High operating cost, threat to telecom sector – BTel boss

The rising operational costs and the risk of a customer loyalty crisis are posing significant challenges to Nigeria’s telecommunications sector. In this interview with TEMITOPE AINA, Managing Director/Chief Executive Officer of Briclinks Africa Plc, Mohammed …
Prof. Lezlie Schultz · 4 months ago · 4 minutes read


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Navigating Nigeria's Telecoms Tumult: An Interview with Mohammed Buhari of Briclinks Africa Plc

The Tariff Tremor: Reshaping the Telecoms Landscape

Nigeria's telecoms sector is bracing for impact. The Nigeria Communications Commission's recent 50% tariff hike has ignited a firestorm of debate, with the Nigeria Labour Congress leading the charge against the increase. But amidst the controversy, operational costs continue their relentless climb. Mohammed Buhari, Managing Director/Chief Executive Officer of Briclinks Africa Plc, sheds light on the complexities of this evolving landscape.

“The cost of providing telecommunications services has escalated exponentially," Buhari explains. "With the current foreign exchange rates and inflation, operators relying on imported equipment are struggling. This adjustment was necessary to prevent a decline in service quality and a chilling effect on investment.”

The Loyalty Tightrope: Balancing Profitability and Customer Satisfaction

Price hikes invariably put customer loyalty to the test. As costs rise, consumers become increasingly price-sensitive and may seek more affordable options. The challenge for telecom companies lies in striking a delicate balance: maintaining profitability while keeping customers happy. Buhari acknowledges the risk of a customer loyalty crisis, emphasizing the importance of providing value in this challenging environment.

Innovation as a Lifeline: Staying Afloat in a Sea of Rising Costs

At Briclinks Africa Plc, innovation is the name of the game. The company has embraced automation tools, such as chatbots and virtual assistants, to streamline operations, reduce expenses, and enhance customer service. This proactive approach allows them to navigate the choppy waters of rising operational costs while continuing to deliver value.

Regulation: Facilitator or Bottleneck?

The regulatory landscape in Nigeria's telecoms sector presents a duality. While policies promoting competition and protecting consumer rights are welcome, some regulations can create bottlenecks. Buhari points to the complexities of the National Identification Number and SIM regulations as an example, acknowledging the importance of these measures while highlighting the delays they can cause.

Access to financing also presents a significant hurdle. High interest rates and limited long-term financing options can stifle investment in crucial infrastructure upgrades.

Global Economic Shifts: Riding the Waves of Change

Global economic volatility casts a long shadow over Nigeria’s telecoms industry. Fluctuating exchange rates, inflation, and global price increases impact operational costs and investment flows. However, Buhari believes that these challenges also present opportunities for innovation and agility.

On the Cusp of a Digital Revolution?

Nigeria's telecoms sector stands at the precipice of a digital revolution. Increased internet penetration, the rollout of 4G and 5G technology, and a focus on digital literacy are driving progress. However, infrastructure limitations and regulatory hurdles remain. Continued investment and expanded access are key to unlocking the full potential of this digital transformation.

The Undiscussed Disruption: Real-Time Data Tracking

Buhari highlights real-time data tracking and crowdsourcing as an under-the-radar disruption with significant potential. The NCC-Swedfund partnership on the Crowdsourcing Quality of Experience project represents a promising step. However, its success hinges on effective implementation, regulatory enforcement, and cooperation from service providers.

Infrastructure: The Cornerstone of Future Growth

Investment in infrastructure is paramount for the future of Nigeria's telecoms industry. Enhanced connectivity, bridging the digital divide, and enabling economic growth are all dependent on robust infrastructure. Buhari emphasizes that this investment is not just about improving telecoms services but about building a more connected and prosperous Nigeria.

Briclinks Africa Plc: A Story of Success Amidst Challenges

Despite industry headwinds, Briclinks Africa Plc has reported impressive profits. Buhari attributes this success to a dedicated team, a customer-centric approach, and a commitment to continuous improvement. By adapting to market demands and staying ahead of the curve, they have maintained a competitive edge.

Recalibrating Revenue Targets in a Shifting Landscape

In response to the tariff hike, Briclinks Africa Plc is recalibrating its revenue targets by prioritizing customer retention through value-driven packages and streamlining operations without compromising service quality.

Briclinks Africa Plc: A Vision for the Future

Buhari envisions Briclinks Africa Plc as a leading force in Nigeria's telecoms industry within the next five years. Expansion into underserved areas, a commitment to sustainability, and strategic partnerships are key pillars of this vision.

Mergers and Acquisitions: A Strategic Path to Survival?

Buhari views mergers and acquisitions as a vital strategy for survival and growth in Nigeria's competitive telecoms market. Combining resources, reducing costs, and increasing market share are crucial for long-term sustainability.

Strengthening Consumer Protection: The Need for Robust Accountability

While acknowledging the NCC's efforts in establishing regulations and standards for service quality, Buhari advocates for more robust accountability mechanisms. Periodic reviews of regulatory frameworks and greater consumer involvement are crucial for adapting to the evolving telecoms landscape.

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