Telecom

Competition and Service Delivery in Telecoms

Published

16 years ago

June 7, 2010

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Nigerian Communications Commission (NCC) has severally re-instated its desire to continue to encourage competition in the sector. It does this through licensing of several operators in different space of telecommunications sector against the wishes of many operators that were licensed earlier.
They argued that in voice space, there are 12 operators while India with higher population than Nigeria has six operators. In the traditional internet service providers, there are about 300 licensed ISPs with 60 functional operators.
One of the reasons NCC opened up the space for many to participate is for the benefit of the consumer who has a lot of operators to choose from depending on what he or she needs from the operator. It is also geared towards driving down tariff as operators in a bid to lure subscribers to their network introduce mouth-watering packages to increase their subscriber base as the business of telecom is volume driven.
How the journey started
The process of ensuring a competitive telecom sector started shortly after the sector was liberalized in 2000. The commission granted license to three Global System for Mobile communications (GSM) operators, namely: Econet now Zain, MTN and Mtel mobile arm of Nitel. More so, there were about seven Code Division Multiple Access (CDMA) operators providing fixed wireless access as well as limited mobility, most of whom restricted their service in Lagos with three operators operating outside Lagos.
As the market begins to expand with many people seeking to have touch of telephone which then was easy to get in most cities, the need to encourage more operators to complete for the benefit of Nigerians arose. This led to the commission removing limited mobility license for CDMA operators as well as service portfolio obstacle with unified licensing regime.
A unified license is an authorization that allows the licensee to provide a basket of services under a single license. For instance, under the regime, the licensee may be able to provide mobile, fixed telephony services, national long distance communications services, and international gateway services, among others, under one license.
It is often times referred to as convergence. The concept of ‘convergence’ is frequently used to describe the development of global information society. The process of convergence starts when previous separate technologies now come together as a result of direct consequence of the advances made in ICT.
Presently, we have different types of networks for telephony and broadcasting and they are regulated differently and usually by separate authorities, National Broadcasting Commission (NBC) which regulates radio and television, while NCC regulates telecommunications.
Explaining NCC’s proactive stance in moving the industry forward by introducing convergence, Ernest Ndukwe, immediate past executive vice chairman, NCC said that the state of maturity of the telecommunications market in the country, vis-à-vis global trends in service and technological development, convinced the commission that a sure way to promote universal access to telecommunications services at this stage of the industry’s development is to evolve a policy framework that recognizes the issues relating to Voice over Internet Protocol (VoIP) as an engine for the development of telephony in the country.
“The unified license regime is helping to extend the frontier for service providers to move service delivery to the next level. One thing that has begun to happen is an increased converged environment for the delivery of services in the ICT sector. The four factors identified to enable convergence are already here, ready and hot for the market. They are the increased digitization of content, the rise in connectivity, technological improvements and a new generation of technology users,” he said.
Changes in Service Delivery
Convergence is a revolution rooted in technology and like all revolution so rooted, the convergence revolution poses two types of challenges: technological and societal. Vendors, content owners, software/application providers, telecoms operators, and the broadcast industry practitioners must rethink their business processes or cave in under the convergence challenges. Nigeria’s unified license regime ushered in by the NCC has already set the tone for the convergence challenge.
For regulators, the challenge is on how best to respond to new technologies redefining traditional services orientation. What should regulation look like in a converged services market? And for operators, it is driving the market with competition?
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (Alton) corroborated Ndukwe on the gains of convergence when he said that gone are the days when system, services, facilities and networks are built for one type of application, “today the available system and services allow for an all encompassing services-voice, data, video and internet”.
All these have started manifesting as men are beginning to be separated from the boys in terms of service delivery. Before now, internet service were provided by Internet Service Providers (ISPs) using dial-up technology that requires a telephony line which delivers about 56 kpbs, radio technology as well as very small aperture terminal (Vsat) for those who can afford the cost.
In all of these, subscribers are faced with very slow speed of internet basically, as a result of sharp practices of sharing a lot of people on available bandwidth and the technological capacity.
Four years after the introduction of convergence, things have started changing especially in internet service delivery; we are now witnessing an improved service delivery as well as reduction in cost of access. This is made possible by telecommunications operators upgrading their technology to accommodate data and video services, since they are no longer restricted by license. Code Division Multiple Access (CDMA) operators upgraded from 2000 1x technology to Rev A EV-DO that offers robust service in voice and data. It enables operators in this space deliver wireless broadband internet service at affordable cost compared to what traditional ISPs are offering.
On the other hand, GSM operators upgraded from 2.5G to 3G technology which enables network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency. Services include wide-area wireless voice telephony, video calls and wireless broadband internet, all in a mobile environment. Additional features also include HSPA data transmission capabilities able to deliver speed up to 14.4 Mbit/s on the downlink and 5.8 Mbit/s on the uplink.
These developments are taking toll on traditional ISPs whose subscriber base have reduced by 60 percent, thereby pushing some out of business as they cannot compete with telecom operators whose tariff are cheaper.
Competition hots up
As a result of growing competition in different service delivery options in the space, operators are beginning to create for themselves niche services and are concentrating more in those areas. This does not mean that they are leaving other service area they also provide. For instance, CDMA operators whose network are better suited for internet service as well as voice have started refocusing their business model by investing more in the provision of quality wireless broadband service.
Nigeria CommunicationsWeek investigations revealed that the four active CDMA operators are now focusing more in provision of internet services as against competing with GSM operators in provision of voice and expanding network to all nooks and crane of the country. Rather, they are rolling out in selected cities where the demand for internet services is high.
Mr. Bashir Gwandu, executive commissioner at NCC, said that telecom market in the country is gradually attending the level where content will determine subscribers’ choice of network. This is beginning to happen as some operators such as Starcomms and MTN are rolling out several value added services.
For the ISPs, they need not fold their hands while telecom operators snatch subscribers from them. To this end, they are upgrading their network especially those with Wimax license to provide fast internet service which is the toast of subscribers.
Recently, Swift Network announced the upgrade of its network to 4G seen as providing faster internet service. It has begun the process of changing its subscribers modem to be able to deliver with the technology.
Mr. Lanre Ajayi, president, Nigeria Internet Group, attributed the stiff competition in the sector as fallout of convergence and level playing ground created by NCC. He lamented the inability of traditional ISPs to rise up to the situation by providing voice service on their network. He noted that they may be constrained by the huge capital required to provide such service which they are unable to get in view of uninterested attitude of the country’s banks to grant loan to long term investors.
He stressed the need for ISPs to start providing different services to be able to remain in business as competition hots up. According to him, with their vast experience in internet service provision, they could go into content development. He added that while telcos provide pipes which are access they are technologically positioned to provide, ISPs should concentrate in the provision of content they are well positioned to provide that is also profitable.
He cited Yahoo and Google as examples of internet content providers in the world today that are far richer than access providers. Ajayi said that Nigeria requires content developers especially as government and organizations are putting their services online.
“ISPs have to be more creative and innovative. This is the time to leverage on their experience to remain in business,” he said.

