Connect with us

Telecom

ALTON Raises Alarm, Says Telcos Face Difficulty in Traffic Obligations

Published

on

Kindly share this post

Association of Licensed Telecommunication Operators of Nigeria (ALTON) has raised alarm over upheaval task and frustrations faced by the members to settle their international call termination charges.

Addressing a group of Nigeria Information Technology Reporters Association (NITRA) at the quarterly training in Lagos recently, Engineer Gbenga Adebayo, ALTON President, said that the operators have continued to compete in an unhealthy environment, making it difficult to meet financial obligations or remain stable.

He said that is further compounded by Central Bank of Nigeria (CBN) maintaining the status quo on the inclusion of telecoms equipment in the 41 items excluded from accessing forex

He said that, despite the CBN’s interventions to ‘save’ the Naira from free-fall in the foreign exchange market, the members are yet to feel the impact, as they have continued to source the essential ‘commodity’ through the ‘black’ market.

Engr. Adebayo said, “In the absence of local substitutes for its plant and machinery, the Telecommunications Service Providers are constrained to source FX from interbank market at higher rates compared to other sectors such as Manufacturing, Aviation and Agriculture accorded priority in FX allocation at reduced rates by the CBN.

“That means, if I have traffic obligation to settle at five Cents, I can’t source it, rather I have to buy the equivalent from the ‘Black market’. That means, in actually fact, my settlement rate could be higher than it should be.

“So, why would the telecoms would not been accorded forex priority? Owing to the prevailing economic situation in the country, ALTON members cannot transfer the increased cost burden to the consumers, thereby contracting profitability and ability to make further investment to drive growth in the industry.

“You can only invest in the network if you have extras. What this is telling us is that the rate of transfer to settle foreign obligations, as we have to procure from the open market, is higher than the cost and profit. In other words, you will not have anything left.

“They continued to compete in a very difficult market; purchasing equipment at ‘black market’ rates, can’t honour obligations as due, we have to deal with these things. Like I said earlier, there is no service provider in this country that has headrow to accommodate the overflow if one network operator is out of service, no matter what is the capacity. Even an operator with five million subscribers goes off I do not see any operator to accommodate that”.

According to the International Telecommunications Union (ITU), there there are three main ways in which operators pay interconnection charges for carrying each other’s traffic:

Calling party network pays (CPNP) — the originating operator pays a per-minute charge to the operator that terminates the traffic being exchanged. It is the most common interconnection regime.

Bill and keep (BAK) — under this system (sometimes called “sender keeps all”), each operator agrees to terminate calls from another network at no charge (usually on condition that traffic is roughly balanced in each direction).

Receiving party network pays (RPNP) — an operator receiving a call pays a per-minute charge to the originating operator. Less common than CPNP, this system is used in North America and Japan.

Operators generally seek to recover their net costs through charging consumers of their services. There are two main ways to do this:

Calling party pays (CPP) —the person who makes the call pays for the entire cost of that call, but nothing for calls received. This system usually coexists with CPNP interconnection charges for operators.

Receiving party pays (RPP) — the person receiving a call pays all or most of the cost. In the mobile sector, this refers to payment of the “airtime charge” for termination on the recipient’s handset, while the originator too might still pay for a local call. This retail charging system usually coexists with RPNP.


Kindly share this post

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.

Continue Reading
Advertisement
Comments

Telecom

5G Subscriptions Hit 2.7m in Nigeria –NCC

Published

on

Kindly share this post

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.

 

 

 

 

 

 


Kindly share this post
Continue Reading

Telecom

Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

Published

on

Kindly share this post

Experts have called for stronger laws and stricter regulation to tackle security issues around call masking and Subscriber Identity Module (SIM)-boxing-related fraud in Nigeria, according to the Nation.

Experts Seek Stricter Regulation against Call Masking, SIM-Boxing Fraud

Call masking or refilling is a practice in which international calls are terminated in Nigeria as local numbers, using illegal SIM boxes loaded with several numbers.

It is a deliberate attempt by fraudsters to avoid paying the correct International Termination Rate (ITR) for international calls, paying instead the Local Termination Rate (LTR).

For example, when the number is masked as a local call, an operator pays N3.90 LTR and not N24.40 ITR.

The process allows operators to terminate inbound international telecoms traffic as local calls, so they do not have to pay ITR, which is the interconnection charge set by telecoms traffic carriers as carrier-to-carrier charges.

A SIM Box fraud is a setup where fraudsters install SIM boxes with multiple prepaid SIM cards.

A fraudster can bring calls through VOIP (through the internet) and terminate international calls through local phone numbers from a country, to make it appear as a local call, by initiating the call through a local SIM installed in the SIM box.

