Telecom
ATCON Seeks Urgent Review of Data Services Market Structure
Telecom companies in Nigeria have expressed frustrations with the current data services provisioning market structure in the country.
The Companies under the auspices of Association of Telecommunication Companies of Nigeria (ATCON) are of the view that without a review of the data, there is a serious risk of market failure with the resultant ripple effect.
Mr. Olusola Teniola, president of the Association reechoed the call for the review during a presentation at public function in Lagos recently, adding that retail data prices available on the market are unsustainable.
According to him, even with the economies of scale, the inflation rate at 17% inputs costs at a per unit of megabyte level negates the current data service market structure.
Recall, the Nigerian Communications Commission (NCC) had indicated interest to implement new data service market structure in response to prayers by the industry players.
However, subscribers’ outcry led to the National Assembly intervention with a call on the NCC to indefinitely suspend the moves.
But, Mr. Teniola warns “Current evidence suggests that with inflation at 17%, input costs at a per unit per Mb level, that retail data prices available on the market are unsustainable even with economies of scale, hence a serious distortion exists that needs immediate regulatory intervention”
Outside the inflation, he said that he counted multiple taxation as one of the challenges the telecommunications sector in Nigeria is faced with. “This is not helping the industry to grow as the sector is being taxed by all tiers of government and the direct resultant effect of this is any Profit After Tax (PAT) being eroded which does not encourage the direct investment needed in the country”.
The ATCON President also listed “Multiple forex” windows as creates uncertainty among the members.
“The cost of capital involved in setting up a full fledge telecommunication outfit is very high as the interest rates in Nigeria are typically double digits and FDI relies on a guaranteed ROI. The current forex window mechanism structure needs to be unified with a smaller spread to encourage investors to fund capital intensive CAPEX programmes
On infrastructure sharing, he said, “There is a need for more of this to happen at both the passive and active infrastructure layer both on a fair basis policy. Already non-infrastructure players without wet capacity or national backbone fiber are competing in the same market as those that own the infrastructure (and collect rent from the non-infrastructure players) – this doesn’t encourage full network coverage obligations into un-served or under-served communities within States and/or Local Government Areas
“Others are; very low incidence of 3G coverage across all parts of Nigeria; multiple regulation on the same infrastructure; long delays in the issuance of permits for new infrastructure; prohibitive charges to secure Right of Way; Under-utilized Right of Way by way of limited access; high incidence of vandalization of ICT infrastructure and severe power challenges for communication infrastructure.
Emphasizing on the impact of Broadband in Nigeria, Mr. Teniola described broadband as an enabler of economic growth.
“In the 21st century, it is impossible to imagine our lives without the web. It has proven to be tremendously useful for all facets of life.
Regrettably, a study carried out by NCC shows, “Nigeria Broadband Penetration in 2014 was 6%, 2015 was 10% and in 2016 was less than 16%. “If we are to go by the trend we can safely conclude that the target set for 2018 may not be met”.
He lamented that the recent launch of 4G technologies by new/late entrants and the eco-system created is now threatened by aforementioned challenges and uncertainties in the economy.
However, Professor Umar Danbatta, executive vice chairman of NCC remains committed to bridging the gap among stakeholders towards solving challenges faced by either the operators of the subscriber, Mr. Tony Ojobo, director Public Affairs at NCC told Nigeria CommunicationsWeek on telephone.
He said that the Commission understands the calls by the operators to review the data services market structure, however, “discussions are ongoing on how best solutions such that neither the operators nor the subscribers feel short-changed”.
Four people have been killed, with over 20 injured after a fire at Cairo data centre disrupted telecom services nationwide.
A fire at a major Telecom Egypt facility in Cairo on Monday has left four workers dead and at least 22 others injured, plunging parts of the capital into a communications crisis.
According to Hossam Abdel Ghaffar, spokesperson for Egypt’s Health Ministry, most injuries were due to smoke inhalation.
The blaze, which broke out at a key data centre operated by Telecom Egypt, the country’s primary fixed-line and internet provider, was brought under control later that day.
However, it caused widespread disruptions, halting phone services, affecting internet connectivity, and even interfering with digital banking operations.
Internet monitoring group NetBlocks reported that national connectivity dropped to just 62% of normal levels following the incident.
