Telecom

Operational Challenges Forcing Managed Services on Operators

Published

16 years ago

May 31, 2010

Kindly share this post

Telecommunications operators are today faced with a lot of challenges that have made the business not rosy as it used to be some few years ago.
Although, some may look at the situation as fallout of recent economic meltdown and reform in the banking sector which affected the spending habit of ordinary Nigerians who use telecommunications services thereby reducing Average Revenue Per User of operators.
More so, operators are constantly faced with vandalization and theft of their equipment. All the operators both Global System for Mobile communications (GSM) and Code Division Multiple Access (CDMA) have had fair share of theft of their equipment, it was reported sometime that GSM operators losses an average of four generators on daily bases which approximately means that a total of 12 generators are lost everyday. This excluded Etisalat which does not have as much base stations as the Globacom, MTN and Zain, they are still experiencing theft of their equipment as well.
Other operators such as CDMA report lost of their generators at an average of one generator daily. This situation has continued unabated which has forced operators to seek a way of addressing this problem.
Nay, the operating environment in the telecommunications space of the country’s economy has continued to give operators sleepless night. The Association of Licensed Telecommunications Operator of Nigeria (Alton) recently sought the intervention of the Joint Tax Board on the burden of multiple taxation imposed on its members by the three tiers of government. Speaking at an interactive session with the board in Abuja, Mr. Gbenga Adebayo, the chairman of Alton, urged the board to be concise on the type of taxes stipulated by law, which the companies should pay.
He said; “Alton, once again, brings to the attention of the JTB, persistent attempts by certain states and local government authorities to impose multiple and unjustifiable taxes and levies on our members in their respective jurisdictions. This development threatens the laudable efforts of our members to make further substantial investments on their respective networks and provide world class telecommunications services in Nigeria. Alton respectfully seeks the intervention of JTB in addressing the issue of multiple taxation.”
Adebayo noted that when the members refused to pay the levies, the affected states and local authorities resort to closure of their facilities and infrastructure.
This, according to him, has adversely impacted on the network availability, quality of service and finances of member companies.
He alleged that the policemen and thugs, who complement the drive of the multiple tax imposers, made it difficult to resist them.
Adebayo cited an instance where one state demanded N200m as advert levies, and another local government was demanding N18.6m each year as operation levy, office location permit, development levy and ground rent from 2002 to 2009.
“Unfortunately, and contrary to all known norms, these local authorities utilise the services of the police and thugs to drive their demand; making it difficult and, most times, impossible to engage them meaningfully,” he said.
In view of these challenges which have increased cost of doing business in the country, as well as competition which is gradually defining the direction operators should go in service delivery, that operators are been forced to consider managed services as a way out of this quagmire.
Managed service otherwise known as outsourcing, in literal means sourcing from outside. The term is increasingly used to refer to sub-contracting of a set of functions or processes by one firm to another, or to a group of individuals, whose competent is in the area of which it is to manage.
Managed services are being pursued as an active business strategy in the current economic scenario, since it enables an operator to focus on core-competency areas. It also frees the operator from resources and labour intensive functions, which are now performed by trained personnel at much lower costs.
The processes or activities that are being outsourced could range from customer service and telemarketing to IT management, software development, market research and even financial portfolio management. Telecom players are leaving the technology-related aspects of their business to external consultants as they focus upon providing new services to their customers.
How it started
When operators in the space, be they global system for mobile communications (GSM) or code division multiple access (CDMA) rolled out service over eight years ago after the liberalization policy of the government, little did they realize that their service believed to be a source of joy and enhancement of the people’s social economic life will be a subject of attack by miscreant, armed robbers and communities. Operators who envisaged that the major challenge they are likely to face in doing business in the country is energy problem are now faced with other challenges that were never thought of. Such issues include, vandalization of operators installed equipment- there has been several cases of operators equipment being vandalized by host communities and government contractors.
