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Why Half of MVNOs in Nigeria May Collapse- Experts

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Telecoms stakeholders have cautioned that many Mobile Virtual Network Operators (MVNOs) in Nigeria could struggle to survive unless they address infrastructure gaps, target niche markets, and adapt to local realities.

Why Half of MVNOs in Nigeria May Collapse- Experts

The warning came during the sixth edition of the Telecoms Sector Sustainability Forum, organised by Business Remarks in Lagos on Tuesday.

According to the stakeholders, securing a license from the Nigerian Communications Commission (NCC) is not enough to ensure survival in a market dominated by major Mobile Network Operators (MNOs) like MTN, Airtel, and Glo.

Chidi Ajuzie, director of USK Mobile, highlighted the stark reality facing MVNOs, noting that none of the over 40 licensed operators have fully launched services.

“Licenses are not cash cows. Too many people think that once you get a license, the money will start rolling in. The truth is, you must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” Ajuzie said.

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Ajuzie pointed out that smaller operators, particularly those in Tier 4 and Tier 5 categories, face significant financial hurdles in building their own infrastructure to support capacity.

However, he sees this as an opportunity for innovation, urging MVNOs to target niche markets such as youth, migrant workers, or fintech services, as seen in successful models in South Africa and India.

“Half of us may launch, but only those with clear strategies will survive,” he warned, predicting mergers and consolidations in the coming years.

Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), echoed Ajuzie’s concerns, stressing that market differentiation is critical for MVNO survival.

“The MNOs already provide enterprise services, internet, and fintech. MVNOs must find gaps and focus on those,” Emoekpere said.

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He cited Kenya’s M-Pesa, which revolutionized payments by targeting rural and low-income users, as a model for local innovation.

Emoekpere suggested that MVNOs could capitalize on Nigeria’s underserved rural areas, where millions lack access to reliable telecom and financial services. “Something as simple as a low-data package for POS machines in rural areas could be a game-changer,” he added.

Olusola Teniola, director, IPNX, cautioned against adopting foreign business models without considering Nigeria’s unique environment. “In some villages, people still travel by canoe or horse for hours to access basic services. If your business model doesn’t account for that, it will fail,” Teniola said.

He urged MVNOs to focus on the bottom of the pyramid, where millions lack basic connectivity, rather than competing for urban smartphone users.

Teniola also warned that failure to strengthen indigenous companies could lead to more profits leaving Nigeria through foreign-owned operators, emphasizing the need for policies to protect data sovereignty and foster local innovation.

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The stakeholders said while MVNOs have the potential to expand Nigeria’s telecom sector and increase consumer choice, their survival hinges on strategic planning, niche targeting, and a focus on rural connectivity.

Without urgent action to address infrastructure challenges and adapt to local needs, many MVNOs risk disappearing before they can establish a foothold in Nigeria’s competitive telecom landscape.

 

 

 

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Fact-Check: Elon Musk’s “Tesla Pi Phone” is Internet Rumor

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Viral rumors about a “Tesla Pi Phone” a  new phone, being developed by Elon Musk,  CEO and largest shareholder of Tesla and SpaceX, are entirely fake.

Fact-Check:  Elon Musk’s "Tesla Pi Phone" is Internet Rumor

AI Generated Tesla Pi Phone and Elon Musk

Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.

It said the system would provide voice, messaging, data and emergency services.

A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.

Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.

Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).

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On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”

The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.

Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.

Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.

 

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How and Why Apps Deplete Data – ALTON

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Association of Licensed Telecommunications Operators of Nigeria (ALTON) has attributed rising mobile data consumption to increased use of smartphone applications, cloud services and emerging digital technologies.

How and Why Apps Deplete Data - ALTON

Mr Gbenga Adebayo, chairman, ALTON

Mr Gbenga Adebayo, chairman, ALTON, disclosed this on Tuesday at the Lagos Chamber of Commerce and Industry (LCCI) conference in Lagos.

Adebayo said smartphones had transformed access to digital services, with many applications consuming data continuously, even when users were not actively browsing the internet.

He explained that automatic software updates, cloud backups, application synchronisation, video streaming, social media autoplay and location services significantly increased data consumption.

According to him, internet usage had changed considerably from a decade ago when consumers mainly relied on direct browsing with fewer digital applications running simultaneously.

He said growing adoption of artificial intelligence, cloud computing and other emerging technologies would further increase demand for reliable connectivity and greater network capacity.

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“The evolution of smartphones has fundamentally changed how consumers access digital services, with many applications now consuming data continuously,” Adebayo said.

He stressed that digital literacy had become increasingly important because consumers needed to understand how their devices and applications consumed mobile data.

