Telecom

Removing Obstacles to Growth in Telecom

Published

16 years ago

March 15, 2010

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The liberalization of telecommunications industry in the country has no doubt brought about unimaginable growth in the country’s economy. Aside huge foreign direct investment the country has received through activities in the sector, the sector is today fueling growth in various other sectors, such as banking, where working hours are no longer impediment to an account holder having access to his or her bank account, provided the account holder has Automated Teller Machine (ATM) card. These ATMs located at bank premises and other strategic locations are powered through a communications link provided by telecommunications operators. More so, the industry has enhanced efficiency in transportation, manufacturing, education as well as health with words such as telemedicine.
Today, telecommunication sector is the most vibrant of all other sectors in the economy, the sector outside providing the much needed communications services has assisted in the upspring of other service delivery which has created employment opportunities for Nigerian. For instance, the telecommunications masts we see around are made up of different components such as steel structure, microwave equipment among others. The steel structure are not imported, they are constructed and erected by Nigerians. More so, we often times see on our television screen adverts that require people either to subscriber to value added services or vote as well as participate in a quiz by sending short message service to short code such as 37894, 56789 among others. These services are not mostly provided by telecommunications operators, but by independent content providers who earn their living through such service.
There are many other ancillary services being provided to telecom operators that assist them in providing service by Nigerian companies. We are not talking about several thousands of Nigerians who are earning their livelihood through the sale of telecom consumables such as recharge cards, Sim and mobile phone accessories.
Last year Engr. Ernest Ndukwe, executive vice chairman, Nigerian Communications Commission, puts foreign direct investment in the telecom sector at $12 billion. This is outside investment made by Nigerians in the sector. Investment in telecommunications in not a one-off thing, as technology changes which makes some equipment obsolete so will the operator continue to upgrade which is also part of investment. Presently, not every nooks and cranes of the country have been covered with telecommunications services which means that more investment is required to provide coverage to these areas. Just recently, Zain group said it plans an investment of $12 billion on network expansion in its African operation of which Nigeria is part of it. Glo 1 undersea cable landed last year, MainOne is expected to land this year as well as West African Cable System another submarine project being pioneered by a consortium led by MTN is also bid to land in the country. These and many more are ongoing investment in the country that should be allowed to deliver its benefits to Nigerians.
If all the expansion projects being embarked upon by telecom operators are prevented through unfriendly government policies the resultant effect will be that most communities will be cut off in the coverage of telecom services that will retard growth and development in the sector which is known today as the fastest in Africa.
Obstacle to Growth
Telecommunications operators over the past five years have been battling with enormous challenges in their effort to provide quality of service to their subscribers, such challenges include theft of generators as well as other equipment installed at base stations. The problem of theft of diesel and generators have continued unabated that operators are losing an average of three generators everyday, this prompted operators into considering options such as managed services where management of base stations are outsourced to other companies.
Other challenges are activities of miscreants who make stupendous financial demand on operators for citing base station in their area and when refueling their diesel tanks. The problem of multiple taxation by different government agencies have continued, operators are subjected into payment of unapproved taxes by both state and local governments who believed that telecommunications business is a goldmine from where they can beef up their internally generated revenue.
In all of these, the most worrisome is the latest ultimatum given to operators by National Environmental Standards and Regulations Enforcement Agency.
The agency gave operators in the country up to May 24 this year to submit comprehensive audit reports of their masts and base stations located in all corners of the country.
Dr Ngeri Benebo, director-general of Nesrea, said that because of the proliferation and indiscriminate installation of masts and base stations, compiling inventory and audit reports of mobile phone operators in the country has become very necessary in order for her Agency to be able to keep track of development in the telecom industry and ensure strict adherence to the laws guiding masts and base stations installation.
Dr. Benebo gave the ultimatum during a consultative meeting with the telecommunication operators.
"In this country, telecommunication operators have not deemed it necessary to adhere strictly to relevant laws and regulations guiding the operation of the telecommunication industries. Regrettably, more than five months after the first meeting with telecom operators in the country during which the honourable minister of environment enjoined key stakeholders in the industry to apply precautionary principles in their operations our headquarters and zonal offices have continued to be besieged with public complaints regarding the proliferation and indiscriminate citing of masts and base stations with their attendant environmental safety and health implications on the general public", she said.
While appreciating the immense contributions of the telecommunication industry to the growth of the nation’s economy, Benebo said that such contributions should not be allowed to impinge on the social and environmental wellbeing of the citizens, adding that her Agency must, at all time balance economic, social and environmental considerations in the quest for mobile telephony development.
"We are now set to play to the game by the rule. We owe Nigerians the duty to ensure a clean, healthy and safe environment. However, we owe the telecommunication operators coommittment and support to ensure a friendly and cordial regulations that govern operations".
The Nesrea boss said that the 3-month period was irreversible; adding that failure to comply within the stipulated timeframe would spell doom for any telecommunication operator.
It would be recalled that Dr. Benebo had last year expressed reservation over what she called indiscriminate erection of telecommunications mast in various communities in the country during a visit to Ernest Ndukwe, EVC in Abuja. She said operators should conduct Environmental Impact Assessment before installing their masts. According to her, EIA was necessary to ensure that the environment and human beings were not adversely affected by such installations.
She added that the agency had received complaint from some members of the public that such masts were within residential areas and urged the affected companies to take adequate measures to mitigate any negative impact.
The agency, she said will hold dialogue with stakeholders to educate them on the need to comply with the EIA requirement and that it will collaborate with NCC to address some of the environmental issues arising from the location of masts in residential areas. “The issue of location of masts has become a top priority for Nesrea because of the public outcry; we in the agency have decided that it should be a top issue to be discussed,” she said. It is the responsibility of the Nigerian government she noted to ensure that the environment is conducive for human habitation.
In response, Ndukwe dismissed speculations that emission radiation from base stations was injurious to the health of people living around them.
He added that it could not be to the best interest of the commission to allow industry operators endanger the lives of the Nigerian people in the process of carrying out their telecom business, noting that after all it is those people that will patronize the operators.
Ndukwe emphasized that for mobile technology to function effectively, operators must have base stations around the country, adding that what the commission has done was to set guidelines that must guide the erection of such towers and masts in order to create standard.
He pointed out that without base stations, there is no communications. Besides, some studies have shown that mainland Britian alone, has over 40,000 towers while Nigeria currently has about 20,000 base stations.
Ndukwe noted that, in the past, there had been all kinds of health concerns expressed about base stations especially those located in residential areas, and that those fears are baseless and all speculations. He explained that steel structure of a mast may look imposing and that it is only the small antenna at the top that has connection with radiation and that the output is very negligible compared to that of electric cable and television antenna.
In spite of these explanations one wonders what the agency is trying to achieve with the latest threat after the industry regulator has explained issues surrounding fears being expressed by people who are not well informed about the issue.
Industry watchers who spoke to Nigeria CommunicationsWeek are suspicious that the agency may be nursing the intention to collect tax from operators but could not come out as such demand is not backed by legislation, but turn around to use health implications as a threat requiring operators to seek impact assessment for all their projects.
They said seeking impact assessment of project that is already known the world over as not having any known health implications and with international standard as well as in line with NCC guideline is worrisome.
Government need to call its agencies to order when they are implementing policies that are detrimental to the growth and development of the economy, as the one Nesrea is about to implement which is capable of deterring operators in their current effort to expand their network coverage.

