Tuesday, 4 February 2014

Airtel claims $1.5b investments in Nigeria

• May not bid for 2.3GHz spectrum
• Allays fears of job losses in telecoms sector
•Sector needs 50, 000 BTS to improve services
ALTHOUGH, it projected to spend about $600 million on its Nigerian arm within five years of taken over Zain’s assets about three years ago, Airtel Nigeria has however, said that the exigencies of the market had allowed it increase the spending to over $1.5 billion (N240 billion).
   Besides, Airtel has initiated plans to expand the expenditure further to deepen its services in Nigeria.
   However, the telecommunications firm said it may not bid for the 2.3GHz broadband spectrum, saying that it will look at other options to expand broadband reach in the country.
   Speaking at a media interaction with journalists on Monday in Lagos, the Chief Executive Officer of Airtel Nigeria, Segun Ogunsanya, who has spent one year first as the indigenous CEO of the
telecommunications firm, said since rebranding from Zain to Airtel about three years ago, Airtel has contributed significantly to the growth recorded in the country’s telecommunications industry.
   Indeed, Nigeria’s telecommunications sector has attracted about $25 billion Foreign Direct Investments (FDIs) and currently boasts of about 87 per cent teledensity.
  The operators in 2013, claimed to have provided mobile coverage to 64 per cent of the population.
   Besides, Ogunsanya said the sector must be protected adequately, stressing that as at last year, the industry contributed 8.53 per cent to GDP from 1.06 per cent some years back.

   The Airtel CEO, who allayed fears of job of losses in the sector over mast sales, noted that Airtel is out to create a competitive environment, targeted at expanding ICT frontiers in the country.
    On the multi-billion dollar auction for broadband spectrum in Nigeria, Ogunsanya said, “we may not bid for the 2.3GHz spectrum, but we shall explore other options to boost broadband in the country. We are still thinking.”
    Speaking on the perennial issues of quality of service challenges, Ogunsanya reiterated that Airtel and other operators have not stopped investing, stressing that service providers have been installing tools targeted at boosting customers confidence.
    According to him, QoS is not about the regulator sanctioning at all times, saying this has not really addressed the challenges, which contributes to the downturns.
   “But the challenges in this part of the world are enormous. Operators had to cope daily with vandalism; multiple regulation, legislations; approvals for Right of Ways; power generation problems among others.
  “The operators combine share 25,000 Base Transceiver Stations (BTS), we need twice that number. It is not as if we don’t want to expand, but approval to install base stations has remained a challenge. It takes about one to one half years to get approval. This differs from the encounter you will have with miscreants (Area Boys); Federal, State and Local government officials and host of others. All these limit us. But we are not deterred. We will do our best to improve on what we have now. The investment in BTS is not the issue, but on licensing.”
   Contrary to reports that massive job losses loom in the sector over sales of telecommunications mast by some telecommunications firm, including Airtel, Ogunsanya allayed this fear, saying, “Categorically, the fears are not found. For us at Airtel, we have increased the number of employees at our call centres. In Ibadan, we have over 90O employees and these cuts across other parts of the country where we have our centres. Outsourcing doesn’t lead to job losses. In fact outsourcing has created more jobs.
  “Selling of towers doesn’t mean people will lose their jobs, we only want to increase our efficiency in service delivery. Mark my words, no job losses.”
Corroborating Ogunsanya’s views, the Regulatory Affairs Manager, Osondu Nwokoro noted that the telecommunications firm is doing everything possible to meet the growing demands of its subscribers, stressing that the networks are not synergized enough, but more investments will unlock more fortunes in the industry.
    Nwokoro informed that Airtel has invested significantly in BTS, transmission capacity and others.

Source Guardian News Website