Connect with us

News

MTN’s Record Fine, Others to Shape 2016

Published

on

NCC-MTN.jpg
Kindly share this post

Gareth Mellon, ICT Programme Manager at Frost & Sullivan Africa provides a run-down of the top six technology trends to watch in Africa as we edge closer to 2016.

Accordi to Mellon, while MTN Nigeria’s massive fine has naturally attracted the most attention, regulators in Kenya and Uganda have also imposed recent penalties, and the fall-out from each of these points to the potential impact that both the government and regulators have on the telecommunications market.

1. Public Sector Actors Become more Involved
As governments increasingly see connectivity as a critical means to encourage economic growth, we can expect them to become more involved in the market, helping to stimulate telecommunications investment in some cases, but also threatening to add increased uncertainty in volatile markets.
While MTN Nigeria’s massive fine has naturally attracted the most attention, regulators in Kenya and Uganda have also imposed recent penalties, and the fall-out from each of these points to the potential impact that both the government and regulators have on the telecommunications market.
As debates concerning the allocation of spectrum, the implementation of national broadband plans and the provision of eServices continue unabated (not forgetting, of course, the constant delays in digital migration), expect the role of public sector bodies to become even more influential.

2. Fixed-Line Makes a Comeback
While technically not a ‘comeback’ in many African countries, where fixed-line hardly got out of the starting blocks, demands for fibre connectivity have soared.
Across the continent, submarine cables have boosted international connectivity and, while terrestrial coverage remains a challenge in most countries, investments in fibre backhaul and access layers have picked up.
As this proliferation continues, high capacity last-mile access is becoming more viable and FTTX services have become established in key markets such as Kenya, Nigeria, and South Africa.
While individual services remain relatively expensive for early-adopters, ongoing investment will lead to price reductions, making fixed-line more attractive for both businesses and consumers.

3. Industry Consolidation to Meet Infrastructure Costs
Etisalat’s recent acquisition of a majority stake in Maroc Telecom means that five major multinational operators now account for more than 60 percent of all telecommunications subscribers in Africa.
Consolidation in the telecommunications market is driven by a desire for scale to help overcome margin pressures.
The provision of network infrastructure is enormously costly and all operators have been subjected to the worrying reality of increasing infrastructure costs versus declining average revenue per user (ARPUs). With increased pressure on operators to provide LTE services – which requires further investment in existing infrastructure – Frost & Sullivan expects this drain to continue.
While large-scale mergers typically attract most of the attention, it is also worth noting changing market dynamics as smaller telecommunications players find it increasingly difficult to remain competitive.
South Africa’s Cell C has made headway in claiming some portion of the market from the two dominant players, but its sustainability remains questionable.
Meanwhile, mutterings in Kenya point to Orange’s troubles in achieving profitability in a market dominated by Safaricom.
 And, across the continent, even start-ups promoting new technologies (LTE or fibre for example) struggle to break the dominance of the big players reflecting how difficult it remains for late-entry operators to establish any kind of foothold. 

4.Content is King in the Battle for access to Customers
The other driver of telecommunications consolidation concerns the battle to retain access to customers. In the customer’s eyes, the question is now: “Who can provide me with the best access to everything I need?”
And, while operators currently occupy an enviable position in this respect, other telecommunications providers – including hardware providers, device manufacturers, and OTTs – are all seeking to offer aggregation services.
The key differentiator will be content –in particular high-demand content – whether it is local or global, live or recorded. DStv remains the undisputed leader in content distribution across Africa, but its dominance is being challenged by the growth of alternative channels such as fibre to the home (FTTH) and 3G or 4G.
Over the past year, the battle lines have been drawn in key markets such as Kenya, Nigeria and South Africa, and the first casualties have already been incurred.
The year 2016 will quickly reveal which services are critical to customer requirements and, ultimately, how profitable they can be.

5. Telcos showcase digitalisation
Typically, telecommunications distinguish between their consumer and enterprise offerings, and the latest fad in the enterprise market is digitalisation; identifying all areas of a business that can be transformed by ICT in order to offer integrated and enhanced products and services.
The starting point will be to show how connectivity can improve profitability in sectors as diverse as oil exploration, agri-processing, and the clothing industry; but expect ICT providers to start positioning themselves as complete, end-to-end partners with the ability to transform their clients into digital pioneers.

