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Mobile Data Remains Africa’s Cash Cow for Telcos

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International Data Corporation Insight has found that mobile data will remain the operators’ cash cow in 2014, aside the exponential increase in mobile data forcing telecommunications operators in Africa to rethink their network and data service strategies.

Mobile data services have continued to gain prominence in the business models of Middle East and Africa operators.

While those in the Middle East have remained at the forefront of technological development and invested heavily in building ubiquitous next-generation networks, operators in Africa, however, have taken a more cautious approach, with sporadic network evolution centered on highly populous areas and major commercial centers.

Thus, IDC predicted that in 2014, mobile data will remain a cash cow for regional telcos. However, the growing popularity of data-hungry applications and services, particularly video, will contribute to an exponential increase in data traffic and make network investment economics difficult to justify.

 To spur the trend is the belief that the regulatory environment will become more progressive and stimulate competition.

 IDC noted that Telecommunications markets in MEA have expanded significantly over the last decade, backed by progressive regulatory environments and conscious efforts by the regulatory authorities to stimulate competition.

The first era of market liberalization was marked by the opening of mobile markets to new operators, followed by progressive reforms to introduce new services (e.g., 3G) and/or the opening up of markets to competitors.

Having done this, regional regulators will strive to improve the market dynamics in 2014, accelerating the development of new services in addition to increasing competition.

Regulators can approach this in three primary ways: by introducing mobile number portability; by opening markets to mobile virtual network operators (MVNOs); and by releasing spectrum for next-generation 3G/LTE networks.

Nigeria CommunicationsWeek had earlier in the week reported that the Nigerian Communications Commission (NCC) will auction the 2.3 GHz band for commercial assignment on a national basis during the week commencing February 17, 2014.

The spectrum is one unpaired block of 30 MHz, adjoining a 10MHz guard band with the adjacent 2.4 GHz band. The specification is: • 2360 – 2390 MHz – Spectrum on offer; and 2360 – 2390 MHz – Spectrum.

Meanwhile, IDC also said that operator media transformation will continue as acquisitions are on the cards.

Thus, in 2014, operators will move beyond merely setting up businesses to forming clear strategies to help them play a broader role in the digital economy.

“Service evolution will force operators to rethink their strategies and recognize the importance of the customer experience. As the usage of smartphones and mobile social media is growing rapidly in the MEA region, marketers are more cognizant of consumers’ locations and preferences. Many organizations will explore ways to work closely with operators, media companies, and app developers to create targeted marketing practices in the region, which will prove to be a win-win situation for all involved.

“Telecommunications services are evolving as social media, multiscreen offerings, mobile applications, and OTT services increasingly influence consumer behavior. It is imperative for operators to understand consumer behavior and push products and services in line with their expectations. This will eventually help operators to counter declining service engagement cycles and improve customer experience.

“As markets continue to evolve, more customers are eschewing core telecommunications services in favor of rich OTT services,” said Paul Black, director of telecommunications and media at IDC Middle East, Africa, and Turkey. “This is forcing regional operators to reevaluate their business models, data offerings, tariff packages, and even network rollout plans, as well as go-to-market strategies. While traditional services are still offered, operators are expanding their role in the digital value chain by promoting local content generation and application development. Operators are also looking at adjacent markets and exploring new digital services opportunities.”

“For digital media providers and OTT players,” Black continues, “the changing market dynamics provide unique opportunities to establish direct relationships with end users. However, the business models are still evolving, and the ability to pay for these services, despite their growing usage, remains low throughout the Middle East and Africa (MEA). In this scenario, the importance of partnerships between telcos, content providers, OTT players, and digital media companies is growing.”


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US Newspapers Sue OpenAI, Microsoft Over AI Chatbots

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Eight US newspapers sued OpenAI and Microsoft in a New York federal court Tuesday for violating their copyright to train the technology behind the ChatGPT and Copilot chatbots.

The newspapers, which include The New York Daily News and The Chicago Tribune, are owned by Alden Global Capital, a Florida-based hedge fund that created the second-largest US newspaper group behind USA Today owner Gannett when it bought the Tribune publishing chain in 2021.

“This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot,” according to the filing.

“As this lawsuit will demonstrate, defendants must both obtain the publishers’ consent to use their content and pay fair value for such use,” the filing said.

OpenAI and its Microsoft backer were also accused of offering up verbatim excerpts of full articles as well as attributing misleading or inaccurate reporting to the publications in certain requests.

Other newspapers involved in the suit were The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register and The St. Paul Pioneer Press.

In a statement, OpenAI did not refer to the accusations specifically but said “we take great care in our products and design process to support news organizations.”

OpenAI pointed to the “constructive partnerships and conversations with many news organizations around the world to explore opportunities, discuss any concerns, and provide solutions.”

This referred to the news outlets that have entered partnerships with the Microsoft-backed startup instead of going to court.

They include The Associated Press, Financial Times, Germany’s Axel Springer, French daily Le Monde and Spanish conglomerate Prisa Media.

The suit on Tuesday closely resembles a case filed by The New York Times in December, in which OpenAI is also accused of stealing content to train its powerful AI.

In that case, OpenAI strongly pushed back, arguing the use of publicly available data including news articles for general training purposes is fair use.

OpenAI also accused the Times of violating ChatGPT’s user guidelines to generate the content that suited its case.

Microsoft declined to comment on the suit.

AFP


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5G Subscriptions Hit 2.7m in Nigeria –NCC

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Nigeria’s mobile network landscape is seeing a gradual shift towards newer technologies, with 5G subscriptions reaching 2.7 million in March 2024, according to the Nigerian Communications Commission (NCC).