Residents across Cairo struggled with poor network access, and banks—although already closed for the day—reported interruptions in ATM services and online transactions.
In a statement on Tuesday, Telecom Egypt mourned the loss of its employees and pledged support to their families.
Amr Talaat, Egypt’s minister of Communications and Information Technology, assured the public that service restoration was underway and expected to be completed within 24 hours.
To address the disruption, the Health Ministry released alternative emergency contact numbers across Egypt’s governorates, in case its primary ambulance hotline remained unreachable.
The state-run MENA news agency reported that the fire was prevented from engulfing the entire building and nearby rooftops, thanks to the efforts of emergency responders.
A preliminary investigation suggests the fire was likely triggered by an electrical short circuit, according to a security source cited by MENA.
As the nation works to restore full connectivity, the incident has raised fresh concerns about the vulnerability of critical infrastructure and the need for enhanced fire safety protocols in sensitive tech facilities.
Tech faints, Globalcom, on Tuesday unveiled three exciting digital products aimed at rewarding customers. The products, Animation World Promo, Treasure Spin and Sport Brain, also provide subscribers with the opportunity to play and win instant prizes.
Globalcom in a statement in Lagos said that the company is dedicated to providing value-added service to its ever-growing customers.
The first digital product, which is Animation World Promo, is an innovative trivia-based service aimed at challenging customers culinary knowledge of Nigerian food. With it, subscribers engage in answering food related questions, earn points and win delicious prizes.
For Treasure Spin, customers are availed the digital treasure spin experience. With each spin Glo subscribers stand a chance to win instant prizes, making every participation exciting and rewarding.
In addition, Globalcom captures the heart of football lovers with Sport Brain. Subscribers are allowed to predict football scores in matches across top leagues all around the world. Customers get to select their preferred leagues. “It’s a fun and competitive way for football lovers to test their instincts and knowledge,” the company noted.
Customers who subscribe to any of the three services stand a chance to win fantastic daily, weekly, and monthly prizes. Every day, 20 participants will receive ₦1,000 cash, ₦1,000 airtime, and 3.5GB data. On a weekly basis, five lucky winners will walk away with ₦100,000 each, while one grand prize winner will receive ₦1 million every month.
To participate, customers are required to dial *13055*2# for Animation World Promo,*13199*3# for Treasure Spin and *13199*2# for Sport Brain. Each plan can be activated either as a one-time purchase or Auto Renewal.
Globacom further explained that all products are available at an affordable subscription rate of ₦100 for a daily plan, ₦300 for weekly plan and ₦500 for monthly plan.
In concluding, the company disclosed that the services are available to all Glo prepaid and postpaid subscribers nationwide.
The Stakeholders in Blockchain Technology Association of Nigeria (SiBAN) has lauded Interstellar, one of its prominent members, for spearheading a major breakthrough in Africa’s financial technology space.
This follows Interstellar’s strategic partnership with the Pan-African Payment and Settlement System (PAPSS) to roll out the PAPSS African Currency Marketplace (PACM), a blockchain-based platform designed to address the continent’s long-standing currency inconvertibility challenge.
The initiative is already being hailed as a game-changer capable of eliminating the $5 billion annual trade friction currently plaguing intra-African commerce.
According to SiBAN President, Mr Obinna Iwuno, the development affirms Nigeria’s leadership in blockchain innovation, stating that Interstellar’s PACM is not only a technological feat but also a timely response to the African Continental Free Trade Area (AfCFTA) mandate of seamless and cost-effective regional trade.
PACM operates on STARGATE, a blockchain-agnostic system developed by Interstellar, and leverages the Bantu blockchain network to facilitate real-time, peer-to-peer exchanges of African currencies.
The solution ensures financial inclusion by allowing businesses, SMEs, and informal traders to transact in local currencies without relying on foreign intermediaries, all while maintaining regulatory compliance.
Mr Ernest Mbenkum, CEO of Interstellar, described the solution as Africa’s roadmap to financial sovereignty. “Blockchain is not just innovation; it is empowerment,” he said.
SiBAN reaffirmed its commitment to supporting policies and partnerships that promote secure, transparent, and inclusive digital economies.
The association further called on stakeholders in government and the private sector to prioritise blockchain adoption as a driver of national development.
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