He advised subscribers to monitor application activity, adjust device settings and use built-in data management tools to better control their data consumption.

Adebayo said greater understanding of digital tools would help dispel misconceptions about data usage and strengthen public confidence in Nigeria’s telecommunications industry.

Responding to allegations that operators deliberately depleted customers’ data, Adebayo dismissed the claims, insisting telecommunications companies had no commercial incentive to engage in such practices.

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He said every megabyte consumed on telecom networks was recorded through internationally standardised billing systems supplied by recognised technology vendors and regulated by authorities.

“Such a practice would be unlawful, unethical, commercially self-defeating and subject to stringent regulatory oversight by the Nigerian Communications Commission,” he said.

Adebayo explained that operators’ billing systems were designed to guarantee accuracy, transparency and verification, while genuine consumer complaints were investigated through established protection channels.

He added that the Nigerian Communications Commission’s complaint resolution mechanisms and technical audits provided consumers with credible avenues for seeking redress over billing concerns.

According to him, trust remains essential to expanding Nigeria’s digital economy because telecommunications infrastructure supported banking, healthcare, education, commerce and government services.

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He said the telecommunications sector had evolved beyond basic communication services into a critical driver of productivity, investment, innovation and national economic growth.

Adebayo noted that emerging technologies, including artificial intelligence, financial technology, smart manufacturing and digital agriculture, depended on resilient telecommunications infrastructure.

He said Nigeria could only maximise these opportunities through sustained collaboration among government, regulators, telecommunications operators and consumers.

Adebayo reaffirmed operators’ commitment to improving customer experience, strengthening network resilience and promoting transparency in telecommunications service delivery.

He urged stakeholders to encourage evidence-based discussions on digital services, stressing that public trust remained indispensable for the sustained growth of Nigeria’s digital economy.

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Galaxy Backbone Soft Launches Government Service Portal to Simplify Access to Public Services

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Galaxy Backbone (GBB), in partnership with the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) and the Korea International Cooperation Agency (KOICA), officially conducted the soft launch of the Government Service Portal (GSP), a groundbreaking digital platform designed to transform how citizens, businesses and government institutions interact.

The event, held at the Galaxy Backbone National Shared Services Centre (NSSC) Headquarters in Abuja, brought together senior government officials, development partners, technology stakeholders and members of the media to unveil services.gov.ng—Nigeria’s new one-stop digital gateway for accessing government services.

The Government Service Portal is designed to provide a single, trusted platform through which Nigerians can easily discover, access and interact with digital services offered by Ministries, Departments and Agencies (MDAs). By consolidating government services into one unified portal, the initiative aims to improve accessibility, enhance service delivery and create a more seamless citizen experience.

Speaking at the event, the Managing Director/Chief Executive Officer of Galaxy Backbone. Professor Ibrahim Adeyanju, stated that the launch represents another significant milestone in Nigeria’s digital transformation journey and reflects the Federal Government’s commitment to building a more connected, efficient, transparent and citizen-centred public service.

He emphasized that the Portal is more than a website; it is the foundation of a unified digital gateway that places the needs of citizens and businesses at the centre of government service delivery.

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He further noted that while the event marks the beginning of the Portal’s journey, the soft launch provides an opportunity to onboard pioneer MDAs, gather user feedback, strengthen system integrations and continuously improve the platform ahead of a wider national rollout.

Representing key stakeholder institutions at the launch were the Deputy Director of KOICA Nigeria, Mr. Ki Yun Baik; the Permanent Secretary of the Federal Ministry of Communications, Innovation & Digital Economy, represented by Mr. Joseph Bareiye, Director of e-Government; the Permanent Secretary, State House, represented by Mr. Oguntuyi Olusegun, Head of ICT; and the Executive Director, Digital Exploration and Technical Services, Galaxy Backbone,  Olumbe Akinkugbe.

The Government Service Portal aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, and supports Nigeria’s broader Digital Public Infrastructure (DPI) agenda by creating a citizen-facing gateway that complements existing investments in digital identity, secure infrastructure, cloud services, cybersecurity and digital government platforms. It can be accessed using the link: services.gov.ng .  The initiative is expected to strengthen public service delivery, increase transparency, improve operational efficiency and foster greater trust between government and citizens.

Galaxy Backbone reaffirmed its commitment to supporting all Ministries, Departments and Agencies in integrating their digital services into the Portal, noting that collaboration across government will be critical to building an inclusive, interoperable and efficient digital ecosystem that benefits every Nigerian.

The Government Service Portal is expected to evolve into Nigeria’s central digital gateway for public services, making government services simpler, faster and more accessible for citizens and businesses alike.

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