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WTL White Paper Shows How to Profitably Connect Rural Areas

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World Telecom Labs, a Belgium-based company which has long been a leader in the provision of VoIP switches, Pre-Paid applications, and signalling gateways for emerging carriers and telecom service operators, in a white paper made available to Nigeria CommunicationsWeek revealed what it called “A simple business case for deploying rural mobile coverage”.

WTL noted that, while mobile penetration continues to grow in Sub-Saharan Africa and other emerging economic regions, the full potential to enable widespread coverage has yet to be realised.

According to leading industry group the GSMA, in 2013, mobile penetration reached a mere 31% of the population of the Sub-Saharan African (SSA) region1. Clearly, there is potential for huge and unprecedented growth.

WTL said that the economic benefits of mobile and internet connectivity are well known.

“Mobile connectivity makes a significant and growing contribution to GDP. Put simply, the more mobile connections there are, the greater the economic and social benefit.

“In the same report, the GSMA forecasts that the contribution of the mobile economy will contribute to around 8 percent of total GDP in SSA by 2020, rising from a figure of 6 percent in 2013. Despite this impact, there are concerns that coverage will fail to reach many populations in rural areas, with the result that they will be unlikely to realise the benefits of even the most basic services.

“Indeed, the GSMA has suggested that co-ordinated government intervention is necessary in order to ensure that its forecasts are met. Although it has predicted that 80 percent of the population of sub-Saharan Africa’s population will have access to a mobile device by 2020, the GSMA says this is unlikely to happen without a shift in government policies”.

According to the white paper, this applies both to device availability and to the allocation of sufficient spectrum to accommodate connectivity. Even if the forecasts are realistic, there will remain a significant proportion of the population that will be beyond the reach of both conventional networks and devices.

However, there are other approaches that can help drive this transformation and extend connectivity, with or without co-ordinated governmental action.

Hence the paper proposes a simple model that provides a clear opportunity for private and entrepreneurial investment that will both yield profitable returns and bring the social and economic benefits of connectivity to those that are currently disconnected.

WTL said that the Rural Opportunity For many good reasons, investments in mobile network coverage are typically made in urban areas

“It’s easier to deliver coverage and population density means more people can be included within range of a typical cellular network deployment. Extending the same solutions to remote rural areas has traditionally been costly and uneconomic.

“The marginal cost of connecting additional users beyond a certain percentage of coverage can rise dramatically. Alan Law, from the Small Cell Forum, uses research data to show that the cost of connecting additional users can rise significantly once 90 percent population coverage is reached.

“The business case for using traditional means to deliver mobile coverage to the most remote areas doesn’t exist. This means that many in rural areas will continue to be beyond the reach of mobile networks – and, despite the anticipated further investment in mobile coverage, many are likely to remain so”.

Yet, such populations represent significant untapped economic potential. The transformative benefits of mobile connectivity have been known for years, but it’s important to recognise that people do not expect these to be available for free.

Even though ARPU may be low, customers expect to pay for mobile services, which, in turn, means they can be willing to become customers – provided a connectivity solution can be delivered.

This creates an opportunity to capitalise on latent demand, if it can be done so at the right price point, profitably and with the right solution.

WTL identified what is needed is a means to deliver localised connectivity in rural areas that can be connected via cost-effective backhaul to core networks.

“Conventional mobile coverage does not cater for these situations and there is often little economic incentive for a licensed operator to extend coverage. However, with the right approach, a robust business case for such a localised solution can be created that will both generate returns for the provider as well as economic development for the users.

Delivering Rural Coverage
There are two key innovations that enable a positive business case and hence profitable business to be realised.

“First, the rise of small cells, originally seen as solutions to enable more efficient urban coverage, has created a cost effective and powerful range of solutions that can equally be applied to rural areas at a lower price point than traditional macro cellular radio access points. Second, the link between the local coverage area and the transit network is known as the backhaul. If this relies on fixed or physical infrastructure, it may be prohibitively expensive.

Alternative solutions, such as Line of Sight (LoS) coverage may not be possible
However, recent developments in satellite connectivity render this both an affordable as well as efficient means of providing long-range backhaul to interconnect with other networks. The unique combination of both small cell micro cellular radio access solutions and a means to cost-effectively implement IP backhaul via satellite links allows providers to reduce costs and create a positive business case for connecting remote rural regions that are beyond the reach of traditional solutions.