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Telecom

Why Econet Wireless is Switching to VFEX

Published

5 days ago

December 19, 2025

Ebere Melum-Nwogbo

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After nearly 30 years on the Zimbabwe Stock Exchange (ZSE), Econet Wireless, the country’s biggest technology company, is preparing to leave the bourse and move its property and infrastructure assets to the US dollar-based Victoria Falls Stock Exchange (VFEX).

Why Econet Wireless is Switching to VFEX

Econet plans to spin off its towers, property and power installations into a new company, Econet InfraCo, which will be listed on the VFEX. Its mobile network operator business will be delisted from the ZSE.

Econet believes the market has failed to properly value its business and its assets. At the time Econet first released a cautionary on December 3, its market capitalisation was the equivalent of US$628 million.

A rally over the past days has lifted it to a market capitalisation – the number of shares times the share price – to around US$1 billion.

“For the last several years, the company has traded at a significant discount to its peers across Africa which trade at 6 – 8x EV/EBITDA.

“These peers have all already separated and realised value from their tower infrastructure whereas the company still owns its tower and other passive infrastructure which the company has now housed under a separate infrastructure company to be listed on the Victoria Falls Stock Exchange,” Econet said.

Econet will keep 70% of Econet InfraCo, with up to 30% used to settle an offer to shareholders who do not wish to remain invested.

The company argues that infrastructure assets are better suited to the VFEX, which trades in US dollars and attracts investors familiar with property and long-term infrastructure.

“Unlike the mobile network operator business in Zimbabwe, infrastructure assets represent a different class of investment, one that is better understood and valued within USD-based property and infrastructure markets.

“This is demonstrated by the higher Price-to-Earnings multiples at which listed real estate and infrastructure companies trade on the VFEX,” the company said.

Econet dominates Zimbabwe’s mobile market, with 88% of voice traffic, 82% of data usage and 73% of all subscribers. It has built the largest portfolio of telecoms assets.

By the end of the second quarter, it had 234 5G sites, 1,700 LTE sites, 1,900 3G towers and 2,860 2G locations.

In the half-year to August alone, it added 27 new 2G–4G sites and 100 new 5G sites.

