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CDMA Operators Battles for Survival amidst Low Revenue

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The number of active telecommunications subscribers on the various networks operating in the country as released by Nigerian Communications Commission for the second quarter of this year indicated that Global System for Mobile communications (GSM) operators have continued to make impressive additions to subscribers on their networks compared to Code Division Multiple Access (CDMA) operators.
In the report CDMA operators recorded a decrease on the subscribers to their network from 9,115,165 in April to 8,658,318 as at June this year. But, GSM operators within the same period recorded an increase from 58,063,300 to 59,194,972. The implication of this is that in spite of different network expansion plans embarked upon by major operators in this space as well as promotions, Nigerians still prefer talking on GSM platform.
The issue that arises, is how can operators in this space survive in terms of competition with GSM operators bearing in mind the harsh economic downturn facing the country? This situation may have informed the recent promo embarked upon by some operators on the CDMA platform to shore up their subscriber base. Visafone and Starcomms have launched their promo campaign while Multi-Links Nigeria CommunicationsWeek gathered is planning a similar promo. In the Visafone ‘Enjoy the N0.00 advantage’ new subscribers to Visafone network will only need to purchase and activate a Haier FM phone for just N3, 333 or a Huawei C2802 model for N2, 222. The subscriber will in turn get back the full cost of buying the phones in the form of free airtime worth N3, 333 and N2, 222 respectively in three months.
More so, a subscriber is expected to use at least N200 over a 30 day period to get N1,045 worth of free airtime with 15 counts of free On-net SMS on the Haier FM phones while subscribers who purchase, activate and use up to N200 on the Huawei C2802 will get N741 worth of free airtime with 15 counts of free On-net SMS in each 30 day cycle. At the end of a 90 day period, the subscriber participating in this package would have gotten back the full price of his phone.
The free airtime is automatically credited to the phone as soon as the subscriber uses up to a minimum of N200 in a 30 days circle.
In a similar promo, Starcomms is offering two categories of mobile telephone, the ZTE X175 and the popular Haier D920, in a promotion that ultimately gives back the purchase money to the subscriber.
This new 100% money back promo by the company allows any subscriber who purchases the ZTE X175 and Haier D920 to enjoy on-net bonus airtime covering the value of the purchased phone within 30 days of their activation. The ZTE X175 phone is priced at N1,999 and upon minimum first time recharge of at least N100 (one hundred naira), the purchaser will get automatic bonus airtime and the Starcomms customer would  be able to make free on-net calls to the tune of N1,999 within the first month of activation. The same token goes to the subscribers who buy the Haier D920 for the price of N2,299 and will be able to make free calls to any Starcomms line to the value of N2,299.
Starcomms in a statement acknowledged that the promotion is coming at a time when the purchasing power of many is generally dwindling and subscribers are keen to get adequate value for their money.
Speaking on the offer, Maher Qubain chief executive officer, Starcomms, said Starcomms acknowledges the adjustments people have had to make in the last few months of challenging economic situation. “It is therefore apt for us to respond positively, as we always do, to the yearnings of our subscriber, especially students and other people in the lower segment of the economy. We have therefore made it easy for people to join the Starcomms network without having to overstretch themselves financially. This is part of our strong resolve to always bring the best offer to the reach of our teeming subscriber,” he said.
The use of this free airtime can be enjoyed by Starcomms subscriber within only one month starting from the moment of first activation. The new subscribers will enjoy this offer alongside the value-added services like the missed call notification and the call waiting options.
The introduction of Unified Access License by Nigerian Communications Commission (NCC) in 2006 after the expiration of exclusivity right given to Global System for Mobile communication (GSM) operators was what Code Division Multiple Access (CDMA) operators needed to stamp their feat in the telecommunications industry. Before then, they were operating under limited mobile access license which restricted them from operating mobile service in unified manner. They as a result concentrated on offering fixed wireless and mobile service within the state they secured license to operate. More so, if any operator wishes to operate in another state outside its primary state of operation such operator would be required to apply for a license to operate in such location. This made it expensive to operate even as they were not required to offer roaming service like GSM operators. As a result of these, CDMA operators