Machine learning will be critical to this implementation, but watch out for other buzzing terms similar to wearables, the sharing economy and the blockchain.

6.  The Mobile Payments ecosystem Expands
Africa has been the birthplace of mobile payments and one cannot ignore this key feature of the ICT landscape on the continent. In 2016, we can expect growth in three areas.
Firstly, while Kenya is often cited as the forerunner in mobile payment proliferation, this leadership is anticipated to be challenged by countries like Tanzania, Zimbabwe and Zambia, all of which have experienced significant growth in mobile payments.
Secondly, while peer-to-peer transactions currently account for three quarters of all payments, other areas such as merchant payments and international remittances should show healthy adoption, expanding the broader mobile payments ecosystem.
Finally, operators and banks have typically spearheaded mobile money development, but there are a growing number of actors seeking to grab a share of the market. The most prominent amongst these are the major Internet players; namely Google, Facebook, and Apple who, although not necessarily established in Africa, are leveraging their communication platforms to obtain access to customer’s wallets.


Kindly share this post

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.

Continue Reading
Advertisement
Comments

News

Nigeria, Others Lag Behind as Egypt Tops Africa in AI Readiness

Published

on

Kindly share this post

Nigeria and other Sub-Saharan Africa countries rank ninth out of nine global regions as Egypt has emerged as Africa’s leading country in artificial intelligence readiness, ranking first on the continent and 51st globally in the 2025 Government AI Readiness Index published by Oxford Insights.

The impressive ranking has been lauded as underscoring North Africa’s growing influence in the global AI race.

According to Egypt’s Ministry of Communications and Information Technology (MCIT), the country scored 57.5 points out of 100, climbing 14 places from 65th in 2024.

The Nile nation also ranked fourth in the Middle East and North Africa (MENA) region, behind Saudi Arabia, Israel and the United Arab Emirates.

The Oxford Insights index assesses 195 governments using 69 indicators across six pillars, including policy capacity, governance, AI infrastructure, public sector adoption, development and diffusion, and resilience.

Egypt topped the Policy Capacity pillar globally with a perfect score of 100, tying with the UK, Serbia and Australia, an indicator of strong national AI policymaking and institutional readiness.

Oxford Insights noted that countries such as Egypt are “expanding the use of AI across national priorities while shaping policies to strengthen domestic AI ecosystems,” although gaps in infrastructure and talent development remain in some contexts.

MCIT minister Amr Talaat attributed Egypt’s strong performance to deliberate government action.

“This achievement reflects our efforts to integrate artificial intelligence into public services and accelerate digital transformation through Egypt’s second National AI Strategy. We are positioning Egypt as a regional AI hub while ensuring AI delivers real economic and social value,” he said.

Launched for 2025–2030, Egypt’s National AI Strategy targets sectors such as healthcare, justice and public administration, while aiming to train 30 000 AI specialists by 2030 and raise AI’s contribution to GDP to 7.7%.

Talaat also highlighted Egypt’s cybersecurity credentials when he highlighted that the country ranked among the top 12 globally in the ITU’s Global Cyber security Index.

Regionally, the results expose sharp contrasts across Africa. Sub-Saharan Africa ranks ninth out of nine global regions, with an average score of 28.04, reflecting persistent gaps in AI infrastructure and public sector adoption.

However, countries such as Kenya, South Africa, Mauritius and Nigeria lead the sub-region, while Rwanda and Ethiopia are gaining momentum through innovation hubs and policy reforms.

In contrast, the MENA region ranks fifth globally, buoyed by significant investment in AI infrastructure and policy capacity, particularly in Gulf states.


Kindly share this post
Continue Reading

News

SERAP Sues INEC Over Alleged ₦55.9Bn Election Funds Diversion

Published

on

Kindly share this post

Socio-Economic Rights and Accountability Project (SERAP) has dragged the Independent National Electoral Commission (INEC) to court over the alleged failure to account for ₦55.9 billion reportedly meant for the procurement of election materials for the 2019 general elections.

SERAP Sues INEC Over Alleged ₦55.9Bn Election Funds Diversion

The grave allegations are documented in the latest annual report published by the Auditor-General on 9 September 2025.

In the suit number FHC/ABJ/CS/38/2026 filed last Friday at the Federal High Court in Abuja, SERAP is seeking: “an order of mandamus to direct and compel INEC to account for the missing or diverted N55.9 billion meant to buy smart card readers, ballot papers, and other election materials for the 2019 general elections.”

