Telecom
BlackBerry May Abandon Physical Handset for Cyber Security
With losses at £2.7bn, John Chen, interim chief executive must find a new way forward as Bloomberg Businessweek magazine’s cover showed a range of archaeological objects – a flint arrowhead, a skull – and a BlackBerry handset, which labels the company as still in the woods.
Meanwhile, Chen has already outlined a new strategy for the Canadian company in which he acknowledged that making smartphones was a thing of the past. As an alternative, the company will focus on intangible services such as offering cyber-security for businesses and not making physical handsets.
Making smartphones has not been a good business for anyone who isn’t Apple and Samsung recently, as they have squeezed the profits out of the rest of the industry, according to a report by Guardian of UK. BlackBerry, however, last Friday announced a loss of $4.4bn (£2.7bn) on revenues of just $1.2bn; only a tax rebate of $624m saved its net figures from being worse.
Those three months to the end of November marked a turning point: for the first time, BlackBerry now gets more money – 53% of revenues – from selling “services” such as sending data including email and web pages, than it does from selling handsets, which generated 40%. Software made up the other 7%.
But that has come as the company’s revenues have shrunk to levels smaller than at any time since May 2007, and the number of phones shipped, 1.9m, is the smallest since December 2006. BlackBerry, whose founders laughed at the iPhone’s lack of a keyboard, is out of the smartphone race.
In future Foxconn, which makes the iPhone, will co-design and manufacture BlackBerrys too, and hold the stock. BlackBerry will effectively become a reseller of its own phones.
“The smartphone business is brutal,” said Kevin Restivo, global smartphone analyst at the research company IDC. “It’s one where the big players – Samsung, Apple, and a few Chinese companies – are going to have success, and the others are scratching for crumbs.”
Andy Perkins, an analyst at Société Générale, told Bloomberg: “At some point it becomes uneconomic to make handsets in such small quantities.”
Chen is a turnaround artist. He was brought in to the software company Sybase, where he executed a successful reorganisation.
Since taking over barley two months ago, he has overseen a number of departures of existing senior executives, and hired some former colleagues. The obvious conclusion is that he is reshaping BlackBerry as a services and software company.
Unlike other struggling smartphone makers, BlackBerry can fall back on tens of millions of customers in large businesses, who rely on the security of its products. Chan said that 80% of Blackberry users were business customers.
That could be anywhere up to 50 million users worldwide, offering a substantial base for rebuilding any corporation, even the struggling BlackBerry.
But the data also confirmed that BB10, the operating system launched in January by Heins, has been a flop. Since March, BlackBerry’s customers have bought a total of around 17m phones, but only 5.6m have been BB10 devices.
The new products have fared poorly with consumers and the large businesses that rely on BlackBerry. Consumers have been turned off because the BB10 functions differently from the old BB7 model, while businesses have backed away because BB10 devices can’t be hooked up to the older BlackBerry Enterprise Server (BES) systems so many big customers use.
So while consumers have dumped them in favour of other makes, BlackBerry-using businesses have taken one of two paths: either sourcing old BB7 handsets to keep their existing users happy, or abandoning BlackBerry altogether.
Even Goldman Sachs, once a BlackBerry fortress, has begun letting some executives use iPhones for email, a move that would have been unthinkable a few years ago.
Chen has an answer to both. For consumers, BlackBerry will try to somehow make money from the millions of people who have downloaded the BBM messaging software and installed it on to iPhones and Android phones.
“Revenues might come from a per-user per-month model, or rolling out advertising,” he said on Friday. “We’re a long way from knowing how to do it.”
For businesses he will offer “mobile device management” software that will be able to control not just BlackBerrys, but also iPhones and Android phones.
But there are plenty of rivals there, and it’s not a big business – worth only about $560m (£343m) this year globally for all vendors, and growing at 12% annually, according to ABI Research. Even if a reshaped BlackBerry captures more than half of that, it would still look tiny compared to what it was.
