Telecom

A Call to Revamp CDMA Operations

Published

7 years ago

February 23, 2017

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Code Division Multiple Access (CDMA), a second generation telecommunications standard pioneered by chip maker Qualcomm, uses spread spectrum techniques and is globally acknowledged as the better technology compared to Global System for Mobile Communications (GSM).

GSM, thanks to its wide adoption in Nigeria, Africa and indeed across the globe, gained critical mass subscription, out-edging CDMA and became the dominant standard for 2G telecommunications all over the globe and currently moving to 5G. But in countries like America and Japan, CDMA still managed to find a firm footing and they are better for it.

CDMA is preferred as better technology compared to GSM, given its inherent quality in terms of data speed and capacity. There is no gainsaying that telecommunications network providers are seriously focusing on data services hence the revenue shares from voice has reduced, substantially.

CDMA in Nigeria and Why they Failed
It is pertinent to note that CDMA as a technology managed to find a use case in Nigeria at the time it stood for wired landline connections. Recall, the first set of Private Telephone Operators (PTO) in Nigeria offered services via the CDMA technology. Multi-Links Telecommunications Limited was the first to begin operations in 1998 while the likes of VGC Communications, Intercellular, Mobitel and EMIS were the preferred networks of many Nigerians in the early days of the telecom revolution.

Then, a particular GSM entrant had exorbitant call rates with SIM cards being sold as high as N40, 000 upon entry. But, a number of issues worked against the spread of CDMA networks since the GSM licensing in 2001.

The inability to have the same interconnect charges and failure to convince investors in the interconnect space, that, since CDMA required lesser spectrum than GSM, they should be allowed to provide full fledged CDMA services on the spectrum they got for WLL. That is just one case out of many. Well, the recent acquisition of Visafone by MTN Nigeria may have sounded the long awaited death knell on CDMA operators in Nigeria.

Yes, MTN acquisition of Visafone, meant the services could be spread to a wider coverage area, using the spectrum (800GHz) on fourth generation equipment (4G LTE). However, it may not be yet uhuru. For instance, can you compare subscribing to CDMA broadband service for a year with that of the GSM? While the CDMA helps to ensure stability in your business which depended largely on internet access these days, tethering your phone in order to GSM phone internet connection would bill for every kilobyte and has proved to be a very expensive option. CDMA would have saved us some headache in this time of recession.

CDMA leverages several transmitters and can send information simultaneously over a single communication channel. It uses spread spectrum technology allowing many users to occupy the same space time and frequency allocations in a given band/space. Unlike GSM, CDMA does not assign a specific frequency channel or time slot to each user but instead individual conversations are encoded with a pseudo-random digital sequence.

It is widely acknowledged CDMA showcases better technology compared to alternative technologies such as GSM and is also believed to be more cost effective for operators as the CDMA capacity advantage leads to lower tariffs. Had it this been the case, the Minister of Communications, Barrister Adebayo Shittu and his lieutenants at the Nigerian Communications Commission (NCC), probably, would have had a safe-sail in pushing for increased data-floor which generated much debate late last year.

During its dominant era, the CDMA operators unleashed excellent voice clarity for both local and international traffics; clearly identified lines and locations, while their data quality were often been described as first rate.

Many are still at lost over the causes of CDMA demise in Nigeria. As we speak, they are at the verge of extinction with less than 1.5million subscribers in a market where there are over 216million connected telephone lines, according to NCC statistics, with about 154million active lines. Out of the number, GSM operators account for about 152million lines. Fixed wired/wireless operators have less than 200,000 lines.

A close look at the Nigerian Telecommunications industry, as an industry analyst would put it, “one can deduce that the business model of the average Nigerian CDMA operator made it unable to compete on the same platform with GSM service providers. Almost all the CDMA operators where locally developed, with no international investors or technical partners involved in the management of their service”.

This is backed up with the fact, GSM providers- MTN, Airtel (formerly Econet, Celtel), Globacom and Etisalat due to their size and international affiliations were able to attract financing and support from foreign banks and international finance brokers. The CDMAs’ woes reached the crescendo as, financial institutions repulsed by the companies’ stinking financial records, turned their backs, preferring to fund GSM operators with proven corporate practice.

