‘MTN is the only Profit Making Telco’ – NCC

The Executive Vice-Chairman of the Nigerian Communications Commission (NCC), Dr. Eugene Juwah, stirred up some controversy yesterday when he disclosed to lawmakers that MTN is the only profit making telecommunications company in the country.

Juwah disclosed this to the Senate Committee on Communications at the commencement of a two-day hearing to investigate the deteriorating quality of service offered Nigerians by service providers.

Juwah said, “Statutorily, they (telcos) present us with their account because they have to pay us some levy based on the accounts. So we see their accounts and see the ones making profit and the ones that are not making profit.”

The lawmakers greeted the revelations with disbelief and reminded the NCC boss that he was under oath and should re-verify the claim he was making.

Chairman of the Committee, Gilbert Nnaji said, ““Executive Vice Chairman, remember that you are under oath and you have to be careful in whatever you are saying, and whatever figure you are giving to us. There is no way we can agree that it is only MTN that is making profit in the telecoms industry in Nigeria, so what you are not sure of, you better say that you are not very sure of it.”

Speaking on the N 1.17 billion fine imposed on the telcos by the NCC, the spokesperson for the regulator, Mr. Reuben Mouka said the sanctions had served to put the operators, “on their toes”.

He said, ““The sanction has now put the operators on their toes on the issue of service delivery. You may not notice it that soon after the sanction, a lot of them are now involved in expansion programmes; the operators now see quality of service as no joke. `This is all aimed at improving the quality of service to the subscribers.”

http://businessnews.com.ng/2012/07/18/mtn-is-the-only-profit-making-telco-ncc/?utm_source=&utm_medium=twitter&utm_campaign=mtn-is-the-only-profit-making-telco-ncc

How true can that be because i really don't believe it.

I believe because MTN seems to be the only company that spends less on overhead while companies like Globacom and Etisalat spend money with careless abandon without actually making much back.

MTN don see NCC for back. Because this write up is advertising MTN financial stability to operate in Nigeria

gosh!!!!!!!!! so they are not makin profit and u are fining them N1.17B?
abi u want make them pack their load leave naija?

afam4eva: I believe because MTN seems to be the only company that spends less on overhead while companies like Globacom and Etisalat spend money with careless abandon without actually making much back.

seconded.that is a wise observation.unlike other telcos,MTN has nt spent much in advertising and yet they are making big profits

Of course. Why would the telecos present him the true situation of their finances if it is for purposes of establishing liabilities. Which non plc agrees he's making profit to the tax man.

Interesting

Its time to patronise "Made in Nigeria" more before it collapses.

...

if glo is not making profit,were do the have the money to pay the likes of psquare,jim iyke,funke akindele,ini edo,rita dominic,ali nuhu,and chioma chukwuka for adverts

Yeah right! They are cooking the books big time.

Of course, most companies prefer to understate profits so they reduce their tax liabilities. Guys like Adenuga would either draw down on profits through director's wages or reinvest in capital expenses such as the fibre-optic cable Globacom is laying from Europe to Africa.

ypzilanti: Yeah right! They are cooking the books big time.

Its called tax avoidance.

That is really an interest thing to note.

They Are Only Ripping Us Everyday I Hate Them With Passion

Chairman of the Committee, Gilbert Nnaji said, ““Executive Vice Chairman, remember that you are under oath and you have to be careful in whatever you are saying, and whatever figure you are giving to us. There is no way we can agree that it is only MTN that is making profit in the telecoms industry in Nigeria, so what you are not sure of, you better say that you are not very sure of it.”

ypzilanti:

Its called tax avoidance.

You have said it all, they make their operating cost eat up their profit and given the Nigerian clime, there are so many guises under which they can hide and legally claim they are not making money. Even in the US how the people think those mega corporations were losing money but Prince Alwaleed bin talal still invested heavily.

I don't agree with him , the rest could be doing false accounting

ebamma: if glo is not making profit,were do the have the money to pay the likes of psquare,jim iyke,funke akindele,ini edo,rita dominic,ali nuhu,and chioma chukwuka for adverts

Your post is funny. Don't you know companies borrow? Borrowing is a normal thing for business activities. I have always wondered why would Glo continue with such practice, either a personnel in their Corporate Communication unit is benefiting personally or they lack focus on Advertisement. I tend to believe this report, because you can see the rate of advertisement carried out by Glo, Etisalat and Airtel.

mtn will soon realise their days are numbered going by the amount of fraudulent promos and extortions we have suffered from these capitalist. i cant wait for the mobile sim portability to take my own pound of flesh on them.

It is true. They suck out #50 for caller tunez every month. Some Nigerians give them foolishly. They suck out #100 everyday tru phony promos. They are other ways I cant mention all. MTN SUCKS. I believe NCC man must be on their pay roll that is why they dont want to carry out Number portability.

This is very very true! This companies are multinationals and not only are they audited by reputable independent auditors they are audited by multiple foreign interests.
Operating overhead in Nigeria is enormous with very wide cost structure ranging from NCC levies/charges, Site maintainance cost, leased capacity cost, diesel cost, high valued equipment maintainance contracts, community relation costs, multiple goverment permit/levies/taxes etc.

MTN has closed to 45% of the market and that is why they are the only one making profit for now. i can categorically say all other telco sharing 55% market amongst themselve are making huge losses.

this assertion is not true bias.

South Africans are very good in business, but their service never comes cheap.

This Vice chairman guy is obviously a joker...nothing more.

MTN was the first GSM company to fully stabilize in Nigeria.. They where the first to build their own Exchange and stop using Nitel and have grown alot since then..

They stole alot of Econet clients as well..

Their coverage is second to non in Nigeria..

I am not surprised.. GLO is just for show.. Useless Network!

Okija_juju: MTN was the first GSM company to fully stabilize in Nigeria.. They where the first to build their own Exchange and stop using Nitel and have grown alot since then..

They stole alot of Econet clients as well..

Their coverage is second to non in Nigeria..

I am not surprised.. GLO is just for show.. Useless Network!

You're right on point.

I think econet knocked themselves in the foot because at time time they were on the same level with MTN. Instead of them to think of a way to leave MTN behind they chose to change their name from Chinyere to Tobechukwu.

As for Glo, like you said it's for show. That's why i always believe politicians have a stake in that network. Because it's only a politician that will bring the whole nollywood to come and do advert.

Ibime: Of course, most companies prefer to understate profits so they reduce their tax liabilities. Guys like Adenuga would either draw down on profits through director's wages or reinvest in capital expenses such as the fibre-optic cable Globacom is laying from Europe to Africa.

Spot on.
MTN is the most profitable telecoms company in nigeria, not "the only telecoms company making profit". They are two different things. If the other telecoms companies aren't making any profits, why are they still operating?

Great