Telecom
The Need for Speed
Data boom pressures operators to speed up deployment of new data centres – increased focus on turnkey prefabricated solutions
The seemingly insatiable demand by users for more data has taken many players in the African telecom and communications sector by surprise.
To keep up with demand, new infrastructure is often needed and particularly data centres – the heart and brain of any network.
With speed to operations being essential, prefabricated and modular data centres that can be deployed in mere days have become all the rage. Peter Karaszi , telecoms expert explains.
Global mobile data traffic grew 81 percent in 2013, according to a recent report by Cisco (Global Mobile Data Traffic Forecast Update).
Last year’s mobile data traffic was nearly 18 times the size of the entire global Internet in 2000. Smartphones and tablets are driving this traffic explosion.
A typical smartphone generates 48 times more mobile data traffic than a basic-feature cell phone.
Not surprisingly, traffic growth was strongest in Africa and the Middle East, up 107 per cent. Despite high costs for data traffic, consumers on the mother continent are snapping up smartphones and rapidly building an addiction to being online everywhere, all the time.
And it is not slowing down anytime soon: global mobile data traffic is expected to increase nearly 11-fold between 2013 and 2018, growing at a compound annual growth rate of 61 per cent.
Again, Africa is outpacing the rest of the world with an expected annual growth of 70 per cent.
So where does this leave mobile operators, scrambling to benefit from this data boom?
To cope with the increasing traffic, telecom infrastructure is key. And that often means investing in new infrastructure, and better infrastructure.
There are many ways to improve efficiency in every part of the network, from smarter OSS solutions to ultra-high efficiency antennas.
Let us take a look at maybe the most important link in the chain: the data centre. High quality, efficient data centres are essential.
They house and power all the equipment needed for transmission of data and are both the heart and brain of any network.
Telecoms operators and other IT players often have long lists of reasons for planning for a new data centre, but the increasing data demand by customers is the most common reason.
They have quite simply run out of space in their existing facilities and urgently need to expand to meet current demand (and let alone future demand).
Lack of capacity is no option. It would be like telling all existing and future customers to get lost and rather turn to a competitor. It would seriously hurt the brand and the bottom line.
Data and switching equipment is relatively easy and quick to order. The data centre building itself is trickier.
In Africa, it can take over a year to plan, co-ordinate (with different suppliers) and construct a new data centre facility.
There are often delays and budget over-runs. Buildings for data centres are often not purpose built to be used as technical facilities and often have water leaks and other problems.
So mobile operators, hosted data providers, internet service providers and others are increasingly choosing turnkey prefabricated data centres instead of brick and mortar solutions.
They are much quicker to deploy, which saves time and money, and will always be the “right” size since their modular structure make them easy to quickly expand in response to changing needs.
Roof top data centre installation in just eight days
Vodacom Mozambique’s deployment of a prefabricated data centre (Flexenclosure’s eCentre) on top of a six-storey building in central Maputo is one excellent example of the need for speed when installing a new data centre.
The 126 square meter data centre building was manufactured in Sweden, shipped to Maputo and installed in just eight days!
Benefits to the client were a guaranteed product (versus an uncertain project), a guaranteed budget and guaranteed delivery on time.
This would have been very difficult, if not impossible, to achieve with a traditional brick and mortar structure.
A second reason for mobile operators needing a new data centre speedily is when there has been a data centre-related incident of some kind, which needs a very quick fix.
In August 2013, a battery-related fire damaged Vodacom Tanzania’s energy centre in Dar es-Salaam, resulting in a serious (and very public) disruption to its network services.
This time the eCentre was chosen to replace the old energy centre. It included separated A and B sides and separated batteries, increasing redundancy and security and thus minimising the risk of any impact on business continuity in case of another accident.
Prefabricated data centres are not constructed on site but rather in a clean environment far away from the deployment location.
All engineering expertise is already there and the systems can be thoroughly tested before shipment.