Another factor that could have worked against the CDMA operators could be there network spread, most of them were located in urban cities like Abuja and Lagos, extending their services to other regions or cities meant going back to the regulator for additional spectrum which usually came at a cost. The guidelines on their licensing hindered their spread.

Others believe that market forces like stiffer competition and the tough business climate in the country made co-location impossible in the early day thus operators had to build and maintain their telecom infrastructure across the country. Unfortunately, the industry was skewed against infrastructure sharing, by that; they shot themselves in the leg. This singular act, it is believed, signaled the present NCC’s InfraCo arrangement, where issue around co-location is industry approved.

Simply put that the inability of CDMA operators to spread massively in the beginning compared to their GSM counterparts stifled innovation, and formed the major impediment to their growth.

Way Forward
The regulator seems to have created a monster (monopoly) that will, sooner or later, turn against the market. How do we mean? Pundits predicted that in the near future, mobile operators on different platforms including GSM and CDMA will migrate to the Long Term Evolution (LTE). With LTE operators will get a speed of up to 37.5MB per second on the device as against the 3.1MB that is currently available on the 3G networks.

It is no longer news MTN acquired Visafone to access the 800 MHz spectrum band, which enabled it launch 4G LTE services. Recall, in 2007, VGC Communications Limited (VGCCL), a Lagos-based Private Telephone Operator licensed by NCC to provide cabling and radio, telephone services nationwide and had laid extensive fibre optic cables, and Internet service provision, was bought by MTN Nigeria. In other words, MTN is in a position to be a single dominant player in the voice and data markets in Nigeria’s telecommunications industry.

The question in the minds of many in the light of recent developments is ‘how will the CDMA sector thrive if it is not proactively encouraged by the NCC to do so?”

There could be hope for CDMA, especially, if they are encouraged through the Universal Service Provision Funds (USPF) to deploy services in rural areas, because 3G technology performs better on CDMA. It will be a double-win for the government which is pushing for financial inclusion at the rural areas.

The CDMAs with best spectrum to reach the hinter lands can be very valuable in that regard. For those that will be stationed at the urban centre, they can help power the Point of Sale (POS) Terminals, the key driver of the Central Bank of Nigeria (CBN) cashless policy initiative; it works better with the CDMA technology than with the GSM technology.

Thus, is it expected the government through the NCC can give the CDMA operators a favourable licensing environment so as to continue operations, because there have been at least six CDMA operators in Nigeria from Multi-Links to Starcomms who have either exited the market or folded up citing unfavourable business conditions as a cause. It is heartbreaking that in 2001, there were 12 CDMA operators in the country and at 2016 none is viable. Remember, the death of a CDMA operator implies job loss, revenue loss to the nation and in a move towards monopoly.

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Telecom

Layer3 Achieves Recertification for ISO/IEC 27001:2022, ISO/IEC 27017:2015, PCI-DSS and Nigeria Data Protection Compliance

Published

17 hours ago

April 16, 2024

Chike Onwuegbuchi

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Layer3, a provider of cloud and AI-driven network solutions in Nigeria, today announced the successful recertification for four internationally recognized security standards: ISO/IEC 27001:2022 for information security management, ISO/IEC 27017:2015 for cloud security, PCI-DSS for protecting cardholder data.

The independent audits were conducted by AfriAssure Digital Service, a reputable certification body. Furthermore, Layer3 has also achieved its Nigeria Data Protection Regulation (NDPR) compliance for the current year.

These recertifications reinforce Layer3’s unwavering commitment to data security and privacy for its clients, across its cloud and other services. By adhering to these rigorous standards, Layer3 demonstrates its ability to manage information security risks, protect sensitive data in the cloud, ensure the confidentiality of cardholder information, and comply with Nigeria’s data protection regulations.