were mere local operators who concentrated their service in Lagos and Abuja commercially viable cities. They were struggling for subscribers with GSM operators that offered broader service, basically, because a GSM subscriber can take his or her phone outside Lagos and it works in as much as such network has coverage in the location, but mobile service rendered by CDMA could not offer this service, thereby giving them advantage over CDMA service. With the introduction of unified  licensing  regime, individual service provider is allowed to offer multiple services such as mobile telephony, fixed telephony, internet services and long distance services, there are over ten operators in this space. They included Starcomms, ZoomMobile, Intercellular, Multi¬-Links Telkom, Visafone, Rainbownet, Prestel, MTS First, among others. Under the current dispensation, CDMA operators that want to play in the big league are required to operate nationally, though there is choice of playing local but most see it as not economically viable to play local which has led to most of them going for national unified access license which is the prerequisite. Playing at this level entitles having foot print in almost every town in the country to be able to garner enough subscriber base which is the basis for profitability. To do this, they require strong financial base which most of these operators does not have. This situation changed the landscape of operation in CDMA space as they had to change their operational module to be part of the moving train in the industry and has ignited a contest for supremacy among them. This saw Starcomms selling some of its equity to Actis to raise money to expand its network, since then it has secured foreign loans in this regard making it to claim the biggest in the space. The company has already invested some US$800 million since it launched its network in 2002. It set for itself a target of reaching 2.5 million subscribers by the end of 2008, 5 million by the end of 2009 and a ten fold jump to 50 million by 2011. The company was listed on the Nigerian Stock Exchange (NSE) and raised around US$60 million. “We have always wanted two sectors of the economy, they are the oil and telecommunications sectors, represented in our market”, said Binus Yaroe, the NSE general manager of listing and quotations and a representative of the director general of the exchange. The stock market floatation raised funding for the company, while also allowing two investors, Actis and ECP to reduce their holdings.
Other operators did not seat to watch their Starcomms claim subscribers in a business they are also part of and equally have opportunities of playing big. Zoom Mobile, another contender had raised N25.9billion from investors through private placement. The company currently covers 62 cities and 350 villages and has a capacity for five million subscribers.
A foremost operator in that space Multi-Links deal with Telkom of South Africa, which saw the later acquiring 75% share of Multi-Links and later the remaining 25%, was what the company needed to re-launch itself into the market. Telkom has injected funds and managerial skills to make the business profitable; this is yet to be achieved as the company is yet to start making profit. Visafone, the youngest by name in the CDMA sector of telecommunications industry emerged from nowhere and is putting up an impressive performance having emerged as the fourth largest telecommunications operator in the country in two successive quarters. The company which is brainchild of Jim Ovia, a banker and industrialist has witnessed him bringing his managerial competence which he has used to make Zenith bank one of the strong banks in the post consolidation era to bear.
It has become worrisome to CDMA operators while some of them are being heavily affected by the economic meltdown, which calls for overhaul of business module and operational strategy. Against the backdrop of NCC’s planned introduction of Number Portability, CDMA operators’ faith of survival is hanging. Ken Aigbinode, executive vice chairman, Zoom Mobile, expressed fear on what will be the faith of CDMA operators when NCC introduces Number Portability. According to him, GSM and CDMA technology are two different technologies and that the GSM technology will play well with number portability than the CDMA because the CDMA technology is customized and fixed.
Possibilities of Survive
In spite of the wide differential in the subscriber base between CDMA and their GSM counterparts there are possibilities of surviving if they apply the right business model that is relevant to the operational environment. More so, the license they are operating with allows them to deliver service with their chosen technology without barriers. They need to adopt a cost effective way of rolling out service, such as sharing of infrastructure among others.
Gbenga Adebayo, chief executive officer, Community Network Support Services Limited, alluded to this when he cited situation in United States of America, where CDMA technology is the dominant while GSM operators are trailing behind. He said that what is happening in USA is possibly to play in Nigeria especially, when the right and quality of service is provided.

