Nigerian Operator Starts Compensation Payments

Nigerian operator, Celtel has started a phased process of offering compensation to its subscribers following a ruling from the telecoms regulator, the Nigerian Communications Commission (NCC).  The operator was ordered to offer free airtime worth N175 (US$1.50) to each subscriber due to problems with network reliability. For comparison, according to The Mobile World, the monthly ARPU is US$10 - so the compensation equates to some 15% of the average monthly spend.

The operator has arranged to offer the compensation in batches so that it is not flooded with a sudden surge in traffic as customers use their "free" airtime at the same time.

Celtel Nigeria CEO, Bayo Ligali, expressed his appreciation to the companyĆ's over 14 million customers for "their patience, understanding and continued patronage and regretted the inconveniences caused by the Quality of Service challenges."

The operator has outlined a US$1 Billion investment program, including its own fibre-optic backbone to reduce reliance on the flacky national landline operator. At the end of Q1, the operator had around 12.65 million subscribers.

Rival operator, MTN has also been ordered to make an identical compensation payment to its subscribers.

On the web: The Mobile World - Celtel Nigeria

Posted to the site on 7th July 2008