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Technological Changes and Telecom Access Issues

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One major challenge in telecommunications development in countries especially, those referred to as third world is providing telecommunications access to semi urban cities as well as rural areas.
To most operators in these countries, providing access to people living in those areas is not always a priority, basically because they are not commercially viable. Operators of telecommunications services are in the business to make profit and therefore could not afford to spend investors’ money on projects that does not have return on investment such as providing services to rural underserved areas.
In most developing economies, efforts at increasing access to people living in rural but underserved areas are pioneered by government through its agency saddled with the responsibility of regulating the sector. What the authorities does is to grant operators incentives that motivate them to expand their operations to those commercially none viable areas.
Over the years, telecommunications sector like any other sector in the economy are witnessing technological changes each time there is a new technology operators invest money in upgrading its equipment to the new technology.
Unfortunately, most of the new technologies instead of assisting operators in their effort to increase access to less developed areas through making the cost of providing services to such areas cheaper, concentrate more on service efficiency and network capacity to deliver several services.
More so, as these happens it increase cost of acquisition of hardware equipment required to access such service. For instance, when Global System for Mobile communications (GSM) operators upgraded their network from 2.5 Generation to third generation which allows subscribers to use voice, data and video simultaneously, the cost of handset that makes this possible were nowhere near average Nigerian.
Overview of technological changes
Although, Nigeria started late in the business of telecommunications, it has witness some technological upgrade by operators in the industry, all geared towards improvement of service delivery but none that seek to address access concerns to rural areas as well as making such service within the reach of a common man.
The first set of GSM operators that launched services after the industry was liberalized in 2001 used second generation technology to deliver services. Second generation 2G cellular telecom networks were commercially launched on the GSM standard in Finland in 1991. Three primary benefits of 2G networks over their predecessors were that phone conversations were digitally encrypted, 2G systems were significantly more efficient on the spectrum allowing for far greater mobile phone penetration levels; and 2G introduced data services for mobile, starting with SMS text messages.
After 2G was launched, the previous mobile telephone systems were retrospectively dubbed 1G. While radio signals on 1G networks are analog, and on 2G networks are digital, both systems use digital signaling to connect the radio towers (which listen to the handsets) to the rest of the telephone system.
According experts, digital systems were embraced by consumers for several reasons, which included, the lower powered radio signals require less battery power, so phones last much longer between charges, and batteries can be smaller.
The digital voice encoding allowed digital error checking which could increase sound quality by increasing dynamic range and lowering the noise floor.
The lower power emissions helped address health concerns. Going all-digital allowed for the introduction of digital data services, such as SMS and email. With analog systems it was possible to have two or more "cloned" handsets that had the same phone number.
A key digital advantage not often mentioned is that digital cellular calls are much harder to eavesdrop on by use of radio scanners. While the security algorithms used have proved not to be as secure as initially advertised, 2G phones are immensely more private than 1G phones, which have no protection against eavesdropping.
However, its shortcoming includes in less populous areas, the weaker digital signal may not be sufficient to reach a cell tower. This tends to be a particular problem on 2G systems deployed on higher frequencies, but is mostly not a problem on 2G systems deployed on lower frequencies. National regulations differ greatly among countries which dictate where 2G can be deployed.
Analog has a smooth decay curve, digital a jagged steppy one. This can be both an advantage and a disadvantage. Under good conditions, digital will sound better. Under slightly worse conditions, analog will experience static, while digital has occasional dropouts. As conditions worsen, though, digital will start to completely fail, by dropping calls or being unintelligible, while analog slowly gets worse, generally holding a call longer and allowing at least a few words to get through.
While digital calls tend to be free of static and background noise, the lossy compression used by the codecs takes a toll; the range of sound that they convey is reduced. You’ll hear less of the tonality of someone’s voice talking on a digital cellphone, but you will hear it more clearly.
2.5G is a stepping stone between 2G and 3G cellular wireless technologies. The term "second and a half generation" is used to describe 2G-systems that have implemented a packet switched domain in addition to the circuit switched domain. It does not necessarily provide faster services because bundling of timeslots is used for circuit switched data services (HSCSD) as well.
International Mobile Telecommunications-2000 (IMT-2000), better known as 3G or 3rd Generation, is a family of standards for mobile telecommunications defined by the International Telecommunication Union, which includes GSM EDGE, UMTS, and CDMA2000 as well as Dect and WiMax. Services include wide-area wireless voice telephone, video calls, and wireless data, all in a mobile environment. Compared to 2G and 2.5G services, 3G allows simultaneous use of speech and data services and higher data rates (up to 14.0 Mbit/s on the downlink and 5.8 Mbit/s on the uplink with HSPA+). Thus, 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency.
4G refers to the fourth generation of cellular wireless standards. It is a successor to 3G and 2G standards, with the aim to provide a wide range of data rates up to ultra-broadband (gigabit-speed) Internet access to mobile as well as stationary users. Although 4G is a broad term that has had several different and more vague definitions, this article uses 4G to refer to IMT Advanced (International Mobile Telecommunications Advanced), as defined by ITU-R.
A 4G cellular system must have target peak data rates of up to approximately 100 Mbit/s for high mobility such as mobile access and up to approximately 1 Gbit/s for low mobility such as nomadic/local wireless access, according to the ITU requirements. Scalable bandwidths up to at least 40 MHz should be provided. A 4G system is expected to provide a comprehensive and secure all-IP based solution where facilities such as IP telephony, ultra-broadband Internet access, gaming services and HDTV streamed multimedia may be provided to users.
LTE Advanced (Long-term-evolution Advanced) is a candidate for IMT-Advanced standard, formally submitted by the 3GPP organization to ITU-T in the fall 2009, and expected to be released in 2011. The target of 3GPP LTE Advanced is to reach and surpass the ITU requirements. LTE Advanced should be compatible with first release LTE equipment, and should share frequency bands with first release LTE.
The Mobile WiMAX (IEEE 802.16e-2005) mobile wireless broadband access (MWBA) standard is sometimes branded 4G, and offers peak data rates of 128 Mbit/s downlink and 56 Mbit/s uplink over 20 MHz wide channels. The IEEE 802.16m evolution of 802.16e is under development, with the objective to fulfill the IMT-Advanced criteria of 1000 Mbit/s for stationary reception and 100 Mbit/s for mobile reception.
UMB (Ultra Mobile Broadband) was the brand name for a discontinued 4G project within the 3GPP2 standardization group to improve the CDMA2000 mobile phone standard for next generation applications and requirements.
Engr. Bayo Banjo, general manager, Disc Communications, said that technological advancement in telecommunications are products of research carried out by especially equipment vendors, and that these vendors invest in research and development with the idea of making profits from the sale of products of such research.
He added that the guiding principle is demand of the product which often time has a global outlook and such would not want to invest in product whose demand is low. He explained that why technological advancements in telecommunications industry are not looking at a way of making equipments for network roll out that will be cheaper and may not require some basic infrastructure is because such equipment vendors are using their home countries which has such infrastructure as basis for producing any product.
He regretted the situation in the country where 60 per cent of telecommunications activities are centred around cities like Lagos, Abuja and Port Harcourt because government has failed in its effort to provide adequate infrastructure such as electric to the citizens there by forcing operators to concentrate in the cities where residents can provide generators to use their telecommunications equipment required to enjoy telecommunications services.
He noted that presently, telecommunications equipments for network roll out are getting cheaper as a result of economic meltdown and emergence of Asian vendors such as Huawei.

