Ezewuzie emphasized the importance of renewable energy as a cost-reduction strategy for telecommunications companies.
He shared these perspectives during the Nairametrics September Industry Spotlight event held on Saturday, which was themed “Beyond Connectivity: Telcos and the Future of Financial Inclusion in Nigeria.”
Ezewuzie pointed out the financial challenges that telecom companies encounter in sustaining terrestrial networks, managing licensing fees, and delivering services.
To mitigate these expenses, he stressed the necessity of renegotiating long-term contracts and investigating satellite technology to lessen dependence on physical infrastructure.
“Bulk negotiations enable telecom operators to obtain lower service or license costs, securing contracts at advantageous exchange rates to alleviate the effects of foreign exchange fluctuations,” Ezewuzie stated.
By establishing these long-term partnerships with international suppliers, telecom companies can benefit from discounts and safeguard themselves against volatile exchange rate changes.
Ezewuzie also mentioned MTN's collaboration with satellite providers such as Starlink to leverage low earth orbit (LEO) satellites for economical coverage expansion, particularly in regions where establishing physical infrastructure is expensive or challenging.
“With satellite coverage, operators can significantly lower capital expenditures, especially in remote locations,” he noted.
Ezewuzie emphasized the importance of renewable energy as a cost-reduction strategy for telecommunications companies. He pointed out that many telcos are turning to solar and wind energy to lessen their reliance on costly diesel and petrol.
“Utilizing diesel and petrol for terrestrial networks incurs high expenses, prompting telcos to consider renewable energy alternatives,” he remarked.
Transitioning to renewable energy sources allows operators to significantly decrease operational expenses, particularly in the energy supply for their network towers.
Another critical strategy highlighted by Ezewuzie was localization. He noted that telcos are increasingly procuring supplies locally to diminish their reliance on foreign vendors, which helps mitigate the risks associated with fluctuations in the Naira/US” exchange rate.
“Telecom operators are focusing on local partnerships to cut costs,” Ezewuzie stated.
This approach is vital for lowering overhead costs and achieving more stable pricing for telecom services in Nigeria.
Additionally, he mentioned automation and the expansion into fintech and digital services as key methods for cost reduction and revenue growth.
He explained that telecom operators are adopting robotic process automation (RPA) to reduce labor expenses and enhance operational efficiency, while diversifying into fintech and monetizing APIs presents new opportunities for revenue generation.
By prioritizing these strategies, Ezewuzie is confident that Nigerian telcos can lower operational costs while continuing to deliver high-quality services to their customers.