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How much is poor mobile service costing Nigeria’s consumers?

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Mobile phone users in Nigeria are losing out on N1-billion ($6.4-million) per day due to poor Quality of Service from mobile operators. This is according to Back-Up Networks Limited CEO Monday Ogbe.

Nigeria, Naira
Mobile phone users in Nigeria are losing out on N1-billion ($6.4-million) per day due to poor Quality of Service (Image source: file)

Ogbe relayed the facts of a study conducted by the Company which found that users who experience just 10 minutes of poor quality service equates to signficant financial loss. “For 100 million subscribers experiencing 10 minutes of poor QoS at N10 average failure rate, the net loss to subscribers is N1 billion per day,” he said in a statement.

Ogbe extrapolated his theory by expanding it to 20 minute calls, laying the blaming at the feet of the operators – would could be cashing in on better service. “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.”

In reference to the country’s economy, the CEO said that it also impacts the cash flow of the nation. “As a result, the Nigerian economy losses 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.”

However, he added that there is something that both consumers and mobile operators can do. “With, telecoms subscribers can ensure mobile device is compliant and fault free, report service degradation promptly, inform operators if there are planned events that might require extra capacity provisioning to avoid future service degradation.”

“Also, personalized test software can be used to test the network and report findings to the service provider and allows subscriber to port to a more reliable provider based on empirical data provided by the portal on a service provider,” he concluded.

Charlie Fripp – Consumer Tech editor

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