The Nigerian Communications Commission (NCC) has implemented new regulations designed to significantly improve the quality of service (QoS) provided by telecom operators across the country. The QoS Regulations 2024 establish specific standards for different network services, including 2G, 3G, and 4G, with particular attention to key performance metrics such as Drop Call Rates, Call Setup Success Rates, and Traffic Congestion.
Key Provisions and Penalties
Under the new regulations, telecom companies are required to meet prescribed service quality standards or face stringent penalties. Non-compliance will result in a fine of N5 million for each violation, with an additional penalty of N500,000 per day until the issue is rectified. This marks a significant escalation in enforcement, as the NCC seeks to ensure that operators maintain high standards of service delivery.
Operators are also mandated to submit monthly QoS reports, which will be evaluated alongside data gathered through various methods, including drive tests, consumer surveys, and information from the Commission’s Network Operating Centres (NOCs).
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Alignment with Strategic Service Quality Goals
The introduction of these regulations aligns with the service quality objectives set by Dr. Bosun Tijani, the newly appointed Minister of Communications, Innovation, and Digital Economy. Dr. Tijani’s Strategic Agenda 2023 outlines ambitious targets, including:
- 50% improvement in telecom service quality by the end of 2024.
- 70% broadband penetration by 2025.
- Achieving download speeds of 25Mbps in urban areas and 10Mbps in rural areas by 2025.
- Extending network coverage to at least 80% of the population, particularly in underserved and unserved regions, by 2026.
To achieve these goals, the NCC has adopted a more granular approach to service quality, focusing on localized analysis to identify and address specific areas of concern. This shift allows for more targeted interventions and regulatory actions, ensuring that improvements in service quality are felt at the community level.
Tougher Enforcement and Historical Context
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The new regulations signal a return to stricter enforcement by the NCC, which had been less aggressive in imposing penalties in recent years, despite ongoing complaints about poor service quality. The last major enforcement action took place in 2020 when Airtel was fined N2.3 billion for disconnecting a smaller operator without regulatory approval, violating QoS and enforcement process regulations.
In 2019, the NCC imposed a total of N2.97 billion in fines on all four major GSM operators—MTN, Airtel, Glo, and 9mobile—for various infractions, including breaches of QoS standards. Additionally, Airtel and 9mobile were each fined N5 million for failing to comply with the Do-Not-Disturb rule, which protects consumers from unsolicited services.
Industry Challenges and Future Outlook
These regulatory measures come at a time when the telecom industry is facing significant financial pressures due to the devaluation of the Naira and high inflation rates. Operators have been forced to reduce operational expenses, including investments in network infrastructure, which has negatively impacted service quality.
Telecom companies have argued that to sustain and improve service standards, the regulator should consider allowing tariff increases. This debate highlights the ongoing tension between maintaining affordable services for consumers and ensuring that operators have the resources needed to meet rising service quality expectations.
As the NCC enforces these new regulations, the telecom industry will need to navigate these challenges carefully to meet both regulatory requirements and consumer expectations. The outcome of this enforcement drive will likely shape the future landscape of telecom services in Nigeria, influencing both operator strategies and consumer experiences.