Although telcos have adopted managed services option in many other areas of their operations, but the most innovative is the offer Ericsson and Aviat to extend the initiative to management of base stations. This is not different from co-location of site being offered by telecommunications infrastructure building companies such as Helios Towers, IHS, Mti, among others. In the Zain and Ericsson deal, the mobile telecommunications operator, awarded to Ericsson a five year network management contract of its GSM/WCDMA networks, and business support systems. Under the agreement, Ericsson is now responsible for the network operations, field operations including optimization, third-party vendor management for Zain’s GSM/WCDMA networks, and business support systems.
Ericsson is now serving more than 4,000 sites across Nigeria on behalf of Zain. As part of the agreement, about 450 employees are being transferred under their existing terms and conditions of service, from Zain to Ericsson, where they will undergo further training in the latest wireless technologies.
Nigeria CommunicationsWeek gathered that such agreement is going to be the hallmark of business model of new owners of Zain, Bharti Airtel. This is sequel to revelation that the company is an expert in outsourcing, having outsourced over 90 percent of its services that are not core to its operation in India it parent country.
MTN also entered into agreement with Communications Network Support Services (CNSS) to manage and operate its wired line services which the company has competent in.
Nigeria CommunicationsWeek investigations also revealed that telecommunications operators have began move to sale their cell sites to infrastructure sharing operators. It was gathered that the sale of their cell sites is part of effort to reduce capital expenditure in view of dwindling Average Revenue Per Use (ARPU) of telecommunications operators.
Nigeria CommunicationsWeek investigations also revealed that operators are going beyond managed services option for their base stations to outright sale of existing base stations. It was gathered that one of the major Global System for Mobile communications (GSM) operator has finalized agreement with a telecommunications infrastructure building company to sale over 70 percent of its existing base stations in the country. Equipment that are being sold in such agreements are steel towers, generators, and land value. Operators retain the ownership of their transmission equipment as the buyer of those sites turn them to co-location site for several users and manage them.
Although outsourcing by telcos of their network management is relatively new, a typical network management comprises of 50 to 55 percent of the cost of a telco’s operations. System integrators expect this segment to be among the largest segments that could be outsourced to a third-party.
With the proliferation of technology, and increased competition, telecom operators are looking at partners who can help them reduce cost of doing business and in turn enhance customer satisfaction. The operators will then have sufficient time to focus upon their core aspects of their business and plan for strategic initiatives geared towards improved service delivery, rather than thinking about how to replace stolen generator or refilling diesel tanks or proving security at base stations.
However, companies such as Swap Technologies, IHS Plc, Helios Towers, Mti, CV Comm. among others have positioned themselves to offer managed services to telecom operators. They have already started offering the service to some operators while discussions are going on with many which will see by the end of the year 80 percent of telecom operators’ base stations being managed by third-party, in this case licensed telecom infrastructure provider.
Bayo Banjo, managing director, Disc Communications, agreed that outsourcing of network management by telecom operators is a good idea. He cited example of Virgin the second largest telecom operator in the United Kingdom, which does not have a single cell site. He expressed worry over the ability of the initiative to curb the problem of vandalization of telecom equipment.
Banjo added that outsourcing of network management became necessary in view of shortage of qualified telecom engineers to maintain networks as well as corruption which has left operators with the option of outsourcing. This according to him needs to be urgently addressed as it may jeopardize the growth being recorded in the sector which is battling with poor quality of service.

