The Nigerian Communications Commission (NCC) has unveiled a new set of Key Performance Indicators (KPIs) aimed at improving the quality of service provided by telecom companies across Nigeria. The updated NCC Quality of Service Regulations target 2G, 3G, and 4G networks and seek to address longstanding issues such as dropped call rates, call setup success rates, and network congestion.
Under these new regulations, telecom operators face substantial financial penalties for failing to meet the prescribed KPIs. Violations will result in a ₦5 million fine for each infraction, with an additional daily penalty of ₦500,000 as long as the infraction persists.
To ensure compliance, the NCC requires telecom operators to submit monthly Quality of Service (QoS) reports. The commission will measure performance through various methods, including drive tests, consumer surveys, and data collection from its Network Operations Centers (NOCs).
Key Performance Indicators and Their Implications
The NCC Quality of Service Regulations outline several critical KPIs that telecom operators must adhere to:
- Dropped Call Rates: Operators must reduce the frequency of dropped calls to ensure uninterrupted connectivity for users.
- Call Setup Success Rate: The success rate for call setup should be high to maintain consumer trust in network reliability.
- Traffic Congestion: This KPI addresses network congestion, particularly during peak hours, aiming to enhance overall network performance.
These KPIs align with the Strategic Agenda 2023 of the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani. The agenda includes goals such as increasing Nigeria’s broadband penetration rate to 70% by the end of 2025, achieving download speeds of 25 Mbps in urban areas and 10 Mbps in rural areas, and reaching 80% population coverage by 2026.
The new NCC Quality of Service Regulations represent a significant step towards improving telecom services in Nigeria, with a focus on holding operators accountable and ensuring better connectivity for all users.
These stringent KPIs and associated penalties come at a time when telecom operators are already under substantial financial pressure. The depreciation of the naira, coupled with high inflation, has significantly increased operating costs.
As a result, operators have been forced to cut down on operating expenses, which has negatively impacted their ability to invest in network upgrades and expansions. They argue that, given these financial challenges, the NCC should permit an increase in tariffs to offset the additional costs. Without the ability to increase revenue through higher tariffs, they contend it will be difficult to meet the new KPIs while simultaneously ensuring quality service for consumers.