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Telecom

GSMA Says High Smartphone Costs Threatens Africa’s AI Future

Published

13 hours ago

July 24, 2026

Ebere Melum-Nwogbo

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The GSM Association (GSMA) has urged African governments to reduce taxes and levies on entry-level smartphones as part of efforts to accelerate digital inclusion and ensure millions of Africans are not excluded from the emerging artificial intelligence (AI) revolution.

GSMA Says High Smartphone Costs Threatens Africa’s AI Future

The association warned that about 961 million Africans who are currently covered by mobile broadband networks are not using the services due to affordability challenges, particularly the high cost of smartphones.

The call was made at the Digital Africa Summit, organised by GSMA in partnership with the African Telecommunications Union (ATU), which brought together regulators, policymakers and industry stakeholders to discuss strategies for improving connectivity and driving digital transformation across the continent.

Speaking at the event, Caroline Mbugwa, senior director, Public Policy and Communications, GSMA Africa, said affordable smartphones and reliable connectivity were essential for unlocking the benefits of AI across sectors including healthcare, education, transport and commerce.

Mbugwa noted that while mobile broadband coverage has expanded significantly across Africa, a large number of people remain unable to access digital services because they cannot afford smartphones.

She stressed that fiscal reforms, particularly the removal of taxes on entry-level devices, were urgently needed to make smartphones more accessible to low-income users.

According to her, South Africa’s decision to remove a nine per cent luxury goods tax on entry-level smartphones helped accelerate adoption of smart devices and reduce dependence on feature phones.

“We are now entering what we call the era of intelligence, and the era of intelligence requires that we have an already existing robust infrastructure, robust connectivity that can support the growth of artificial intelligence on the continent.

