Telecom

As Nigeria Celebrates Seven Years of GSM

Published

17 years ago

August 18, 2008

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This month of August marks seven years since the country began the liberalization of telecommunications industry through adoption of Global System for Mobile communications (GSM) technology.

The Nigerian telecommunications industry has experienced significant growth in the last seven years, following the successful take-off of the digital mobile telephone services, using GSM technology. From less than 500,000 active fixed telephone lines as at mid 2001, to a population of over 120 million, the total number of connected fixed and mobile telephone lines increased to about 53 million both active and inactive lines this June.

However the entrance of the GSM technology has brought about such a revolutionary transformation that millions of Nigerians with no access to telecommunications now clutch mobile phones in their millions. It is a common sight these days to see traders, fish sellers, hawkers, motorcycle riders among others using mobile phones. The staggering number of subscribers on the three major GSM networks of MTN, Globacom and Zain as Nigeria celebrates 7 years of operations, is a testimony to the hunger of Nigerians for communications.

It is clear that Nigeria cannot celebrate the advances recorded in the communications sphere without acknowledging the contributions of Ernest Ndukwe, the executive vice chairman of the Nigerian Communications Commission (NCC). Ndukwe has over the years emerged as the face of GSM in Nigeria through his transparent handling of the regulatory affairs of the telecoms sector.

Since February of 2001 when he supervised the auctioning of GSM licences in the country, he has conducted the affairs of the regulatory functions of the commission in such a way that other countries in Africa now come to Nigeria to understudy the regulatory processes that has seen the sector emerge as the largest and fastest growing in Africa and the 3rd fastest growing in the world.

Several research firms across the globe have commended the Nigerian government and Ndukwe, one of the most sought-after telecom resource persons in the telecommunications industry in Africa for an effective transparent and foreign investment attracting regimes in the continent. In spite of the recent downturn in the quality of service dished out by operators characterized by drop calls, undelivered text messages, Ndukwe’s starling qualities as a regulator of note is still intact.

However, beyond the celebration of seven years of GSM, the NCC had taken several measures to tackle the issues of quality of service. One of the ways the NCC has shown that it was serious in tackling issues of quality of service was in the area of the enforcing its regulatory powers to stop operators from further promos that has been a major cause of network congestion witnessed in recent times. By this action the NCC sent a message that no operator is above the law and that they must conform to measures that will save the sector from further deterioration due to their poor service delivery. The commission has also procured equipments that will enable it monitor congestion and service quality of the various networks in the country.

It also ensured that operators paid their subscribers N175 compensation for poor quality of service experienced in January this year, even as some operators protested by taking the commission to court. It stood its ground and made this happened.

Benefits

In the last seven years, since the GSM revolution hit the nation, a lot of benefits have been enjoyed by the Nigerian subscriber who was hitherto at the mercy of the almost nonexistent epileptic services rendered by the Nigerian Telecommunications Nitel. Since then, the monopoly of non effective service rendered by Nitel has been broken and communication across regions enhanced by GSM thus encouraging the socio economic growth of the nation, enhancing business and social relationships. The fact is that effective communication is crucial and cannot be overemphasized. With a teledensity presently below 35 % and a subscriber base of 53 million as at the end of June, one could say that a feat has been achieved by the GSM revolution in connecting Nigerians to a critical service given the fact that before the advent of GSM, teledensity was less than 4% and only about five hundred thousand Nigerians had access to telephony services in a nation of over a hundred million people.

Then having a telephone was a class thing and only the rich could afford the luxury and the muscle to withstand the stress of Nitel technicians who used to hold subscribers to ransom at every little opportunity. Then it was a common sight to see the technicians asking for ladder and cables and all sorts to fix a line anytime a problem arises, it was indeed a nightmare. One could easily recall the stress of keeping vigil at the offices of Nitel in a bid to make calls and be confronted with the common problem of no tone come back tomorrow and so on. But thanks to President Obasanjo and the coming of GSM all that is now history.

