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Direct Peering, Cost as Roadblocks to Telecom Development- Experts

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Stakeholders in the country’s telecommunications ecosystem have identified direct peering among service providers as well as high cost of national transmission link as major obstacles to the development of telecommunications.

Direct peering is a business model where operators providing services or content exchange such service or content directly without going through a licensed third party platform.

They were reacting to Nigeria CommunicationsWeek investigations that revealed that GSM operators are flouting Nigerian Communications Commission’s (NCC) guideline on the establishment of interconnect clearing houses, where telcos are mandated to route at least 10% of their traffic through the clearing houses.

As at today, most of the telcos are not reaching the mandated volume rather they are routing mostly through direct peering.

More so, it was gathered that efforts to encourage local hosting of internet content in the country are being frustrated by high cost charged on provision of connectivity services to commercial data centres especially for content providers outside of Lagos.

For instance, universities and others that have digitized contents who are located in the north, south-east among others and intend to host them in data centres in Lagos are charged as high as 400% compared to offering them connectivity to the internet which enables them to host it outside of the country.

The implication of this scenario is that since it is far cheaper for them to get connected to the internet than data centres in Nigeria they prefer to host their servers out of the country which requires only connectivity to the internet, thereby endangering the survival of data centres as well as federal government efforts to encourage local hosting aimed at keeping local internet traffic local.

Ike Nnamani, chief executive officer, Medallion, explained that direct peering in voice interconnectivity is allowed by law and that the two options co-exist for the growth of the industry.

He urged operators to see the bigger picture of growth and survival of the industry which will enhance the contributions of the sector to the GDP of the country.

Nigeria CommunicationsWeek investigations also revealed that direct peering is happening between content giant Google and some GSM operators which see them exchanging internet traffic directly without going through Internet exchange point Nigeria.

This arrangement denies clearing exchange of revenue they would have earned if such traffics were routed through their platforms.

Reacting to connection to data centres, Mohammed Rudman, managing director, Internet Exchange Point of Nigeria (IXPN), said: “For the information and communications technology to flourish especially in data centre and local hosting business, cost of in-country connection must be much cheaper than international connectivity. If all the telecommunications operators are interconnected at the various commercial data centres in the country, the cost of connecting universities and others located outside of Lagos to the data centres for them to host their servers locally will be reduced.”

He noted: Chinese content is in China, Indian content is in India and Nigerian content should be in Nigeria, this could be realized if the country is well interconnected through the various commercial data centres, telcos and exchange point.”

Mohammed however, urged relevant government agencies to engage telcos on the way forward to easy interconnectivity issues as well as sharing of fibre optic links just the way it is done in the colocation of masts, so that the industry could start experiencing the needed growth and development.


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Telecom

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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