 

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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MTN Moves Closer to Full IHS Takeover

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MTN Group has moved a step closer to taking full ownership of telecommunications tower operator IHS Towers, after shareholders of the infrastructure company approved the proposed acquisition at an extraordinary general meeting (EGM).

The telecommunications group announced that IHS shareholders voted in favour of the transaction by the required two-thirds majority at the EGM held on 4 August, satisfying one of the key conditions precedent to the deal.

MTN first announced in February that it had entered into an agreement to acquire the remaining shares in IHS, a move that would give the mobile operator full ownership of one of Africa’s largest independent tower companies.

The acquisition forms part of MTN’s Ambition 2030 strategy, which aims to strengthen the group’s digital infrastructure capabilities and diversify revenue streams as demand for connectivity, cloud services and artificial intelligence (AI) continues to grow across the continent.

“The approval by IHS shareholders is an important step toward completion of the transaction,” says Ralph Mupita, MTN Group president and CEO.

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“Within our Ambition 2030, the three-platform strategy, towers are a critical value-creation driver that will strengthen MTN’s strategic and financial position for the future, in a world where digital infrastructure and AI are becoming increasingly essential to Africa’s growth and development.”

Tower infrastructure has become increasingly strategic for mobile network operators as demand for high-speed mobile broadband, cloud computing and AI-powered services drives the need for expanded and more efficient network capacity.

The proposed acquisition is expected to strengthen MTN’s position as it continues expanding its digital ecosystem across Africa, where it serves more than 300 million subscribers.

IHS is one of the world’s largest tower companies, with nearly 29 000 towers in Africa serving various mobile network operators in five key MTN markets.

According to the mobile operator, the proposed transaction, which follows discussions noted in February, marks an important step to unlock compelling value for MTN, and strengthen and reintegrate its ownership of critical digital infrastructure across Africa.

