NIN-SIM deactivation: Telcos’ anticipate revenue loss

Telecom operators in the country have said that they will comply with the directive of the Nigerian Communications Commission (NCC) to bar calls from phone numbers that are yet to be linked to their National Identity Numbers (NIN) marking the second phase of the exercise.

The operators are not unmindful of the financial losses the exercise might bring to them because over 40 million SIM cards were involved in the first phase.

However, the telecos said they were undeterred by the huge financial losses staring them in the face but were more concerned with cooperating with the Federal Government to get credible national data for national security.

A source at the weekend confirmed that the operators’ bottom line would indeed be hit by the directive of the Federal Government to disconnect SIM cards that have not been linked with their NINs with the database of the National Identity Management Commission (NIMC).

“Recall the partial ban placed by the Federal Government via the Nigerian Communications Commission (NCC) on calls originating from SIMs not linked to NIN had taken a terrific toll on mobile network operators’ (MNOs’) revenue.

“Recall also that the stoppage of the registration of new SIM cards about two or three years ago had also negatively impacted the industry. Now we are talking about totally shutting out several millions of active subscribers out of the network. In the business, telcos make money from voice calls and data but when these two major revenue sources are completely severed, losses are inevitable. The scale cannot readily be ascertained now because the exercise is still ongoing,” the source said on condition of anonymity.

Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo, in a telephone interview had said his members were more concerned with the implementation of the Federal Government directive than monetary losses.

Director of Public Affairs at NCC, Reuben Muoka, had insisted that the directive for disconnection is being rolled out in stages, with the second phase set for 29 March as earlier announced. He said the initial phase took place at the end of February.

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