GLO & other telecommunications companies may lose N83 billion monthly over disconnected telephone lines
After disconnecting over 12 million telephones lines from their networks due to National Identity Number (NIN) and Subscriber Identity Module (NIN-SIM) linkage irregularities and failure of affected customers to comply with the February 28 deadline issued by the Nigerian Communications Commission (NCC) for completion of the process, telecommunications operators may incur about N83.3 billion loss based on Average Revenue per User (ARPU) monthly.
This comes as customers have appealed to the regulator and players to extend the exercise by one month, reports The Guardian.
The ARPU Is the average amount of revenue generated by each active telephone user over a given time, usually a month. It varies across networks.
While Airtel puts its ARPU at $3.80, MTN said as of 2023, its was$5.03. Other operators have kept the information secret. Nonetheless, it could be deduced that on average, ARPU in the sector stands at $4.4 according to available data.
Checks by The Guardian showed that on average, a subscriber expends $4.4 monthly on telecoms services. By the N1,578 exchange rate of the dollar to the Naira at the weekend, it amounts to N6,943 monthly.
MTN, in its audited financial report released at the weekend, said it disconnected 4.2 million unlinked SIMs. Airtel cut 4.5 million lines in December 2023, while another operator, which craved anonymity, told The Guardian that as of January, it flagged three million irregular lines on its network. Largely, the Association of Licensed Telecoms Operators of Nigeria (ALTON) claimed that about 12 million lines must have been barred by operators.
While the loss seems not good for business, Chief Executive Officer of MTN Nigeria, Karl Toriola, in the financial report, said most of the affected telephone lines were low-value subscribers, thus downplaying the impact.
Toriola disclosed that his organisation was engaging the authorities to accelerate the NIN verification process.
Meanwhile, subscribers have charged the NCC and operators to recall the hitches, which not only delayed linkages, but also compounded the situation.
Temilola Bolaji, a banker, told The Guardian that she couldn’t link her line due to network issues.
On his part, President of National Association of Telecoms Subscribers of Nigeria (NATCOMS), Deolu Ogunbanjo, backed a one-month extension to complete the entire exercise.