In addition to these locations, Econet also holds other properties and power assets, including solar installations, Tesla batteries and generators.

The move follows a well-established trend in Africa.

MTN and Airtel Africa sold towers in Nigeria, Ghana, Uganda and Kenya to independent operators like IHS Towers and Helios Towers. Vodacom, Orange and Telkom South Africa have also carved out tower units through sale-and-leaseback deals.

Credit: Newsday

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Telecom

Qualcomm Completes Third Edition of Make in Africa Startup Mentorship Program

Published

6 days ago

December 18, 2025

Chike Onwuegbuchi

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Qualcomm Technologies Inc. has announced the successful completion of its third annual Make in Africa (QMIA) Startup Mentorship Program, marked by the virtual Make in Africa Finale 2025. The initiative underscores Qualcomm’s long-term commitment to fostering Africa’s vibrant innovation ecosystem through the broader Qualcomm Africa Innovation Platform.

Highlights:

The 2025 Qualcomm Make in Africa program supported ten innovative startups from Kenya, Tunisia, Nigeria, Benin and Senegal, each addressing local challenges by developing tech-enabled solutions across critical sectors such as healthcare, sustainable agriculture, climate resilience and mobility.
This year, the program attracted more than 400 applications from 19 countries, showcasing remarkable talent across the continent.
Farmer Lifeline, of Kenya, was announced as the 2025 Wireless Reach Social Impact Fund winner, recognizing its impactful use of wireless technology.
Applications for Qualcomm Make in Africa 2026 are now open. Applicants can visit the Qualcomm website to apply.

As a flagship initiative of Qualcomm, the equity-free program shines a spotlight on the creativity and drive of African founders leveraging advanced technologies such as AI, 4G/5G, robotics, connectivity and IoT to address pressing real-world challenges.

Now in its third year, the program remains steadfast in its mission to accelerate early-stage technology startups by providing tailored mentorship, targeted business coaching, expert engineering consultation and comprehensive intellectual property protection guidance – exemplified by resources such as Qualcomm’s L2Pro Africa training. This holistic support empowers founders to transform their visionary ideas into sustainable, market-ready solutions.

“This year’s cohort has demonstrated incredible ingenuity, transforming complex challenges into scalable, tech-driven solutions that will drive social and economic impact across the continent,” said Elizabeth Migwalla, Vice President International Government Affairs, Qualcomm Incorporated.

“Innovation is the driving force behind Africa’s future, and this year’s startups are a brilliant demonstration of that. The African Telecommunications Union (ATU) is proud to partner with Qualcomm for the Make in Africa 2025 program,” said John Omo, Secretary General of the ATU. “We are working to harmonize spectrum management policies, regional standards, and open data practices, but we know that true progress relies on large-scale support. That’s why we call on governments, universities, investors, and industry to support these initiatives – and any endeavor that places African ingenuity at the forefront.”

The 2025 cohort includes the following groundbreaking startups:

Aframend (Nigeria): Uses AI to explore African medicinal plants for new drug discovery and aims to turn local remedies into safe, affordable treatments for diseases.
AmalXR (Tunisia): Offers AI-powered virtual rehabilitation sessions on everyday devices, enabling easy patient and clinician progress tracking.
Archeos (Benin): Automates fish farming with solar-powered sensors and feeders, providing real-time data on water quality and feeding levels for improved fish health.
ClimatrixAI (Nigeria): Installs connected weather and flood stations with an AI platform to forecast street-by-street risk, enhancing early warnings and disaster response for local communities.
Ecobees (Tunisia): Builds smart hive monitors and a digital platform for real-time insights into beehive-health, to protect bees and crops that depend on them.
Edulytics (Senegal): Applies AI on handheld ultrasound devices for early detection of liver disease, aiming to make this special screening widely accessible.
Farmer Lifeline (Kenya): Deploys small, solar-powered devices that scan fields for pests and diseases and send alerts straight to farmers’ phones to protect crops.
Pollen Patrollers (Kenya): A women-led agritech startup using connected hive technology and AI to keep bee colonies healthy.
Solar Freeze (Kenya): Provides solar-powered cold rooms with remote monitoring enabling farmers to keep fruits and vegetables fresh and increase earnings.
Pixii Motors (Tunisia): Designs electric scooters with smart batteries that can be swapped in and out at local stations, aiming to revolutionize urban mobility.

Wireless Reach Social Impact Fund Winner

Kenyan innovator, Farmer Lifeline, was announced as the winner of the 2025 Wireless Reach Social Impact Fund. The fund, sponsored by Qualcomm® Wireless Reach™ Initiative, champions the innovative use of wireless connectivity to address pressing community. As the winner, Farmer Lifeline will receive dedicated funding and tailored technical support to scale its groundbreaking solution.

