Telecom
CDMA Rings into Distress as Capcom Deal Stagnates

Code Division Multiple Access (CDMA) segment of the Nigeria’s telecoms industry is ringing into oblivion as a cloud of uncertainty hang over the sky-high hope raised by the proposed merger of Starcomms, Multilinks and MTS First Wireless, Nigeria CommunicationsWeek can now report.
The spectacular deal being put together by Capcom Limited, a holding company focused primarily on identifying, investing and building shareholder value in companies in the African telecommunications sector is touted as a breather for the embattled sub-sector.
But some transaction hiccups including approvals; administrative bottle necks; and legal knots to be untied have all conspired to hobble the deal, some 10 months after Capcom declared its interest to provide Starcomms (the product of the merger of Starcomms, Multilinks and MTS) with a capital investment of cash and assets independently valued at $210 million.
Nigeria CommunicationsWeek recalled Starcomms, one of the companies’ in the merger had in December last year, warned that the company was at risk of bankruptcy if the merger failed.
Mr. Olusola Oladokun, former Interim chief executive officer, Starcomms Plc, said over the years, the company has been faced with numerous challenges due to the harsh operating environment and is experiencing difficulties in its operations.
He disclosed that Starcomms’ debt profile currently stood at N15 billion, adding that the company has stopped servicing its debts so as to conserve cash.
Elsewhere, Multilinks is hemorrhaging after shutting down part of its CDMA business and focusing more on the fibre service operation.
MTS First Wireless on the other hand, had slipped into history until the merger deal surfaced. But it remains a very attractive bride because it is sitting on the best frequency band in the telecom industry.
Nigeria CommunicationsWeek gathered that the CDMA sector got into trouble in the first place due to a combination of factors including corporate mismanagement.
Today, all the CDMA operators in Nigeria have just 2.5 million lines according to the Nigerian Communications Commission (NCC’s) figure for July 2013 with Visafone accounting for over 2 million of the sum total. in contrast, the GSM segment has in excess of 120 million lines.
To say that CDMA operators are hanging by hair breath is a gross understatement, they are in a very bad shape.
The same fraudulent and self-serving practices of some members of board and management and the overbearing influence of chairmen or MD/CEOs of CDMAs, especially in family-controlled businesses led to the collapse of the banking industry sometime ago.
Experts also point at non-compliance with laid down internal controls and operation procedures, biased recruitment exercises and general lack luster management practices as some of the reasons why the companies have failed to click.
Elsewhere, local financiers repulsed by the companies’ stinking financial records have also turned their backs preferring to fund global system for mobile communications (GSM) operators with proven corporate practice.
Telecom
Telcos Defend N6.98 USSD Charge despite Failed Transactions

Association of Licensed Telecommunications Operators of Nigeria (ALTON), has defended the N6.98 Unstructured Supplementary Service Data (USSD), fee charged on banking transactions, insisting that the cost reflects the service provided by network operators, regardless of whether the transaction is completed.

Gbenga Adebayo, chairman, ALTON, made the clarification during a radio programme, where he addressed growing consumer complaints over what many Nigerians have described as “unfair billing” and the alleged “scam” of data expiration.
Adebayo likened the role of telecommunications companies in USSD transactions to that of a transport service provider facilitating access to banks’ digital platforms.
He said: “The phone company is like a taxi taking you to the bank’s digital office. Even if the bank’s system is down when you get there, you still have to pay the taxi man.
“Every USSD request initiated by a subscriber utilises network resources, irrespective of the outcome of the transaction on the bank’s end.
“When customers make repeated attempts due to failed transactions, telecom operators still provide connectivity for each attempt, thereby incurring operational costs,” he explained.
On the lingering dispute between telecom operators and banks over failed USSD transactions, Adebayo disclosed, “that regulators, including the Nigerian Communications Commission (NCC), and the Central Bank of Nigeria (CBN), are currently reviewing data to determine responsibility for transaction failures.
“Each time you dial a USSD code, the telco provides the access. If the bank does not complete the transaction, it does not negate the fact that the network has already been used,” he added.
The ALTON Chairman also addressed widespread dissatisfaction over data expiration, clarifying that data bundles are sold within defined validity periods and are not designed for indefinite use.
“You can’t carry it in perpetuity, but you have the benefit of extending it without losing unused portions by just resubscribing,” he said.
He explained that subscribers can retain unused data through rollover options, provided they renew their subscriptions before the expiration of the current bundle.
Adebayo further shed light on the concept of toll-free lines, noting that such services are not entirely free but are funded by the receiving organisation.
“There is nothing like free service. These are reverse charge lines where the business or government pays for the calls,” he explained, adding that economic realities have made many organisations reluctant to sustain such costs.
He noted that this has contributed to the limited availability of toll-free services in Nigeria.
While acknowledging consumer frustrations, Adebayo stressed the need for greater public understanding of how telecom services operate, particularly the cost implications of maintaining network infrastructure.
Telecom
EU Warns Meta Could Face Huge Fine Over Underage Facebook, Instagram Users

European Union (EU) has warned that Meta may be failing to effectively prevent children under the age of 13 from accessing its social media platforms, including Facebook and Instagram.

