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Medallion, Galaxy Backbone Make Case for Infrastructure Sharing in ICT Sector

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The issue of infrastructure sharing in Nigerian telecommunications industry is extremely important since the resources used to provide the services are limited.

Whether in passive or active model, infrastructure sharing is a key element in promoting healthy competition among market players, with a reasonable investment value and a fair price to be charged to the consumer.

These were the thoughts of panellists at the Mobile and Disruptive Technology Forum (#MoDiTECH2019) organised by TechEconomy.ng in Lagos, recently.

Moderated by Mr. Toba Obaniyi, the Vice President, Nigeria Internet Registration Association (NiRA), the panelists discussed issues around “Infrastructure as a Limitation to Unleashing Digital Services in Nigeria”.

Dr. Kris Ranganath, Chief Technical Officer (CTO), Medallion Communications, speaking during the panel session, reiterated that leveraging the capacity of colocation companies such as Medallion Communications Limited could be the way out for players to reduce capital expenditure (CAPEX) and operational expenditure (OPEX).

Dr. Ranganath said that despite a record of over $70 billion local and foreign direct investments (FDIs) into the country’s telecoms sector, lack of a robust infrastructure remains one of the challenges that have bedevilled the industry.

He said that as the major employer of labour and an enabler of economic development, the industry deserves protection by the government to continue to add value to the GDP.

He said that Medallion Communications Limited, one of West African one-stop interconnect and hosting companies readily comes into the picture as an enabler of colocation model for the country

The CTO said that the Company has preached and has painstakingly been building infrastructure backbone supporting Nigeria’s ICT and telecommunications industry in the area of carrier neutral infrastructure sharing and connectivity over the years and will continue to add value to the ecosystem.

He said, although they have not totally addressed the challenges, but their efforts have given rise to Nigerians appreciating the value of shared infrastructure and data center service delivery.

“The Medallion collocation center, located in Lagos, is today, one of the most connected facilities in Nigeria. Over 80 service providers, including all global system for mobile communications (GSM) operators, code division multiple access (CDMA) operators, fixed wireless and fixed line operators in Nigeria are connected to the Medallion’s collocation center.

“The resilience telecom infrastructure Medallion has built over the years is currently accommodating the hosting of contents from both local and international service providers in Nigeria. Therefore, we are localising a huge percentage of content and data, which were hitherto hosted abroad,” the Medallion Communications CTO added.

He said that while the Company drives colocation, among other services, the client lists also include all long distance, international fiber network operators and metro fiber transmission providers in Nigeria.

More so, Chidi Okpala, Marketing Manager, Galaxy Backbone Limited, said that infrastructure sharing is a way of reducing the costs of investing in networks, increasing the value of the business, optimizing the allocation and use of infrastructures when duplication is impossible, and guaranteeing the compliance with regulatory obligations.

He added that the resultant impact is in an improvement of the conditions of the service provided to the users, especially in offering quality service.

Okpala said that more importantly, infrastructure sharing is always advisable to foster competition in the sector, thus favouring the final consumer, either with an improvement in the quality of the service, or with a possible reduction in the prices charged by the sector.

According to him, Galaxy Backbone has continued to provide connectivity services to Government MDAs across the length and breadth of Nigeria on its 1GOV.ng platform.

“This has given federal government the opportunity to enjoy the benefits of economies of scale and encourage local partnerships”.

Galaxy Backbone (GBB) is the Digital and Shared Services Infrastructure provider of the federal government.

For close to two decades, GBB has continued to strive towards living its mission being, to drive national development through the provision of pervasive ICT Infrastructure and services to public institutions, underserved communities and other stakeholders.

This mission propels the day to day running of the organisation and how it interacts with institutions, local communities and other stakeholders.

Similarly, the persistent infrastructure deficit in the Nigerian telecoms sector are due to obvious multifaceted factors like multiple taxation, vandalism, inconsistent policies, among other factors.

In his contribution, the president, Association of Licensed Mobile Payment Operators (ALMPO), Mr. Chinedu Onuoha, said that in addition to improved infrastructure deployment, introducing innovative solutions that have the potential to reduce costs in digital payments is crucial too.

He said that FinTechs must continue to strive to develop and unleash real-time settlement solutions for financial institutions and capable of impacting of rural dwellers.

He said that standardization through policies cannot be overemphazised as the costs, risks and delays inherent in today’s infrastructure often limit electronic payment products, particularly to large-value transactions.

He referred to the recent issues generated by the Unstructured Supplementary Service Data (USSD) charges by banks and telecos could have been addressed through stakeholders’ engagements.

He reminded the participants that infrastructure deficit is chief among the reasons financial institutions find it difficult to even offer low-value payment products.

For instance, banks and licensed mobile money operators lack capacity to manager issues arising from network downtime among other issues.

Mr. Onuoha said that for these reasons and more, ALMPO was formed “to create a voice for the industry in order to create, influence and shape policies, Government legislations and to build standards within the frameworks that will provide stability and growth to the mobile money environment and also to contribute to the economy of the Mobile payment initiative in Nigeria”.


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Vitel Wireless Partners Fintechs to Expand Access to Services

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Vitel Wireless has entered into partnership with OPay Limited and Moniepoint Limited, to expand access to airtime and data services, particularly in Nigeria’s underserved and rural communities.

Vitel Wireless Partners Fintechs to Expand Access to Services

The collaboration enables millions of customers on both fintech platforms to seamlessly purchase Vitel Wireless airtime and data directly from their bank accounts and digital wallets, a move designed to simplify access and improve connectivity nationwide.

