NCC attracts N907.8bn FDI investments on MNP

DSBNews Telecoms Clinic with Remmy Nweke for June 2013

Telecoms Clinic with Remmy Nweke

The Nigerian Communications Commission (NCC) may have attracted the sum of $5.7 billion, about N907.8 bn in the first quarter of this year for being decisive over the implementation of the Mobile Number Portability (MNP).

These are funds brought together from both local and foreign direct investments by various consortiums of banking and financial institutions.

Investigations by DigitalSENSE Business News (DSBNews) exclusively gathered that within the period under review, the dominant operator in the telecommunication sector, MTN Nigeria Communications had attracted for the sake of setting the grounds for the launch and stability of the network to the tune of $3 billion, about N473.64 bn.

This was followed by the financial vote channeled to network readiness for MNP by Airtel Nigeria to the tune of $1.5 billion, which stood at about N236.82 billion, then came the $1.2bn by Etisalat Nigeria, while Glo reportedly invested $50,000,000 bn based on the decision to build monthly, at least, 200 Base Transceiver Stations (BTS) with each month sequel to MNP launch estimated at $250,000 monthly which amounts to $200 million, about N31.576 billion

MTN:

The Chief Executive Officer, MTN, Mr. Brett Goschen, described the securing facilities as strategic collaboration between MTN Nigeria and local and international financial institutions. While commending NCC for the enabling environment, extended appreciation to participating financial institutions for passing a vote of confidence in MTN, noting that the loan indicates the strength of the Nigerian financial institutions and their ability to stimulate significant economic growth in the nation based on relatively attractive investment climate in the country.

He pointed out that $3bn about N473,6 bn from banks is for network expansion, hence the loan is a boost to the telecommunication development in the country. Stressing that the facility, would enable the company further expand, modernise and improve its network infrastructure comprised of $1.8 billion in additional facilities and $1.2 billion of an existing restructured local facility.

The facilitating banks for this MTN loan include Zenith Bank - N55 billion; Guaranty Trust Bank - N40 billion; First Bank - N40 billion; and Access Bank - N35 billion, just as Mr. Goschen said the collaboration would further drive the growth and deepen the telecommunications services in Nigeria.

Goshen pointed out that with a relatively low mobile penetration, sound economic growth, lower cost of ownership for consumers and the insatiable demand for data services, there is still room for growth in the sector.

Noting that in 2012, MTN had invested $1.6 billion and was investing about $1.5 billion in 2013, to enhance network quality which was the key focus of MTN for this year.

Equally recently, the Corporate Services Executive, Mr. Wale Goodluck assured that MTN was ready for MNP and commended the industry regulator for the initiative and understanding throughout the period of relevant infrastructure for the purpose of MNP was being put in place.

Etisalat:

The Chief Executive Officer, Etisalat Nigeria, Mr. Steven Evans, disclosed that Etisalat got a path on the back from 13 prominent banks in Nigeria to expand its network to the tune of US$1.2 billion, about N189.959 billion, as a syndicated loan.  He also said the company plans to use the proceeds to refinance the existing commercial medium term debt of US$650 million about N102 billion to continue its network rollout across Nigeria.

Mr. Evans highlighted that the facility includes both Naira and US dollar tranches from a consortium of Nigerian banks, namely the Zenith Bank, Guaranty Trust Bank, First Bank, United Bank of Africa, Fidelity Bank, Access Bank, Ecobank, Keystone Bank, First City Monument Bank, FSDH Merchant Bank, Mainstreet Bank, Stanbic IBTC Bank and Union Bank.

While commenting the regulator for engendering the environment for this to take root, he said Etisalat was delighted with the continued support and confidence shown by so many banking partners. Saying they have shown great faith in the company since launch and Etisalat  see that as a sign of their endorsement of Etisalat Nigeria’s strategy and execution capabilities.

“We aim to continue to focus on our network expansion, our investment in 3G, as well as ensuring we offer the uncompromising network quality and customer service our subscribers have come to expect from us,” Mr. Evans said.

