The number of unused or abandoned lines across the networks of MTN, Airtel, Globacom, and 9mobile rose to 103.3 million in August this year.
This shows that the number of inactive mobile lines on the networks increased by 4.5 million in the month as the figure stood at 98.8 million in July.
According to the subscriber data from the Nigerian Communications Commission (NCC), the four mobile network operators had a total of N312.9 million connected lines as of August. However, active lines across the networks at the end of the month stood at 209.6 million.
This shows that the telecom operators were able to generate revenue from 67% of their customers in the period under review.
A mobile line is considered to be inactive if it is not used by the subscriber to make or receive calls and/or access data services for 90 days, at the minimum. Such lines are separated from active lines as they generate no revenue for telecom operators within the stated period.
Impact on revenue
From the Q2 financial results of MTN and Airtel, there were clear indications that the rising inactive lines are eating deep into the telcos’ revenue. Airtel disclosed that a total of 8.3 million of its customers were yet to submit their NINs as of June 30 this year. This, the telco said, resulted “in a loss of approximately $34m revenue in the quarter and a corresponding impact of 7.5 percentage points on the growth rate.”
MTN said it is also anticipating a churn in the number of its active subscribers for Q3 as many of its subscribers were yet to link their SIMs, thus remaining barred. The telco also observed that rather than linking their old SIMs, some subscribers were going for new SIMs.
Giving an outlook of the company’s performance for Q3 2022, Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola said: “We anticipate an increase in ‘technical’ churn in Q3 from affected subscribers who stopped activity after the initial restriction, opting instead to obtain new SIMs rather than reactivate their old lines. As we continue to engage our affected subscribers, drive NIN enrolment for subscribers who do not yet have a NIN (with over 8,300 points of enrolment across the country), and support NIMC in addressing capacity challenges, we believe that mitigating actions will recover the base in line with our broad expectations for FY 2022.”
What you should know
- Aside from the NIN issue, industry analysts have also attributed the increasing number of inactive lines to the fact that SIM cards are now easy to acquire and dump. According to them, the MNOs were also contributing to the increase through their aggressive marketing strategy of offering SIMs to customers cheap or free in some instances.
- At the beginning of the telecoms revolution in 2001, a SIM was sold for as high as N60, 000. However, the stiff competition among the telecom operators for the subscribers has pushed many of them to be offering their SIMs for free, laced with promises of free credit and data upon activation.
- Meanwhile, a number management policy recently introduced by NCC, the telecoms regulator has said that subscribers whose lines have been inactive for 12 months would forfeit them. “Subscriber numbers that have not generated revenue by originating calls will automatically be recovered after 12 consecutive months,” the Commission stated in the new policy document.