Vivada
According to the experts at WTL, the combination of small cells with satellite backhaul enables a localised network to be created that delivers connectivity and coverage within the context of a village.

This micro cellular approach can be connected via IP backhaul to a transit network for access to external networks.

It is a partnership between a rural connectivity provider, that is responsible for the installation and delivery of the network, and a locally-based entrepreneur who retails the available services to users in the locality.

World Telecom Labs (or WTL), a specialist provider of IP signalling and routing solutions has created a complete package that enables the turnkey delivery of voice and data connectivity solutions within the rural environment.

Crucially, it provides a simple template that can easily be replicated, allowing multiple villages to be connected.

Vivada includes the following key components: • Small cell radio access • Satellite modem • Billing and OSS • Optimised satellite routing solutions from WTL • SBC and SS7 over IP platforms from WTL, among other solutions contained in the white paper.

 

 


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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 Nigeria Commits to Ethical Conduct with IFRS S1, S2 Compliance

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MTN Nigeria has raised the bar for corporate disclosure in Africa after publishing its 2025 sustainability report in full compliance with International Financial Reporting Standards S1 and S2.

MTN Nigeria Commits to Ethical Conduct with IFRS S1, S2 Compliance

Dr. Karl Toriola, CEO of MTN Nigeria,

The report, independently assured by Ernst & Young, marks the telecom operator’s seventh consecutive annual sustainability publication and third year as an early adopter of the global framework ahead of its mandatory implementation.

Dr. Karl Toriola, CEO of MTN Nigeria, said, “strong governance and ethical conduct are foundational to our sustainability strategy. We reinforced compliance through our Conduct Passport Framework and robust internal controls.”

He added that “in May 2025, we became the first telecommunications company in Nigeria to publicly present a sustainability report on the Nigerian Exchange Group platform, an important milestone in our commitment to IFRS S1 and S2- aligned disclosure and accountability.”

The company also secured Carbon Disclosure Project ratings of ‘B-’ for climate change and ‘C’ for water security.

Under the IFRS S2 framework, the telecoms operator disclosed climate-related risks linked to flooding, heat stress, regulatory changes and possible future taxes or charges on carbon emissions, following a climate scenario analysis completed in 2024.

The report also showed that MTN Nigeria now uses a digital reporting format – XBRL. This makes its sustainability and governance data easier for investors and ESG rating agencies to access and analyse through automated systems.

The Company also carried out assessments to understand how sustainability issues affect both its business operations and society at large, while measuring its overall economic, environmental and social impact from 2021 to 2024.

In addition, over one-third of MTN Nigeria’s biggest suppliers (based on spending) have committed to supporting the company’s net-zero emissions goals, although these commitments have not yet gone through an independent audit or verification process.

 


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NCC, CAC Move to Block Unapproved Ownership Changes in Telecom Sector

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Nigerian Communications Commission (NCC) and the Corporate Affairs Commission (CAC) have announced a new compliance requirement mandating telecommunications companies to obtain regulatory approval before effecting significant changes in their ownership structure.

NCC, CAC Move to Block Unapproved Ownership Changes in Telecom Sector

The directive, jointly issued by the two agencies, requires any proposed transfer of ownership or control of shares amounting to 10 per cent or more of the total share capital of a company licensed by the NCC to secure a Letter of No Objection from the commission before such transactions can be registered with the CAC.

The agencies said the requirement was in line with the provisions of Section 90 of the Nigerian Communications Act (NCA) 2003, Regulation 28(2) of the Competition Practices Regulations, 2007, and Regulation 42 of the Licensing Regulations, 2019.

According to the statement, the regulations empower the NCC to oversee and review transactions involving licensed communications companies and ensure fair competition within the sector.

“Effective immediately, any proposed transfer of ownership or control of shares in a licensee of the Nigerian Communications Commission amounting to 10 per cent or more of the total share capital, as well as any series of share transfers which in aggregate exceed 10 per cent of the total share capital of the licensee, shall require a Letter of No Objection from NCC in order for the changes to be effected and registered with the CAC,” the statement said.

