By Milcah Tanimu
In response to the ongoing economic challenges, several telecommunications operators in Nigeria have begun implementing load shedding in certain areas to manage their operating costs more effectively. This move comes as the economic situation in the country continues to intensify.
Industry sources reveal that this strategy is designed to lower operational expenses by prioritizing high-revenue areas, which explains the variation in network service quality across different regions. Load shedding, in this context, involves reducing the number of active base stations to cut costs.
The decision to implement load shedding coincides with discussions about the need to raise telecom tariffs to offset the effects of Naira devaluation and high inflation—an increase the government is currently reluctant to endorse. In response, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, has encouraged operators to seek innovative solutions to combat rising costs.
An anonymous source within the industry explained that the reliance on diesel for powering base stations, coupled with rising fuel and equipment costs due to the forex crisis, has placed a significant financial burden on operators. To mitigate these costs, some operators are reducing the number of base stations, which can lead to poorer service quality in less profitable areas. For example, operators might extend the coverage radius from 1 km to 2 km between masts, effectively reducing the number of masts needed by half.
Another industry insider confirmed that this cost-cutting approach also affects infrastructure investment, particularly delaying the expansion of 5G networks. Reduced base station coverage means that some areas experience degraded service as fewer masts handle the same volume of traffic.
In some cases, service quality issues are also linked to high insecurity in certain regions. A telecom company official, who wished to remain anonymous, stated that while all customers are treated equally, some areas with high insecurity have experienced service disruptions due to damaged base stations and safety concerns for repair staff.
Earlier, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), had warned that without a tariff increase, operators might have to ration network availability to manage costs. ALTON has been advocating for a tariff review, arguing that the current rates have not kept pace with inflation and rising operational costs.
Supporting this view, economic expert Mr. Bismarck Rewane highlighted that telecom tariffs have remained unchanged since 2013, while the costs of other services have surged. He emphasized that the current tariff structure limits operators’ ability to invest in infrastructure, affecting service quality.
In response to the infrastructure strain, the Nigerian Communications Commission (NCC) has introduced new quality of service regulations, setting stringent performance indicators and penalties for non-compliance. These include a Call Setup Success Rate (CSSR) target of 98% and fines for failure to meet this target.
The effectiveness of these new regulations in improving service quality remains uncertain, given the current challenges faced by the industry.
