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Angst as OTTS Bite N370Bn off Telcos Revenue

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Over-the-top (OTT) services are now comfortably eating lunch of the telecommunications industry by de-layering that space and at last count have bitten off about N370 billion from the revenue of telecommunications operators in the country.

Angst as OTTS Bite N370Bn off Telcos Revenue

YouTube, Facebook, Twitter, WhatsApp, Blackberry Messenger and many others are the so-called over-the-top services.

They carry services over the networks, delivering value to customers, but without any carrier service provider being involved in planning, selling, provisioning, or servicing them must be checked.

According to a recent investigation by the Guardian, the activities of OTTs led to revenue losses put at N370 billion in 2019 as MTN, Globacom, Airtel, 9Mobile earned about ₦2.78tr from airtime sales and others.

The figure compared to N3.15tr in the corresponding period of 2018.

Also Average Revenue Per User (ArPU) fell by 20 per cent from $4.87 (N1,490) to $3.85 (N1,182) going by the official exchange rate of N305 to N306 per dollar in the period under review.

ArPU is used primarily by consumer communications, digital media and networking companies and is defined as the total revenue divided by the number of subscribers.

Association of Telecommunications Operators of Nigeria (ALTON), the umbrella body of telecom operators in the country, has consistently insisted that it is not right that a company providing traditional telecommunications services has to meet certain regulatory requirements, like those concerning data protection, while a company providing comparable services over the web does not.

Gbenga Adebayo, chairman, ALTON, recently said that “We are beginning to see the need for regulators to look at regulating technology instead of services.

“For example, the likes of YouTube, Facebook, Twitter, WhatsApp, Blackberry Messenger and many others are called over-the-top services that are not part of the core services for which operators are licensed.

“These over-the-top services have social, economic and security implications. If they are not licensed, it means they are not regulated, and in that case, there is no limit to the scope of what they can do. There is also no control over services and content they may provide,” he said.

But Nigerian Communications Commission (NCC) said that it has no plans to regulate OTT services.

Professor Garba Danbatta, executive vice chairman, NCC, last year, while acknowledging the impact of disruptive technology in the sector and the challenges it poses to telcos in terms of competition for market share, encouraged network providers in Nigeria to innovate.

Human rights activists however, said that though regulation can be necessary to protect users’ rights – like it is to ensure data protection – some regulatory proposals risk our right to freedom of expression and can also thwart economic, social, and cultural rights.

Nelson Ceasar Obidile urged that regulator to be mindful of right-harming policy if it decides to regulate OTT.

 


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ALTON, ATCON Urge FG to Address Telecoms Industry Challenges

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The Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), representing Mobile Network Operators and telecommunication companies in Nigeria, are calling upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

In a statement jointly signed by Engr. Gbenga Adebayo, chairman of ALTON and Engr. Tony Izuagbe Emoekpere, ATCON President, the associations underscored the urgent need for collaborative efforts between the public and private sectors to overcome obstacles hindering the sector’s growth and development.

Infrastructure Deficits: ALTON & ATCON members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

 Protection of Assets and Network Infrastructure: Advocating for legislation that

designates telecommunications infrastructure as Critical National Infrastructure (“CNI”): Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria.

Telecommunications infrastructure undisputedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.

Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.

The associations urge the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.

Cost-Reflective Tariff of Services: ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Regulatory Independence: ALTON & ATCON advocates for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission’s (NCC) or (Commission) domain, which will inspire trust in the telecommunications sector and encourage investment.

Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions.

ALTON and ATCON reaffirms its commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

By fostering a conducive regulatory environment, prioritizing infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.

 


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Qualcomm Shortlists Startups for Qualcomm Make in Africa 2024 and Awards 2023 Wireless Reach Social Impact Fund

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Qualcomm Incorporated today announced the shortlisted startups for Qualcomm Make in Africa 2024, as well as the winner of the 2023 Wireless Reach Social Impact Fund.

