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Funds, GSM Killing CDMA Operators Softly

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A number of Code Division Multiple Access operators (CDMA) offering fixed and mobile services have seen bad times and are no longer operating optimally, Nigeria CommunicationsWeek can now reveal.
Growing subscribers’ preference for Global System for Mobile Communications (GSM) services, limited access to funds for expansion and poor network coverage are some of the factors responsible for the state of affairs.
It is surprising that CDMA operators are not able to operate at the same footprints as the GSM operators despite their overwhelming advantages.
CDMA operators are able to charge lower on-net and off-net call charges than GSM operators, and have fewer subscribers and less strain on their networks, which means they can provide better service quality.
They also provide very cheap and partly subsidized mobile handsets that appeal to the low-end market, especially those who have never been able to afford a handset.
CDMA operators who spoke to Nigeria CommunicationsWeek however accused financial institutions of preferential lending to GSM which are known for quicker turnover.
But the financial institutions are quick to point at some of the CDMA operators’ histories of poor accounting and book keeping.
Elsewhere, some of the CDMA operators like Starcomms, ZoomMobile, Intercellular, and Multi Links Telkom which hold unified licenses are not able to roll out services because the spectrum to do so is a scarce resource.
A unified license gives an operator the freedom to offer mobile, fixed and any other telecommunications service to its subscribers and especially opportunity for the CDMAs to play in the lucrative GSM market.
Operators complained of inadequate cellular frequencies (GSM-900 and GSM-1800) designated for the operation of the GSM for mobile phones.
“The general impression is that with unified license we can do almost everything but in real terms, there is no spectrum, the ones available have all been used up. We are handicapped, if we have the frequency to do GSM, the story will be different.” a top official of one the CDMA operators said.
Nigeria CommunicationsWeek gathered that CDMA operators have also focused on the same products, services and consumers, the resultant competition has beaten down profits.
In all, the CDMA operators’ contribution to the telecom industry growth has also remained feverishly modest at just 7.3 million subscribers as at October, 2009.  Total mobile (GSM) subscription for the period was 63 million.
It was a disappointing growth compared to the promises it showed earlier when the number of mobile CDMA subscriptions grew from just 380,000 in 2007 to more than 6million at year-end 2008.
Nigeria CommunicationsWeek gathered that there are palpable fears that the operators may also be at the outskirts of the $11.14 billion revenue estimated for the telecom industry this year.
It is already beginning to show with the signs of distress in some CDMA operators.
Operators like RainbowNet, MTS, First Wireless, Disc Communications, Intercellular, Webcom, XS Broadband and Nitel have either by design or some strokes of ill lucks, remained in the back seat operating in fits and starts
For some forward looking operators, emphasis is gradually shifting from voice centric postures to data said to posses the potentials to turnaround their fortunes.
Operators like Starcomms, ZoomMobile, Visafone and Multi Links Telkom are all playing deep in the data arena which is helping them underpin the continuous encroachment of GSM into the subscriber bases and shore up revenues.
But increasingly, consolidation either by way of merger or acquisition looks very likely in the coming months as the operators pull resources and energy together to weather the harsh operating environment.

 

 


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Glo Urges Workers to Reflect on Furthering National Growth on May Day

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Telecommunications services provider, Globacom, has admonished Nigerian workers to reflect on more ways of contributing further to the growth of the country.

In a solidarity message on the occasion of the 2024 International Workers’ Day, the company noted that Nigerian workers were resilient in spite of the challenges they encounter in the course of discharging their duties.

The telecommunications giant further noted that the story of Nigeria cannot be adequately chronicled without acknowledging the immense contributions of workers, both in the public and private sectors.

The day is observed on May 1 yearly in recognition of the contributions of workers all over the world and to advance fairer and more sustainable future by advocating for workers’ rights.

“We salute Nigerian workers on this day and commend them for the hard work, commitment, resourcefulness and industry which are essential for the growth of the economy of any nation,” Globacom said.

 


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CWG Board of Directors Approves 400% Increase in Dividend Payout

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CWG Plc has announced a significant milestone in its commitment to delivering value to shareholders. Following a thorough review of the company’s financial performance and outlook, the Board of Directors has approved a substantial increase of 400per cent in dividend payout to shareholders.

This decision reflects CWG’s confidence in its financial stability, growth trajectory, and ability to generate sustainable returns. By enhancing the dividend payout, CWG aims to reward shareholders for their continued trust and support while reaffirming its commitment to creating long-term value.

Mr. Philip Obioha, Chairman of the Board of Directors at CWG Plc, said, “The decision to approve a 400% increase in dividend payout underscores our confidence in CWG’s performance and outlook. We are dedicated to delivering value to our shareholders and believe that this significant dividend increase is a testament to our commitment to shareholder value creation.”

This increase in dividend payout aligns with CWG’s strategic objectives to prioritize shareholder interests and maintain strong financial discipline. The Board remains committed to prudent financial management and sustainable growth, ensuring that CWG continues to be a reliable investment for shareholders.

As CWG continues to execute its growth strategy and expand its presence in the market, the Board anticipates that the increased dividend payout will further strengthen investor confidence and support CWG’s vision for the future.


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Prof. Aliyu, AI Practitioner to Keynote ABoICT 2024

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CommunicationsWeek Media Limited, a certified global ICT company with over two million online subscribers, is delighted and proud to announce Prof. Yakub Aliyu, as the keynote speaker at Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture series 2024.

 

Aliyu, will be speaking on the theme: Artificial Intelligence (AI): The Good, The Complex and The Anticipated”, this leans heavily on the fact that AI changing our lives– we just need to know where to look today.

This year’s rebranded Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture/Awards Series is slated for Saturday, May 25, 2024 at the Four Points by Sheraton, Lagos.

The event is the most prestigious annual event that brings together captains of industry in both technology and financial worlds.

According to Ken Nwogbo, CEO, Communication Week Media Ltd, organisers of the ABoICT Distinguished Lecture/Awards Series, “the choice of Prof. Yakub Aliyu is deliberate because of his exceptional career in Artificial Intelligence (AI)”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth,” he said.

A professor of microelectronics and a scholar-practitioner in artificial intelligence and deep machine learning for industrial applications and high-speed application processors. His research interests include Multimodal AI models for high-efficiency industrial robot applications and Human AI interactions.

He also has adjunct academic professorships at five African, USA, and UK universities. Holds a BS in Applied Physics Electronics from Karlsruhe and A Bello Universities in Germany and Nigeria, an MBA in International Business Management from the University of London, an MSEE (Master of Engineering, Electronics), and a Ph.D. in Electronics Engineering from the University of Wales.

Prof. Aliyu is the global quality director for Bourns Inc., Riverside, California, USA, an electronics system, and components manufacturer. I oversee quality functions in 21 factories worldwide.

He has also held quality and operational management leadership positions at National Semiconductors, Bell Labs-Lucent Technology, Texas Instrument, Global Foundries, and Roper Technologies USA.

Authored and coauthored over 30 Advanced Technology United States-issued patents in High-Speed Application Processors and Contributed to over 40 international impact Journals, chapters, and conferences; FASI, SMIEEE USA, MIEE UK, M. Inst pf Physics Chartered Phys and C Eng UK.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; Dr. Seyi Akindeind, co-founder, Digital Encode; Dr Krishnan Ranganath, Regional Director, Africa Data Centres.


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