Ban on Sim Registration Caused MTN, Airtel, Others to Lose N1.1billion
- The ban on sim registration negatively affected telecommunications companies, as they lost about N1.1 billion
- The telecoms industry also lost 5.71% of its subscriber base due to the ban that started in December 2020
- MTN Nigeria, Airtel, Globacom and 9mobile couldn't register over 2 million subscribers in the four months period
Network providers in Nigeria lost about N1.1 billion to the ban on sim card registration which fell betwee December 2020 and Aprill this year. During the same period, the telcos had lost over 11 million subscribers.
In an estimated calculation, it was discovered that for about 10 months of last year, MTN Nigeria, Airtel Nigeria, Globacom and 9mobile jointly recorded about 2.32 million subscribers.
The addition of the estimated subscribers with the cost of a sim card, which is N100, showed the telecoms lost about N1.1 billion during the over three months ban on sim card registration.
The ban had made it impossible for customers to purchase sim cards of the telecommunications company. The decision was heavily criticised as subscribers got stuck to a network.
Also, foreigners in the country couldn't purchase a sim card for use during their stay within the country. While this had a negative financial impact on the companies, it made work and Communication difficult for subscribers.
It seems subscribers abandoned some networks totally, as the telecoms industry recorded 5.71% decline in three months after the total industry subscriber base fell from 207.58 million at the end of November 2020 to 195.73 million in February 2021.
Source: UGC
In its financial reports, MTN Nigeria had stated that the ban impacted its earnings:
"The impact on voice revenue of the industry-wide suspension of new SIM registration in mid-December was partly offset by increased usage by active SIMs in our base and migration to a higher quality of experience."
Meanwhile, Legit.ng had reported that the Central Bank of Nigeria had told its staff to keep a low profile due to the possibility of terrorist attacks and kidnapping which has gripped the country.
The apex bank also advised its workers not to travel by air or road unless absolutely necessary. The employees were told to avoid restaurants and public places like bars.
The warning came as the insecurity level increases within the country. There have been several kidnappings in the Northern part of Nigeria recently, with the kidnappers receiving millions of naira.
Source: Legit.ng