 


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Airtel Nigeria Launches Web Data Calculator to Give Customers Greater Visibility into Data Usage

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Airtel Nigeria has launched the Airtel Web Data Calculator, a new digital tool designed to help customers estimate and better understand their internet data consumption based on real-life usage patterns.

The launch comes amid a broader industry effort to improve transparency around data consumption and strengthen customer confidence in mobile broadband services.

It also aligns with ongoing collaboration between telecommunications operators and the Nigerian Communications Commission (NCC) to address customer concerns about data depletion and improve quality of service across the sector.

Recent industry initiatives have included customer education campaigns, daily usage notifications, billing audits, customer engagement forums, and the development of new tools that provide greater visibility into how data is consumed.

Available through Airtel’s website, the calculator enables customers to estimate data usage across common digital activities such as video streaming, social media engagement, voice and video calls, and everyday web browsing. By translating online behaviour into understandable data estimates, the tool empowers customers to make more informed decisions about their data plans and digital habits.

Speaking on the launch, Oladokun Oye, Customer Experience Director, Airtel Nigeria, said the initiative reflects Airtel’s commitment to customer empowerment and service transparency.

“As Nigerians become increasingly dependent on digital services for work, education, entertainment and communication, it is important that customers have clear visibility into how their data is consumed. The Airtel Web Data Calculator was developed to help our customers understand their usage patterns better, make informed choices, and enjoy greater confidence in their digital experience,” he said.

Oye added that customer concerns around data depletion have remained a recurring topic across the telecommunications industry, making transparency a critical component of customer experience.

“We believe that trust grows when customers have access to clear information. This tool is another step in our ongoing efforts to simplify the customer experience, provide greater clarity around data consumption, and support informed decision-making,” he said.

The launch follows a period of intensified engagement between telecom operators, regulators and consumers on data usage awareness. The NCC has consistently emphasized that many instances of perceived rapid data depletion are linked to factors such as high-definition video streaming, automatic application updates, cloud synchronization, background app activity and evolving smartphone capabilities. The regulator has encouraged operators to improve customer education and develop tools that help subscribers better understand their consumption patterns.

Industry data underscores the importance of such initiatives. Nigeria recorded more than 13 million terabytes of internet consumption in 2025, reflecting the country’s accelerating digital transformation and growing dependence on mobile broadband services.

Commenting on the significance of the launch, Dinesh Balsingh, Chief Executive Officer, Airtel Nigeria, said the company remains focused on building a network and customer experience ecosystem anchored on trust, transparency and continuous improvement.

“The future of telecommunications will be defined not only by network investments but also by how effectively operators help customers understand and manage their digital lives. The Airtel Web Data Calculator represents a practical innovation that places more information and control directly in the hands of our customers.”

He noted that Airtel continues to invest heavily in network modernization, customer experience initiatives and digital tools that improve service quality while making telecommunications services easier to understand and use.

“We welcome the industry’s collective focus on transparency and commend the NCC’s continued collaboration with operators to strengthen consumer confidence. As data becomes increasingly central to everyday life, Airtel will continue to develop solutions that make connectivity more accessible, transparent and rewarding for every customer.”

The launch also builds on Airtel Nigeria’s recent customer engagement initiatives, including forums dedicated to helping subscribers better understand data usage, value optimization and service quality. These engagements have brought together customers, regulators and Airtel executives to foster greater awareness and dialogue around digital consumption.

The Airtel Web Data Calculator is now available to customers nationwide and can be accessed via Airtel Nigeria’s website.

 


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NCC Board Reviews Telecom Sector, Notes Progress in Network Expansion, Consumer Compensation

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The Board of the Nigerian Communications Commission (NCC) has commended telecommunications operators for ongoing investments aimed at improving network coverage, capacity and quality of service across the country.

NCC Board Reviews Telecom Sector, Notes Progress in Network Expansion, Consumer Compensation

NCC

This was contained in a communiqué issued at the end of the Commission’s 109th Board Meeting held on May 25 in Abuja.

According to the communiqué, Mobile Network Operators (MNOs) have planned the deployment of more than 12,000 additional coverage and capacity sites nationwide, with over 5,000 already completed, representing more than 40 per cent of the target.

The Board also noted that fibre connectivity had been extended to more than 700 sites to improve network resilience, backhaul capacity and service reliability.

It added that co-location and infrastructure sharing licensees had upgraded equipment across more than 2,000 Base Transceiver Stations (BTS) to support network expansion and compliance with quality-of-service obligations.

The Board reviewed the implementation of the Commission’s directive requiring operators to compensate subscribers affected by poor service quality in areas where prescribed standards were not met.

It noted that full compliance by operators had resulted in compensation being offered to more than 75 million affected subscribers.

The Board said efforts were ongoing to independently verify operators’ claims and ensure that all eligible subscribers received the compensation due to them.

However, it expressed concern that tower infrastructure providers had only partially complied with directives requiring the reinvestment of regulatory fines into infrastructure upgrades through escrow accounts.

On broadband development, the Board noted rising data consumption across the country but observed that growth remained constrained by infrastructure limitations, reliance on mobile internet and duplication of assets.

It welcomed the growth in Fibre-to-the-Home (FTTH) subscriptions, which rose from 84,141 in the fourth quarter of 2025 to 210,065 connections as of the first quarter of 2026.

According to the Board, expanding fixed broadband infrastructure will help reduce pressure on mobile networks, improve service quality and provide consumers with more connectivity options.

