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Nigerian telecoms operators are researching ways to champion innovative solutions, including renewable energy sources and satellite technology to cut operational costs that adversely affect the sector.
An insider who spoke in respect of the telecoms industry at the Nairametrics Industry Spotlight webinar, tagged, 'Beyond Connectivity: Telcos and the Future of Financial Inclusion in Nigeria', made the revelation..
According to a Senior Manager of Growth and New Business Tech Platforms at MTN, Chukwuebuka Ezewuzie, aside from foreign exchange crises, money spent on diesel-powered infrastructure affect the telcos’ operating costs.
He said, “A lot of advancement is going on at the moment in adopting renewable energy because the infrastructure running on diesel and petrol is massively expensive.
"So, how are we going to use the free energy from the sun and the wind to power this equipment to reduce cost? This is one of the key areas that the telcos are currently exploring."
Telecoms infrastructure including base stations, data centres, relay stations, and transmission equipment, rely on diesel generators for power, leading to substantial operational costs.
A 2023 data analysis from the National Bureau of Statistics about telecommunications companies showed that about N429.43bn was spent on fuelling those base stations, a 34.57 per cent increase from the N319.11bn spent in 2022.
The current average price of diesel in Nigeria is pegged at N1,379 per litre, with significant variations across states.
Telecoms operators have estimated their diesel consumption to be about 40 million litres per month to power their sites.
According to a McKinsey report released recently, telcos could save between 15 per cent and 30 per cent on energy costs annually by switching to solar power, depending on their current energy management practices and the extent of solar integration.
Ezewuzie revealed that telcos were also evaluating satellite technology as a viable alternative to expensive fibre optic deployments.
He revealed that MTN, Nigeria’s biggest telecommunications with almost 80m subscribers, had initiated conversations with Elon Musk’s Starlink to assess how the technology could be integrated into its existing networks.
Former Chief Financial Officer of 9mobile, Nkem Oni-Egboma, underscored the importance of innovative approaches in reducing energy consumption in the sector.
“Reducing energy consumption is crucial for the sustainability of telecom operations. Data centres and media gateways are optimising their operations to reduce costs, which in turn, make their products and services more affordable for consumers,” Oni-Egboma said.
The Chief Executive Officer of Open Access Data Centre, Dr Ayotunde Coker, said dealing with the challenges, "telcos should focus on creativity in value-added services, targeted offerings for specific segments, recognising affordability disparities, and graduated products and services."