SERAP is also seeking: “an order of mandamus to direct and compel INEC to disclose the names of all contractors paid the N55.9 billion for the procurement of smart card readers, ballot papers, result sheets, and other election materials for the 2019 general elections, including the names of their directors and shareholders.”

In the suit, SERAP is arguing that: “INEC must operate without corruption if the commission is to ensure free and fair elections in the country and uphold Nigerians’ right to participation.”

SERAP is also arguing that, “INEC cannot ensure impartial administration of future elections if these allegations are not satisfactorily addressed, perpetrators including the contractors involved are not prosecuted and the proceeds of corruption are not fully recovered.”

According to SERAP, “INEC cannot properly carry out its constitutional and statutory responsibilities to conduct free and fair elections in the country if it continues to fail to uphold the basic principles of transparency, accountability and the rule of law.”

SERAP is also arguing that, “These allegations also constitute abuse of public office and show the urgent need by INEC to commit to transparency, accountability, clean governance and the rule of law.”

SERAP also said, “Allegations of corruption in the supply of smart card readers, ballot papers, result sheets and other election materials directly undermine Nigerians’ right to participate in elections that are free, fair, transparent, and credible.”

The lawsuit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Kehinde Oyewumi, and Andrew Nwankwo, read in part: “These grim allegations by the Auditor-General suggest a grave violation of the public trust, the Nigerian Constitution 1999 [as amended] and international anticorruption standards.”

“According to the recently published 2022 audited report by the Auditor General of the Federation (AGF), the Independent National Electoral Commission (INEC) ‘irregularly paid’ over N5.3 billion [N5,312,238,499.39] ‘to a contractor for the supply of Smart Card Readers for the 2019 general elections’.

“The contract was awarded without prior approval from the Bureau of Public Procurement (BPP) and the Federal Executive Council. The payment was also ‘made without any document. There was no evidence of supplies to the commission.’”


Kindly share this post
Continue Reading

News

FG Inaugurates N40Bn CCTV Control Centre for Third Mainland Bridge

Published

on

Kindly share this post

Federal government has inaugurated a ₦40 billion closed-circuit television (CCTV) control centre for the Third Mainland Bridge in Lagos.

FG Inaugurates N40Bn CCTV Control Centre for Third Mainland Bridge

Speaking at the inauguration on Sunday, David Umahi, minister of Works, said the project followed extensive rehabilitation works carried out on the bridge after the current administration took office in 2023.

“When we came on board in 2023, we met a very terrible Third Mainland Bridge,” Umahi said, adding that the structure, along with Carter and Iddo bridges, required comprehensive re-evaluation and repairs both above and below water level.

He said President Bola Tinubu approved the total rehabilitation of the bridge, including replacement of expansion joints, noting that the completed work had improved driving conditions and extended the bridge’s lifespan.

Umahi said the CCTV system, first announced in 2025, was designed to curb dangerous driving, prevent suicide attempts and strengthen security.

He added that security personnel would monitor live footage from the control centre and enforce speed limits on the bridge.

The minister commended the China Civil Engineering Construction Corporation (CCECC), which executed the project, for what he described as high-quality delivery. He said the contract also included a surveillance boat and two Hilux vans, which would be handed over to the police to support monitoring and rapid response.

“The idea is that we can see everything that is happening on the bridge,” Umahi said, expressing concern over excessive speeding and urging motorists to comply with traffic regulations.

Earlier, Olufemi Dare, federal controller of works in Lagos, said the facility was the first of its kind on any bridge in Nigeria.

He said the system allows real-time monitoring of activities on the bridge and surrounding waters.

Dare said the project includes 240 solar panels, 10 inverters, a 300 KVA transformer, a standby generator, multiple monitoring screens and full air-conditioning for the control centre.

He added that the contract also covers 1,268 solar-powered street lights and a borehole facility.

According to Dare, the project was awarded at a cost of ₦40.17 billion, with about ₦36 billion paid so far to the contractor. He said the current inauguration marked the first phase, with additional commissioning planned once work on the bridge’s extension is completed.

He thanked the president for approving the project and praised Umahi for ensuring due process during its execution.


Kindly share this post
Continue Reading

Trending