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The Way Forward for CDMA in Nigeria

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Akin wove his way through the bustling Lagos traffic and finally arrived at the client’s office for the scheduled debrief session just 10 minutes ahead of time.

He hoped to use the few spare minutes he had to do some due diligence to the project at hand and proffer some tips to the client on the mode of execution during the meeting.

He brought out his USB device to surf the internet only to discover there was still no internet connection. Few weeks ago, it was announced that his internet provider had been acquired by a giant GSM operator, he thought that meant the services could be spread to a wider coverage area as he usually had limited coverage when he travelled out of town.

He had subscribed for the annual plan as he had been doing for the past three years and it helped to ensure stability for his consulting business which depended largely on internet access.

He would have to tether his phone and use his GSM phone internet connection which bills him for every kilobyte and has proved to be a very expensive option.

Akin and several other young people like him across Nigeria who have active subscriptions on their CDMA network have been left to wonder if the news of their provider’s acquisition means a sudden termination to their services or if the discourse on the total dearth of CDMA in the country is one to believe.

CDMA which stands for Code Division Multiple Access is a mobile communication technology where several transmitters can send information simultaneously over a single communication channel.

CDMA uses spread spectrum technology allowing many users to occupy the same space time and frequency allocations in a given band/space.

CDMA has been globally acknowledged as a better technology compared to alternative technologies such as Global System for Mobile Communications (GSM) and is also believed to be more cost effective for operators as the CDMA capacity advantage leads to lower tariffs.

Interestingly, the first set of Private Telephone Operators (PTO) in Nigeria offered services via the CDMA technology. Multilinks was the first to begin operations in 1998 while the likes of VGC Communications, Intercellular, Mobitel and EMIS were the preferred networks of many Nigerians in the early days of the telecom revolution when the new GSM entrants had exorbitant call rates with SIM cards being sold as high as N30, 000 upon entry.

During the period of its dominance, CDMA provided excellent voice clarity for both local and international traffics while its data quality has often been described as first rate yet it is still unknown why the CDMA sector in Nigeria is nearly extinct.

A close look at the Nigerian Telecommunications industry, one can deduce that the business model of the average Nigerian CDMA operator made it unable to compete on the same platform with GSM service providers. Almost all the CDMA operators where locally developed, with no international investors or technical partners involved in the management of their service.

GSM providers like MTN, Airtel (formerly Econet), Globacom and Etisalat due to their size and international affiliations were able to attract financing and support from foreign banks and international finance brokers.

Another factor that could have worked against the CDMA operators could be there network spread, most of them were located in urban cities like Abuja and Lagos, extending their services to other regions or cities meant going back to the regulator for additional spectrum which usually came at a cost. The guidelines on their licensing hindered their spread.

This inability of CDMA operators to spread massively in the beginning compared to their GSM counterparts is probably the major impediment to growth in that sector.

Stiff competition and the tough business landscape in Nigeria made co-location impossible in the early day thus operators had to build and maintain their telecom infrastructure across the country.

The announcement earlier in January 2016 that the only standing CDMA operator in the country, Visafone Communications Ltd. had been acquired by mobile network giant, MTN put the current count of CDMA operators in the country at zero. At the time of its acquisition, Visafone had about 2 million active subscribers who are currently in limbo on the status of their services after the acquisition.

“I hope the government through the NCC can give the CDMA operators a favourable licensing environment so as to continue operations, Akin said, “Because there have been at least six CDMA operators in Nigeria from Multilinks to Starcomms who have either exited the market or folded up citing unfavourable business conditions as a cause. To paint a clearer picture, in 2001, there were 12 CDMA operators in the country and at 2016 there is none.”

Perhaps due to the highly competitive environment among the GSM operators that causes them to churn out varieties of exciting products for their subscribers, at the same time lowering call tariffs and cost of SIM cards.

This could have taken its toll on the CDMA operators who continued to lose subscribers and at a time when the GSM operators had about 148 million active lines, the CDMA operators could only boast of 2 million.