The GSM revolution in the country has indeed contributed over 80 percent of $12 billion private investment in the sector as well as account for $10 billion foreign direct investment. It has also stimulated local investment and increased job opportunities. It is a common scene in urban areas of young men and women sitting under an umbrella provided for them by GSM operators making calls for people at token. This umbrella call centre initiative is today providing food to greater percentage of unemployed Nigerians, aside this are others who are trading in recharge cards and other products of GSM operators.

The benefit of GSM technology is enormous and still increasing as it gets expanded, we may not easily forget that Nigerians are now turning GSM engineers, these are our young countrymen and women who eke their living through repair of mobile handsets. The popular Otigba computer village is no longer computer village in its sense as the sale of mobile handset has almost taken over business at the market.

The revolution has also indirectly stimulated development and vibrancy of some sectors of the economy, such sectors are leveraging on the technology deployed by GSM operators to provide services to their customers, A case in point is the banking sector, where banks are offering mobile banking which give customer the opportunity to monitor and carry out transactions on the move through their mobile phones. Most Automated Teller Machines (ATM) deployed by banks is working with the help of GSM General Package Radio Service (GPRS) deployed by operators.

There has been an increased turnover for advertising and marking communications services basically because of the GSM operators that uses the channel often times to reach their subscribers as campaign for more subscribers.

Challenges

In spite of the benefits Nigerians are enjoying from the advent of GSM technology, the operators are not finding it a world of roses in rendering services. The much talked about poor quality of service is a function of weak infrastructure base, operators have been powering their equipment with generators which are not the case in most environment. This is attributed to inefficient public power system. Nigeria CommunicationsWeek investigations reveal that the three major operators in this space, MTN, Glomobile and Zain are powering their over 14,000 base transceiver stations with 28,000 generators. They are also providing security for their equipment which has not deterred unscrupulous Nigerians from stealing these generators and diesel. At last count in December last year Zain, Glomobile and MTN lost a total of 290 generators and over a million litres of diesel, this is indeed a huge lost to bear by operators.

There is also the problem of area boys. One of the operators has had to shutdown one of its sites in Lagos due to incessant demand of huge settlements by Area Boys. In the Niger-Delta area, one of the operators reported that over 30 of its sites have become inaccessible due to militant youths, who have refused them to refuel or maintain the sites except they parted with huge sums of money. It is unfair on the GSM operators, who unlike the oil companies are not taking any natural resource but building telecommunications infrastructure around the country.

Operators are also face with multiple taxation imposed on their equipment by different tiers of government, Abuja capital development authority had impose N3 million annual fee on each base station in the metropolis. More so, Association of Licensed Telecommunications Operators of Nigeria (Alton), the umbrella body of the telecom operators, are in court with Lagos state government over the later imposition of N500,000 fee per base station in the state.

The regulatory body also needs to ensure that competition is enshrined in all market segment of the sector as well as maintain favourable regulatory and investment climate, required for the protection of consumers. This is necessary in view of anti competitive behavour of some GSM operators.

The next phase of the Telecommunications growth will come from the rural areas. With a paltry 40 percent of the country being covered with telecommunications services, it is obvious that a huge gap needs to be tapped and already the focus for now by stakeholders and investors is on the rural area and how ICT services can be deployed to the rural communities. Investors are falling over themselves to come to Nigeria and do business mostly as a result of the fact that in spite of the infrastructural problems posed by lack of power, roads among other, Nigeria has a high return on investments rate. It is a fertile ground for any investor to recoup their investments, because of its population. Before now, the country has witnessed higher investments in the urban areas as opposed to lower investments in the rural areas by telecoms operators. In order to bridge this gap, telecommunications and internet services need to be deployed to the rural areas.

The NCC under Ndukwe should not relent in its efforts of playing its regulatory functions in an effective manner. Nigeria has a lot to gain and cannot afford to loose sight of the fact that an effective regulatory environment has to a large extent helped in steering the ship of the nation’s telecoms revolution.

As Nigeria celebrate this seventh year of Global System for Mobile communications (GSM), subscribers await the introduction of number portability which is believed will in no small measure help in address the quality of service issues.