The Qualcomm Africa Innovation Platform, now in its second year, aims to work with and support the development of Africa’s emerging technology ecosystem by providing mentorship, education, and training programs with a focus on 5G, Edge-AI/ML, Compute, and IoT. This year, Qualcomm received an overwhelming response, with approximately 250 applications from 30 countries.

Highlights: 

  • Startup cohort announced for 2024 Qualcomm Make in Africa startup incubation program featuring technologies.
  • Announcement of the awardee of the 2023 Wireless Reach Social Impact Fund, supporting startups in scaling their societal and market impact.
  • Development of L2Pro Africa website content nears completion, providing free online training on intellectual property protection.

As the first initiative of its kind in Africa, Qualcomm Make in Africa is an equity-free mentorship program that identifies promising early-stage startups keen on applying advanced connectivity and processing technologies such as 5G, Edge-AI/ML, Compute, and IoT to innovative end-to-end systems solutions, including hardware.

These startups have demonstrated exceptional potential in applying advanced connectivity and processing technologies to innovative end-to-end systems solutions.

The selected startups will receive free mentorship, business coaching, access to engineering consultation for product development, and guidance on protecting intellectual property. The 2024 cohort includes the following startups (listed in alphabetical order):

  • Aurora Health from Kenya provides AI-based cardiovascular health care tools
  • CropScan from Kenya uses solar-powered smart farming IoT devices
  • Cure Bionics from Tunisia makes smart 3D printed prosthetic arms
  • DevisionX from Egypt provides AI-based low-code computer vision tools
  • Kalio from Cameroon is building AI tools for Agricultural IoT
  • Kitovu from Nigeria provides tools and software for smart agricultural warehouse management
  • NextAI Studios from Kenya builds AI-based emotion detection into toys for children’s mental healthcare
  • RIM Nextgen from Kenya, uses smart tools for monitoring propane consumption
  • Sparcx from South Africa uses AI for enhancing radar signal processing
  • Vizmerald from Tunisia, is working on AI-based textile industry inspection

Qualcomm is also proud to announce the awardee of the 2023 Wireless Reach Social Impact Fund. This fund, provided by Qualcomm through its Qualcomm® Wireless Reach™ Initiative, aims to support startups in scaling their societal and market impact.

Ecorich Solutions Limited, a female-founded organization based in Nairobi, Kenya, will be awarded funding to help scale the impact of their smart organic food composter.

Wireless Reach funding will support Ecorich to address the dual challenge of organic waste management and the need for sustainable agricultural practices, with the goal of reducing environmental pollution, improving crop yields for farmers, and mitigating waste-related health risks for communities.

The other nine startups from the 2023 cohort will also receive valuable stipends to continue fueling their growth. These startups have showcased innovative uses of wireless technology to address pressing needs in their communities.

In addition, Qualcomm is excited to highlight the progress of the L2Pro Africa IP e-learning Platform, a free online training program designed to empower startups, SMEs, and researchers in Africa to protect, secure, and maximize their innovations. This program has been created in collaboration with Adams and Adams, Africa’s leading intellectual property (IP) law firm.

The education content has been updated with individual filing procedures for patents, industrial designs, and trademarks in the countries of Kenya, Nigeria, Uganda, Ghana, Rwanda and within the two African patent organizations, ARIPO and OAPI.

These step-by-step descriptions of per-country filing requirements empower inventors to interact effectively with IP professionals such as an IP attorney and their respective IP offices.

“I am thrilled with the overwhelming response to the Africa Innovation Platform this year,” said Alex Rogers, President, QTL & Global Affairs, Qualcomm Incorporated.

“The quality and diversity of the applications received reflect the immense talent and potential within Africa’s technology ecosystem.

“We are excited to work with the shortlisted startups and provide them with the necessary resources and support to drive innovation and create a positive impact in their communities.”