5G Subscriptions Hit 2.7m in Nigeria –NCC

This translates to a 1.24 per cent penetration rate.

While this represents steady growth compared to December 2023 (1.04%), 2G remains the dominant network choice, accounting for over half (56.97%) of all connections. 3G holds a 9.04% share, while 4G subscriptions have grown significantly from 25.06% in May 2023 to 32.74% in March 2024.

The high cost of 5G-compatible smartphones is a major barrier to wider adoption. Although all three major operators – MTN, Airtel, and Mafab Communications – offer 5G services in select cities, expanding coverage and affordability remain key challenges.

MTN launched the first 5G network in September 2022, followed by Airtel in June 2023. Mafab entered the market later in 2023. All three companies are aiming to expand their reach, but the high cost of 5G devices is a significant deterrent for many Nigerians.

According to Mohammed Rufai, chief technical officer, MTN, maintaining older networks (2G and 3G) alongside newer ones is necessary due to device compatibility issues.

This highlights the need for a wider range of affordable 5G-compatible phones to truly unlock the potential of this next-generation technology in Nigeria.

 

 

 

 

 

 


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Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

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Experts have called for stronger laws and stricter regulation to tackle security issues around call masking and Subscriber Identity Module (SIM)-boxing-related fraud in Nigeria, according to the Nation.

Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

Call masking or refilling is a practice in which international calls are terminated in Nigeria as local numbers, using illegal SIM boxes loaded with several numbers.

It is a deliberate attempt by fraudsters to avoid paying the correct International Termination Rate (ITR) for international calls, paying instead the Local Termination Rate (LTR).

For example, when the number is masked as a local call, an operator pays N3.90 LTR and not N24.40 ITR.

The process allows operators to terminate inbound international telecoms traffic as local calls, so they do not have to pay ITR, which is the interconnection charge set by telecoms traffic carriers as carrier-to-carrier charges.

A SIM Box fraud is a setup where fraudsters install SIM boxes with multiple prepaid SIM cards.

A fraudster can bring calls through VOIP (through the internet) and terminate international calls through local phone numbers from a country, to make it appear as a local call, by initiating the call through a local SIM installed in the SIM box.

About three years ago, when the issue came to the limelight, the Nigerian Communications Commission (NCC) carried out some investigations, leading to the sanctioning and suspension of some operators earlier this year.

Some of these suspensions were later lifted.

The Office of the National Security Adviser (ONSA), the National Intelligence Agency (NIA), the Department of State Services (DSS), and Committees of the House of Representatives and Senate have on several occasions expressed concern about the menace.

While many stakeholders believe that the menace has been nipped in the bud, it has continued to rear its ugly head to the bewilderment of experts and stakeholders.

Ikechukwu Nnamani, president/chief executive officer of Medallion Communications Limited, lamented that it is a subject matter, which NCC should address completely.

Nnamani, who is an executive member of the premier telecom body in Nigeria – the Association of Telecommunications Companies of Nigeria (ATCON), said almost all calls he received recently are masked.

“Sometimes, I don’t pick up calls because I do not know the number only to find out later it was an international call.

“The truth is that I don’t know why this has not been resolved, I expected it to have been solved.

“Honestly, I would not know why. One would have expected them to have sorted all these out by now,” he said.

Chief Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers of Nigeria (NATCOMS) said there was no need to relent in reporting the menace to the right authority.

He said it could be a plan to ensure that gain accrued to some people. “I don’t know whether call masking favours the operator or it is being done deliberately.

“It is a situation that the telecoms should deal with because it is a technical problem. I think it is some of those unlicensed operators doing all these.

“Some of these operators’ facilities are being tapped into; they need to look into their operations, so they can be taken care of.

“If they are still in the habit of doing it, proper sanctions should be meted out to any erring service provider.

“There should be heavier sanctions. They can’t be short-changing subscribers and at the same time, the government,” he said.

Mr. Ajibola Olude, executive secretary of the Association of Telecommunications Companies of Nigeria (ATCON), believes the issue can be addressed.

“When it comes to technology, you can only address it maximally. It is not as rampant as before and it is an international issue.

“We have addressed it before and we will look at it again.

“About four years ago, when it happened, we deployed all the resources within our capacity to address it and I think it was addressed maximally.

“I have not seen any operator complaining, except now that you are raising the issue, but as far as we know, call-masking is no longer a problem.

“I am going to contact our compliance monitoring to enlighten me about what is going on, but it is no longer an issue,” he said.

Mouka Reuben, director, Public affairs, NCC, said the situation has been tackled before and he does not think it was a major issue again.

He, however, promised that the commission would look into it again to find a way out.

NCC recently put the revenue lost to call-masking and SIM-boxing activities in the country at $3 billion.

This is as telecom operators lamented during the 85th edition of the Telecom Consumer Parliament in Lagos that they were losing about N2.5 million minutes per day to these fraudulent activities.

On actions that had been taken by the commission to combat the menace, Prof Umar Danbatta,  former Executive Vice-Chairman, NCC, said the NCC had tightened the SIM registration process across all networks to reduce the availability of SIM cards for SIM-boxing as well as address the security issues around the availability of pre-registered SIMs.

According to him, the action was necessary as some arrests made in Lagos two weeks ago showed that the perpetrators of SIM-boxing had over 100 SIM cards registered with fictitious names and used them to divert international calls.

Credit: The Nation


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