“We are thrilled to achieve recertification for these important security standards,” said Augustine Ani, Layer3’s Cybersecurity Manager. “This accomplishment underscores our dedication to providing a secure and compliant environment for our clients. Maintaining these certifications is an ongoing process, and it requires a company-wide commitment to data security best practices.”

ISO/IEC 27001:2022 is an internationally recognized standard for information security management systems, ensuring that organizations implement robust controls and practices to mitigate risks and protect valuable assets. ISO/IEC 27017:2015 provides guidelines for information security controls applicable to cloud services, addressing specific concerns and considerations in cloud computing environments.

Additionally, compliance with the Payment Card Industry Data Security Standard (PCI-DSS) demonstrates Layer3’s adherence to stringent security protocols for handling payment card data, promoting secure transactions and data protection.

Layer3 remains steadfast in its pursuit of excellence, continuously enhancing its security posture to adapt to evolving threats and industry best practices. The recertification of ISO/IEC 27001:2022, ISO/IEC 27017:2015, and PCI-DSS standards reflects Layer3’s ongoing commitment to delivering exceptional cloud and network solutions its valued clients.

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Telecom

Why E-commerce is Thriving in South Africa

Published

17 hours ago

April 16, 2024

Ugo Onwuaso

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South Africa’s ecommerce sector is expected to exceed USD21 billion by 2025, with more than one billion transactions per year. This is largely due to the proliferation of smart devices and the expansion of internet connectivity which has created a viable environment for e-commerce to thrive in the country.

Additionally, the increasing integration of e-commerce platforms with various advanced technologies such as cloud computing, artificial intelligence and predictive analytics is also significantly driving the growth of the South African e-commerce market. As a result, the country is becoming a significant player in the global e-commerce industry.

Indeed, the rise of e-commerce in South Africa holds immense opportunities for businesses looking to enter the market. Further, the development presents useful learning points for other countries, such as Nigeria and Kenya, among others, all of which this SeerBit whitepaper exhaustively explores.

Factors Driving E-commerce Growth in South Africa

E-commerce growth in South Africa has been driven by several factors, including increased internet access, improved payment options and the convenience and efficiency of online shopping.

Increased internet access: Mobile penetration among South African consumers is higher than ever, as indicated by research results from a Geopoll survey conducted in 2020 showing that 45 percent of the South African population browsed the internet on their smartphones for more than four hours a day. The study also revealed that South Africa is one of the biggest adopters of mobile technology in sub-Saharan Africa, with higher rates of smartphone adoption than in most other countries in the region. In terms of total numbers, there are 46.9 million smartphone subscriptions in South Africa, which accounts for users who have multiple phones. As of January 2024, there were 45.34 million active internet users in South Africa.
Convenience and efficiency of online shopping: For South African consumers, convenience is key when it comes to choosing which online platforms to purchase from. This reduced need to visit a physical store was also identified in a research paper published by Deloitte. The research found that 26 percent of consumers in South Africa said they prefer to shop online because it is more convenient.
Improved payment options: The integration of wallets, bank apps and shopping apps has made browsing through virtual shopping aisles easier than ever before. Digital wallets have become an entry point for consumers to engage with financial services, thereby creating new opportunities to target the under-served banking population. Also, as South Africans become more comfortable with the concept of online shopping, their appetite for e-commerce solutions continues to increase.

Overcoming Challenges Faced by E-commerce Businesses in South Africa

Despite South Africa’s strong e-commerce growth, the WEF has noted that e commerce entrepreneurs are challenged by issues such as low consumer trust and e-skills, low internet penetration and affordability, uncompetitive delivery infrastructure, fragmented markets and barriers to cross-border e-payments.