Energy efficiency is also becoming more important, especially in Africa where energy supplies are generally unreliable and the cost of power is constantly rising.
A modern prefabricated modular data centre uses the most appropriate and efficient cooling solutions available. For example, indirect free air cooling can provide up to 70 percent electricity savings.
A smart infrastructure management system can monitor energy efficiency remotely and optimise power usage. In all, this leads to significant reductions in energy consumption and cost.
In conclusion, experience on the ground has given the industry strong incentives to choose turnkey modular data centres over traditional builds.
In the long run, this is very good news for both end consumers and suppliers of sought-after data to keep the smartphones ticking and beeping.
The very strong trend in favour of custom-designed prefabricated data centres is set to continue.
Peter Karaszi is a communications expert in intelligent telecom solutions based in Cape Town, South Africa. He has over 30 years of experience from the telecom and IT industry, including at C-level positions and boards of global technology corporations. He has written six books and numerous articles.
The need for Nigeria to think outside the box in its need to drive towards global relevance with innovations and scientific developments will be on the front burner at the NITRA Innovative & Scientific Conference scheduled to hold on Thursday July 23, 2026 in Ikeja, Lagos.
NITRA
The Nigerian Communications Commission (NCC) will lead other delegates to discuss and take far-reaching decisions at the event, which has its theme as “Bridging Nigeria’s Digital Divide With Scientific Innovation”.
Other companies that have indicated interest in partnering with NITRA include mobile communications company, Tecno; Africa’s premier end-to-end AI solutions company, Hyperspace; and telecommunications data infrastructure company, Digital Realty.
Speaking on the proposed event, the Chairman, Nigeria Information Technology Reporters Association (NITRA), Chike Onwuegbuchi noted that the event will seek to create a platform for government and private organisations to deliberate on policies around scientific innovations in Nigeria, challenges, place of indigenous and foreign collaboration, roles of each stakeholder, and grassroots development in that regard, among others.
According to him: “The Federal government, with series of programmes and partnerships, has established the urgent need to create an ecosystem that thrives on scientific innovation, breeding institutions and individuals with a target of placing the country at the fore-front of Next-Gen development.
It is a known fact that digital and scientific innovations are crucial, not only to the survivability of a nation, but also to the sustainability of its growth and development, with significant effect on economic strength, global image, defense and security, government capabilities to function, and public health and safety, communication and digital footprint, among others.
The federal government is actively driving scientific innovation to foster economic diversification and build a $1 trillion economy by 2030. Efforts are heavily focused on commercializing research, establishing massive research funds, and funding strategic infrastructure, particularly in technology, biotechnology, and healthcare. Core government initiatives and policies include the newly instituted National Research and Innovation Development Fund (NRIDF), which aims to mobilize about $500 million annually to support research and the commercialization of scientific outputs; and the Nigeria Genomic City, a multi-ministerial initiative aimed at transforming Nigeria into a leading hub for genomics, precision medicine, and biotechnology. It is designed to protect indigenous data, stimulate artificial intelligence in health, and develop a highly skilled scientific workforce.
According to the General Secretary of NITRA, Mr. Chidiebere Nwankwo, the forum will also be a vehicle to propagating the views of decision makers to the public, thereby furthering the cause of public awareness and information dissemination on the topic.
The focus, he said will be on how Nigeria can sustain digital innovative growth and scientific development in Nigeria
The board of global payments company, PayPal, says a 53 billion dollars takeover offer from financial technology firm, Stripe, and private equity company, Advent International, does not adequately reflect the company’s long-term value.
PayPal
According to reports, the proposed acquisition, valued at 60.50 dollars per share, remains under consideration, with the board yet to formally respond to the offer.
The directors are said to be evaluating not only the financial value of the proposal but also the structure of the financing, the timeline for completing the transaction and the likelihood of obtaining regulatory approvals.
They are also considering the possibility of competing bids emerging.
