MTN Nigeria Fires 252 Engineers
On Monday, MTN Nigeria, fired 252 of its engineers who were tasked with the responsibility of maintaining and operating its 10,000 base stations nationwide. The reasons for this mass sack are the marginal increase in its network expenses due to the overall high inflationary environment, rising inflation, illegal and multiple taxation and most importantly high cost of providing power. Last year, the company said they spent N34bn on diesel only. This formed 12 per cent of its total operating expenditure cost, which could have been channeled into the construction of at least 5,200 new base stations.
These reasons among others informed the company’s decision to focus strictly on areas that would directly impact on its operations, while outsourcing ancillary services to independent service providers. However, MTN signed managed services contracts with two other global telecommunications solutions providers, Ericsson and Huawei, who have agreed to absorb 232 out of the 252 disengaged engineers from Tuesday (yesterday). It is unclear what will happen to the remaining 20 as some MTN sources explained that either the unsettled 20 were not qualified enough to work for Ericsson and Huawei or they may have decided to quit. In October last year, MTN stated;
“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.”
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