NCC need to be commended for rising up to the challenges of regulation, especially with SIM registration, call centre initiative, consumer parliament and its current effort at ensuring that physically challenged group in the society are fairly treated by operators.

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Why Econet Wireless is Switching to VFEX

Published

2 days ago

December 19, 2025

Ebere Melum-Nwogbo

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After nearly 30 years on the Zimbabwe Stock Exchange (ZSE), Econet Wireless, the country’s biggest technology company, is preparing to leave the bourse and move its property and infrastructure assets to the US dollar-based Victoria Falls Stock Exchange (VFEX).

Why Econet Wireless is Switching to VFEX

Econet plans to spin off its towers, property and power installations into a new company, Econet InfraCo, which will be listed on the VFEX. Its mobile network operator business will be delisted from the ZSE.

Econet believes the market has failed to properly value its business and its assets. At the time Econet first released a cautionary on December 3, its market capitalisation was the equivalent of US$628 million.

A rally over the past days has lifted it to a market capitalisation – the number of shares times the share price – to around US$1 billion.

“For the last several years, the company has traded at a significant discount to its peers across Africa which trade at 6 – 8x EV/EBITDA.

“These peers have all already separated and realised value from their tower infrastructure whereas the company still owns its tower and other passive infrastructure which the company has now housed under a separate infrastructure company to be listed on the Victoria Falls Stock Exchange,” Econet said.

Econet will keep 70% of Econet InfraCo, with up to 30% used to settle an offer to shareholders who do not wish to remain invested.

The company argues that infrastructure assets are better suited to the VFEX, which trades in US dollars and attracts investors familiar with property and long-term infrastructure.

“Unlike the mobile network operator business in Zimbabwe, infrastructure assets represent a different class of investment, one that is better understood and valued within USD-based property and infrastructure markets.

“This is demonstrated by the higher Price-to-Earnings multiples at which listed real estate and infrastructure companies trade on the VFEX,” the company said.

Econet dominates Zimbabwe’s mobile market, with 88% of voice traffic, 82% of data usage and 73% of all subscribers. It has built the largest portfolio of telecoms assets.

By the end of the second quarter, it had 234 5G sites, 1,700 LTE sites, 1,900 3G towers and 2,860 2G locations.

In the half-year to August alone, it added 27 new 2G–4G sites and 100 new 5G sites.

In addition to these locations, Econet also holds other properties and power assets, including solar installations, Tesla batteries and generators.

The move follows a well-established trend in Africa.

MTN and Airtel Africa sold towers in Nigeria, Ghana, Uganda and Kenya to independent operators like IHS Towers and Helios Towers. Vodacom, Orange and Telkom South Africa have also carved out tower units through sale-and-leaseback deals.

Credit: Newsday

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Qualcomm Completes Third Edition of Make in Africa Startup Mentorship Program

Published

3 days ago

December 18, 2025

Chike Onwuegbuchi

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Qualcomm Technologies Inc. has announced the successful completion of its third annual Make in Africa (QMIA) Startup Mentorship Program, marked by the virtual Make in Africa Finale 2025. The initiative underscores Qualcomm’s long-term commitment to fostering Africa’s vibrant innovation ecosystem through the broader Qualcomm Africa Innovation Platform.

Highlights:

The 2025 Qualcomm Make in Africa program supported ten innovative startups from Kenya, Tunisia, Nigeria, Benin and Senegal, each addressing local challenges by developing tech-enabled solutions across critical sectors such as healthcare, sustainable agriculture, climate resilience and mobility.
This year, the program attracted more than 400 applications from 19 countries, showcasing remarkable talent across the continent.
Farmer Lifeline, of Kenya, was announced as the 2025 Wireless Reach Social Impact Fund winner, recognizing its impactful use of wireless technology.
Applications for Qualcomm Make in Africa 2026 are now open. Applicants can visit the Qualcomm website to apply.