The Board also noted that the Commission was reviewing the telecommunications market structure to reflect current realities in both the wholesale and retail segments of the industry.

It reaffirmed that broader access to wholesale backbone fibre and expanded metropolitan fibre networks would help lower connectivity costs, improve network resilience and support the Federal Government’s digital transformation agenda.

The Board further identified infrastructure vandalism as a major challenge affecting industry growth despite ongoing efforts by security agencies to protect telecommunications facilities designated as Critical National Information Infrastructure (CNII).

It called for greater collaboration among stakeholders and disclosed that the Commission was exploring the feasibility of establishing a Communications Industry Security Trust Fund to strengthen infrastructure protection.

The Board also reviewed ongoing engagements with industry players on the development of a framework for zero-rating educational platforms and content to promote digital inclusion and improve educational outcomes.

In addition, the Board approved the appointment of Princess Oforitsenere Emiko, a Non-Executive Commissioner of the NCC, as Interim Chairman of the Governing Board of the Digital Bridge Institute (DBI).

It also approved the appointments of Engr. Abraham Oshadami, Executive Commissioner, Technical Services, and Ms. Rimini Makama, Executive Commissioner, Stakeholder Management, as interim members of the DBI Governing Board.

The Board reiterated the Commission’s commitment to fostering a sustainable and inclusive communications sector through improved quality of service, network resilience, consumer protection, transparency, fair competition and market discipline.


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FG’s $10m Hello.cv Deal Sparks Outrage as Experts Question Snub of .ng Domain

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Stakeholders in Nigeria’s Information and Communications Technology (ICT) sector have expressed concerns over the inclusion of a foreign country code top-level domain (ccTLD) in a recent partnership under the Federal Government’s 3 Million Technical Talent (3MTT) programme.

FG's $10m Hello.cv Deal Sparks Outrage as Experts Question Snub of .ng Domain

The concerns followed the announcement by the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) of a 10 million-dollar partnership with Hello.cv, a platform associated with Cape Verde’s “.cv” country code domain.

Under the agreement, 20,000 beneficiaries of the 3MTT programme will receive access to Hello.cv’s profile package, which includes a personal .cv domain, an artificial intelligence-powered job search agent and professional CV writing services.

Some industry stakeholders argue that the arrangement appears inconsistent with the Federal Government’s “Nigeria First Policy”, which encourages Ministries, Departments and Agencies (MDAs) to prioritise local products and services.

The policy, approved by the Federal Executive Council in May 2025, seeks to reduce dependence on foreign goods and services, strengthen domestic industries and create jobs.

Speaking on the development, Chief Executive Officer of DNS Africa Media and Communications, Dr. Adebunmi Akinbo, said the use of a foreign domain for Nigerian trainees raised questions about data protection and digital sovereignty.

According to him, the country’s indigenous domain, .ng, managed by the Nigeria Internet Registration Association, is capable of accommodating the beneficiaries and should have been prioritised.

“If branding is important to the company, there are alternatives such as integrating the service within the .ng ecosystem. The focus should remain on promoting Nigeria’s digital identity and protecting citizens’ data,” he said.

Akinbo also expressed concerns about the storage and management of data generated through the platform, noting that government agencies should ensure that local digital assets remain at the forefront of national digital development efforts.

Also commenting, Emmanuel Amos, Chief Executive Officer of Programos and Innovationbed-AI Academy, said government institutions needed to demonstrate consistency in implementing policies designed to strengthen local technology ecosystems.

According to him, Nigeria must develop the institutional commitment required to support indigenous technology solutions and maximise value from local innovation.

The stakeholders noted that while the training partnership itself was commendable, the inclusion of a foreign domain component had generated questions about compliance with the spirit of the Nigeria First Policy.

Ugonma Egwuatu, an ICT and data protection expert at ECAM Global Services, called for greater clarity regarding data governance arrangements under the partnership.

She said agencies responsible for data protection should be satisfied that adequate safeguards were in place for the personal information of programme beneficiaries.

“We are dealing with the data of about 20,000 individuals. There should be clear explanations regarding how the data will be managed, protected and utilised,” she said.

Egwuatu added that transparency regarding data handling processes and any third-party arrangements would help address concerns among stakeholders.

The partnership is part of ongoing efforts by the ministry to equip young Nigerians with digital skills and improve their access to employment opportunities in the global technology ecosystem.

As of the time of filing this report, the ministry had not publicly responded to the concerns raised by stakeholders regarding the domain component of the partnership.


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