The MTN, one of Nigeria’s largest mobile networks with millions of subscribers, recently deactivated several users’ lines on Sunday.
The action was allegedly taken due to the subscribers’ failure to connect their National Identification Numbers (NIN) with their mobile phone numbers.
Significant repercussions have resulted from this decision, possibly costing MTN in a number of ways.
1. Revenue Loss
The immediate financial impact of barring subscribers’ lines is a reduction in revenue.
When users cannot make calls, send texts, or use data services, they are not generating income for the company.
Also, this loss of daily revenue can be substantial, especially considering the high volume of affected subscribers.
Additionally, if disgruntled customers switch to competitors, MTN could see a long-term decrease in its subscriber base and associated revenue.
2. Reputation
Also, MTN’s reputation is at significant risk due to the public backlash from this action.
The abrupt deactivation of lines has led to widespread dissatisfaction and has portrayed the company in a negative light.
A damaged reputation would discourage prospective new customers and push current ones to look for other service providers, which would increase the loss of income.
Customers affected by deactivated lines can sue MTN for damages and inconveniences resulting from the deactivation of their lines.
However, Legal disputes can be expensive, both in terms of cost of rewarding customers and the costs and resources needed to fight against claims
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Also, the possibility of class-action lawsuits increases the risk because many impacted customers may join together to file a claim for compensation.