Although the offer represents a premium of about 28 per cent above PayPal’s recent share price, the board believes the company could deliver greater value to shareholders if its ongoing turnaround strategy succeeds.
Following reports of the bid, PayPal shares gained about two per cent to close at 56.73 dollars.
Sources familiar with the discussions said Stripe and Advent have secured approximately 50 billion dollars in debt financing from JPMorgan and Morgan Stanley, while both firms would jointly contribute 17 billion dollars in equity.
Under the proposal, the two companies would jointly own PayPal instead of dividing its operations.
PayPal, Stripe, Advent International, JPMorgan and Morgan Stanley have all declined to comment on the proposed transaction.
The discussions come as PayPal seeks to strengthen its business after years of increasing competition from rivals including Apple Pay, Google Pay and emerging financial technology firms.
The company, which was valued at about 360 billion dollars in 2021, now has a market capitalisation of approximately 36 billion dollars.
Since assuming office as Chief Executive Officer in March 2026, Enrique Lores has embarked on a restructuring programme aimed at improving operational efficiency and restoring growth.
The restructuring includes the creation of three business divisions comprising Checkout, Venmo and Consumer Financial Services, and Payments and Crypto.
The company is also targeting 1.5 billion dollars in cost savings through the deployment of artificial intelligence technologies.
PayPal’s latest financial results indicated signs of recovery, with first-quarter revenue rising seven per cent year-on-year to 8.35 billion dollars, while total payment volume increased by eight per cent to 464 billion dollars.
If approved, the transaction would combine two of the world’s largest digital payments companies.
The combined business would process an estimated 3.7 trillion dollars in annual payment volume, significantly strengthening its position in the global online payments market.
However, analysts expect the proposed acquisition to face intense regulatory scrutiny because of the companies’ combined market share in merchant payment services.
To address possible antitrust concerns, the bidders have reportedly considered options, including separating PayPal’s Braintree business or other assets if required by regulators.
Sources said Stripe and Advent remain interested in pursuing the acquisition despite the board’s reservations, although negotiations are expected to continue.
Market observers are also awaiting PayPal’s earnings report scheduled for July 28 for further indications of the company’s financial recovery and future growth prospects.
Concerns over network reliability and its impact on Nigeria’s growing creator economy took centre stage at MTN Nigeria’s Data on Trial event, where content creator and streamer, Jarvis, challenged telecommunications operators to improve connectivity for digital creators.
Speaking during the event, Jarvis asked whether there were locations in Nigeria where uninterrupted internet connectivity could support real-life (IRL) streaming without network disruptions.
“Are there places where there is no breakage when streaming IRL?” she asked.
Her question highlighted the challenges faced by content creators who depend on stable internet services for live streaming, content uploads and real-time engagement with audiences.
Responding, MTN Nigeria’s Chief Technical Officer, Mr Yahaya Ibrahim, said network performance depends on several factors, including location, network coverage, device capability and the number of users connected to a particular base station.
He noted that operators continue to invest in expanding network capacity to meet the growing demand for data services.
Earlier, MTN’s General Manager, Network Performance and Quality Assurance, Mr Michael Ndukwe, explained the evolution of mobile network technology in Nigeria, from first-generation (1G) services to the current fifth-generation (5G) technology.
According to him, each phase of technological advancement has significantly increased network capacity and enabled new digital services.
Ndukwe cited Nigerian Communications Commission (NCC) data showing that Nigerians consumed about 13.2 million terabytes of data in 2025.
He added that data usage reached approximately 4.06 million terabytes in the first quarter of 2026, reflecting the country’s increasing reliance on digital platforms and online services.
According to him, the growth is being driven by wider adoption of 4G and 5G networks, increased smartphone penetration, the proliferation of smart devices and expanding use of social media platforms.
Participants at the event noted that as more Nigerians build businesses and careers around digital content, access to reliable and high-speed internet has become critical to sustaining the country’s digital economy and creator ecosystem.
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