Telecom
Tier II Operators Urge NCC to Reinstate Data Price Floor
The immediate reinstatement of the data floor price has returned to the front burner of discussions within the telecom industry especially within the ranks of Tier II players who are defined by the Nigerian Communications Commission(NCC) as having less than 7.5% of the market share or have been in operation for less than three years.
The issue was front and center at the recently concluded BusinessDay Broadband Summit which held last week in Lagos.
During a panel discussion, which proceeded under the theme, “Broadband for All by 20178: Where are we?” Funke Opeke, CEO of MainOne had raised the question: “are there alternatives to raising the data price floor especially in this recession?” This was after she had already made the point that “broadband deployment is capital and infrastructure intensive. We need govt support.”
Her poser had elicited passionate responses from chief executives and top management staff of telecoms companies present.
Kamar Abass, CEO ntel, was unequivocal in his response. “Increasing the data price floor ensures that operators can provide better services. It also ensures that they can get adequate returns on investments.”
David Venn, CEO, Spectranet was no less direct “we need sanity and a data floor because there is a lot of anti-competitive behaviour in the market.” Continuing with his submission, Venn added that “Quality of Service has fallen in the past 6 months because of Nigeria’s huge data hunger,” a state of affairs that has seen Tier II telecom companies offering unlimited packages in a bid to stay ahead of competition.
Providing another perspective to the issue, Tenu Awoonor, Director Strategy and performance Management at Airtel, a Tier I player, said there is a misconception which must be corrected. According to Awoonor, “reinstating the data price floor will not necessarily make broadband more expensive, rather it will help with penetration. We need better pricing to help ensure that operators stay afloat.”
The second panel which had the theme “Impact of Broadband on the Business Community” did not waste any time in returning to the topic.
Echoing Kamar Abass’ view from the first panel discussion, Gbenga Adebayo, President of Association of Licensed Telecoms Operators (ALTON) said “we need to revisit the issue of data price floor especially now that we are talking about broadband for all because there is a minimum price a telco must charge in order to stay in business. Where are the old players & ISPs?”
Adebayo went on to add that over 21 ISPs and pioneer Tier II CDMA operators had gone out of business because of the capital-intensive nature of the industry, predatory pricing by bigger operators and lack of commensurate returns on investment.
Olushola Teniola, president of another industry advocacy group, Association of Telecommunication Companies of Nigeria (ATCON) also harped on the data price floor issue where he said that “Without a review of the data services provisioning market structure, there is a serious risk of market failure with the resultant ripple effect. Current evidence suggests that with inflation at 17%, input costs at a per unit per Mb level, that retail data prices available on the market are unsustainable even with economies of scale, hence a serious distortion exists that needs immediate regulatory intervention
Commenting further on the issue, Dr. Olayinka David-West, Academic Director at the Lagos Business School, said in order for telcos to continue to deliver value and ensure optimal Quality of Service to customers there must be the right balance of “affordability and value or else they won’t be able to provide the right services in a broadband world.”
At the end of the discussions, the overwhelming consensus was that for services to improve telcos need to stay stable and profitable and these would depend a whole lot on the reinstatement of the data price floor which would guarantee better quality of service and value for the customers.
In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year.
According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29%, solidifying its position as a leading telecom provider in the region.
In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19% decline in market share and 9mobile experiencing a 0.5% decrease.
Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58% drop in its share of internet subscribers.
Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165% basis points increase.
This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.
Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.
Google Developer Groups Lagos (GDGLagos) has announced a regional edition of the global #BuildWithAI hackathon, in partnership with SeerBit, Africa’s most trusted payment solutions provider and GOMYCODE.
This hackathon, taking place on Saturday, April 27th and Wednesday, May 1st, 2024, will empower participants to explore Google’s AI tools, Gemini and Vertex AI and develop innovative solutions for real-world challenges.
“We are excited to partner with Seerbit and GoMyCode to bring the #BuildWithAI hackathon to Lagos,” says Co-Organizer, GDGLagos, Femi Taiwo. “This event fosters innovation and empowers individuals to use AI to solve real-world problems. We encourage everyone interested in AI to join us for this inspiring event.”
Founder & CEO of SeerBit, Omoniyi Kolade articulated the profound impact of this collaboration, stating, “At SeerBit, we are committed to pioneering innovative solutions that enhance financial security and foster trust in digital transactions. Collaborating with GDG Lagos amplifies our quest to combat fraud effectively. Together, we aim to empower developers to harness the power of technology for the greater good, ultimately benefiting society as a whole.”
“At GOMYCODE, we are committed to unlocking the potential of innovators across Nigeria and beyond through accessible technology education. The ‘Build With AI’ hackathon with Google Developer Groups Lagos offers a hands-on chance for innovators to use AI for real-world solutions. We’re excited to create a space where technology meets creativity, empowering participants to actively shape the future,” Country Head, GOMYCODE Nigeria, Babatunde Olaifa said.
The #BuildWithAI hackathon aligns with Google’s global initiative to democratize access to AI technology. This regional event in Lagos offers a unique opportunity for developers, data scientists, designers, students, and anyone curious about AI to:
- Gain hands-on experience with Google’s cutting-edge AI tools, Gemini and Vertex AI.
- Tackle real-world challenges across various sectors like sustainability, finance, education, healthcare, and social good.
- Leverage SeerBit’s expertise in digital payments to create solutions with tangible applications.
- Develop in-demand skills with the support of GoMyCode’s training resources.
- Collaborate in teams and network with fellow AI enthusiasts.
- Compete for a chance to win a cash prize of NGN 1,000,000, office space to further develop their winning solution, and the opportunity to partner with SeerBit, with NGN 500,000 and NGN 250,000 for second and third place respectively.
The GDGLagos #BuildWithAI hackathon serves as a springboard for the global Google AI Hackathon, taking place online. This international event focuses on pushing the boundaries of what Generative AI apps can do with Gemini. Participants in the Lagos event are highly encouraged to consider entering the global competition as well.
GDGLagos will provide ongoing support and guidance to the regional winner as they prepare to compete on the global stage. This includes access to mentorship, resources and technical expertise to help them refine their solution and showcase their talent to a worldwide audience.
Startup founders, experienced developers, data scientists and expert resources and designated mentors will be available during the hackathon to provide guidance, refine ideas, answer questions and offer technical support to participants. This ensures they receive the necessary guidance to tackle the challenges and bring their innovative ideas to life.
Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.
The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.
Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.
“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”
According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.
Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.
With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.
Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.
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