While the over 2 million subscribers like Akin are in an indeterminate state as to what will become of their subscriptions, the more nagging concern is of what the future holds for CDMA operations in the country and the telecommunications sector at large where the GSM operators are the ones who have the major control of the market.

It has been predicted that in the near future, mobile operators on different platforms including GSM and CDMA will migrate to the Long Term Evolution (LTE). With LTE operators will get a speed of up to 37.5MB per second on the device as against the 3.1MB that is currently available on the 3G networks.

Observers are of the opinion that MTN acquired Visafone to access the 800 MHz spectrum band, which will enable it provide 4G LTE services.

Earlier in 2007, MTN bought VGC Communications Limited (VGCCL), a Lagos-based Private Telephone Operator licensed by NCC to provide cabling and radio, telephone services nationwide and had laid extensive fibre optic cables, and Internet service provision.

This places MTN in a position to be a single dominant player in the voice and data markets in Nigeria’s telecommunications industry.

The question in the minds of many in the light of recent developments is ‘how will the CDMA sector thrive if it is not proactively encouraged by the NCC to do so?”

Pundits however believe that there is hope for CDMA because 3G technology performs better on CDMA while the Point of Sale (POS) Terminals, the key driver of the Central Bank of Nigeria (CBN) cashless policy initiative works better with the CDMA technology than with the GSM technology.


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9mobile Refreshes Its MoreBusiness ComboPak with Additional Benefits

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9mobile, Nigeria’s customer-centric telecommunications company has refreshed its ‘MoreBusiness ComboPak’ offerings with additional benefits to enable new and potential customers enjoy more value on calls, data, SMS and CUG for their Businesses.

The ‘MoreBusiness ComboPak’ product offering is a flexible and customizable plan with an array of add-on services. The plan gives customers benefits of extra cost-saving tariff within the bundle, and 100% bonus data upon repurchase of select bundles.

With the update, 9mobile customers on this plan will also enjoy free incoming calls while roaming on select networks in the following 10 countries: UK, UAE, South Africa, Kenya, Spain, Egypt, France, Germany, Turkey, and Saudi Arabia when they recharge ₦5,000 and above in a month.

A further benefit of the plan is the ‘Add-on solutions’. With this, companies and institutions will enjoy seamless business operations’ continuity and optimization through Close User Group (CUG), Fleet Tracking, Cloud PBX, Cloud Services, and Device Financing. Others are International Call Bundles, Roaming Bundles, and Special International Destinations Calling.

Commenting on the development, Nneka Owolabi, Director Enterprise Business, highlighted the telco’s unwavering commitment to ensure customers and subscribers enjoy premium customer experience, and wholesome value for their subscription on the 9mobile network.

“At 9mobile we have proven time and again that premium customer experience is important for us. It is the essence of our operations. That is why we have reintroduced the ‘MoreBusiness ComboPak’ for customers and subscribers, particularly businesses to enjoy value for their loyalty to us, and upscale their businesses”, he said.

Owolabi also stated that the ComboPak combines all business needs in one affordable bundle with cheaper voice calls, data subscription, SMS, and CUG, saying “It’s a ComboPak offering that keeps you, and your business stay ahead of trend”.

“What 9mobile ‘MoreBusiness ComboPak’ does is to create and sustain an ecosystem where people, in this case, customers and subscribers, and businesses run systematically with a combination of our tools efficiently. This is certain to revolutionize the way Nigerians communicate, stay connected, and transact businesses effectively”.

Subscribers to ‘MoreBusiness ComboPak’ plan will enjoy unique voice calls, SMS & data.

The service allows flexibility to move across packages based on your needs. For ₦1,000 ComboBasic bundle cost, customers will dial *246*4*33# to enjoy 60k/MB Browsing, 12k/sec in bundle calls, 12k/sec out of bundle calls, ₦2.60/SMS, and CUG; while for ₦1,000 ComboValue bundle cost, customers will dial *246*4*30# to enjoy 700MB, 30 National call minutes, 11k/sec out of bundle calls, 10 National SMS, and CUG.