That means, said IDC’s Restivo, that, “BlackBerry’s not out of the woods yet.” He explains: “First and foremost, Chen needs to figure out how to make money from products that have a significant customer base and are growing. The handset business isn’t growing. And how they’re going to generate significant revenue from BES and BBM, and create a company driven by those two parallel paths – right now, the path isn’t clear.”
Nigeria may reinstate a previously suspended telecom tax and other fiscal measures as it seeks to secure a new $750 million loan from the World Bank, as per Nairametrics report.
This is according to the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms (ARMOR) P-For-R (P177308) program dated March 2024, between Nigeria and the World Bank.
A copy of the plan’s document was obtained and seen by Nairametrics suggest the government reintroduces the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.
President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.
However, it appears that this suspension may be lifted to meet the program targets for a new, yet-to-be-approved World Bank loan.
Nairametrics has confirmed that negotiations are ongoing between the Federal Government and the World Bank.
The program’s development objective is to strengthen the government’s financial position by enhancing its capacity to manage and mobilize domestic resources effectively, which includes improving tax and customs compliance and protecting oil revenues.
Affected stakeholders and sectors
The planned tax reforms under the ARMOR program are expected to have significant implications across various economic sectors.
According to the plan, affected stakeholders will include manufacturers of goods such as alcoholic beverages, tobacco products, and sugar-sweetened beverages (SSBs), telecom and banking service providers, as well as the general tax-paying public.
Importers and international traders will also feel the impact of these new fiscal policies.
Key industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) are engaged regarding the excise duties on telecom services.
The banking sector, represented by the Committee of Bankers, are engaged regarding the introduction of an Electronic Money Transfer (EMT) levy on transactions processed through Nigerian banks.
Additionally, the Manufacturers Association of Nigeria (MAN) will play a crucial role, particularly for those involved in producing targeted products such as tobacco and alcoholic beverages.
The plan document read:
“Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy. Specific groups and agencies within affected sectors include
“1. Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.
“2. Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in all banking institutions
“3. Manufacturer’s Association of Nigeria: Manufacturers of tobacco products, sugar sweetened beverages(SSBs) and alcoholic beverages who would be required to collect excises on their products are critical stakeholders for the introduction of the new excise regime. They are currently organised into various sectoral groups under the Manufacturer’s Association of Nigeria (MAN). Producers of alcoholic beverages organised under the Distillers and Blenders Association of Nigeria also need to key into the reforms
“4. Importers: Strategic partners involved in importation of different items into the country will be mobilised to participate in the ARMOR program. A key stakeholder group is the Association of Nigeria Customs Agents (ANCLA).
“5. Vehicle Importers and Manufacturers: Stakeholders in the automobile trade industry must be engaged on reforms involving the introduction of green taxes on high GHG emission vehicles. Local manufacturing and assembly of vehicles is growing through a phase of growth in Nigeria. The demand for vehicles is mostly met through importation by vehicle importers under the aegis of Association of Motor Dealers of Nigeria (AMDON).”
The document also emphasized the importance of engaging vulnerable groups to ensure they are not disproportionately affected by these changes.
It also said:
“Services that will be subjected to the newly introduced excises are regulated by key public sector agencies. The introduction of the new revenue measures will require the application of existing regulatory mechanisms available within these institutions. The concerned institutions include
“1. Nigerian Communication Commission
“2. Central Bank of Nigeria.
“There are also agencies with the mandate for making policies on some of the issues covered in the ARMOR program with respect to policy framework on matters of public interest in Health and Environmental Protection. The government institutions relevant to ARMOR in this regard are.
“1. Federal Ministry of Environment
“2. National Environmental Standards Regulatory and Enforcement Agency (NESREA)
“3. Federal Ministry of Health”
The Office of the African Union Chairperson’s Youth Envoy and Google today announced the launch of the #DiscoverMyAfrica Shorts Challenge, a month-long initiative to celebrate the rich diversity, heritage, and vibrant spirit of the African continent. Throughout May, YouTube creators across Africa are invited to share short videos capturing their unique perspectives, using the hashtag #DiscoverMyAfrica.