About three years ago, when the issue came to the limelight, the Nigerian Communications Commission (NCC) carried out some investigations, leading to the sanctioning and suspension of some operators earlier this year.

Some of these suspensions were later lifted.

The Office of the National Security Adviser (ONSA), the National Intelligence Agency (NIA), the Department of State Services (DSS), and Committees of the House of Representatives and Senate have on several occasions expressed concern about the menace.

While many stakeholders believe that the menace has been nipped in the bud, it has continued to rear its ugly head to the bewilderment of experts and stakeholders.

Ikechukwu Nnamani, president/chief executive officer of Medallion Communications Limited, lamented that it is a subject matter, which NCC should address completely.

Nnamani, who is an executive member of the premier telecom body in Nigeria – the Association of Telecommunications Companies of Nigeria (ATCON), said almost all calls he received recently are masked.

“Sometimes, I don’t pick up calls because I do not know the number only to find out later it was an international call.

“The truth is that I don’t know why this has not been resolved, I expected it to have been solved.

“Honestly, I would not know why. One would have expected them to have sorted all these out by now,” he said.

Chief Deolu Ogunbanjo, president of the National Association of Telecommunications Subscribers of Nigeria (NATCOMS) said there was no need to relent in reporting the menace to the right authority.

He said it could be a plan to ensure that gain accrued to some people. “I don’t know whether call masking favours the operator or it is being done deliberately.

“It is a situation that the telecoms should deal with because it is a technical problem. I think it is some of those unlicensed operators doing all these.

“Some of these operators’ facilities are being tapped into; they need to look into their operations, so they can be taken care of.

“If they are still in the habit of doing it, proper sanctions should be meted out to any erring service provider.

“There should be heavier sanctions. They can’t be short-changing subscribers and at the same time, the government,” he said.

Mr. Ajibola Olude, executive secretary of the Association of Telecommunications Companies of Nigeria (ATCON), believes the issue can be addressed.

“When it comes to technology, you can only address it maximally. It is not as rampant as before and it is an international issue.

“We have addressed it before and we will look at it again.

“About four years ago, when it happened, we deployed all the resources within our capacity to address it and I think it was addressed maximally.

“I have not seen any operator complaining, except now that you are raising the issue, but as far as we know, call-masking is no longer a problem.

“I am going to contact our compliance monitoring to enlighten me about what is going on, but it is no longer an issue,” he said.

Mouka Reuben, director, Public affairs, NCC, said the situation has been tackled before and he does not think it was a major issue again.

He, however, promised that the commission would look into it again to find a way out.

NCC recently put the revenue lost to call-masking and SIM-boxing activities in the country at $3 billion.

This is as telecom operators lamented during the 85th edition of the Telecom Consumer Parliament in Lagos that they were losing about N2.5 million minutes per day to these fraudulent activities.

On actions that had been taken by the commission to combat the menace, Prof Umar Danbatta,  former Executive Vice-Chairman, NCC, said the NCC had tightened the SIM registration process across all networks to reduce the availability of SIM cards for SIM-boxing as well as address the security issues around the availability of pre-registered SIMs.

According to him, the action was necessary as some arrests made in Lagos two weeks ago showed that the perpetrators of SIM-boxing had over 100 SIM cards registered with fictitious names and used them to divert international calls.

Credit: The Nation


Kindly share this post
Continue Reading

Telecom

Telecom Management Company Appeals for Cooperation and Safety Measures Over Abaranje Base Station Fire Incident

Published

on

Kindly share this post

Carville Integrated Ventures Limited, a telecoms facility management services provider, has expressed deep sadness by the recent fire incident at Abaranje Base Station, one of the several base stations it manages on behalf of Airtel Nigeria.

The incident, which occurred during maintenance operations on a leaking part of a diesel tank, resulted in injuries to some individuals from the local community who forcefully gained unauthorized access into the facility hosting the base station during the maintenance work.

Despite this breach of access control by the impacted individuals, Carville, who has responsibility for the site management expresses its sympathy to the victims and has offered to provide healthcare support to them.

The management of Carville Integrated Ventures, extends her condolences to the affected individuals and their families, stating, “Our hearts go out to those injured in the unfortunate incident. We are committed to providing support and assistance during their recovery process.”

Carville also emphasizes the company’s dedication to corporate social responsibility, stating, “We stand by our commitment to the communities we serve, and we will continue to prioritize their welfare in all our operations.”

Furthermore, Carville appeals to community leaders and members to cooperate with the company in implementing safety measures to prevent similar incidents in the future. “Safety is our top priority, the management affirmed. “We urge everyone to adhere to safety protocols and guidelines to ensure the well-being of all.”

Carville is working closely with local authorities and regulatory bodies to conduct a thorough investigation into the incident and implement necessary measures to prevent recurrence.


Kindly share this post
Continue Reading

Trending