“Farmer Lifeline stood out with its innovative small solar-powered devices that scan fields to detect pests and diseases. This technology enables local farmers to effectively protect their crops, significantly increase yields, and improve food security”, stated Erica Ciaraldi, Vice President, Wireless Reach, Qualcomm Incorporated.

“Their visionary approach and dedication to agricultural resilience have positioned them as leaders in their field. They are driving meaningful change for smallholder farmers and inspiring others across the continent. This fund will empower them to scale their impact further, enabling broader reach and deeper influence across Africa and the world.”

In recognition of the groundbreaking innovations demonstrated by all finalists, each will receive stipends designed to accelerate their growth, support strategic development and safeguard their intellectual property. This comprehensive support underscores Qualcomm’s commitment to fostering innovation and ensuring these visionary projects can thrive sustainably.

Looking ahead: Launch of Qualcomm Make in Africa Startup Mentorship Program 2026

Building on the significant success of previous years, Qualcomm is excited to launch the fourth year of the program in 2026.

Applications for the 2026 Qualcomm Make in Africa cohort can be found at the Qualcomm website.

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Telecom

Fynd Expands Global Footprint, Adds Africa With Surtee Group Partnership

Published

6 days ago

December 18, 2025

Ugo Onwuaso

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Fynd, an AI-native retail technology platform backed by Reliance Retail Ventures Limited, today announced its official expansion into South Africa, onboarding Surtee Group – one of the region’s most established luxury and fashion retailers – as its first strategic customer in the market. This milestone marks a pivotal moment for African retail, as legacy brands begin embracing digital transformation to meet the demands of a rapidly evolving consumer landscape.

Fynd

Fynd’s entry into Africa reflects its commitment to enabling digital transformation in high-growth retail markets worldwide. The move also comes at a turning point when South Africa’s e-commerce sector is projected to exceed R130 billion ($7.48 billion) in 2025, capturing nearly 10% of total retail sales – a fourfold increase since 2020.

According to Statista, South Africa is expected to have 11.7 million e-commerce users in 2025, with projections reaching 21.5 million by 2029. This growth is being driven by rising internet penetration, mobile-first shopping behaviour, and increasing trust in digital platforms. To meet rising consumer expectations, businesses are investing in AI and unified commerce platforms. Fynd’s scalable, AI-native stack is built to support this shift, enabling agility, personalisation, and operational efficiency.

“South Africa’s retail landscape is evolving fast,” said Ronak Modi, Chief Business Officer – Global at Fynd. “Consumers expect seamless, personalised experiences across every channel, and retailers need agile, intelligent infrastructure to keep up. Our platform is built to unify disconnected systems, speed up fulfilment, and elevate customer engagement; all without adding operational complexity.”

“South Africa is an exciting addition to our global footprint. The market is digitally ambitious, brand-forward, and ready for intelligent commerce infrastructure. Our goal is to help local retailers unify siloed systems, personalise engagement, and accelerate fulfilment without adding complexity.”

Surtee Group operates 94 boutiques and 2 e-commerce sites, comprising the multi-branded stores Levisons and the mono-brand boutiques, namely, Giorgio Armani, Michael Kors, Lacoste, Hugo Boss, VERSACE, TOD’S, Salvatore Ferragamo, Versace Jeans Couture, Emporio Armani, Burberry, Jimmy Choo, Luminance, Paul Smith, Coach, and Armani Exchange. They will implement Fynd’s unified commerce stack, including Storefronts, Order Management System (OMS), Warehouse Management System (WMS), and Clienteling tools to connect in-store and online operations, streamline inventory visibility, and launch brand-specific ecommerce storefronts across its brand portfolio.

While online retail continues to surge, offline sales still represent the vast majority of revenue for retailers in the country. Fynd will enable Surtee Group to unify its offline inventory online, power ship-from-store capabilities, and improve both margins and sell-throughs. Additionally, products like Clienteling will empower in-store teams to engage customers better and drive incremental sales through personalised recommendations and seamless omnichannel experiences.

Fynd’s entry into the market is designed to meet this demand. Its AI-native platform enables real-time stock visibility, ship-from-store capabilities, dark store orchestration, and intelligent customer engagement all within a single scalable solution.

As part of its digital transformation roadmap, Surtee Group aims to consolidate its leadership in luxury and fashion retail while expanding into e-commerce and improving omnichannel agility.

“We were looking for a partner who understood both the technical and strategic dimensions of unified commerce,” said a Surtee Group spokesperson. “Fynd stood out for their proven scalability, consultative approach, and deep experience with global fashion brands, many of which align with our portfolio. Their unified stack enables us to modernise operations while building a connected, brand-first customer experience.”

Fynd has already scaled across India, the GCC, and Southeast Asia, and now adds Africa to its regional presence. With Surtee Group leading the transformation, Fynd is positioned to play a key role in powering unified commerce adoption across South Africa’s growing digital economy.

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