Telecom
ICT SMEs Are Vital for Socioeconomic Growth- ITU
ICT-enabled entrepreneurs and small to medium-sized enterprises (SMEs) have a particularly relevant role in ensuring economic growth in a sustainable and inclusive manner, Houlin Zhao, ITU secretary-general said in a blog post.
They are involved in the development of innovative ICT-enabled solutions with a unique potential to make a long-lasting impact in global, regional and national economies.
In recognition of this, the theme for World Telecommunication and Information Society Day (WTISD) 2016 was ‘ICT entrepreneurship for social impact’.
In his keynote address, Michael Moeller, director general, United Nations Office at Geneva (UNOG), highlighted that “Entrepreneurship can change and shape the future by maximizing the social impact of ICTs.”
The event in Geneva brought together company founders, social innovators and members of the international community to explore recommendations for private and public actors to better inform their interventions to support small business development.
The dynamic panel included: Katherine Milligan, Director, Schwab Foundation for Social Entrepreneurship; Candace Johnson, President, EBAN; Whurley, Co-Founder and CEO, Honest Dollar; Marcos Vaena, Chief of Enterprises and Competitiveness, ITC, and Houlin Zhao, Secretary-General, ITU.
Social Impact
The panel noted that technology is an equalizer and enabler of opportunities, especially when building a sustainable business in developing markets.
For example, Africa’s e-commerce market is projected to reach USD52 billion by 2018, up from USD8 billion in 2013.
This growth will not happen on its own: entrepreneurs need to have access to the right tools and information to fully leverage the growing international e-commerce market.
As Marcus Vaena noted: It’s really access to information, to knowledge, to understand not only what is on the front end of an e commerce operation, but what lies behind. A lot of it is business as usual, but there are some specific issues related to electronic commerce that people still have to become familiar with, and it is the UN’s role to educate the public on how to better leverage these opportunities.
Katherine Milligan added that what is generally underappreciated is that the ICT industry has created a fabulous infrastructure to deliver social goods, more cost effectively and efficiently.
Finding the right regulatory balance isn’t easy. Over regulation can stifle innovation, while too little can have drastic implications for domestic markets and local economies.
The panel noted that while entrepreneurs often criticize regulation as being a barrier to innovation, they do not effectively engage with the policy-makers when given the opportunity, and they tend to shy away from this community instead of actively participating in discussions which could lead to regulatory reform or modifications.
From an entrepreneur’s perspective, government regulation is just another set of requirements that they have to take into account when developing their products and services, however we should encourage regulatory frameworks that enable innovation, rather than discourage it.
This was outlined by Whurley who stated that, just as he would take requirements from a customer who wants to be able to use their mobile to do X, Y, Z, then it is necessary to look at the regulations and understand that it needs to be done within a certain context. For Whurley the regulatory system is more about context, and regulations need to involve entrepreneurs who can help shape and modify policies to ensure that the bottom line – the user experience – is better.
This was echoed by Candace Johnson who acknowledged that governments alone can set policies. Governments can deregulate, but Governments do not exist to do business. Entrepreneurs on the other hand have a social contract with Governments who are depending on them to bring about social change. She emphasized that Governments need to put forth a framework that can allow entrepreneurs to be able to fulfill their mission, to thrive and do business effectively.
Taking Advantage of these Opportunities
According to ITU, the future of SMEs is very important for the ICT industry, to drive development of the sector, especially in creating demand for ICT services. We are seeing a lot of support for small businesses at the local and national levels, but they often don’t have good enough access to regional and global markets.
As highlighted by Katherine Milligan, there is hope but we also have to be realistic. The majority of people in developing countries are making $2, $3 or $5 a day.
These are incredibly risk averse customers. It is very difficult to market to them to get them to change their behaviour. It’s not on a three to five-year time frame that you are going to penetrate these markets in a big way. It requires patience and vision.
Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
WASPAN warned that the implementation before the determination of its appeal could expose telecom value-added service providers to sanctions and disrupt their operations.
Millions of subscribers across the country rely on borrowed airtime to communicate.
Seun Sofoluwe, an Abeokuta, Ogun State resident, said another interruption would have severe consequences for many Nigerians who depend on airtime and data lending services for their daily communication needs.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, underscoring the extent to which some subscribers depend on the facility to remain connected.