As a flagship initiative of Qualcomm, the equity-free program shines a spotlight on the creativity and drive of African founders leveraging advanced technologies such as AI, 4G/5G, robotics, connectivity and IoT to address pressing real-world challenges.

Now in its third year, the program remains steadfast in its mission to accelerate early-stage technology startups by providing tailored mentorship, targeted business coaching, expert engineering consultation and comprehensive intellectual property protection guidance – exemplified by resources such as Qualcomm’s L2Pro Africa training. This holistic support empowers founders to transform their visionary ideas into sustainable, market-ready solutions.

“This year’s cohort has demonstrated incredible ingenuity, transforming complex challenges into scalable, tech-driven solutions that will drive social and economic impact across the continent,” said Elizabeth Migwalla, Vice President International Government Affairs, Qualcomm Incorporated.

“Innovation is the driving force behind Africa’s future, and this year’s startups are a brilliant demonstration of that. The African Telecommunications Union (ATU) is proud to partner with Qualcomm for the Make in Africa 2025 program,” said John Omo, Secretary General of the ATU. “We are working to harmonize spectrum management policies, regional standards, and open data practices, but we know that true progress relies on large-scale support. That’s why we call on governments, universities, investors, and industry to support these initiatives – and any endeavor that places African ingenuity at the forefront.”

The 2025 cohort includes the following groundbreaking startups:

Aframend (Nigeria): Uses AI to explore African medicinal plants for new drug discovery and aims to turn local remedies into safe, affordable treatments for diseases.
AmalXR (Tunisia): Offers AI-powered virtual rehabilitation sessions on everyday devices, enabling easy patient and clinician progress tracking.
Archeos (Benin): Automates fish farming with solar-powered sensors and feeders, providing real-time data on water quality and feeding levels for improved fish health.
ClimatrixAI (Nigeria): Installs connected weather and flood stations with an AI platform to forecast street-by-street risk, enhancing early warnings and disaster response for local communities.
Ecobees (Tunisia): Builds smart hive monitors and a digital platform for real-time insights into beehive-health, to protect bees and crops that depend on them.
Edulytics (Senegal): Applies AI on handheld ultrasound devices for early detection of liver disease, aiming to make this special screening widely accessible.
Farmer Lifeline (Kenya): Deploys small, solar-powered devices that scan fields for pests and diseases and send alerts straight to farmers’ phones to protect crops.
Pollen Patrollers (Kenya): A women-led agritech startup using connected hive technology and AI to keep bee colonies healthy.
Solar Freeze (Kenya): Provides solar-powered cold rooms with remote monitoring enabling farmers to keep fruits and vegetables fresh and increase earnings.
Pixii Motors (Tunisia): Designs electric scooters with smart batteries that can be swapped in and out at local stations, aiming to revolutionize urban mobility.

Wireless Reach Social Impact Fund Winner

Kenyan innovator, Farmer Lifeline, was announced as the winner of the 2025 Wireless Reach Social Impact Fund. The fund, sponsored by Qualcomm® Wireless Reach™ Initiative, champions the innovative use of wireless connectivity to address pressing community. As the winner, Farmer Lifeline will receive dedicated funding and tailored technical support to scale its groundbreaking solution.

“Farmer Lifeline stood out with its innovative small solar-powered devices that scan fields to detect pests and diseases. This technology enables local farmers to effectively protect their crops, significantly increase yields, and improve food security”, stated Erica Ciaraldi, Vice President, Wireless Reach, Qualcomm Incorporated.

“Their visionary approach and dedication to agricultural resilience have positioned them as leaders in their field. They are driving meaningful change for smallholder farmers and inspiring others across the continent. This fund will empower them to scale their impact further, enabling broader reach and deeper influence across Africa and the world.”

In recognition of the groundbreaking innovations demonstrated by all finalists, each will receive stipends designed to accelerate their growth, support strategic development and safeguard their intellectual property. This comprehensive support underscores Qualcomm’s commitment to fostering innovation and ensuring these visionary projects can thrive sustainably.

