Communication
NATCOM sacks 400 NITEL, M-Tel workers
ABUJA-The new owner of the Nigerian Telecommunications Limited, NATCOM Consortium, has laid off all the workers of the company and its subsidiary, the Nigerian Mobile Telecommunications Limited.
Investigation by our correspondent showed that the workers, numbering about 400, would leave both companies by the end of this month.
It was also learnt that the workers had started turning in the assets of the company in their possession in order to get their terminal benefits, including the salary for the month of May, pension and gratuity.
Although the letter of disengagement addressed to each of them was dated April 30, 2015, the workers started receiving the letters on Monday. The distribution of the letters continued on Wednesday.
Preparatory to the physical takeover of the assets of the beleaguered telecommunications companies by the NATCOM Consortium, the workers had earlier this week begun moving from the Benue Plaza in Abuja, which has housed the headquarters of the organisations for some years now.
Our correspondent learnt that the movable assets of the companies would temporarily be warehoused at the NITEL Exchange in the Wuse 2 area of Abuja.
In the letter of termination of employment signed by the liquidator of the company, Olutola Senbore, the NITEL workers were told that they could only get their terminal benefits if they handed over all the company assets in their possession.
Senbore wrote, “As you are aware, the liquidation of the NITEL/M-Tel has reached the last stage of the process, i.e., the physical handover of the asset to the buyer of the asset, the NATCOM Consortium, also known as NATCOM Development Investment Limited.
“The formal handover ceremony took place on Tuesday, 28th of April, 2015. Physical handover will commence from this week and is expected to last about three weeks, i.e. until 22nd of May, 2015.
“When the physical handover is completed, the services of all members of staff will no longer be required. Consequently, your service has been terminated effective from the close of work on 31st of May, 2015.”
He added, “Arrangements are being made to pay salaries up to May 2015 and entitlements due to all members of staff-in-post as approved by the Committee of Inspection.
“Please note that the payment of final entitlement will be subject to the usual company’s rules and regulations, which include the submission of the company’s properties, pass codes, and Intellectual Right etc. in the possession of workers prior to the payment of the entitlements.”
NATCOM recently emerged the core investor in NITEL and was handed the company on April 28.
The Head of Public Communications, Bureau of Public Enterprises, Mr. Alex Okoh, told our correspondent that there was no clause in the Share Purchase Agreement restraining the core investor from sacking the workers for a period of time.
According to him, NATCOM emerged as a core investor in NITEL/M-Tel through a liquidation process and not through the usual core investor sale, adding that it was the latter that placed a restraint on the core investor from sacking the inherited workers for a period of six months.
Okoh, however, said that the restraint on the core investor was moral and a wise business decision, arguing that it would not make any business sense to sack all the workers as they still had the better knowledge of the operations of the company.
Investigation by our correspondent showed that the decision to sack all the workers must have been taken to avoid any responsibility by the new owner to them.
It was also learnt that there was a disagreement between the core investor and the legacy management of the company that led to the sudden decision to lay off all the workers.
Telecoms mast
When our correspondent visited the headquarters of NITEL in Abuja on Wednesday, a circular was put on the notice board asking the workers to apply for temporary or permanent positions in a limited number of vacancies that were declared.
Three areas where vacancies were declared were network engineering, network operations and functional/general management. Those to occupy the positions must have at least eight years’ experience on related jobs.
When our correspondent visited the operational head office of NATCOM Consortium on Wednesday, the head of the office, who spoke through the front desk officer, asked him to drop his details and expect a call. However, the promised call had not come as of the time of filing this report.
The National Council on Privatisation had in 2013 approved the privatisation of NITEL and M-Tel through guided liquidation. It also on November 11, 2013 approved the appointment of Chief Olutola Senbore as the liquidator of the firms.
At the financial bid opening on December 3, 2014, NATCOM emerged the preferred bidder for the firms, with an offer of $252.25m.
NATTAG, which had earlier been prequalified by the BPE to participate in the process, was disqualified as a result of the failure of the company to include the $10m bid bond as prescribed in the Request for Proposal document.
PUNCH-
The Nigerian Communications Commission (NCC) has approved new tariff guidelines for telecommunications operators to enhance transparency, improve consumer understanding, and foster fair competition among its licensees.
The commission has also mandated that all telcos in the country limit the number of available tariff plans to a maximum of seven.
This information was disclosed in a document posted on the NCC’s website and signed by the Executive Vice-Chairman of the commission, Aminu Maida, on Saturday.
Read Also: NIN: MTN, Others Barred From Deactivating Lines
In addition, the number of bundles offered per operator has been reduced to 100, with the directive that no subscriber can be on more than one tariff plan at a time.
The NCC defines a tariff plan as a structured pricing scheme outlining the charges and conditions under which telecommunications services are provided to subscribers.
The document read in parts, “The number of tariff plans offered per operator is limited to seven, and the number of bundles offered per operator is limited to 100.
“There are no limitations to the number of add-ons a subscriber can opt into. However, each operator must have in place a mechanism that informs subscribers of the number of add-ons they have at the point of purchasing another add-on. Subscribers must be able to check (via USSD string, SMS) the number of add-ons purchased.”
It has been reported that the two leading telecommunications companies in the country are currently offering more tariff plans than allowed by the new directive.
