COMMUNICATIONS: OVER-THE-TOP COMPANIES HAVE ADVERSE EFFECTS ON BUSINESS. MTN-NIGERIA CEO

FERDINAND MOOLMAN CEO MTN-NIGERIA

Social media tools and applications such as “over-the-top” companies like WhatsApp, Viber and others have become a threat to service providers.

This much was confirmed by no less than Ferdinand Moolman, the Chief Executive Officer/CEO of MTN Nigeria when describing challenges affecting the sustainability of the telecommunications industry in Nigeria and their business concerns.

According to the MTN Chief Executive, the activities of this “over-the-top” companies like WhatsApp, Viber have adverse effects on business.

He made this known while highlighting factors affecting Nigeria’s telecommunications industry, at a hearing convened by the Senate Committee on Communications.

The hearing which chaired by the Vice-Chairman of the Committee, Adeola Olamilekan, was organized as a follow up on the now suspended data tariff hike by the Nigerian Communications Commission, NCC.

Identifying the factors, Moolman said, “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”.

The MTN Nigeria boss mentioned WhatsApp, Viber and the likes, pointing out that these companies were eroding gains of Nigeria’s telecom companies and asked Nigeria to take action like the United Arab Emirates did.

Another factor identified is the inability of operators to access foreign exchange, explaining that “this is particularly debilitating given that most of our inputs are sourced off-shore. This has very significantly increased both operating and capital expenses”.