“We have a whole 961 million Africans that are covered by mobile broadband services but are not using the service. This is what we refer to as a usage gap. If this remains unaddressed, it means that this number will be left behind when it comes to the adoption of AI.

“This signals that there is demand for adoption of smart devices. Customers are willing to actually use the service. Affordability is the challenge,” she said.

Also speaking, Michaela Angonius, head of Global Policy and Regulatory Team at GSMA, said African countries must adopt policy reforms that encourage investment, expand connectivity and reduce barriers to digital access.

Angonius, who oversees global regulatory and policy issues covering areas such as fiscal policy, competition and network deployment, cautioned against adopting a one-size-fits-all approach to reforms across the continent.

She said findings from the Digital Africa Index showed that while some countries, including South Africa, had made significant progress, others still needed deeper regulatory reforms to improve their digital ecosystems.

She identified three major areas requiring attention: modernising licensing frameworks, improving the use of Universal Service Fund (USF) resources and adopting smarter approaches to quality of service regulation.

According to her, many African countries still operate technology-specific licensing systems, which do not align with the rapid evolution of digital technologies.

Angonius advocated for technology-neutral licensing frameworks that would allow different communication providers, including satellite operators, mobile network operators and internet service providers, to operate under the same regulatory principles.

She explained that the growth of satellite services had exposed weaknesses in existing licensing structures, as regulators often struggle to determine how to classify new technologies.

On Universal Service Funds, Angonius said the existence of unused funds in many countries effectively creates an additional tax burden on telecom operators, which eventually increases costs for consumers.

She warned that such additional costs could worsen the digital divide at a time when Africa is already struggling with smartphone affordability and connectivity challenges.

The GSMA executive also called for a review of quality of service regulations, arguing that countries with the best digital service quality are not necessarily those with the most detailed regulatory requirements.

She said governments should instead focus on policies that encourage investment, expand coverage to underserved communities and improve access for people who remain disconnected.

Angonius further advised finance ministers across Africa to remove levies placed on entry-level smartphones to lower the cost of first-time device ownership.

“Those countries with the best quality of service are not necessarily the countries that have detailed quality of service regulation. Rather, they have focused on how to get the investment right.

“If you have a levy on any handset, firstly, if you can, as a finance minister, remove it. If you can’t, at least remove it from those entry-level handsets that should be affordable for everyday users,” she said.

She added that Nigeria, like other African countries, could benefit from reforms that promote investment, address societal needs and ensure consumers gain long-term value from digital transformation.

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Telecom

Airtel Africa Backs London Listing

Published

13 hours ago

July 24, 2026

Chike Onwuegbuchi

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Airtel Africa has confirmed that the London Stock Exchange is its preferred listing venue for Airtel Money in 2026, as the group looks to unlock value from its fast-growing fintech business.

The highly anticipated listing aims to maximise market opportunities, with analysts reportedly anticipating a valuation of around $10 billion.

The announcement came as the telecoms operator reported strong first-quarter (Q1) results on Thursday, with surging data usage and mobile money transactions driving double-digit revenue growth across its markets.

The group reported revenue of $1.85 billion, up 31% in reported currency and 21.1% in constant currency, underscoring robust demand for digital and financial services.

Mobile money remained a standout performer, reinforcing its role as a key growth engine. Total transaction value reached an annualised $245 billion, up 51.5%, while the customer base grew 23.3% to 56.5 million users.

“Our focus on deepening financial inclusion through increased customer adoption, broader use cases and a stronger digital payments ecosystem enabled higher usage and facilitated continued average revenue per user growth, reinforcing Airtel Money’s growing role as a trusted digital financial services provider,” the company said.

Sunil Taldar, CEO of Airtel Africa, said the company is leveraging digital platforms, data and artificial intelligence to enhance customer experience and support long-term growth.

“We have started this year with another pleasing performance. Our continued focus on the customer experience translated into accelerating customer base growth across all business segments,” he said.

Taldar said a London listing would provide access to a broader international investor base and support the telco’s ambition to unlock long-term value from one of Africa’s leading fintech platforms.

Data usage per customer rose from 7.8GB to 10.6GB per month, driving a 56.3% increase in network traffic, while smartphone penetration reached 51%, reflecting continued digital adoption.

Accelerated network investment drove capital expenditure (capex) of US$389 million, up from $121 million in the corresponding period last year.

“Supported by an elevated pace of deployment, we added more than 920 sites during the quarter, our highest first-quarter site rollout, while further expanding our fibre network to 82,100km,” the company said.