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For IHS shareholders, MTN notes, it provides an attractive opportunity to crystalise value.

The funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of $2.2 billion (R35 billion), will be through cash of approximately $1.1 billion on IHS’s balance sheet, along with available liquidity and debt from MTN.

MTN has approximately 24.7% shareholding in IHS, and as part of the transaction, it intends to take the company private through the acquisition of all outstanding shares it does not own, pursuant to a cash merger.

By reintegrating the tower assets, MTN says it will be able to internalise the margin currently paid to IHS, benefit from current and future incremental third-party revenues, improve cost predictability and unlock significant long-term value embedded in its existing investment.

The transaction remains subject to the receipt of the necessary regulatory approvals, which MTN says are still in progress. No timeline has been provided for the completion of the acquisition.

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Airtel Nigeria Unveils Hundreds of Retail Shops in Wide Expansion of Customer Touch Points

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Telecommunications services provider Airtel Nigeria has further extended its national retail footprint with the rollout of 350 out of a planned 500 premium experience centres, which are designed to bring faster, more convenient service closer to millions of Nigerians.

The new retail shops, officially unveiled at a symbolic launch at City Mall, Onikan, Lagos, mark the latest phase in Airtel Nigeria’s grand retail strategy. They significantly expand the company’s extensive network of over 9,000 exclusive shops across every local government area, more than 350 premium experience centres, and over 73,000 retailers in all top towns and cities nationwide.

Built as compact, high-efficiency touchpoints, the newly launched shops are designed to enable subscribers complete all transactions such as Home Broadband, Fiber and Outdoor Units Subscription, Postpaid Plan Subscription, Enterprise Applications Enquiry and Subscription, as well as Prepaid Product services such as SIM registration and Data Plan purchase, other enquiries and comprehensive account support.

Simultaneously, several shops commenced operations at Purple Mall, Lekki; Marina, Lagos Island; Magodo, Lagos; Oke-Ilewo, Abeokuta; Trend Setter Mall, Benin; Abakaliki, Ebonyi State; Kano City Mall, Kano; Carpenters Mall, Gwarinpa, Abuja; and other parts of the country.

The rollout emphasises the company’s continued investment in customer experience and responds directly to feedback from customers seeking quicker access to everyday services without the longer waiting times that may be associated with larger retail centres.

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Speaking on the company retail objectives, Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, explained that quality retail experience ultimately drives customer satisfaction. “Our goal is to demonstrate our dedication to exceptional quality of service, and these new shops, by their design, location, and equipment fit right within our goal to deliver superior service to every one of our customers,” he said.

He added that the expansion reflects Airtel Nigeria’s belief that excellent customer experience goes beyond technology to ensuring customers can receive support whenever and wherever they need it.

“Our business at Airtel is to ensure that we bring our services closer to our customers, and everything we do is centred on putting the customer first. These experience centres are open to help customers carry out their transactions faster and with greater ease. Whether you want to replace a SIM, purchase one of our routers, recharge airtime or data, or resolve any service issue, you can now do so more conveniently and closer to where you are,” he said.

He explained that the initiative represents a significant update to Airtel’s retail strategy, placing greater emphasis on accessibility, speed, and convenience.

“These express shops are designed to reduce traffic at our larger shops while giving customers faster access to the services they need. More importantly, they reinforce our vision of building the most accessible customer service network in Nigeria. As the telecom operator with the country’s largest retail footprint, we will continue expanding into more neighbourhoods, making it easier for customers to connect with Airtel wherever they are,” Sengupta noted.

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In her remarks at the launch, Lynda Amechi, Head, Shops and Retail Postpaid Business, revealed that the new retail model was born from listening to customers and reimagining how Airtel delivers its services.

She said, “At Airtel, some of our best ideas come directly from our customers. One of the recurring concerns we received was the time customers sometimes spent waiting at our larger experience centres, even when they only needed simple transactions completed. We listened carefully and realised that many of these requests could be resolved within minutes if we brought our services closer to the communities where customers live and work.”

These new shops are also integrated into Airtel Nigeria’s broader customer experience agenda, which have seen the company continue to invest in digital self-service platforms, AI-powered customer support, nationwide customer forums, and significant network expansion across the country.

With this phase of shop launches, Airtel Nigeria has expanded customer access across the country while integrating digital innovation into physical touchpoints.

 

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Dimension Data to Channel Funds to Support Nigerian Fibre Expansion

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Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.

Dimension Data to Channel Funds to Support Nigerian Fibre Expansion

This followed the successful subscription of the corporate bond.

Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).

This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.

The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.

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The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.

Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.

The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.

Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.

Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.

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As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.

 

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