Kindly share this post

Telecom

COUCH 2025 Grand Finale Highlights Student Breakthroughs, Secures Government Pledge for University Research Commercialization

Published

1 hour ago

December 10, 2025

Ugo Onwuaso

Kindly share this post

Coderina Education and Technology Foundation, in partnership with the National Universities Commission (NUC), successfully hosted the Grand Finale of the Coderina University Challenge (COUCH) 2025 at the NUC Auditorium, Abuja.

COUCH 2025 Grand Finale Highlights Student Breakthroughs, Secures Government Pledge for University Research Commercialization

A cross section of attendees

The event gathered top government officials, university leaders, industry partners, and the ten finalist teams selected from over sixty-two initial entries nationwide.

This year’s challenge, themed “Circular Economy Through Technology” spotlighted the potential of Nigerian university students to develop scalable, tech-enabled solutions that address pressing national issues in sustainability, waste management, energy transition, and the circular economy.

The Grand Finale reaffirmed a consistent message shared across all keynote addresses: Nigeria must accelerate the movement of university research from shelves into practical innovation, commercialization, and industry adoption, a key driver of national development and economic growth.

In his opening address, Mr. Olufemi Niyi, chairman, Coderina Board of Directors, emphasized that university projects must not remain buried in archives.

He highlighted COUCH as a platform proving that research can become functional innovation.

Mr. Niyi called on donors, development partners, and private sector stakeholders to support COUCH as a sustainable national innovation pipeline and encouraged investors to channel resources into skills development and technology innovation among youth.

In his keynote address, Dr. Kingsley Tochukwu, the minister of Innovation, Science and Technology, commended the COUCH programme for its role in moving research “from the shelves to the marketplace,” a key priority under the ministry’s national innovation agenda.

He noted that the initiative exemplifies the type of collaboration and commercialization pipeline needed to unlock Nigeria’s scientific and technological potential.

He highlighted several priority areas critical to advancing the country’s innovation landscape:

“Strengthening Nigeria’s innovation ecosystem through coordinated national frameworks and partnerships; expanding digital innovation pathways to accelerate the adoption of emerging technologies, and building a tech-driven economy that delivers measurable value and global competitiveness”.

The Minister added that “Creating new opportunities for youth innovators, ensuring they are empowered to participate in and drive the innovation economy, are part of the key focus areas of the Ministry

He also expressed the Ministry’s readiness to partner with COUCH, Coderina, and the NUC to incubate and scale these student-led innovations.

Mallam Abdullahi Yusuf Ribadu, the executive secretary of NUC acknowledged the twelve universities nominated for the pilot edition by the commission.

He urged the finalists to use their prize money to advance entrepreneurship and technical skill development, reinforcing the NUC’s commitment to fostering innovation-driven learning across tertiary institutions.

In a remarkable commitment, the Minister donated five million naira to ‘Waste2Light’ from FUT Minna and announced an intention to collaborate with all ten finalist universities to support commercialization.

Dr. Tope Kolade Fasua, special address to the President on Economic Affairs, stated that technology remains the largest driver of global economic growth, stressing that Nigeria’s economic transformation is intertwined with youth innovation.

He commended Coderina and advised for greater visibility and national media outreach; creation of an innovation “museum or archive” for brilliant ideas, and the establishment of centers where theories and research can be turned into products.

He concluded that the future of Nigeria’s economy lies in the hands of today’s young innovators.

Professor Sa’adatu Hassan Liman, special guest at the programme and vice-chancellor, Nasarawa State University, delivering her address on “Sustainable National Transformation,” emphasized the need for stronger industry–university collaborations.

She also emphasized need for entrepreneurial university culture; digital literacy in emerging technologies such as AI, blockchain, IoT; adoption of virtual learning and remote laboratories, and inclusive innovation for underserved communities.

She highlighted AI as a catalyst for reimagining teaching and learning, including teacher retraining and curriculum enhancement.

The competition had two categories of prizes recognizing both technical excellence and public engagement.

Winners of the first category, The Challenge, based on pitch and prototype presentation was Team IMSU – Imo State University , taking home the star prize of ₦5,000,000; 2nd Place winners: Team Neuronaut Nile University Prize, ₦2,500,000, and 3rd Place – Team Waste2light from the Federal University of Technology, Minna: ₦1,500,000.

The People’s Choice Awards winners, based on social media engagement and public voting, are Team ADSU Innovators – Adamawa State Uni.: ₦250,000; 2nd Place -Team Scraplink, Lagos State University: ₦150,000, and 3rd place – Team Circle from the Federal University of Technology, Akure, took home ₦100,000.

Giving COUCH overview, Ms. Christiana Anthony, the Project Lead, reaffirmed that COUCH is not merely a competition but a structured innovation development program.

She highlighted the strong collaboration between Coderina and the NUC, noting that the program has created a national pathway for students to design, build, test, and pitch solutions with real potential for commercialization.