Airtel’s cost-efficiency programme supported EBITDA margin resilience, with the margin remaining at 50.1% in Q1.

However, the company warned that higher energy costs linked to geopolitical developments could increase inflationary pressures and weigh on margins in the near term.

Despite this outlook, the operator said its investment programme remains on track, with spending brought forward to support demand and capture growth opportunities linked to Africa’s digital transformation.

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TikTok Removed 4.8 Million Violative Videos in Nigeria in Q1 2026 – Report

Published

13 hours ago

July 24, 2026

Ugo Onwuaso

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TikTok says it removed more than 4.8 million videos in Nigeria for violating its Community Guidelines during the first quarter of 2026 as part of efforts to create a safer digital environment for users.

The platform disclosed this in its Q1 2026 Community Guidelines Enforcement Report, which highlighted increased investments in artificial intelligence (AI)-powered moderation systems, live-stream safety, content authenticity and AI literacy.

According to the report, the 4.8 million videos removed between January and March represented only 0.6 per cent of all content uploaded by Nigerian users during the period, indicating that the overwhelming majority of content complied with the platform’s rules.

TikTok said 99.8 per cent of the violating videos were removed proactively before being reported by users, while 92.8 per cent were taken down within 24 hours of being posted.

Globally, the platform removed more than 184 million videos during the same period, accounting for only 0.5 per cent of all videos uploaded worldwide.

TikTok said the figures reflected continued investment in advanced moderation technologies capable of detecting harmful content before it spreads widely across the platform.

The company also reported stronger enforcement measures for TikTok LIVE, saying it suspended 120,000 LIVE sessions in Nigeria for violating its Community Guidelines.

The figure represents an increase of 40,000 suspended LIVE sessions compared with the previous reporting period.

Globally, TikTok recorded more than 58 million LIVE enforcement actions, including the suspension of 50,791,858 LIVE sessions and warnings or demonetisation issued to 21,966,667 LIVE creators for breaching platform policies.

According to TikTok, warning notices provide creators with opportunities to correct policy violations before stronger sanctions are applied.

The platform attributed part of the success of its enforcement operations to close collaboration with government agencies, including Nigeria’s Office of the National Security Adviser (ONSA), as well as civil society organisations working to promote online safety.

TikTok said it was strengthening efforts to combat the misuse of artificial intelligence for producing misleading or spam content.

According to the report, the platform is testing enhanced detection systems capable of identifying accounts dedicated to publishing AI-generated spam.

Globally, TikTok removed more than 86 million fake accounts during the first quarter of 2026.

In Nigeria, the company disclosed that it removed more than 118,000 pieces of content under its policy governing edited media and AI-generated content (AIGC).

TikTok said it had also reached a major milestone by labelling more than three billion AI-generated videos globally using a combination of Content Credentials, creator disclosure tools and invisible watermarking technology.

The company said the measures are designed to improve transparency by helping users identify content created or substantially modified using AI technologies.

It reiterated that harmful or misleading AI-generated content remains prohibited under its Community Guidelines.

TikTok also announced a number of initiatives unveiled during the AI for Good Global Summit in Geneva aimed at promoting responsible AI use.

The company said it had joined the Coalition for Content Provenance and Authenticity (C2PA) Steering Committee, where it will collaborate with industry partners to develop standards that improve transparency around AI-generated content.

To promote responsible AI use, TikTok said it partnered with the National Association for Media Literacy Education (NAMLE) and AI expert Henry Ajder to develop educational resources for users.

As part of the initiative, the platform said it would launch a new in-app AI Literacy Hub for Nigerian users in the coming weeks.

According to TikTok, the hub will provide educational resources to help users identify AI-generated content and better understand how AI tools are being used on the platform.

The company also disclosed that it has committed more than 4 million U.S. dollars to its AI Literacy Fund since the initiative was launched in November 2025.

In Nigeria, TikTok said it continues to work with organisations including the Centre for Journalism Innovation and Development (CJID) and Paradigm Initiative to produce locally relevant AI literacy content.

According to the company, the partnerships have generated more than 200 million views, reflecting growing public interest in trustworthy AI education.

TikTok said it remained committed to improving transparency through regular publication of its Community Guidelines Enforcement Reports.

The company added that it has redesigned the reports to make them easier for users to navigate while expanding the number of countries for which detailed enforcement data is available.

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