Chairman, Emerging Market Telecommunications Services (EMTS) owners of Etisalat Nigeria, Mr. Hakeem Belo-Osagie, pointed out that the loan is yet another key step in the company’s development. He maintained that Etisalat Nigeria has grown from strength to strength reaching 15 million subscribers earlier this year.

“This loan is a testament to the robust strategy of the company and the faith of the banking community. It will serve to further boost the company and the telecommunications sector. It is important to also note the enabling environment created by the Federal and State governments of Nigeria as well as the National Communications Commission” Belo-Osagie said.

He stressed that with this process, Etisalat Nigeria has benefited from the experience and support of its pioneer shareholders; Etisalat Group, Mubadala and Myacynth, lauding the regulator for enabling environment, which stimulated the facility. Even as the Chief Finance Officer, Etisalat Nigeria, Mr. Andrew Kemp, said the mobile network operator is further encouraged not only by the steadfast support of the eight (8) banks that have been a part of its original consortium, but also by the addition of new partnering banks.

“This truly represents a vote of confidence in our results thus far and our plans for expansion. We also wish to thank all the advisers in this transaction, namely Citi, FBN Capital, Aelex, Norton Rose and Banwo & Ighodalo,” Kemp said.

Airtel:

For Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya said the Airtel network has capacity to double its current subscription number of 25million in readiness for MNP. This, he said, follows the loan facility it took to the tune of $1.5 billion, about N236.82 billion.

DigitalSENSE Business News recalls that about 48 hours to the official commencement and launch by NCC in Lagos, Airtel had disclosed its readiness to welcome subscribers on the new scheme championed by NCC, affirming it has network capacity to take in additional subscribers.

Airtel at a media briefing at the Lagos Sheraton Hotel affirmed that its investment of $1.5b over a 30 month period was spent mainly on upgrading and optimising its network as well as preparing for more subscribers. He further cited the recent NCC audit of telcos that showed Airtel outperforming all other operators on criteria set by Commission.

Glo:

Globacom had prior to the introduction of MNP disclosed plans to install about 200 base stations monthly since first quarter of this year.

According to the Group Chief Operating Officer, Mr. Jameel Mohammed, Glo was set in terms of system readiness, process readiness and operational readiness for the smooth takeoff of mobile number portability on its network.

“In terms of system readiness, Glo has completed the procurement and implementation of the network signal routing system and the porting process or gateway management system which is the first to be commissioned in the country and now completely ready for MNP service,” he said

“The upgrade and customization of the network systems, the IT systems, the billing systems that will handle mediation and fraud management and the value added systems have also been completed.”

Jameel assured that “in terms of system readiness, Glo has completed the procurement and implementation of the network signal routing system (STP) and the porting process or gateway management system which is the first to be commissioned in the country and now completely ready for MNP service.

He pointed out that the upgrade and customization of the network systems, IT systems,  billing systems that will handle mediation and fraud management and the Value Added Services (VAS) have also been completed.

Jameel said that Glo’s technical and operational teams worked diligently to ensure that the network is in a perfect state of preparedness to enable a smooth transition for those who are interested in porting on the Glo network.

As said by him, Glo putted in place a functional Number Portability Gateway (NPG) and the first to ensure an all-call query signal transport point (STP) system are major technical requirements for the successful take-off of mobile number portability on any network.

Jameel explained that in the area of process readiness, Glo’s internal processes have also been completed, just as Glo has been installing over 200 new base stations monthly and densification completed on existing ones.

Conclusion:

The fact is that without the directive by the Nigerian Communications Commission (NCC) to all mobile operators to be ready for the commencement of the exercise on April 22, the aforementioned investment could not have taken place.

 
It is believed that these investments would translate into better quality of services as canvassed by the president, National Association Telecommunications Subscribers (NATCOMS) Chief Deolu Ogunbanjo and optimism expressed by the Chief Executive Officer of NCC, Dr. Eugene Juwah that these efforts would deepen competition for the betterment of telecom consumers in the country.

... Making SENSE of digital revolution!