The Nigerian Communications Commission (NCC) has implemented new Key Performance Indicators (KPIs) for telecommunications companies to improve the Quality of Service (QoS) across the country. These regulations, part of the newly released QoS Regulations 2024, aim to address growing concerns about service delivery in the telecom sector.
The new guidelines set strict parameters for different network segments, including 2G, 3G, and 4G, focusing on factors such as traffic congestion, drop call rates, and call setup success rates. Telecom operators are required to submit monthly QoS reports, and non-compliance could result in fines of N5 million, with an additional N500,000 per day for continued violations.
The NCC’s move comes amid increasing complaints of load shedding within the industry and operator demands for higher rates. The regulator will monitor service quality through various methods, including user surveys, drive testing, and data collection from its Network Operating Centres (NOCs).
Industry leaders have raised concerns about the timing of these regulations, citing challenges such as declining capital expenditure (CAPEX) and foreign direct investment (FDI), rising operational expenses, and multiple taxation. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), highlighted the significant decline in industry CAPEX by 30.37% and FDI by 46.9% between 2021 and 2022. He warned that the industry is at a critical juncture, where decisive action is needed to prevent further deterioration and to support the government’s ambitious objectives.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), echoed these concerns, noting that while telecom companies had been profitable in the past, those gains have been eroded due to stagnant tariffs over the past decade. He emphasized the need for policy support or tariff increases to address the financial difficulties facing the industry.
Both Adebayo and Emoekpere cautioned that failure to address these issues could hinder the industry’s growth and innovation, ultimately affecting the provision of essential services. They called on the government to enact supportive policies to ensure the sustainability of the telecom sector.