Looking ahead: Launch of Qualcomm Make in Africa Startup Mentorship Program 2026

Building on the significant success of previous years, Qualcomm is excited to launch the fourth year of the program in 2026.

Applications for the 2026 Qualcomm Make in Africa cohort can be found at the Qualcomm website.

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Fynd Expands Global Footprint, Adds Africa With Surtee Group Partnership

Published

3 days ago

December 18, 2025

Ugo Onwuaso

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Fynd, an AI-native retail technology platform backed by Reliance Retail Ventures Limited, today announced its official expansion into South Africa, onboarding Surtee Group – one of the region’s most established luxury and fashion retailers – as its first strategic customer in the market. This milestone marks a pivotal moment for African retail, as legacy brands begin embracing digital transformation to meet the demands of a rapidly evolving consumer landscape.

Fynd

Fynd’s entry into Africa reflects its commitment to enabling digital transformation in high-growth retail markets worldwide. The move also comes at a turning point when South Africa’s e-commerce sector is projected to exceed R130 billion ($7.48 billion) in 2025, capturing nearly 10% of total retail sales – a fourfold increase since 2020.

According to Statista, South Africa is expected to have 11.7 million e-commerce users in 2025, with projections reaching 21.5 million by 2029. This growth is being driven by rising internet penetration, mobile-first shopping behaviour, and increasing trust in digital platforms. To meet rising consumer expectations, businesses are investing in AI and unified commerce platforms. Fynd’s scalable, AI-native stack is built to support this shift, enabling agility, personalisation, and operational efficiency.

“South Africa’s retail landscape is evolving fast,” said Ronak Modi, Chief Business Officer – Global at Fynd. “Consumers expect seamless, personalised experiences across every channel, and retailers need agile, intelligent infrastructure to keep up. Our platform is built to unify disconnected systems, speed up fulfilment, and elevate customer engagement; all without adding operational complexity.”

“South Africa is an exciting addition to our global footprint. The market is digitally ambitious, brand-forward, and ready for intelligent commerce infrastructure. Our goal is to help local retailers unify siloed systems, personalise engagement, and accelerate fulfilment without adding complexity.”

Surtee Group operates 94 boutiques and 2 e-commerce sites, comprising the multi-branded stores Levisons and the mono-brand boutiques, namely, Giorgio Armani, Michael Kors, Lacoste, Hugo Boss, VERSACE, TOD’S, Salvatore Ferragamo, Versace Jeans Couture, Emporio Armani, Burberry, Jimmy Choo, Luminance, Paul Smith, Coach, and Armani Exchange. They will implement Fynd’s unified commerce stack, including Storefronts, Order Management System (OMS), Warehouse Management System (WMS), and Clienteling tools to connect in-store and online operations, streamline inventory visibility, and launch brand-specific ecommerce storefronts across its brand portfolio.

While online retail continues to surge, offline sales still represent the vast majority of revenue for retailers in the country. Fynd will enable Surtee Group to unify its offline inventory online, power ship-from-store capabilities, and improve both margins and sell-throughs. Additionally, products like Clienteling will empower in-store teams to engage customers better and drive incremental sales through personalised recommendations and seamless omnichannel experiences.

Fynd’s entry into the market is designed to meet this demand. Its AI-native platform enables real-time stock visibility, ship-from-store capabilities, dark store orchestration, and intelligent customer engagement all within a single scalable solution.

As part of its digital transformation roadmap, Surtee Group aims to consolidate its leadership in luxury and fashion retail while expanding into e-commerce and improving omnichannel agility.

“We were looking for a partner who understood both the technical and strategic dimensions of unified commerce,” said a Surtee Group spokesperson. “Fynd stood out for their proven scalability, consultative approach, and deep experience with global fashion brands, many of which align with our portfolio. Their unified stack enables us to modernise operations while building a connected, brand-first customer experience.”

Fynd has already scaled across India, the GCC, and Southeast Asia, and now adds Africa to its regional presence. With Surtee Group leading the transformation, Fynd is positioned to play a key role in powering unified commerce adoption across South Africa’s growing digital economy.

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