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Broadband Networks Most Growth Opportunity for Telcos – Report

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For African service providers, data connectivity is the most significant growth opportunity in the near-term, so expanding broadband networks to seize that prospect should be core to their strategy.

This is according to Ovum’s Africa Digital Outlook 2019 report.

“For most service providers on the continent, the network focus should increasingly be on improving LTE coverage and capacity. Advanced African operators should also be developing network and commercial strategies for 5G,” the report reads.

Ovum says the most significant growth in revenues, users and usage is coming from data access, and service providers are expanding the coverage and capacity of their broadband networks to take advantage of that growth.

“Most of the broadband expansion is in mobile broadband, and increasingly based on LTE networks. But there is also growth in fixed broadband, through fibre and fixed-wireless broadband services.”

In terms of expanding LTE networks, many operators are making moves in Africa. In March, Nokia said it would carry out one of Africa’s largest LTE rollouts as part of a network upgrade deal with Orange, covering seven countries on the continent.

5G is also on the horizon and Ovum believes the first use case for 5G will be for fixed-wireless broadband, followed by enhanced mobile broadband after 5G-capable smartphones become available.

Ovum believes 3G and, increasingly, LTE will power the growth of mobile broadband in Africa for the coming few years.

The number of mobile 3G subscriptions on the continent will rise from 456.6 million at the end of 2018 to 697.6 million in 2023, according to Ovum forecasts.

LTE subscriptions will increase at a faster rate than 3G subscriptions, with the number of LTE subscriptions in Africa rising from 50.5 million at the end of 2018, to 271.6 million by 2023. Ovum expects mobile 5G services to be launched in Africa by 2021, but the number of mobile 5G subscriptions on the continent will initially be small, rising to 5.9 million at the end of 2023.

Ovum forecasts total mobile revenue in Africa will rise from $54.9 billion in 2017 to $68 billion in 2022. Non-SMS mobile data revenue, from mobile broadband access and mobile digital services, is expected to more than double over the forecast period, growing from $13.1 billion in 2017 to $32.1 billion in 2022.

However, Ovum points out the cost of access to broadband remains a barrier to take-up for many in Africa.

“Even though the price of basic smartphones has fallen to around $50, that is still a lot of money for those on low incomes. Research by the Alliance for Affordable Internet, a non-profit organisation, shows mobile broadband is less affordable in Africa than in the comparable low- and middle-income regions of Asia and Latin America and the Caribbean.”

The digital divide also continues to be a problem.

“Even as Africa sees progress with broadband and digital services, basic connectivity remains out of reach, or not reliably available for many people on the continent. The gaps in connectivity represent a missed commercial opportunity for service providers, as well as an obstacle to achieving the economic and social benefits that should arise as broadband penetration increases,” the report says.


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Telecom

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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