Mobile operators in Nigeria blame the bad quality of services on poorly developed infrastructure like electricity which, they say makes it cumbersome to deliver services to subscribers
Abuja: Airtel Nigeria, subsidiary of Bharti Airtel, South Africa's MTN, Abu Dhabi's Etisalat and local operator Globacom have paid $3.7 million in fine imposed on them by the country's telecom regulatory authority for poor quality of service, reports PTI.
"MTN, Globacom and Airtel paid at the close of work on Monday this week, while Etisalat paid at the close of work on Tuesday," Nigerian Communications Commission (NCC) sources who opted to remain anonymous told PTI on the phone.
NCC had penalised the four operators in the country for poor quality of services after a Key Performance Indicators (KPIs) test carried out on their networks for the months of March and April.
The Managing Director and Chief Executive Officer of Airtel Nigeria, Rajan Swarup confirmed to PTI that his company has paid the fine.
Last month, NCC spokesman Reuben Muoka had said the four operators failed to meet with the minimum standard of quality of service.
The NCC had arrived at the decision on testing the operators on four parameters -- Call Set-up Success Rate, Call Completion Rate, Drop Call Rate and Traffic Channel Congestion.
Nigeria has a population of 150 million making mobile telephony a highly profitable venture but customers often complain of poor services.
Many people prefer to carry more than one phone so they could have an alternative connections when one fails. However, the operators blame the bad quality of services on poorly developed infrastructure like electricity which, they say makes it cumbersome to deliver services to subscribers.
Nonetheless, Airtel Nigeria, which started operations in 2010 was awarded as the best GSM operator in the country, 2012 by NCC.
BHEL is finding it difficult to transport heavy equipment to other parts of country from its plant in Tamil Nadu and hence is setting up a unit in Bhandara district in Maharashtra
Nagpur: State-run Bharat Heavy Electricals Ltd (BHEL) is setting up a fabrication unit at a cost of Rs1,000 crore and a Photovoltaic manufacturing plant with Rs3,000- crore investment near Sakoli in adjoining Bhandara district, reports PTI.
The state-run power equipment maker already has a fabrication unit in Tiruchirappalli in Tamil Nadu but was finding it difficult to transport heavy equipment to other parts of country. Faced with logistical problems, the company has decided to set up a new unit near Sakoli, Union Minister for Heavy Industries Praful Patel said.
The photovaultic unit will be first of its kind in the country, he told a select group of reporters in Bhandara on sidelines of an auto industry job fair for ITI and polytechnic students from Bhandara and Gondia districts.
About 500 acres of land was being acquired by the public sector undertaking for the facilities, which would provide direct and indirect employment to about 2,000 youths from the area, said the Lok Sabha MP from Bhandara-Gondia.
He said officials from top IT companies like TCS, Infosys and Wipro recently visited Bhandara and Gondia to explore the possibility of setting up Basic Training Centres where IT professionals would be trained and later absorbed in these firms.
A 1,300 MW private power plant, promoted by Gayatri Group of Hyderabad, is also coming up at Mohadi in Bhandara district, the NCP leader said.
An investment to the tune of Rs8,500 crore was expected in the power sector, the Minister said, without giving details.
Talking about the job fair, Patel said it provides an opportunity to boys and girls from rural areas to get employment in the auto and related industries.
As per RBI guidelines notified on 20th June, only big business houses and corporates would venture into this area. However, these entities need to ensure the safety of the customers and public at large
The Reserve Bank of India (RBI) had come up with draft White Label ATMs (WLAs) guideline on 14 February 2012 and has now finally notified the same on 20 June 2012 vide DPSS.CO.PD. No.2298/02.10.002/2011-2012. Presently only the entities in the banking sector are allowed to set up and operate the Automated Teller Machines (ATMs) which have contributed largely in encouraging ATM adoption and modifying behavioural strategies in the domain of personal banking. The statistics by the RBI say there has been 30% year-on-year growth in the total number of ATMs deployed since 2008. However, the ATM penetration on a per capita basis was considered to be less in comparison with other countries like Canada. Therefore, a need was felt by RBI to deploy more ATMs in Tier III to VI centres.
In order to meet the financial resources needs and in the best interest of the country RBI finally has given a green signal to non-bank entities for setting up WLAs in India. Simply put WLAs are those which do not have any bank names or logo hence, known as “White Label ATMs”. This move will not only help the rural population adapt to the banking habit but is also expected to result in financial inclusion of large number of people outside the banking system. WLAs are also expected to reach out to larger public even in remote areas as an alternative strategy to reach customers at large.
Requirements to set up a WLA
Deadline for application by non-bank entity
Specific criteria and guidelines—pre and post application
An entity seeking authorisation shall have to ensure the following:
Therefore, it seems that presently only entities with huge business volumes can afford the activity and top the charts. Moreover, non-banking finance companies (NBFCs) with wider reach in rural areas may like to opt for the same.
Scheme by WLAO
For 1 year Installation of minimum 1000 WLAs
For 2 year Installation of minimum twice the number in year 1
For 3 year Installation of minimum twice the number in year 2
The ratio of 3:1 would be applicable, i.e. for every three WLAs installed in Tier III to VI centres; one WLA can be installed in Tier I to II centres.
A minimum of 5,000 WLAs every year for three years.
The ratio of 2:1 would be applicable, i.e. for every two WLAs installed in Tier III to VI centres; one WLA can be installed in Tier I to II centres.
A minimum of 25,000 WLAs in the first year and at least another 25,000 in the next two years.
The ratio of 1:1 would be applied under this scheme.
One can realise that with the number of requirements under the scheme and with the networth requirements RBI has well ensured that not everyone except giant business houses would be able to undertake the business set-up to ensure integrity and public safety as there is surely an inherent risk by letting private entities enter to set up and operate WLAs. Further, no switch-over of scheme is permitted. As said, going ahead the RBI may decide to relax the norms.
What does one pay to use the WLA?
The WLAO cannot charge any fees directly to the bank customer but shall receive the fees directly from the bank. So, the user, just as before, pays nothing for using the WLAs. However, the extant guidelines on five free transactions in a month as applicable to bank customers for using other bank ATMs would be inclusive of the transactions effected at the WLAs. Therefore, though the use of WLAs would reduce the burden of bank investment and also divert the customer from bank ATMs to WLAs due to wider accessibility, the charges applicable after the five usages in a non-bank card issuer WLA/ATM shall be attracted. Therefore, this might not be so popular.
Seems to be a welcome step for the banks and the corporates
For the banks setting up of WLAs should be a welcome step as the investment will not be required due to participation of private entities and therefore, the banks can actually invest the funds elsewhere in the day-to-day operations. The bank is always a part of the entire process as the WLAO will be taking the necessary services of the bank. Therefore, without investment it is able to cater the needs of the customers and reach out a wider market.
For corporates, surely a new line of business to venture into but as said only the big houses can think of taking a dip. Though both banks and corporates need to ensure the safety of the customers and public at large as there might be chances of transaction failures as well, a customer grievance cell is important. Such WLAs are very common in other countries like US and are treated as an extension of ATMs. In many countries bank even outsource the ATM projects. Therefore, we should all take it as a positive measure as any first step taken is always filled with suspicion and anxieties. We are to wait and watch hoping the show.
(The author is a senior associate at Vinod Kothari & Company and can be contacted at [email protected])