For customers with ₦2,000 ComboPremier bundle cost, all they need to do is to dial *246*4*33# to enjoy 2.1GB, 60 National call minutes, 11k/sec out of bundle calls, 25 National SMS, and CUG. Customers subscribing to ₦5,000 ComboBlack bundle cost will enjoy benefits of 7GB, 300 National call minutes, 11k/sec out of bundle calls, 25 National SMS, and CUG.

The unique value adds on the ‘MoreBusiness ComboPak’ plan for customers also includes: Bundled Plans – for customers to enjoy flexible and customizable plans with an array of add-on services, and extra cost saving tariff within bundle.

Unlimited Add-ons – this is Add-on solutions – include CUG, Fleet Tracking, Cloud PBX, Cloud Services, Device Financing, Shared Data, International call bundles, Roaming Bundles, and Special International Destinations Calling, for customers.

This is in addition, to free data offer which is a 100% bonus data upon repurchase of select bundles.

Convenience has been embedded into the ComboPak plan for Subscribers also to check account balance by dialling *310#, and data balance by dialling *323#, while migration or opting out of the plan is absolutely free.


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MTN Nigeria’s Uto Ukpanah Named Global Corporate Secretary of the Year

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MTN Nigeria’s Company Secretary, Uto Ukpanah, is the first ever winner of the “Global Corporate Secretary of the Year” award by the Corporate Secretaries International Association (CSIA). She was honoured with the award at an event on April 23rd, 2024, in Kuala, Lumpur, Malaysia.

The CSIA Global Awards was instituted to recognise the efforts of corporate secretaries and governance professionals that not only impact their organizations but also international platforms. Of the three main award categories- Global Corporate Secretary of the Year, Rising Corporate Secretary of the Year and Governance Professional of the Year, Uto was awarded the Global Corporate Secretary of the Year for her hard work, diligence and professionalism by a distinguished jury of expert practitioners and thought leaders in the corporate governance field.

Karl Toriola, Chief Executive Officer, MTN Nigeria congratulating her on the recognition said, “At MTN, we understand the critical role strong governance plays in driving sustainable growth and fostering trust among stakeholders. Uto’s exemplary leadership underscores our commitment to upholding the highest standards of integrity and transparency. We are proud of Uto’s commitment to corporate governance. She deserves the recognition.”

Ukpanah, the pioneer winner of this award has worked with MTN Nigeria for over 18 years. She is a corporate lawyer with extensive experience in company and commercial law. Her contributions in developing sustainable corporate governance structures in the private, public and not-for-profit sectors have been instrumental in fostering transparency and ethical business practices.

Ukpanah’s dedication to ethics and corporate social responsibility advisory services has positioned her as a respected leader in the industry, driving positive change and setting high standards for corporate excellence. This is seen in her active participation on the ‘Code of Corporate Governance Committee,’ ‘9to5 Woman,’ ‘Bankers Committee on Corporate Governance’, among others.


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SIM Boxing, And the Unboxing of Crime Syndicate

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By Suleiman Bala Bakori

Boxes have a multitude of uses, and the word “box”, lends itself to diverse contexts.

SIM Boxing, And the Unboxing of Crime Syndicate

For “Ajala Travelers,” the box is a necessity for keeping goods for their endless journeys. In literature, idiomatically, it can be said that “one has been boxed into a corner;” another might say to deal with a conundrum: “think outside the box;” then there is the “Pandora’s box” that no one wants opened.

To “box one’s ear’s” refers to a hit on the head, especially around one’s ears. For those who celebrate Christmas, “Boxing Day,” which is the 26th of December, the second day of Christmastide is not to be joked with: A day to unbox gifts. So much for the box.

Another type of boxes exists in the telecommunications world: The SIM Box. Have you ever received an international call but saw a local phone number ring in?

That is SIM Boxing in action. Let me explain.

SIM boxing happens when a person uses a special equipment, what is called a SIM Box containing tens to hundreds of SIM Cards—from 32, to 96, to 512 and more SIMs —to terminate international calls by bringing in the international call into the SIM Box using internet connections and regenerating the calls to the called party from one of the hundred SIMs in the box.

