Telecom
Nigeria Re-Elected as ITU Council Member
In clear recognition of the critical role Nigeria is playing on the global telecom stage, the country was re-elected earlier today as a Council member of the International Telecommunication Union (ITU), the United Nations specialised agency that oversees global telecommunication operations. Nigeria will serve on the Council again from 2023-2026.
The election of Nigeria and other countries, on Monday, October 3, 2022, into different regional groups that constitute ITU Council, was the highpoint of the Plenipotentiary Conference 2022 (PP-22) ongoing in Bucharest, the capital city of the Republic of Romania.
The Nigerian delegation was successfully led to the global event by the Honourable Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami. Other members of the delegation include the Chairman, Board of Commissioners of the Nigerian Communications Commission (NCC), Prof. Adeolu Akande, and the Executive Vice Chairman/Chief Executive Officer of NCC, Prof. Umar Danbatta.
At the conference, which started on September 26, 2022 and scheduled to end on October 14, 2022, member states at the event voted on the composition of the next ITU Council and the 12 representatives to serve on the Radio Regulations Board (RRB) for the next four years.
The 21st Plenipotentiary Conference of the Council, also saw the election by member states, of Doreen Bogdan-Martin of the United States of America as the organisation’s next Secretary-General.
Like Nigeria and the countries elected into the Council, Bogdan-Martin, as the first woman to lead ITU in its 157-year history, will begin her four-year term from January 2023, when Houlin Zhao would have completed his second final term of four years in office as ITU Secretary General.
The seats in ITU Council are divided into five regions, A to E. Nigeria was elected into the ITU Council, Region D for Africa, which has 13 seats. Other 12 countries elected alongside Nigeria are Algeria; Egypt; Ghana; Kenya; Mauritius; Morocco; Rwanda; Senegal; South Africa; Tanzania; Tunisia; Uganda.
Elections of member states also took place into the Region A for The Americas (nine seats); Region B for Western Europe (eight seats); Region C for Eastern Europe & Northern Asia (five seats); and Region E, for Asia and Australasia with 13 seats as Africa.
Commenting on Nigeria’s re-election as ITU Council member, the Executive Vice Chairman and Chief Executive Officer, Prof. Umar Danbatta, thanked the ITU member states for the confidence it has in Nigeria expressed by the re-elected into the ITU Council, in which the country has been playing critical role over the years.
“The re-election of Nigeria as a member of ITU Council for the next four years, again, points to the globally-recognised leadership role Nigeria is playing in Africa and at the level of ITU Council in the area of telecommunications policy formulation and technical regulations development to drive ITU’s mission and vision,” the EVC said.
The ITU, originally established in 1865 as the International Telegraph Union and became a United Nations specialised agency in 1947, was set up to coordinate telecommunications operations and services throughout the world. It is headquartered in Geneva, Switzerland.
Nigeria became a member of ITU on November 4, 1961. The USA joined on July 1, 1908; United Kingdom, February 24, 1871, and UAE on June 27, 1972.
The ITU is governed by the Plenipotentiary Conference and the Administrative Council. The Plenipotentiary Conference is the supreme organ of the Union. It is the decision-making body which determines the direction of the Union and its activities.
The Council, on the other hand, acts as the Union’s governing body in the interval between Plenipotentiary Conferences. Its role is to consider broad telecommunication policy issues to ensure that the Union’s activities, policies, and strategies fully respond to today’s dynamic, rapidly changing telecommunications environment.
ITU Council also prepares a report on the policy and strategic planning of the ITU, and it is responsible for ensuring the smooth day-to-day running of the Union, coordinating work programmes, approving budgets, and controlling finances and expenditure.
The Council also takes all steps to facilitate the implementation of the provisions of the ITU Constitution, the ITU Convention, the Administrative Regulations (International Telecommunications Regulations and Radio Regulations), the decisions of Plenipotentiary Conferences, and where appropriate, the decisions of other conferences and meetings of the Union.
Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, also casting his vote at the ongoing ITU Plenipotentiary Conference 2022 in Bucharest, Romania on Monday.
Telecom
Report Says 71 Percent of Nigerians Don’t Have Access to Regular Internet
A recent report by the Groupe Special Mobile Association (GSMA) revealed that a significant 71% of Nigerians do not have regular access to mobile internet.
“While 29 per cent of Nigerians are regularly using mobile internet, there remains untapped potential; 71 per cent are not accessing these services regularly. An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028.
However, the sector faces challenges to infrastructure deployment,” the report stated.
The details of the study were disclosed during the report’s launch in Abuja, highlighting a critical gap in digital connectivity amidst ongoing discussions about possible tariff increases by Nigerian telecom operators.
