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Counterfeiters Now Control 10% Phone Market Share in Nigeria

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Fake phone manufacturers and importers seem to be having upper hand in the current battle with such products’ regulators in Nigeria, Nigeria CommunicationsWeek can report.

According to an impeccable source in the phone manufacturing business, counterfeiters might have taken over more than ten per cent (10%) of the market share, and glaringly displaying the products at different areas like Computer Village- Ikeja and other hinterlands.

“It is affecting a whole lot of things in this market. We hear of people complain about Poor Quality of Network Service (QoS), the activities of these phone fakers contribute a lot to that. So, users of such phones are losers, government is losing revenue, we are losing the market too as original equipment manufacturers and spells doom for the market.

“These guys used to occupy about five per cent of the market, but I can authoritatively tell you that they have gone beyond ten per cent of the market share,” the source who prefers anonymity told Nigeria CommunicationsWeek.

ATCON Had Alerted Constituted Authorities
Nigeria CommunicationsWeek had in October 1, 2016 exclusively reported the discovery by the Association of Telecommunications Operators of Nigeria (ATCON), which called for urgent measures to curb the increasing rate of dumping fake mobile phones in the country.

Mr. Olusola Teniola, ATCON said that that investigations revealed more than twenty (20) mobile phone brands in the country are not NCC type-approved and contribute significantly to the persistent poor quality of service‎ (QoS).

Although, names of the phone brands are yet to be made public, however, Teniola said that the unregistered/unapproved brands have over one hundred and fifty (150) mobile phone models circulating in Nigeria.

He said that the Association believes more stringent measures should be taken to curb the counterfeiting of mobile phones in the country.

Meanwhile, fresh facts emerged recently, showing that the fakers copy 100% of top phone brands in the market, selling same to end-users as the original.

Standard Organisation of Nigeria (SON) Arrest Alleged Fakers
It could be recalled that in January 2017, the Standards Organisation of Nigeria (SON), working with other law enforcement agencies arrested two Chinese nationals over increasing complaints about fake and substandard phones imported into Nigeria.

The Chinese, according to Osita Aboloma, director general of SON, imported fake and substandard mobile phones into the country.

Aboloma, who was represented by Bede Obayi, director Compliance of SON, during a recent enforcement exercise in Lagos by SON, said the Agency has continued to receive numerous complaints about KZG phones from unsuspecting consumers in the country.

Aboloma said “We have information on the activities of these Chinese people who are operating this KZG mobile here in Ikeja Lagos that people are complaining about the quality of their products and SON has to ensure that the quality of products sold in Nigeria is in compliance with the Nigeria industrial standards.

“Their attitude show that they know what they are doing here and they are not ready to talk, they are not ready to give us information about what they are doing here and their major warehouses. Based on the information we have gathered and what we found on ground in the office and the documentation of importation indicates that he is one of the leading suppliers of sub-standard phones in Nigeria,” Obayi said.‎

Fakers Attack Original OEMs
But, our Source at Computer Village, Ikeja, revealed how SON’s clamp down on fakers attracted their (fakers’) wraths on original OEMs. “In fact, when SON concluded the raid here in Computer Village, the fake phone manufacturers were furious and went ahead to invade shops and offices of some the original OEMs whom they believed were the whistleblowers. Staff of the original OEMs were quite traumatized by the incident.

Speaking to Nigeria CommunicationsWeek on the worrying situation, Mr. Teniola said, “We plead with ‎Government to put in place anti-counterfeiting measures such as the facilitation of integrated Web portal based IMEI-IMSI collection to stem the menace of substandard or unregistered mobile phones circulating in Nigeria with obvious consequences of poor quality of service, loss of revenue to the government, loss of business by OEMs‎ and loss of jobs as well as in revenue to the Nigeria mobile market.

“For instance, we have more than twenty mobile phone brands that do not have NCC type approved certificate to operate in Nigeria. This unregistered/unapproved brands have over one hundred and fifty mobile phone models circulating in Nigeria”.

He added that the Association observed 10% of fake mobile phones products of some of the popular mobile phone brands circulating in Nigeria.

According to Mr. Austin Eze, a phone technician, “an average phone user in the market requires education to distinguish original from fake phones. “Yes. For the fact there are fake phones in the market implies there are originals too. What the manufacturers should be focusing on is educating the customers”.

CAPDAN Confirms The Situation
Mr Ahmed Ojikutu, president of Computer and Allied Product Dealers Association of Nigeria (CAPDAN) while reacting to the situation told Nigeria CommunicationsWeek confirmed that the activities of the fakers are threats to OEMs.