“We applaud Qualcomm for launching the second year of its Innovate in Africa Platform, which not only equips the upcoming generation of African entrepreneurs with expertise in pivotal areas like AI/ML, healthcare, agri-tech, smart cities, and communications but also empowers them to safeguard their intellectual property through the complimentary L2ProAfrica program.”, said John Omo, secretary general, African Telecommunications Union (ATU).

Mr. Omo also emphasized that the ATU remains steadfast in its commitment to fostering innovation and entrepreneurship across the continent. “Our youth innovation program, among other initiatives, plays a crucial role in cultivating the talents and aspirations of Africa’s young visionaries,” he affirmed. “We are ready to collaborate with additional partners to realize this objective.”


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Mastercard and CEBIH join forces to bolster cybersecurity in Nigeria

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Mastercard, in collaboration with the Committee of E-Banking Industry Heads for Nigeria (CeBIH), recently hosted the second edition of its annual Fraud Forum in Lagos, Nigeria. Building on the success of the inaugural edition in 2023, this year’s forum convened key industry players ranging from financial institutions, payment service banks, and fintech companies, to discuss critical issues such as threats and vulnerability, intel-sharing, and best practices in combating industry risks.

The cybersecurity event, attended by key public and private sector actors, also covered the regional threat landscape based on Mastercard’s strategic threat intelligence data. This timely intervention is crucial in a region where cyberattacks remain prevalent, especially amidst Nigeria’s rapid economic expansion and widespread adoption of digital financial services.

Recent data from the Financial Institutions Training Centre (FITC) revealed a staggering 276% increase in fraud-related losses within Nigeria’s deposit banks, underscoring the need for continuous vigilance and proactive cybersecurity strategies within the financial sector. In response to the escalating threats amid Nigeria’s bourgeoning financial landscape, key government bodies have called for enhanced collaboration within the payment systems’ ecosystem to curtail the rise in E-Fraud in the country.

“We are excited to continue the Fraud Forum in Nigeria,” said Kari Tukur, Vice President, Customer and Solutions Center, West & East Africa, Mastercard. “With cyberattacks posing serious challenges within the Nigerian financial ecosystem, we take pride in establishing a platform where key stakeholders can convene, network, and exchange best practices to safeguard against potential vulnerabilities. Mastercard remains committed to creating unique and essential solutions to help business owners protect themselves and their customers against vulnerabilities, and this platform provides us with an opportunity to drive knowledge regarding these solutions as we aim to elevate cybersecurity standards and ensure the resilience of the Nigerian financial ecosystem.”

The forum delved into various aspects of cybersecurity, including common attack methods used by cyber criminals, their motivations, the assets they target, and the best practices to safeguard against attacks. Attendees gained valuable insights into the regional cyber threat landscape, with a focus on the financial services sector, which has become a prime target for cybercriminals in recent years. It also presented an avenue for Mastercard to showcase its latest fraud prevention techniques and tools, including the Mastercard Decision Intelligence, a real-time authorization decisioning solution that empowers issuers to approve more genuine transactions while effectively managing risk.

“We are delighted to partner with Mastercard on another edition of the Mastercard Fraud Forum in Nigeria. This event continues to serve as a pivotal platform for industry leaders, stakeholders, and experts to convene and address the evolving landscape of fraud and cybersecurity challenges, especially in a period marked by increased sophistication. With this year’s edition, we continue to deepen our commitment to fostering collaboration and implementing effective strategies to combat fraud and safeguard the integrity of the financial ecosystem.” Temitope Onibaniyi, Secretary, Emerging Payments of CeBIH, representing Celestina Appeal, the CeBIH Chairman, added.

The forum aligns with Mastercard’s goal of providing clarity to the complex cybersecurity landscape, in a bid to foster an ecosystem where digital transactions are built on trust. As part of its commitment to combating fraud, Mastercard also announced that it will be sponsoring the CeBIH Quarterly Sessions for the second consecutive year, bringing together industry experts to discuss the latest trends in fraud prevention and share best practices for protecting customers.

 

 


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