“#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally,” said Chido Mpemba, African Union Chairperson’s Youth Envoy. “Partnering with Google fosters creative expression and dialogue on content responsibility, digital preservation, and AI’s impact on Africa’s creative industries. This aligns with our vision for a digitally-enabled Africa harnessing cultural wealth for economic growth and social progress.”
The YouTube Shorts Challenge encourages creators to showcase various facets of African life, from music and art to food, fashion, and local landmarks. To further celebrate Africa’s vibrant music scene, YouTube is turning up the energy with YouTube Music Nights in Nigeria and South Africa, showcasing the infectious rhythms of Afrobeats and Amapiano. Two dedicated playlists, “Africa’s Next Wave” and “Africa Superstars,” will highlight both emerging talent and iconic voices that have made the continent a global music powerhouse.
Nollywood superstar and style icon Osas Ighodaro will immerse viewers in the luxurious side of Lagos with her new show “Spa with Osas.” Enioluwa and The Geng will unravel the drama and secrets of high school elites in their highly anticipated series “All of Us.” And comedy superstar Broda Shaggi is guaranteed to bring the laughs with his hilarious new project, “Shaggi’s Palava.” These exciting new shows will premiere exclusively on YouTube.
Aspiring filmmakers and content creators can also take advantage of specialized workshops designed to hone their skills and expand their reach. A dedicated Nollywood workshop in Nigeria, and broader #DiscoverMyAfrica workshops for content creators will offer valuable insights and resources to creators at all levels.
“We are committed to supporting the diverse voices and talents that make up Africa’s creative landscape,” said Addy Awofisayo, Head of Music for Sub-Saharan Africa at YouTube.
“These initiatives provide valuable resources and platforms for African filmmakers, musicians, and content creators to share their stories and connect with global audiences.”
To learn more about #DiscoverMyAfrica and how to get involved, visit www.blog.google/africa or follow #DiscoverMyAfrica on social media.
In a remarkable acknowledgment of its excellence in public relations and communications, QNET, a leading lifestyle and wellness direct selling company, proudly announces its victory in three distinguished categories at the 11th annual PR Awards. Demonstrating its prowess in crisis management, corporate strategy, and technological innovation, QNET is setting new standards for excellence in Direct Selling.
This year, QNET was honoured with the following recognitions:
Silver Award for Best Corporate Strategy – An endorsement for QNET’s Fingreen financial literacy programme that has been rolled out in three countries over the last 18 months and has helped over 7000 people, including college students, home makers, street vendors, and female small traders, with the tools they need to take charge of their financial future.
Silver Award for Best Use of Technology – An important recognition for QNET’s QBuzz Blog, an innovative platform that leverages technology to foster community engagement and provide insightful company and industry content.
Bronze Award for Best Crisis Management Strategy – Celebrating the success of the “Truth About QNET” campaign, which effectively navigated the company through challenging times with transparency and integrity.
The PR Awards, renowned for highlighting the best in the PR and communications sector across South Asia, Southeast Asia, and Oceania, saw entries from the most prominent brands and organisations in the region. An independent panel of senior industry experts from leading brands selected this year’s winners, underscoring the credibility and prestige of the awards.
Trevor Kuna, Chief Transformation & Reputation Officer at QNET, expressed his enthusiasm: “We are profoundly honored by the recognition at the PR Awards 2024, which reflects our unwavering dedication to excellence, innovative strategies, and our commitment to providing outstanding value to our customers.
“These awards are a testament to the hard work and ingenuity of our team, and they motivate us to continue setting new benchmarks in the industry.”
QNET’s success at the PR Awards is not just a celebration of its achievements but also a promise to its stakeholders of its dedication to excellence and innovation. As the company looks forward to future challenges and opportunities, it remains committed to upholding the highest standards of quality and service in the industry.
For more information about QNET and its achievements, please visit QNET’s website.
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