The COUCH 2025 grand finale demonstrated Nigeria’s readiness to harness university-driven innovation as a catalyst for economic growth, job creation, and sustainable development.

Kindly share this post

Telecom

Google Invests $2.1m to Boost Nigeria’s AI Development

Published

1 hour ago

December 10, 2025

Ugo Onwuaso

Kindly share this post

Google.org has announced a $2.1 million (₦3 billion) investment to support Nigeria’s artificial intelligence sector, targeting the creation of one million digital jobs and strengthening the country’s growing tech economy.

Google

The initiative is aligned with Nigeria’s National AI Strategy and is expected to contribute significantly to the nation’s digital transformation, with AI projected to add $15 billion to the economy by 2030.

The funding will support partnerships with local organizations focused on skills development and cybersecurity.

FATE Foundation and the African Institute for Mathematical Sciences (AIMS) will collaborate with universities to integrate AI curriculum into classroom teaching, creating a sustainable pipeline of AI-ready graduates.

Similarly, the African Technology Forum (ATF) will run an AI innovation challenge, guiding developers from bootcamp training through product development and pitching stages.

Google also emphasized digital safety. Junior Achievement Africa will scale the “Be Internet Awesome” curriculum to teach online safety to youth, parents, and teachers nationwide, while the CyberSafe Foundation will provide cybersecurity training and technical support to public institutions to strengthen digital infrastructure defenses.

Highlighting the human impact of its digital skills programs, Google cited the case of Joel Kiate, a digital marketer in Abuja, who secured employment after completing Google’s training despite failing university entrance exams five times.

A Google spokesperson said: “When we connect people with the right tools and opportunities, they don’t just find jobs—they build careers and become part of Nigeria’s growing digital economy.”

The investment reflects growing confidence in Nigeria’s tech sector, which continues to position itself as a major hub for digital innovation in Africa.

Kindly share this post

Telecom

Team OneGrid Energies Wins 3 Million @MTN PachiPanda Challenge

Published

1 hour ago

December 10, 2025

Ugo Onwuaso

Kindly share this post

As Team OneGrid Energies walked away with the grand prize of three million naira and an HP laptop each at the MTN 2025 PachiPanda Challenge, the strongest message from the closing ceremony held on Wednesday, November 26, 2025, was not just about winning ideas, but about building ideas that pay.

OneGrid Energies

Tobechukwu Okigbo, Chief Corporate Services & Sustainability Officer at MTN Nigeria, delivered a powerful charge to the next generation of African climate innovators. He said, “Too often we celebrate innovation only for its brilliance. Today I challenge you to go further and create bankable innovation. Look around you, find the problems that need solutions, and solve them with boldness. The future belongs to you, and Africa is counting on you all to rise and deliver the change we have been waiting for.”

Okigbo reminded the finalists that Africa’s greatest asset is its youth, and that digital tools, from AI to the internet, have levelled the global playing field. “The future is yours,” he declared. “You are the leaders of tomorrow and with the necessary tools and boldness, you have the platform to rise and rewrite Africa’s story.”

The winning solution by OneGrid Energies, a scalable platform providing smallholder farmers with hyper-localised climate data and optimised planting advice, was hailed as a perfect example of innovation that can both save livelihoods and create viable business models.

Joshua Ndaman secured second place with his innovative solution, BuyScrap, a tech-driven platform that streamlines the collection and recycling of electronic waste. By ensuring that discarded electronics are ethically reused and repurposed, BuyScrap supports a circular economy and provides a reliable link between households and processors in the e-waste value chain.

Representing Dr. Joseph Daniel Onaja, Director General, Nigerian Conservative Foundation, Uchenna Achunine, Director, Business Development and Communications, Nigerian Conservation Foundation, congratulated the winners and commended their efforts in the two-day, intense pitch hosted by MTN Nigeria in partnership with WWF, the three-day PachiPanda Challenge held from 24–26 November 2025, transformed the MTN Rooftop in Lagos into a launchpad for climate-tech startups, proving that African youth are not waiting for permission to solve the continent’s biggest challenges; they are already building the profitable, impactful solutions the world needs.

Kindly share this post