Meta
The warning followed an investigation conducted under the Digital Services Act (DSA), which found that the company’s age-verification safeguards may be inadequate.
EU regulators said preliminary findings showed that children could easily bypass age restrictions by providing false birth dates during registration.
They also noted that tools for reporting underage users were difficult to locate and use, raising concerns about children’s exposure to inappropriate content and online risks.
EU Executive Vice-President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, said platform rules should go beyond written policies.
“Terms and conditions should not be mere written statements, but rather the basis for concrete action to protect users, including children,” Virkkunen said.
Under Meta’s policies, users must be at least 13 years old to create accounts on its platforms.
However, EU officials said the company’s enforcement mechanisms appeared insufficient and did not adequately address the risks posed to younger users.
If the findings are upheld, Meta could face penalties of up to six per cent of its global annual turnover under the Digital Services Act.
The company, however, rejected the allegations, saying it already operates systems designed to detect and remove underage accounts.
Meta added that it would continue to cooperate with EU regulators on the matter.
The investigation, launched in May 2024, forms part of the EU’s wider push to strengthen oversight of major technology firms and improve online safety for children.
Regulators are also reviewing broader platform design concerns, including features they describe as potentially addictive and harmful to users’ wellbeing.
The EU is considering additional measures, including the possibility of introducing a bloc-wide minimum age restriction for social media use, amid growing pressure for tighter child safety regulations online.
Telecom
Experts Highlight Cybersecurity, Power as Key to Africa’s Digital Economy Growth

Industry experts have identified cybersecurity, reliable power supply, data infrastructure expansion, and interconnectivity as critical factors for unlocking Africa’s digital economy potential.

The experts spoke at the IoT West Africa 2026 Conference and Data Centre Cloud Expo held in Lagos.
In his keynote address, the National Commissioner and Chief Executive Officer of the Nigeria Data Protection Commission (NDPC), Dr Vincent Olatunji, said Africa’s rapid digital transformation was being accompanied by growing cybersecurity threats.
Olatunji said cyberattacks now occur globally every 39 seconds, with annual cybercrime losses estimated at 10.5 trillion dollars.
According to him, Nigeria records over 4,000 cyberattacks weekly, accounting for about 45 per cent of incidents across Africa.
He added that financial losses linked to cybercrime in Nigeria exceeded ₦12 billion in 2024.
Olatunji said global data generation had reached approximately 402.89 million terabytes daily and was projected to increase from 181 zettabytes to 221 zettabytes.
“Data is now the new oil, driving everything from IoT to cloud services and digital platforms,” he said.
He noted that Nigeria’s digital economy was currently valued at 18.3 billion dollars and could double within the next five years.
During a fireside chat on “Role of Colocation in Enabling Africa’s Data Centre Transformation: Opportunities and Challenges,” stakeholders highlighted energy supply, affordability, and global-standard infrastructure as essential to sector growth.
Chief Executive Officer of Nxtra by Airtel, Yashnath Issur, said Africa’s data centre market must compete at international standards.
“This market is no longer local; it is a global business requiring global quality, scale and expertise,” he said.
Chief Executive Officer of Rack Centre, Lars Johannisson, described energy as the sector’s biggest growth challenge.
“Data centres are about power, cooling and people. Energy is the machine that will power our growth, and without fixing it, scaling will remain constrained,” he said.
Managing Director of Equinix West Africa, Wole Abu, stressed the importance of interconnectivity within digital infrastructure ecosystems.
“A data centre without interconnection is like a ship, but an interconnected one is a port that enables trade and economic growth,” he said.
Representing African Infrastructure Investment Managers, Akinsehinwa Akin-Taylor said capital remained available, but investors were now placing greater emphasis on bankability, quality assets, and strong operational records.
Also speaking, Ifeanyi Otudoh of MTN called for broader digital inclusion and stronger local capacity building.
“We must put digital capability in the hands of African innovators and ensure secondary cities are not left behind,” he said.
Gary Chomse of Vertiv noted that unstable electricity supply continues to influence data centre infrastructure design across Africa.
At a panel session on digital twins and data centre optimisation, experts said adopting digital twin technology could improve operational efficiency, predictive maintenance, and risk management.
Chief Executive Officer of Kasi Cloud, Johnson Agogbua, said digital twins could improve power optimisation and help operators detect issues before they escalate.
“The biggest headache in Nigeria is power. Digital twins help you understand how power behaves and visualise problems before they occur,” he said.
Morris Nmor of Uptime Institute said the technology could significantly reduce system failures and operational risks.
Experts also noted that digital twins could improve cooling systems, reduce operational costs, strengthen cybersecurity, and enhance energy efficiency.
They agreed that integrating stronger cybersecurity systems, data infrastructure, and emerging technologies would be essential to building Africa’s digital future.
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