
Sacking Competition:
MTN Nigeria Sacks 252 Engineers Nationwide
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As a consequence of dwindling revenue, leading Global System of Mobile
communications provider in the country, MTN Nigeria, on Monday
disengaged 252 of its engineers who were responsible for the operation
and maintenance of its base stations nationwide.
Our correspondent gathered that most of the disengaged engineers joined
the company at inception in 2001 and were involved in the day-to-day
running of MTN’s 10,000 base stations all over the country.
The company had earlier in March explained that it and other operators
were facing the challenge of not only stagnating revenues, but also
increasing operating expenses.
According to MTN, the network expenses of the operators are increasing
due to the overall high inflationary environment along with their
network expansion activities, illegal and multiple taxation, high cost
of providing power and rising inflation, among others.
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For instance, the company said in 2013, the N34bn spent on diesel formed
12 per cent of its total operating expenditure cost, which could have
been used to construct 5,200 new base stations.
It said, “Over 200 per cent reduction in headline price points to
massive free-fall in tariffs within three years through aggressive price
war.
“The aggregate spend per subscriber has reduced in the same proposition
with the expected net effect from new additions not being sufficient to
drive profitable growth.”
As a consequence, the firms said it took a decision to focus strictly on
areas that would directly impact on its operations, while outsourcing
ancillary services to independent service providers.
Following this decision, MTN signed managed services contracts with
global telecommunications solutions providers, Ericsson and Huawei, who
have agreed to absorb 232 out of the 252 disengaged engineers from today
(Tuesday).
The fate of the remaining 20 is unclear as sources in MTN explained that
they might have decided to leave outright rather than transfer their
services to other companies, or that they fell short of the requirements
of Ericsson and Huawei.
The company had said in a statement in October last year, “Under the
terms of the contracts, Ericsson will take over the management,
optimisation and field maintenance of MTN’s network infrastructure in
Abuja, Lagos, as well as the southern and eastern regions. On the other
hand, Huawei will manage Kano and Ibadan regions, thus allowing MTN to
focus on providing a superior customer experience across all its network
offerings.
“MTN will retain ownership and full control of its network assets and
continue to have responsibility for strategic design and planning, as
well as equipment purchasing decisions.”
Our correspondent learnt on Monday that the agreement between Ericsson
and Huawei specified that the disengaged engineers would be mandatorily
engaged for one year and placed on the same salaries as they were
earning in MTN, or even more, after which the firms could decide to
continue with their services or not.
It was further gathered that in order to make their disengagement
seamless and devoid of controversies, MTN implemented a “generous”
severance package for the affected workers, and ensured that they did
not join the growing list of unemployed people by moving on to another
job straight away.
When contacted, the spokesperson for MTN Nigeria, Mrs. Funmi Onajide,
referred our correspondent to her colleague, Mr. Funso Aina, who said
the company stood by its position as stated in the October 2013 press
statement.
The statement had quoted the Chief Executive Officer, MTN Nigeria, Mr.
Michael Ikpoki, as saying, “This engagement with Ericsson and Huawei is a
logical step forward in the course of the steady evolution of the
telecommunications industry.”
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
As a consequence of
dwindling revenue, leading Global System of Mobile communications
provider in the country, MTN Nigeria, on Monday disengaged 252 of its
engineers who were responsible for the operation and maintenance of its
base stations nationwide.
Our correspondent gathered that most of the disengaged engineers joined
the company at inception in 2001 and were involved in the day-to-day
running of MTN’s 10,000 base stations all over the country.
The company had earlier in March explained that it and other operators
were facing the challenge of not only stagnating revenues, but also
increasing operating expenses.
According to MTN, the network expenses of the operators are increasing
due to the overall high inflationary environment along with their
network expansion activities, illegal and multiple taxation, high cost
of providing power and rising inflation, among others.
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
As a consequence of
dwindling revenue, leading Global System of Mobile communications
provider in the country, MTN Nigeria, on Monday disengaged 252 of its
engineers who were responsible for the operation and maintenance of its
base stations nationwide.
Our correspondent gathered that most of the disengaged engineers joined
the company at inception in 2001 and were involved in the day-to-day
running of MTN’s 10,000 base stations all over the country.
The company had earlier in March explained that it and other operators
were facing the challenge of not only stagnating revenues, but also
increasing operating expenses.
According to MTN, the network expenses of the operators are increasing
due to the overall high inflationary environment along with their
network expansion activities, illegal and multiple taxation, high cost
of providing power and rising inflation, among others.
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
Read More at liveofofo.com/59146/sacking-competition-mtn-nigeria-sacks-252-engineers-nationwide/ © Nigerian Celebrity News Online Magazine
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