MTN offers eight tariff plans, Etisalat has seven, Airtel provides ten plans, and Glo offers its customers four tariff plans.
In the “Guidance for the Simplification of Tariffs” document, the NCC stressed the importance of fully disclosing all tariff components and terms, requiring telecommunications companies to ensure that all marketing and promotional materials are easily understandable.
The NCC also underscored the necessity for operators to prioritize consumer education and transparency in all communications to enable subscribers to make well-informed decisions.
It said “Develop and submit detailed migration plans to transition subscribers smoothly to new tariff plans, without loss of service quality or benefits.
“All promotional elements must receive prior approval from the Commission and should be offered as standalone products with clear terms and validity periods.
“Submit comprehensive periodical reports detailing all active tariff plans, bundles, promotions, and Quality of Service (QoS) metrics. The guidance shall take effect on 29 July and will remain valid and binding on licensees until further reviewed by the commission.”
“Operators can choose to maintain only one bonus-led new subscriber acquisition plan. However, a new subscriber can only be retained on such a plan for a limited period of six months before being migrated to a standard tariff plan of their choice.
“Where a subscriber fails to migrate after being prompted in accordance with the applicable business rules, the subscriber will be reverted to the default tariff plan.
“Tariff elements of promotional activities/new acquisition plans referred to above will only be allowed under the following conditions: bonuses must comply with the commission’s price floor and price cap.
“In addition, actual depletion rates on bonuses must not exceed the price or fall below the price floor for voice services. The bonus allowances (voice/data/SMS) must be stated in naira terms and minutes/seconds for voice, GB/MB of data and number of SMS. Operators must fully disclose the above in their advertising materials.
The telecommunications regulator also stated that add-on subscriptions must be optional for subscribers.
According to the directive, “Subscribers should be able to purchase any add-ons of their choice while remaining on their existing tariff plan and/or bundle.”
The directive also specifies that a free add-on must be treated as a promotional offering and requires approval from the Commission in accordance with the 2023 guidelines on promotional advertisements.
Additionally, in line with existing regulatory instruments, service providers must obtain evidence of informed consent from subscribers before accepting an add-on.
The NCC noted that there are penalties for non-compliance with the guidance and that operators must adjust their offerings to comply within 90 days from the date of the directive issued on Saturday.
The commission noted “Transition plans for existing tariffs must be submitted on or before 12 August 2024. The Commission will review and respond to submissions within 10 working days.
“Tariff approval and modification applications must include comprehensive disclosure forms detailing all aspects of the tariff.
“Non-compliance will result in penalties, including fines, suspension of tariff approvals, or other regulatory actions as set out in the Act, related regulatory instruments and the subsisting Enforcement Process Regulation.”
The NCC has mandated that operators must notify subscribers of any changes to their tariff plans, including transitions to new plans, with at least 30 days’ notice. The commission emphasized that “notifications should be clear, outlining the reasons and benefits involved.”
In related news, operators have denied claims that the commission has approved a tariff increase. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators in Nigeria, stated, “Telecommunications companies have not received any authorization for a tariff review.”
Additionally, inquiries made by our correspondent via calls and text messages confirmed that the rates remain unchanged.
In a significant market projection, Mordor Intelligence predicts that the Nigerian telecom sector is set to surge to a value of $11.43 billion by 2029.
The report anticipates a steady growth trajectory with a cumulative average growth rate (CAGR) of 4.70% between 2024 and 2029, based on the current market value of $9.09 billion.
The transformation of Nigeria’s telecom landscape, fueled by government initiatives to boost internet infrastructure and broadband connectivity, coupled with rising data consumption, 5G deployments, and innovative strategies from major telecom players, is expected to drive this substantial market expansion.
The report underscores additional factors propelling the growth of Nigeria’s telecom sector, emphasizing the surge in smartphone adoption.
the report said “Increased smartphone adoption in Nigeria has fueled the development of a dynamic digital services sector. Currently, millions of Nigerians use mobile apps, including social networking sites, e-commerce, and financial services.
“These apps could leverage smartphones’ capabilities to offer speed, convenience, and efficiency, encouraging more people to invest in smartphones.
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
Mordor Intelligence highlights that the flourishing e-commerce and digital service platforms in Nigeria are significant drivers behind the escalating demand for dependable telecom services in the country.
The Nigerian Communications Commission (NCC) has granted MTN’s request to partially disconnect Globacom (Glo) from its network owing to unsettled interconnect charges.
Reuben Muoka, the NCC’s Director of Public Affairs, disclosed this in a document named ‘Pre-Disconnection Notice’ on Monday.
The move follows Glo’s persistent failure to clear its outstanding debts despite multiple attempts to resolve the issue.
Under this partial disconnection, Globacom subscribers will solely receive calls from MTN users, while retaining access to other network services like outgoing calls to other networks and data services.
However, they won’t be able to initiate calls to MTN users during this period.
The statement read, “All subscribers are, therefore requested to take notice that the Commission has approved the Partial Disconnection of Globacom to MTN in accordance with Section 100 of the Nigerian Communications Act, 2003 and Paragraph 9 of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
“At the expiration of 10 days from January 8, 2024, subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.
“The Partial Disconnection, however, will allow in-bound calls to the Globacom network,” it added
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