Nigeria Loses About N730 Billion To Poor Telecom Services Annually

By Alphonsus E.W


CEO, Back-Up Networks Limited, Monday Ogbe,has disclosed that the Nigerian economy is losing about N730 billion due to the poor quality of service that the telecom service providers are delivering. Speaking on the economic losses associated with poor telecoms services, Ogbe further argues that everybody suffers as a result of poor QoS including the consumer, the service providers and the economy as a whole.

Analysing a typical loss to the consumer, the service provider and the economy of an average bad 10 minute call as a result of bad quality of service per day, Ogbe says: “For 100 million subscribers experiencing 10 minutes of poor QoS and quality of experience at N10 average failure rate, the net loss to subscribers is N1 billion per day. Also, providers’ inability to service 100 million subscribers with potential 20 minutes calls due to consistent 10 minutes downtime equals N2 billion. But with less than N1 billion earned as a result of poor quality repeat calls, the net loss to service provider equals N1 billion.

“As a result, the Nigerian economy loses N2 billion per day as a result of net losses from the consumers and the operators income, bringing the total losses in a year to the economy within 365 days to an estimated N730 billion as a result of poor QoS/QoE.”

Back-Up Network, for the past seven years, has been actively involved in the Nigeria’s quality of service testing and measurement engineering space with technical competence to give informed opinion on quality service situation in the country’s telecoms industry.

The company, which represents Ascom Network Testing of Switzerland, a global firm reputed as the world leader in QoS equipment manufacturing, testing, measurement with 25 years experience and operations in over 180 countries.

Back-Up Network Ascom Test tools was chosen by the Nigerian Communications Commission to deploy QoS testing equipment for the regulator to carry out QoS testing for accurate measurement of the operators’ service quality levels.