On Wednesday, millions of MTN Nigeria customers experienced a significant service disruption that lasted for four hours. They were unable to make calls or access the internet, causing frustration and inconvenience. The company later attributed the outage to multiple fiber cuts, as indicated in an official statement.

“Our dedicated team of engineers is diligently working to address the issue, with services gradually being reinstated in certain regions,” shared Funso Aina, Senior Manager of External Relations at MTN Nigeria, in a statement to TechCabal.

Fiber optic cable cuts are the complete or partial severing of the thin glass fibers composing the cable. These cables efficiently transmit data across vast distances by utilizing light pulses. One of the primary factors leading to fiber cuts in urban areas such as Lagos is due to road construction activities and deliberate acts of vandalism.

This incident highlights the importance of insurance coverage for telecom operators. Fiber cuts pose a persistent challenge for telecom operators, leading to significant costs. Data from the Nigerian Communications Commission (NCC) reveals that the industry allocated ₦14 billion to address approximately 59,000 fiber cuts between 2022 and 2023.

Insurance executives should take note of this cautionary tale and consider the benefits of parametric insurance. With Riskwolf, you can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, we enable insurers to build and operate parametric insurance at scale. Simple. Reliable. Fast.

By partnering with Riskwolf, telecom operators can protect themselves against the financial impact of fiber cuts. Parametric insurance provides coverage based on predefined triggers, such as the number of fiber cuts in a specific area. This type of insurance can help telecom operators manage their risks and reduce their costs.

In conclusion, the MTN Nigeria outage serves as a reminder of the importance of insurance coverage for telecom operators. Insurance executives should consider the benefits of parametric insurance and partner with Riskwolf to protect their businesses. Don’t wait until it’s too late. Contact Riskwolf today to learn more about how we can help you manage your risks and protect your business.

Source: Tech in Africa