The fast rising use of communication Apps like WhatsApp and Skype, offering free calls and messaging using the Internet is eating deep into projected revenue earnings of telecommunications companies in the country.
Such over-the-top player applications are increasing taking over calling and Short Message Services (SMS) according to a report released on Wednesday from brokerage Credit Suisse.
“Proliferation of over-the-top content services such as Skype and WhatsApp, among others, could trigger whopping 30 to 50 per cent revenue hit on Nigerian telecoms companies’ voice services in the coming months.
“Telco messaging revenues have already taken a 30 per cent hit, thanks to OTT players,” the Credit Suisse report stated.
This development, it was gathered was forcing major telecoms firms in the country to “indirectly raise data rates to see if they can recover part of the revenue cost,” which in turn was hurting broadband penetration in the country.
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