MTN, Airtel customers spend N1.15tn on data in one year

The customers of two telecommunication giants, MTN Nigeria Communication Plc and Airtel Africa Plc in one year spent a total of N1.15trillion on data.

This represents an increase of 41.4 per cent from N812.5billion data revenue generated by the telecommunication companies.

According to MTN Nigeria audited result and accounts for the period ended December 31, 2021, it reported 55.3 per cent increase in revenue generated from data to N516.2billion from N332.37billion reported in 2020.

Airtel Africa in its audited result and accounts for the period ended March 31, 2022 reported N632.9billion revenue generated from data, an increase of 31.8 per cent from N480.16billion reported in 2021. 

Westernpost can report that the significant increase in data contributed to both companies’ revenue.

In 2021 financial year, data contribution to MTN Nigeria revenue was 31.21 per cent when its revenue closed the year under review at N1.65trillion, while in 2020, the company’s data contribution to revenue was 24.7 per cent when it reported N1.35trillion revenue. 

For Airtel Africa, it reported $4,714 million or N1.96trillion (N415/dollar exchange rate) revenue in 2022 from $3,888 million or N1.61trillion in 2021. Data’s contribution to revenue moved from 29.76 per cent in 2021 to 32.35 per cent in 2022.

It would be recalled that the telcos in Nigeria were asking for a 40 per cent increase in the cost of calls, SMS and data due to rising operational costs in the country.

The hike was proposed by the Association of Licensed Telecommunication Operators of Nigeria, (ALTON) in a letter to the Nigeria Communication Commission (NCC).

In the letter titled, ‘Impact of the Economic and Security Issues on the Telecommunications Sector,’ the telcos said the decision to hike charges was based on an increase in energy costs, which has raised their operating expenses by 35 per cent.

Their proposal means the price cap on phone calls will increase from N6.4 to N8.95, while SMS costs will also increase from N4 to N5.61.

The telecommunication industry is grappling with the impact of the economic recession in 2020, as well as the ongoing Ukraine/Russia crisis.

The recent introduction of five per cent excise duty on telecom services has also worsened the problem of multiple taxes and levies in the industry.