The agencies explained that the CAC would henceforth ensure that all applications for changes in shareholding structures involving 10 per cent or more of a telecommunications company’s share capital are accompanied by evidence of prior approval from the NCC.

They noted that the measure was aimed at preserving a fair and competitive market structure within the communications sector by preventing direct or indirect anti-competitive practices.

According to the statement, the new requirement will also strengthen regulatory oversight of significant changes in ownership and control of licensed telecommunications operators.

The agencies said the initiative would enhance transparency, boost investor confidence, provide regulatory certainty and safeguard the long-term sustainability and stability of the communications industry.

The NCC and CAC reaffirmed their commitment to promoting a transparent, stable and competitive business environment in Nigeria.

They pledged to continue working closely to ensure fair market practices, strengthen regulatory certainty and support the orderly and sustainable development of the nation’s communications sector.


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Nigeria Moves to End Solar Imports as NASENI, REA Seal Major Renewable Energy Deal

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National Agency for Science and Engineering Infrastructure (NASENI) has signed a Memorandum of Understanding (MoU) with the Rural Electrification Agency (REA) to promote locally manufactured renewable energy technologies under the Federal Government’s ‘Nigeria First Policy’.

Nigeria Moves to End Solar Imports as NASENI, REA Seal Major Renewable Energy Deal

L-R: EVC/CEO, National Agency for Science and Engineering Infrastructure, Mr. Khalil Suleiman Halilu; Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Abraham Adedokun; and Dr. Abba Abubakar Aliyu, Managing Director and Chief Executive Officer of the Rural Electrification Agency (REA), at the signing of the MoU on implementation of Nigeria First Policy for offtake of NSSENI’s renewable energy products for rural electrification projects held on Friday, June 19, 2026 at BPP’s office in Abuja.

The agreement signing was facilitated by the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Abraham Adedokun at the BPP headquarters in Abuja on Friday, June 19, 2026.

Speaking at the event, the Executive Vice Chairman/CEO of NASENI, Mr. Khalil Suleiman Halilu, said the Agency is focused on linking research, production, and commercialization to ensure that innovations are translated into market-ready products.

He said “NASENI would scale up renewable energy production, including solar panels and streetlights, through initiatives such as DefFrontier, to strengthen local manufacturing and reduce import dependence, adding that the Agency will meet the renewable energy requirements of REA.”

Instead of continuous importation of technologies, machines and equipment for producing renewable energy solutions, NASENI by this MoU will be committed to local manufacturing and domestication of the technologies, equipment and other ways and means of proliferation of renewable resource in the country and to increase the nation’s off-grid energy solutions.

The Managing Director/CEO of REA, Dr. Abba Abubakar Aliyu, described the relationship with NASENI as a strategic partnership aimed at building Nigeria’s renewable energy ecosystem through local production and deployment.

He stated that “while NASENI provides the manufacturing and technological capacity for renewable equipment, REA will focus on deploying solutions to expand electricity across rural areas.”

Meanwhile, the Director-General of BPP, Dr. Adebowale Abraham Adedokun, said the Nigeria First Policy, exemplified by this agreement, is aimed at strengthening local content, ensuring value for money, and promoting accountability in public procurement.

He emphasized that implementation of the agreement will be performance-based, with strict monitoring to ensure compliance and measurable outcome. He added that the MoU is expected to deepen collaboration between NASENI and REA in expanding renewable energy and reducing dependence on imported technologies.

The MoU will be implemented through NASENI’s  subsidiary company, NASENI Devfrontier Green Energy FZE and REA limited liability company, RAMco.The two Federal Government agencies seek to establish a strategic collaboration under which REA shall offtake PV modules, inverters, energy storage batteries of NASENI-Devfrontier Green Energy FZE directly or through its approved distribution companies/assembly and manufacturing factory.

As part of the agreement, REA shall provide institutional visibility to enable NASENI participate in electrification projects; facilitate opportunities for engagements between NASENI and eligible developers/contractors under REA programs; ensure that such facilitation is consistent with applicable procurement, local content, and transparency requirements; and  also collaborate with NASENI in promoting standardized, high-quality PV technologies across its programme portfolio.


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