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Buhari to Query Secret Sale of Over $1Bn Telecom Spectrums

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Incoming government of Muhammadu Buhari is to focus his searchlight on the circumstances surrounding the secret sale of Digital Dividend Spectrum (DDS) licences valued at over $1 billion in the last few months by President Goodluck Jonathan, according to the Leadership Newspaper.

According to the Leadership Newspaper, the licensing did not pass through the normal bidding process, thereby preventing the NCC, the statutory body, from advertising and supervising a public auction.

Already, one of the terms of reference handed to the Alhaji Ahmed Joda-led transition committee last week was to provide a brief overview of the goings-on at the Nigerian Communications Commission (NCC), among other key government agencies, and provide quick-fixes within 30 days, 100 days and six months for the Buhari-led government.

According to an exclusive report published this week by online newspaper, Technology Times, ahead of the 2015 general elections, President Jonathan secretly sold two spectrums in the 800MH and 700MH to the chairman of Visafone, Mr Jim Ovia, and Otunba Mike Adenuga’s Globacom respectively without recourse to public auction.

Digital Dividend Spectrum allocation takes effect from 2015, in line with the dictate of the International Telecommunications Union (ITU) that television stations migrate from analogue to digital broadcasting from June 17, 2015.

DDS is released when television broadcasters switch from analog platforms to digital-only platforms; part of the electromagnetic spectrum that has been used for broadcasting will be freed up because digital TV needs fewer spectrums than analog television.

Already, the NCC is enmeshed in fresh crisis following the illegal and secret sale of a spectrum belonging to Nigerian Police to Open Skys Ltd as well as the secret sale of another spectrum to South African investors behind Smile Communications Ltd, one of the fourth generation network operators in the country.

According to the Leadership Newspaper, when contacted, the NCC director of public affairs, Mr Tony Ojobo, said he could not comment on the matter.

“I don’t have any information on it,” he said.

However, a top official of the Commission said the spectrum allocation followed a directive from the president.

“If the president orders you to allocate a certain spectrum, who are you not to obey?” he asked. “The directive came from the president and even the minister of communications technology cannot disobey it.

“Under normal circumstances, for NCC to sell a spectrum it should be by auction. But this is a directive from above.

Another source said the deal was done under the table on the expectation that the president would win his re-election.

He said NCC collaborated with the National Broadcasting Commission (NBC) on the belief that the proceeds of the sale of the spectrum licences would be deployed to fund the purchase of set-top boxes that would be used by Nigerians should the digital switchover take place on June 17, 2015.

The NBC has now shifted the switchover date to December 2017.

Calls to the spokesman of Globacom were not answered at the time of going to press.

Digital Dividend Spectrum is seen as a potential cash cow by telecom companies globally as it is used to deploy few base stations that provide voice, video and data communications at the highest broadband speeds.

A top telecom expert said the market had been bastardised, systematically distorted and disrupted whilst the investors are left guessing about the value of their investments.

“The president lacks the power under the law to make spectrum allocation,” he asserted. “The president can make policy, in the way provided for by the law, and ensure that those he appoints follow such public policy. Regulators are created around the world in order to protect players in the market, i.e. protect consumers of service, protect investors/operators and deliver government policy.

“The regulators are deliberately designed to be independent so that there is no political interference in their functions. The president or the minister is not to interfere with the functions of the regulator; in fact, section 25(2) of the NCC Act prohibits minister and, by extension the president, from interfering in NCC functions, and requires the minister and by extension president to ensure that NCC functions are independent of any political interference.”

According to the Leadership Newspaper, Dr Bashir Gwandu, a former executive commissioner at NCC, gave an interview in February 2012 highlighting what they had achieved at the ITU World Radio Communication Conference 2012 which led to the securing of additional 70MHz paired spectrum and 25MHz unpaired in the bands 700/850MHz, which span 700MHz, 800MHz and 900MHz Bands from the ITU .

It was the same spectrum whose allocation was secured by Dr Gwandu and his African team from the UN body that is in the spotlight again. In fact, it was the resistance of Gwandu to underselling, without competition, of part of the 800MHz and 450MHz that eventually led to his sack by President Jonathan.

Gwandu’s sack has since been declared illegal in the National Industrial Court ruling on Dr Bashir Gwandu v President, FRN (Jonathan) on January 21, 2014 where N100 million damages were awarded to Gwandu.

Of the three bands, the 800MHz, which had already been sold in controversial circumstances, was the one for which Gwandu was suppressed for attempting to blow the whistle.

He stood against the under-selling of a 10MHz slot in the 800MHz spectrum band to a South African company called Smile Communications Ltd at about €13 million only, when the exact equivalent spectrums were sold in Germany, Italy, France and UK for €1.153 billion, €992 million, €891 million and €631 million respectively, the UK earning slightly lower amount due to imposed strict coverage obligations.

In a related development, Belgium, a country of just 11 million people, raised €120million for each of the three slots of the 800MHz spectrum, generating a revenue of €360million.

And in a rather complicated mixture of 4G Spectrum slots, the Netherlands was only recently able to raise €3.8 billion from the 4G auction. So, each of the 10MHz paired spectrum slots in the 800MHz bands secured over a billion dollars for some countries in Europe.

The spectrum that was secured by Gwandu, totalling 70MHz duplex and 25MHz simplex, was 30MHz Duplex in the 700MHz band, 30MHz Duplex in the 800MHz band, 10MHz Duplex in the 900MHz band as well as 25MHz in the 700MHz simplex.

In particular, the specific bands are 703-733/758-788MHz, 791-721/832-862MHz, 880-890/925-935MHz, as well as 733-758MHz Simplex.

According to experts, each of the seven slots of 10MHz will fetch no less than $1billion in Germany for example.


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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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