Mr Ojikutu, however, said that his administration is completely against the illegalities, while pleading with relevant authorities to partner them in tackling the unsavory situation.

He said that, as part of CAPDAN’s commitment to tacking fake and substandard devices, they are launching a toll-free line that will be available to those patronizing the market. 

The CAPDAN President spoke to Nigeria CommunicationsWeek, “Our administration is absolutely 150% against substandard and counterfeit products. We are trying to make sure that anybody that has complaint relating to buying counterfeit product or not exactly what you paid for, we will make sure that such is addressed at our own level. We will make sure the seller in questions provides what the buyer paid for at the point of the transaction. Be that at it may, if the complaint didn’t get to us, we wouldn’t know how to resolve the issue. In a case where the seller refuses to yield to our calls, we hand him over to the police; that is what we have been doing.

“We are also going to launch a campaign with a free-toll line. We are going to display it anywhere for people to call-in and lodge complaints. As they call in possibly during the working hours, we give them reference number to follow up on them. This is for every buyer at Computer Village (CV) to be assured of buying genuine products.

“Already, we have set up an arbitration and disciplinary committee that headed by reputable people in the market. Most of the time, we refer issues to the Committee”.

Involvement of Original Equipment Manufacturers (OEMs)
He further sought more commitment of OEMs in the fight against the unwholesome products in the market. Mr. Ojikutu said, “The Original Equipment Manufacturers (OEMs) are supposed to work closely with us, because most times, we are the people on ground. Though we are not law enforcement, but the owners, the direct beneficiaries of these interventions, ought to work closer with us. With the joint efforts, the people counterfeiting their products will be apprehended and handed over to the police; that is the way forward, because when the counterfeiters are caught who is going to pay the legal charges? If they really sit with us we will get results”.   

 

 


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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.

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Experts @ WATISE 2024 Exploit how Emerging Trends will Shape Telecoms Infrastructure, Proffers Solutions on Challenges

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Telecommunications experts across West Africa have exposed trending innovations relying on telecoms infrastructure harping on the strategies that are crucial for the sustainability of telecommunications infrastructure to fast-track the regions digital economy.

Speaking at the second edition of the West Africa Telecoms Infrastructure Summit and Exhibtion (WATISE), with the theme: ‘Shaping the future of the telecoms infrastructure industry: Trends and Insights for a Digital Economy’ and organized by TechnologyMirror, an online telecoms news and information platform, held in Lagos, Southwest Nigeria, the experts x-ray critical issues that relates the survival of the telecoms industry using the Nigerian market as a reference point.

Leading the conversation, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida, in his keynote address which was on the theme of WATISE 2.0, noted that the journey towards a digital economy has a future that is paved with immense possibilities and profound challenges noting that “how we navigate this path will determine the role Nigeria plays in the global digital landscape.”

Maida who was represented by the Head of Next Generation Technology and Standard at the NCC, Engr Victor Adoga, described telecommunications infrastructure as the backbone of the digital economy, facilitating seamless connectivity and supporting a range of services from basic voice calls to high-speed internet and cloud computing.

He stated that the rapid growth of the digital economy demands robust, scalable, and secure telecommunications infrastructure disclosing that there are several key trends that are poised to shape the future of telecom infrastructure.

According to Maida, the rollout of 5G networks is a transformative trend in telecoms infrastructure saying that 5G promises significantly higher speeds, lower latency, and greater capacity, facilitating new applications such as IoT (Internet of Things), autonomous vehicles, smart cities and advanced augmented reality.

He listed other emerging trends affecting the deployment of telecoms infrastructure across the region as Internet of Things, Fiber Optic Expansion, Data Localisation and Security, Regulatory Frameworks, Cybersecurity and Energy Efficiency and Sustainability.

He however suggested that the telecoms operators must take consider strategic actions to stay in business saying that collaboration which is partnerships between government, industry, and academia can drive innovation and development.

He added that Innovative Financing Models, Investment in Human Capital, Focus on Sustainability, Integration with AI and Machine Learning and Developing Smart Infrastructure noting also as crucial investing in rural telecom infrastructure and making digital literacy a key component of our educational programs.

Still speaking on the theme of WATISE 2.0. Chief Executive Officer of WTES Projects Limited, Mr Chidi Ajuzie who joined virtually from Ethiopia said there is deluge of connectivity from submarine cable landings linking Nigeria to Europe and rest of the world.

According to him, while there is no centrally managed national transmission backbone, licensed Operators have, over the years, built transmission networks to meet their own needs, often duplicated on most routes.

