Telecom
YahClick Partners GCES to Provide Satellite Connectivity for 9mobile
YahClick, satellite broadband service from global operator Yahsat and its partner Hughes Network Systems, have signed a strategic partnership with Global Communications Extension Services Limited (GCES) to provide satellite connectivity for 9mobile, one of Nigeria’s leading mobile network operators.
YahClick’s partnership with GCES will bring satellite connectivity to hundreds of cellular backhauling sites, delivering 9mobile with a reliable and robust means of rural connectivity across its entire Nigerian operations.
All three businesses complement each other to provide high-performing and cost-effective mobile network services to citizens in Nigeria. YahClick’s satellite services now reach more than 60 per cent of the population in Africa, and the agreement with GCES extends the company’s reach to more regions within Nigeria.
The introduction of satellite services within rural and unserved areas will also positively impact the economy of the country as it strengthens Nigeria’s policy of financial inclusion championed by the Central Bank of Nigeria.
Money vendors operating Point of Sale (POS) services and other merchants in these areas will benefit from the availability of broadband connectivity and increased financial transactions resulting in greater profitability therefore raising their standard of living.
This partnership has made it possible to overcome the barriers of remote connectivity thanks to satellite backhauling option which makes it feasible to offer cellular services in areas that are prohibitively expensive to reach using traditional terrestrial means.
In signing this agreement, YahClick and GCES will work to support 9mobile in providing its high-quality telecommunication services to individuals across Nigeria. With the addition of YahClick’s reliable satellite connectivity solutions, this partnership will ensure that citizens throughout the country have access to secure, affordable connectivity options nationwide.
Farhan Khan, CEO, YahClick commented, “Our partnership with GCES provides trustworthy, accessible and affordable broadband connectivity for one of Nigeria’s leading networks of choice — reiterating our commitment to advancing the country’s connectivity infrastructure.
“Our agreement unites three companies in working shoulder to shoulder to bridge the digital divide while enabling residents and businesses to realise their potential. As we expand further in Africa, this is another example of the power of collaboration with industry peers that share our vision of advancing humanity.”
Adamu Babadisa, Chief Technical Officer, of GCES added, “For years we have worked with all major telecommunication firms in Nigeria and overall Africa by providing professional quality services to the African telecommunication industry.
“This latest partnership will allow us at GCES to introduce 9mobile to the latest telecommunication applications, equipment, and IT infrastructure we provide to help sustain their mobile network operations.
“This partnership will not only eliminate the barriers to mobile internet adoption within remote regions in Nigeria but also improves the citizens’ access to affordable devices, data plans and opportunities which arise from staying connected.
“This is a step closer to uplifting the marginalized communities that live in unserved and underserved regions not to mention the socioeconomic benefits that come with sighting of such infrastructure in terms of job creation and economic prosperity of these communities.”
Telecom
GSMA Report Highlights Telecom Sector’s Contribution to Nigeria’s GDP
A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.
Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.
Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.
Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.
This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.
“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.
A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.
The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.
It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.
Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.
The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.
Telecom
Tariff Increase Advocacy Gains Momentum as GSMA Report Reveals Industry Insights
While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.
Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.
The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.
The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.
Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.
However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.
Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“
The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.
Telecom
The Telecoms Sector Cannot be Used Palliative for Economic Woes –Adebayo
Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON) has said the telecoms sector should not be a palliative to solve economic woes.
He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.
According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development.
He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.
The GSMA digital report, launched May 9th 2024, 2024, highlights the telecom’s 8 percent contribution to Nigeria’s GDP and 13.5% when considering the broader ICT ecosystem.
The report also highlights the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.
Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.
He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.
He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.
The price review should be a simple regulatory process.
The public debate this has gained makes it appear the industry is insensitive to people’s concern.
“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” , Adebayo said.
He concluded that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry, in order to drive economic growth, and fulfill its potential as a critical sector in Nigeria’s economy.
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