This way, the called party will see the local number of the SIM from the SIM Box, and not the original international number calling.

With SIM Boxes, the syndicate charges international call carriers lower rates than what regular Nigerian telecommunications operators would charge, as they do not have to pay the full cost of maintaining and operating a phone network.

Basically, they are bypassing the normal route for international phone call termination to terminate international calls cheaply and making windfall profits off it.

Take for instance, a telecommunications operator in Nigeria would ordinarily charge international carriers 10cents per minute for terminating an international call in Nigeria. However, by routing the call through a SIM Boxing syndicate, the international telecommunications carrier only pays a fraction of the charge to the syndicate, say 5cents per minute and does not have to pay the full 10cents per minute charge.

The SIM Boxer will terminate this call to the called subscriber at a rate of, say N15 per minute using one of the SIM cards in their SIM Box.

The SIM Boxer thus makes a killing from the differential between the rate charged to the international carrier and the rate paid to telecommunications operators whose SIM they utilise in their SIM Boxes, at the expense of our national security and income of mobile network operators and quality of our service to consumers.

Asides the revenue loss that local mobile network operators suffer courtesy the activities of these syndicates, networks face congestion around areas where the illegal call routings via SIM Boxing occurs.

With the huge traffic from the boxes, callers around the area see more dropped calls, poor call quality, and slower data speeds.

The introduction of the linking of National Identity Numbers (NIN) to SIMs is one way the Federal Government has worked to tackle this criminal enterprise.

With every SIM in the country being linked to an NIN, an identity is tied to the owner of each line, and regulators now have visibility of ownership.

That is not all. There is also the “Max-4 Rule” where a subscriber is not allowed to have more than four lines per network operator linked to his NIN.

With this rule in place, coupled with the NIN-SIM Linkage, every telephone subscriber in Nigeria would not just be accurately identifiable but limited to having only four telephone lines per subscriber.

To enforce this rule, the Nigerian Communications Commission (NCC) on the 29th of March 2024 announced the deadline for Mobile Network Operators to bar all subscribers who had five lines and above, and whose NIN failed the verification test of biometrics matching.

Over the last few weeks, sources within the NCC have confirmed cases where a single NIN was linked to over 100,000 lines.

Some NINs had well over 10,000 SIMS linked to them, others over a thousand, others had hundreds.

Many have questioned the reports and asked, what would any single reasonable person be doing with these number of lines? Justifiable questions, because no sane person—who is not running a business—should own more than five SIM cards.

Given the ‘Max 4 Rule’ in place and the NIN-SIM Linkage Policy, SIM Boxers have been boxed into a corner.

The applications they use require tens to thousands of SIM Cards, and the imperative to stay anonymous.

If these policies are well and fully implemented, this is the death knell for SIM Boxing merchants.

But the regulator, NCC needs to be fast and ready for the battle ahead. SIM Boxing is a billion-dollar criminal enterprise.

They are not going to go down without a fight. It is like taking a bone being chewed from the mouth of a bulldog.

Already, the battle seems to have kicked off.

A lawyer, Barrister Olukoya Ogunbeje has recently taken the Federal Government, NCC and Mobile Network Operators to court, claiming that the barring of SIMs not linked to NINs goes against his fundamental human rights, and has cost him the loss of business opportunities.

Anyone who has Nigeria’s interest at heart ordinarily supports this policy. It then does not add up seeing a so-called activist lawyer take up such a matter that is clearly against the public interest—unless this is the Haka cry of SIM Boxers.

A most interesting observation with his case is that it is not even a class action, but individually driven. It begs the question then, who is funding Barr. Olukoya Ogungbeje?

What is his interest in fighting this policy that puts paid to the business of a criminal enterprise? Is he funded by interests in the SIM Boxing world?

Time would tell. But in the meantime, NCC must go head on without fear or intimation and clean the Augean stable of SIM ownership in Nigeria.

Suleiman Bala Bakori is a researcher, and writes from the FCT.

 

 


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