He disclosed that the Universal Service Provision Fund (USPF) has carried out a detailed study to characterize basic telephony and ICT gaps in the country, identifying 97 clusters with varying population densities and a cumulative population of about 27.91 million that suffer from significant connectivity services gaps. Digital broadband gap is even more, estimated at over 100 million population.

Ajuzie stated that to reap the benefits of broadband, there is need to close the clear gaps existing in the metro middle- and last-mile segments of the connectivity value chain. New Connectivity will be required to bridge the gaps and meet the National Broadband targets.

In fireside chat on ‘Enhancing Rural Connectivity: Strategies for Expanding Telecom Infrastructure’, Tinuade Oguntuyi, Head Network and Solutions, at Information and Communications Services Limited (ICSL) said that that rural areas need better network services for proper communication and development.

Oguntuyi, who anchored the fireside chat urged the government to support network service providers to reach more rural places as they are also full of great potentials for the growth of the nation.

Also speaking, Ahmad Tijani, a local content ICT advocate commended Federal Government projects to connect the rural dwellers and harped on the need to carry the local government leaders along.

Tijani who represented Dr. Adebunmi Adeola Akinbo, National Secretary ICTLOCA, cited the challenge of data gathering which can be sorted by the local government, calling on the grassroots to add value to the nation growth.

In his welcome address, the Convener of WATISE, Isaiah Erhiawarien said that the second edition was a step towards ensuring a reliable telecoms infrastructure for the region, and thanked the Nigerian Communications Commission, Open Access Data Nigeria Limited, Digital Realty, ICSL, HyperSpace Limited and OneData Limited for believing in the dream of the organisers.


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US Newspapers Sue OpenAI, Microsoft Over AI Chatbots

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Eight US newspapers sued OpenAI and Microsoft in a New York federal court Tuesday for violating their copyright to train the technology behind the ChatGPT and Copilot chatbots.

The newspapers, which include The New York Daily News and The Chicago Tribune, are owned by Alden Global Capital, a Florida-based hedge fund that created the second-largest US newspaper group behind USA Today owner Gannett when it bought the Tribune publishing chain in 2021.

“This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot,” according to the filing.

“As this lawsuit will demonstrate, defendants must both obtain the publishers’ consent to use their content and pay fair value for such use,” the filing said.

OpenAI and its Microsoft backer were also accused of offering up verbatim excerpts of full articles as well as attributing misleading or inaccurate reporting to the publications in certain requests.

Other newspapers involved in the suit were The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register and The St. Paul Pioneer Press.

In a statement, OpenAI did not refer to the accusations specifically but said “we take great care in our products and design process to support news organizations.”

OpenAI pointed to the “constructive partnerships and conversations with many news organizations around the world to explore opportunities, discuss any concerns, and provide solutions.”

This referred to the news outlets that have entered partnerships with the Microsoft-backed startup instead of going to court.

They include The Associated Press, Financial Times, Germany’s Axel Springer, French daily Le Monde and Spanish conglomerate Prisa Media.

The suit on Tuesday closely resembles a case filed by The New York Times in December, in which OpenAI is also accused of stealing content to train its powerful AI.

In that case, OpenAI strongly pushed back, arguing the use of publicly available data including news articles for general training purposes is fair use.

OpenAI also accused the Times of violating ChatGPT’s user guidelines to generate the content that suited its case.

Microsoft declined to comment on the suit.

AFP


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5G Subscriptions Hit 2.7m in Nigeria –NCC

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Nigeria’s mobile network landscape is seeing a gradual shift towards newer technologies, with 5G subscriptions reaching 2.7 million in March 2024, according to the Nigerian Communications Commission (NCC).

5G Subscriptions Hit 2.7m in Nigeria –NCC

This translates to a 1.24 per cent penetration rate.

While this represents steady growth compared to December 2023 (1.04%), 2G remains the dominant network choice, accounting for over half (56.97%) of all connections. 3G holds a 9.04% share, while 4G subscriptions have grown significantly from 25.06% in May 2023 to 32.74% in March 2024.

The high cost of 5G-compatible smartphones is a major barrier to wider adoption. Although all three major operators – MTN, Airtel, and Mafab Communications – offer 5G services in select cities, expanding coverage and affordability remain key challenges.

MTN launched the first 5G network in September 2022, followed by Airtel in June 2023. Mafab entered the market later in 2023. All three companies are aiming to expand their reach, but the high cost of 5G devices is a significant deterrent for many Nigerians.

According to Mohammed Rufai, chief technical officer, MTN, maintaining older networks (2G and 3G) alongside newer ones is necessary due to device compatibility issues.

This highlights the need for a wider range of affordable 5G-compatible phones to truly unlock the potential of this next-generation technology in Nigeria.

 

 

 

 

 

 


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