent and sustainable telecom regime.
RIM looks towards Asian markets to cover declining margins (Asia)
Canada based BlackBerry maker, Research In Motion (RIM) is looking at the Indian market for the launch of its new BlackBerry mobile phone, which is targeted at the lower-end users, according to a report by Reuters.
As per the report, RIM is following a parallel approach: building the high-end next generation platform and devices, while coming up with cheaper phones that can prod some of the vast majority of its users to trade up. Patrick Spence, RIM’s global sales chief, told Reuters that they’re really trying to build on and help those people who are moving from feature phone to smartphone. They believe they can be successful in that.
RIM has launched its new handset, the Curve 9220 in India, with other markets to follow. A RIM spokesman said the company would launch in Indonesia, one of its most lucrative markets, in the coming weeks.
RIM doesn’t break down its sales by region, but has reported that sales outside the U.S., Britain and Canada accounted for 68 percent of total revenue in its fourth quarter, up from 61 percent in the previous three months. Those markets include India, South Africa, Nigeria and Saudi Arabia, which RIM says are all targets for this year’s sales blitz.
Etisalat looks to expand in Nigeria (UAE, Africa)
Etisalat Nigeria plans to invest $194 million in network expansion, according to a report by GTB. The operator aims to deploy 1,000 additional base transceiver stations by December to boost network coverage in Nigeria and enhance the quality of services offered, as highlighted by the report, according to Steve Evans, CEO of Etisalat Nigeria. This target will increase the total number of Etisalat base stations in Nigeria to 4,000.
Evans said that the cell site project is a big civil engineering machine that they have put in place and they have also partnered with companies helping them to put the concrete on the site, helping them to build the towers, putting the telecommunications equipment on those towers, connecting the towers, testing them and optimising them.
As per the report, UAE-based operator Etisalat launched operations in Nigeria with the acquisition of 40 percent stake in Nigerian operator EMTS, Emerging Markets Telecommunications Services.
MTN to invest US$ 1 billion for network upgrade in Nigeria (Africa)
Africa based MTN Group will invest over USD 1 billion in 2012 in an attempt to improve its network service in Nigeria following the directives by the Nigerian Communications Commission (NCC) to improve its service quality.
According to reports, the operator has said that the increase in the number of subscribers has necessitated the need for an efficient service delivery. Further, sources claim that the investment will help ease out the traffic on the network thereby improving the network quality.
As per sources, the Nigerian Communications Commission had issued a warning to telecom operators MTN, Globacom and Bharti Airtel in 2011 for their poor services, asking them to improve their quality before taking on additional subscribers.
Bharti Airtel contemplates mobile service launch in South Africa and Cameroon (Africa)
India’s leading telecommunications operator Bharti Airtel may be planning to expand its network in South Africa and Cameroon, as learned through industry sources. Airtel is a dominant player in the mobile industry with operations in 19 countries across Asia and Africa.
Mobile penetration has steadily been increasing in African countries, and with most of the global markets being saturated, emerging markets such as Africa provide mobile operators with new opportunities to increase their subscriber base and enhance their revenue.
Currently Airtel offers services in Nigeria, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Madagascar, Niger, Ghana, Kenya, Malawi, Seychelles, Sierra Leone, Tanzania, Uganda and Zambia. By adding South Africa and Cameroon, two of Africa’s fastest growing mobile economies to the list, Airtel aims to strengthen its position in Africa.
Airtel is the leading mobile operator in India and is well known for its innovative and competitive tariff pricing. The operator’s entry into these new markets is expected to take the mobile industry by storm and introduce an unprecedented level of competition.
Airtel presently offers services in 15 cities in India and with the population of one Indian city being similar to that of one African country, South Africa and Cameroon have the potential to be extremely lucrative for Bharti Airtel.
Further, sources claim that rival operators currently offering services in these economies such as MTN, Vodacom and Orange are already working on strategies to maintain their market share and offer stiff competition to Airtel.
Glo Mobile plans to launch services in Ghana by January 2012 (Africa)
Nigerian telecom operator Glo Mobile has reportedly announced that it will launch its commercial services in Ghana by January next year. According to reports, George Andah, Chief Operating Officer, Glo Mobile has said that the company will pre-empt the launch by holding a series of activities designed to ensure that Glo Mobile’s superior services get the launch they deserve.
The operator had received its licence in November 2008 and had initially planned to commercially launch its services in November 2011. However, sources claim that Glo Mobile is planning an aggressive entry strategy and expects to go live with 100 percent coverage in January 2012. Further, the operator claims that they have already invested US$ 600 million in Ghana with initial capacity for at least ten million customers initially which could be expanded later.
Mobile operators shift focus towards rural markets (Nigeria)
With the increase in saturation of mobile services in urban markets across the world, mobile operators have shifted their focus to towards the relatively untapped rural markets for better business opportunities and a chance at increasing revenues.
According to reports, industry analysts predict Nigeria the largest mobile market in the continent, to be home to over 90 million subscribers by this year end. Further, improvements in broadband connectivity along with the emergence of new generation smartphones are expected to drive mobile data growth in the economy.
In most rural economies, the lack of adequate infrastructure has been a grave cause of concern for mobile operators as it reduces their profits and drives up costs for customers. Currently, industry reports suggest that a fully functioning network grid could help operators cut their mobile tariffs by 50 percent, which is higher than those being offered in developed countries.
Changes have been observed in the investment environment as well. With operators offering discounted services to low income users in order to expand their reach, the ARPU (Average Revenue Per User) has witnessed a decline. Bharti Airtel, which had acquired Africa’s Zain, slashed its prices by significant amounts in a bid to increase its market share, which increased the pressure across the industry. Further, sources reveal that Etisalat (Saudi Arabia) and Globacom have also been increasingly gaining customers, giving strong competition to market leader MTN.
The next big thing in the economy is being considered to be mobile banking services. With a large portion of the population being unbanked but gaining access to mobile devices, more and more consumers are using their phone to transfer money and pay for goods, in a more convenient and secure manner.
MTN and Visa offer new m-payment services (Africa)
South African operator MTN has reportedly tied up with Visa in order to provide m-payment services to unbanked users in emerging markets. According to reports, the service, known as Visa Mobile Prepaid, will be initially marketed in Nigeria and Uganda, as part of its existing mobile wallet service.
As per sources, Aletha Ling, COO, Fundamo (Visa) said that the service provides users with a new set of transaction options such as withdraw money from ATMs, transfer money, and pay bills as though they are using a typical card. She added that customers will not be able to use the product if there is no money in their mobile wallet, similar to a debit card, which is why Visa is describing it as ‘prepaid’.
Ling also said that they provide the solution to operators as well as the banks. Operators, in partnership with a bank, will be able to offer this feature as a value-added service under their brand.
