Nigerian telecoms must focus on customers to curb revenue decline

22 August 2012 | Kavit Majithia


Nigerian telecoms must offer customer centric services and convergence for improved services offerings to overcome the challenges in the voice market, according to global consultancy firm KPMG.

KMPG said operators’ role in the country was being limited by industry competition from OTT players, device companies and the growing importance of social media. The company further warned that revenue from voice-based services was reducing, with more consumers now seeking data services which were having a negative effect on margins.

Concerns were raised at a recent Customer Retention and Profitability Summit in Johannesburg, South Africa, where KPMG did say it believed voice would continue to be the dominant business for service providers across the whole of Africa, but average revenue per user was to continue declining.

The company has reportedly built a significant telecoms practise in Africa and said its Africa Telecom (AFG), a joint venture between KPMG and member firms across the world is designed to bring expertise to the telecoms industry in the Africa region.

There should be an increasing focus on customers in Africa to overcome these challenges, according to Johan Smith, director and head of KMPG ATG. He said: “Increasingly, global organisations from services sectors such as telecoms are incorporating customer centricity in their core business strategy.”

Smith added, aside from customer focus, there is an increasing need to leverage innovation and new products for value added solutions to manage ARPU decline.

Nigeria is regarded by analysts as one of the biggest emerging markets in the world.