The telecom industry is currently advocating for an increase in tariffs to counter various operational challenges. However, the government is pushing for alternative solutions rather than price hikes.
The GSMA report underscored the challenges hindering the expansion of telecom coverage, which include cumbersome and costly rights-of-way acquisition processes and a complex tax environment. These factors collectively make it difficult for the industry to sustain investment levels.
Despite these hurdles, the report optimistically noted that Nigeria could add 15 million internet users by 2028 with appropriate policy adjustments. It emphasized that achieving universal access to digital connectivity hinges on a wider digital transformation of the Nigerian economy.
The report details the sector’s challenges, stating that “An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment.”
The report also identified key obstacles, such as the rigorous process of securing rights of way and a layered tax regime, which together increase operational costs and stymie sustainable investments. Added financial pressures from rising fuel prices and increased governmental fees further strain telecom operators’ ability to maintain healthy investment flows.
The GSMA report recommended several policy measures to foster a more enabling economic and regulatory environment for the mobile industry.
These include establishing a legal framework to protect critical national infrastructure, simplifying rights-of-way issuance, reducing the tax burden, and cultivating a regulatory climate conducive to robust investment.
“Future policies should be geared towards reducing the cost and complexity of infrastructure rollout to encourage investment and boost the adoption of mobile broadband,” the report advised.
It further highlighted the far-reaching implications of such policy enhancements, noting, “The impact of such actions would go far beyond mobile, driving productivity gains across the economy and creating millions of new jobs in Nigeria.”
Telecom
MTN Group Weighs Down by Nigerian Operations
MTN Group (MTNJ.J), Africa’s biggest telecoms operator, reported on Tuesday an 18.8 per cent fall in first-quarter service revenue, weighed down by the performance of MTN Nigeria
MTN, with 288 million subscribers in 18 markets across Africa, said its reported group service revenue fell to 42.9 billion rand ($2.34 billion) in the quarter ended March 31, from 52.8 billion rand in the same quarter last year.
In constant currency, service revenue, which excludes device and SIM card revenue, rose by 11.1%.
MTN’s service revenue from South Africa surpassed that of Nigeria, its biggest market by revenue, growing marginally by 3% to 10.4 billion rand, while Nigeria tumbled by 52.8% to 10.2 billion rand.
“The macro environment in the first quarter of 2024 remained challenging with ongoing high inflation as well as local currency devaluations in some of our key markets,” Ralph Mupita, group president and CEO said in a statement.
Mupita also cited global geopolitical tensions as a factor impacting the operator’s performance, including the ongoing civil war in Sudan, which severely affected network availability and revenue generation in that business.
MTN was also impacted by subsea cable cuts that resulted in downtime.
Overall reported group earnings before interest, tax, depreciation and amortization (EBITDA) fell by 28.7% to 17.2 billion rand and rose by 3.9% in constant currency.
Reported EBITDA margin declined by 5.8 percentage points to 37.9% due to rising costs and currency depreciation mainly in Nigeria.
The group revised down its anticipated capital expenditure (excluding leases) deployment for 2024 to about 28 billion rand to 33 billion rand from a target of 35 billion rand to 39 billion rand, largely due to a reduction in expected spending by MTN Nigeria.
Telecom
Airtel Excites Business Owners with Unlimited Speed Plan
Telecommunications network, Airtel Nigeria has introduced a groundbreaking new service for business owners called the Enterprise Business Broadband (EBB) Speed Based Plans 3.0. This specially designed plan offers unparalleled connectivity and flexibility with unlimited monthly plans.
Tailored to meet the diverse needs of enterprises, the new EBB plans feature unlimited internet connectivity options, providing the opportunity to without data limitations. Customers also get a chance to select from three dynamic options, from as low as N20, 000 to N60, 000.
The N20, 000 monthly subscription delivers internet speeds of up to 20Mbps, the N35, 000 subscription offers up to 40 Mbps, and, with the N50, 000 monthly subscription users can experience ultimate reliability and speeds of up to 60Mbps, which is perfect for large organizations with high bandwidth requirements.
Speaking on the new unlimited plan, Chief Commercial Officer, Airtel Nigeria, Femi Oshinlaja emphasized the transformative impact of the new unlimited plan.
“We have seen the early adopters of the Speed Based Plans 3.0 express their satisfaction after using this service and we are confident to say that the uninterrupted internet service is a game-changer for business owners.
“We are committed to continuously providing innovative solutions that empower businesses to thrive in the digital landscape, ensuring unparalleled connectivity and reliability for our valued customers,” he said.
According to Airtel, customers get a complimentary router upon purchase. The speed plan also allows customers to have the flexibility to set data usage limits and control access to specific websites on the router, promoting responsible internet usage.
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