MTN
has lamented on the proliferation of instant message mobile
applications which have affected the profit rate of their operations.
Africa’s largest telecom firm, MTN, has said the activities of
‘over-the-top’ companies like WhatsApp have adverse effects on the
sustainability of Nigeria’s telecommunications industry.
The company’s Chief Executive Officer, Ferdinand Moolman, said this
while making a presentation at a hearing convened by Senate Committee
on Communications on Tuesday.
The hearing chaired by Adeola Olamilekan, vice-chairman of the
committee, was organised following the now suspended data tariff hike by
the Nigerian Communications Commission.
At the Tuesday’s hearing, Mr. Moolman, highlighted factors impacting Nigeria’s telecommunications industry.
Among these factors, Mr. Moolman mentioned “the depletion of
operator revenues by unlicensed providers of “over-the-top” telecoms
services who do not have any physical presence; nor pay any taxes; nor
make any significant contribution to employment or other socio-economic
objectives of government in Nigeria.
Mentioning WhatsApp, Viber etc., he said these companies were
eroding gains of Nigeria’s telecom companies and asked Nigeria to take
action like the United Arab Emirates did.
He also lamented the inability of operators to access foreign exchange.
“This is particularly debilitating given that most of our inputs are
sourced off-shore. This has very significantly increased both operating
and capital expenses.”
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