Sofoluwe’s concerns echo the experience of Lagos-based employee Farouk Rabiu, who recounted the hardship caused by the six-month suspension of airtime lending services before they were restored.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu had said after the services resumed.
Adding another dimension to the debate, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the earlier disruption showed that airtime credit had evolved far beyond a conventional telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement would expose operators to sanctions, create regulatory uncertainty and disrupt telecom-enabled services, including airtime credit and data advances, used daily by millions of Nigerians.
The FCCPC, however, has defended the resumption of enforcement, insisting the regulations are intended to sanitise the digital lending industry, curb predatory debt recovery practices, protect consumer data and eliminate illegal digital lenders.
The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended while it considers WASPAN’s appeal, a decision that could shape the future of telecom-based digital lending services and determine whether subscribers continue to enjoy uninterrupted access to airtime and data credit.
Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to deploy renewable energy solutions for telecommunications infrastructure in rural and underserved communities, a move expected to reduce operators’ energy costs and improve network availability.
Abraham Oshadami, executive commissioner for Technical Services at the NCC, disclosed this during the signing of a memorandum of understanding (MoU) in Abuja.
According to Oshadami, the NCC-REA Stakeholder Forum and MoU signing ceremony will enable telecom base stations located near mini-grids to access cleaner and more affordable electricity, reducing their reliance on diesel-powered generators.
He said the agreement came at a time when telecom operators are facing rising operational costs due to increased spending on diesel to power network sites amid unreliable electricity supply from the national grid.
The partnership reflects the growing relationship between the power and telecommunications sectors, as both rely on each other to deliver essential services.
Oshadami explained that while telecom infrastructure requires a steady power supply to remain operational, digital connectivity also supports electricity services such as smart metering, electronic payments and remote customer management.
According to him, the collaboration is aimed at improving access to reliable electricity and telecommunications services, particularly in remote communities where inadequate power supply has slowed digital inclusion.
He said both agencies had identified telecom base stations located within one to two kilometres of existing mini-grids, allowing the implementation of the initiative to begin immediately.
“Where mini-grids exist, we are able to identify nearby base stations and connect them to those power sources,” Oshadami said.
He added that future mini-grid projects would be planned with telecommunications infrastructure in mind, ensuring that electricity investments also support the expansion of digital services.
Airtel Nigeria has secured a fresh 10-year renewal of its spectrum licence from the Nigerian Communications Commission (NCC), reinforcing the telecom operator’s long-term commitment to expanding broadband connectivity and improving digital access across the country.
The renewed licence covers Airtel’s spectrum holdings, which are critical to the delivery of voice and high-speed data services, providing regulatory certainty for continued investments in network expansion, capacity upgrades and improved customer experience.
According to the company, the renewal underscores confidence in Nigeria’s telecommunications sector and will support its ongoing efforts to bridge the country’s digital divide by extending quality connectivity to more underserved communities.
Sunil Taldar, chief executive officer, Airtel Africa, said the renewal provides the company with the confidence to continue investing in Nigeria’s digital infrastructure.
He said, “The spectrum renewal reaffirms our long-term commitment to Nigeria, our largest market. It gives us the certainty required to continue investing in network expansion, improve service quality and accelerate digital inclusion for millions of Nigerians.”
Taldar added that Airtel remains focused on expanding broadband access and supporting Nigeria’s digital economy agenda through sustained investments in telecommunications infrastructure.
He further said, “We appreciate the Nigerian Communications Commission and the Federal Government for their continued support in creating an enabling environment for investment. We remain committed to delivering reliable and affordable connectivity while contributing to Nigeria’s socio-economic development.”
Meanwhile, Industry observers said the licence renewal removes regulatory uncertainty and allows Airtel to pursue long-term capital investments, including the expansion of 4G and 5G networks, as demand for mobile data and digital services continues to grow across Nigeria.
The renewal comes as telecom operators continue to invest heavily in broadband infrastructure to meet rising data consumption and support government efforts to achieve Universal digital access.
Furthermore, It also aligns with the NCC’s objective of ensuring efficient spectrum management while encouraging sustained private sector investment in the country’s telecommunications industry.
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