Low Trust of Online Platforms

Many South Africans still do not trust online stores with their personal payment details. This stems from lack of knowledge about online payment systems and advanced security measures. To overcome this mistrust, merchants should use a PCI DSS certified payment service provider (PSP) that meets high security standards and keeps customer information safe. If customers understand how online fraud is prevented and the techniques that are used to prevent security breaches or fraud attempts, they are more likely to trust an e-commerce website with their payment information

High Cost of Data and Internet Penetration

South Africans pay up to USD5.29 per gigabyte (GB) of data, a cost equivalent to nearly four hours work for people earning the minimum wage. That compares with about USD1.53 per gigabyte in North Africa and USD2.47 in Western Europe, according to research by the Ichikowitz Family Foundation charity that highlights, among other topics, sub-Saharan Africa’s sky-high data costs. The region has the world’s most expensive mobile data prices, according to the Worldwide Mobile Data Pricing 2021 report.

Issues with delivery infrastructure

Logistics is already a vital part of any retailer’s business plan, but its importance will continue to grow as the use of e-commerce for transactions increases. For stores to be efficient, they must be able to respond quickly and accurately to be able to deliver the correct products to customers on time. Now more than ever an efficient supply chain is needed that gives a high level of service across all channels.

The Role of Technology in Shaping South Africa’s E-commerce Landscape

Technology has become an integral part of every aspect of life, and the retail industry in South Africa is no exception. As consumer expectations continue to evolve, retailers are embracing innovative technologies to enhance the shopping experience and stay ahead of the competition.

Emerging technologies including contactless payments, virtual and augmented reality experiences, AI and mobile payments are all having a profound impact on e-commerce in the country.

Conclusion

The growth of South Africa’s ecommerce industry will likely surpass projections, thanks to the country’s growing appetite for online shopping. The penetration of smartphones, access to data, increased number of platforms and products as well as evolving regulation supporting the industry are significant factors contributing positively to the growth of the industry. There has never been a better time for businesses to enter the ecommerce market in South Africa.

This SeerBit whitepaper casts a deeper look at the trends, factors, future prospects and leading players transforming South Africa into the continent’s biggest e-commerce market.

Click HERE to access the full whitepaper.

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Telecom

Nigerians Rush as Konga Slashes Prices of Starlink Satellite Internet Kits by 50 Percent

Published

4 days ago

April 13, 2024

Ugo Onwuaso

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Konga’s latest addition to its family of technology products, Starlink Satellite Internet Kits, has been met with overwhelming customer demand. The company is Starlink’s only authorised Shop-In-Shop eCommerce partner in Nigeria and provides immediate warranties on all Starlink kits bought from Konga.

Since the e-commerce giant broke the news of the price slash at 9pm on Tuesday night, shoppers in need of reliable, fast, low-latency internet services have trooped to konga.com to grab their share of the unbeatable deal on offer for the Space X engineered satellite kit. Until March of this year, the internet kits had been selling for N800,000 due to the devaluation of the Naira, and now go for N440,000 with the local currency regaining its strength.

As the clock races and limited stock runs out, our investigation confirms that those who purchased Starlink on Konga have begun to receive same-day delivery shipping for their orders in Lagos, Abuja, Kano and Rivers State.

On its e-commerce website, the unprecedented surge in demand for the product saw web traffic triple in 4 hours as customers took advantage of the great pricing and seamless order process available via the authentic official Starlink store in Nigeria on Konga.

Konga is yet to reveal how many units of the product it will be releasing to the market at the current discounted price; however, insider reports indicate that there is limited stock available for a short time at this amount. For this reason, customers are encouraged to place their orders immediately.

According to the Head of Business for Konga’s commercial unit, Emmanuel Ekwedike, the online shopping platform always delivers deals that make sense. With the Starlink kits, while customers can buy online and have the orders shipped to their homes and offices nationwide, they can also visit any Konga retail outlet around the country to make an instant purchase.

In February, Konga announced the launch of Starlink kits on its platform with an initial selling price of N378,000 to great reviews. As the month advances, the excitement is still running high as users get high-end quality experiences from purchasing genuine kits and other products with global warranty at its retail outlets and online via the e-commerce portal.

Konga.com is Nigeria’s largest customer centric omnichannel online mall. It launched operations in July 2012 and is on a mission to become the engine of commerce and trade in Africa.

Starlink kits provide high-speed internet services to users around the world through advanced low-latency satellite technology, as a solution to internet disruptions caused by fibre cuts.

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