Chudi Nwabueze, chief operating officer, Vitel Wireless, said the initiative highlighted the growing convergence between financial services and telecommunications in Nigeria.

He noted that by leveraging the expansive reach and infrastructure of fintech platforms, the company is removing long-standing barriers to mobile access.

Nwabueze added that the move builds on Vitel’s existing partnerships with traditional financial institutions such as Fidelity Bank and Zenith Bank, extending its footprint into the rapidly growing fintech ecosystem.

“This integration allows users to conveniently top up airtime and purchase data bundles through familiar banking and wallet platforms, improving accessibility and overall user experience,” he said.

Also speaking,  Odera Ben-Chiobi, product marketing manager, Vitel Wireless, said the partnership aligns with the company’s mission to democratize access to mobile connectivity across Nigeria.

According to her, the collaboration will bring telecom services closer to millions of Nigerians, especially in areas where access has historically been limited.

She added that combining telecom services with digital financial platforms will also support broader financial inclusion efforts.

Vitel Wireless currently operates nationwide through a network-sharing agreement with MTN Nigeria, leveraging MTN’s infrastructure to deliver its services across the country.

The company noted that the partnership reflects a shared commitment to inclusive growth, with the potential to accelerate both financial inclusion and digital connectivity across Nigeria.

 

 


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Reps Claim NCC’s Weak Regulatory Oversight Responsible for Poor Telecom Services

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House of Representatives on Wednesday claimed that Nigerian Communications Commission’s (NCC)  weak regulatory oversight, was responsible for the country’s ongoing poor telecom service quality.

Reps Claim NCC’s Weak Regulatory Oversight  Resposible for  Poor Telecom Services

The lawmakers accused the NCC of failing to enforce standards that would compel operators to provide reliable connectivity.

They warned that persistent issues like dropped calls, slow data speeds, and network failures pose serious risks to lives and property, particularly during emergencies.

The resolution followed the adoption of a motion of urgent public importance moved by Ahmadu Jaha, representing Chibok/Damboa/Gwoza Federal Constituency in Borno State.

Speaking on the motion, Jaha emphasised the critical role of telecommunications in Nigeria’s economy and daily life, while lamenting the widening gap between subscriber expectations and actual service delivery.

“Telecommunication has become a vital part of everyday life in Nigeria. It connects families, supports businesses, enhances education, and drives economic growth. However, despite its importance, the quality of service provided by many telecom companies remains unsatisfactory,” he said.

Jaha highlighted recurring problems such as dropped calls, poor internet speeds, and failed message deliveries as signs of deeper systemic failures in the sector.“The House is concerned that poor network connectivity is a major issue.

Subscribers frequently experience dropped calls, slow internet speeds, and difficulty sending messages. This affects both personal communication and business operations, leading to frustration and financial losses,” he added.

Lawmakers also expressed dissatisfaction with the high cost of services relative to the quality received.

Jaha noted that Nigerians pay substantial amounts for data bundles that are quickly depleted due to unstable connections and frequent interruptions.

He further pointed to inadequate customer service, where complaints often go unresolved for long periods, hindering emergency communications during fire outbreaks, medical emergencies, or accidents.

The lawmaker attributed part of the problem to insufficient infrastructure expansion, especially in growing urban centres and underserved rural areas.

“Network congestion during peak hours and in densely populated areas shows that infrastructure development has not kept pace with the growing number of users,” he said.

Supporting the motion, George Ozodinobi, deputy minority whip, accused telecom operators of prioritising profits over service quality while faulting the NCC for regulatory complacency.

“It is like these companies have made enough profits in billions, and so, they don’t care about improving the network anymore. The NCC, the regulator, has become complacent,” Ozodinobi stated.

Despite the sector’s rapid growth from under one million lines in the early 2000s to over 200 million active subscriptions today challenges such as insufficient base stations, unreliable power supply, multiple taxation, and infrastructure vandalism continue to hamper service quality.

In its resolution, the House urged telecom companies to invest in modern infrastructure, expand coverage especially in rural communities, improve customer service, and adopt fairer pricing that reflects actual service quality.

The lawmakers also directed the NCC to enforce stricter quality-of-service standards and hold operators accountable.

They further resolved to set up an ad-hoc committee to investigate the root causes of poor service delivery and recommend appropriate legislative measures.

 

 


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GSMA Africa Policy Group Chair Calls for Urgent Tax Reforms to Accelerate Digital Inclusion

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Mr. Daddy Mukadi, the Chief Regulatory Officer of Airtel Africa and Chair of GSMA Africa’s Policy Group, has called on African governments to recognise telecommunications as a core economic pillar and to implement two specific tax reforms that could dramatically accelerate digital inclusion across the continent.

Speaking at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC – an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended by H.E. President Félix Tshisekedi – Mukadi, who’s also a member of the GSMA Global Policy Group, urged government and industry stakeholders to rethink the role of telecommunications in national development.

He argued that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector,” Mukadi said. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to the continent’s economy in 2024. This is equivalent to 7.7% of GDP and is projected to reach US$270 billion by 2030.

Yet despite mobile networks now covering 95% of Africa’s population, nearly 75% of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mr. Mukadi, therefore, called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services.

He asserted that the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150 to help bridge the usage gap. He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

According to him, “these measures would help deliver inclusive and sustainable digital technology for economic and social progress,” Mukadi said. “They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy.”

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


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