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Collocation is About Opex Reduction—Hussain

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Fazal Hussain is chief executive officer of Helios Towers, pioneer collocation company. He has executed many international telecommunications projects in his over twenty years working experience that saw him work in several countries around the world. He joined Helios Towers from PTCL (Incumbent operator in Pakistan) where he provided solutions to carriers for both passive and active shared infrastructure. Hussain spoke to chike onwuegbuchi and funmi ilesanmi on collocation initiative in the telecom industry.

Infrastructure Deployment
It has been very supportive as far as we are concerned. As you are aware we just raised another $250 million from the IFC, we are very happy with the opportunities in Nigeria and we will continue to provide basic world class services to operators mainly focusing on helping them to reduce their operational expenses (Opex).
Target of Facility
The idea is that the money is for investing in capital, so that we can put more towers on ground, and as we do that it means we are able to provide services to not only the big GSM players but also the Wimax operators.
Cooperation on Infrastructure Sharing 
It’s been very good. If you are a service provider, I can come to you and say I can take 70 percent of your Opex out and I am sure you will want to talk to me. We can help you take Opex out and cut the cost so that operators can be more profitable by providing services to more and more customers. Our focus is solely Opex reduction to manage services and we are a world class company providing services to all the operators.
Challenges in Managing Towers 
We have invested over $10 million in our network operation centre in Victoria Island. What happens is that we are getting live pictures, live signals and alarms when somebody enters the site even to check the temperature. We get all the information to our network operation centre in Lagos and we then delegate people who are in the field to go and investigate very quickly. We do a lot of preventive and corrective maintenance as well. Our people go to site two or three times a week just to make sure everything is fine. They check if the battery is fine, check the generators, and check everything basically because that is how to provide 99.9 percent uptime.
Encouraging Operators to Collocate                    
It is very simple, we provide world class service, and we provide 99.9 percent uptime which nobody does in Nigeria. We are the only company that can provide the uptime with what is called plug and play. The operator does not have to do anything, within two days they can switch on their equipment and its up and running. They don’t have to worry about anything; we provide everything, security and all. At the end of the day, we help them reduce Opex and our objective is to help operators reduce Opex by up to 70 percent. We provide world class service at a very good price.
We build our sites to the highest specification and it is designed for multiple tenants. As you know in Nigeria you get public power supply for about 6 hours in a day so 18 hours in a day you don’t have power. So what we do is to provide battery backup then we have a generator and then back up generator. We have personnel on that site with a mobile generator for quick response if there is a problem with the battery and the two generators.  This is to ensure that the site does not go down at all.
Today, quality of service is relatively poor but in two years time and with the emergence of new operators, quality of service will be taken seriously as consumer will not tolerate any operator that provides poor quality of service.
Adding Value to Telecom Infrastructure
When we put a tower in an area there is no need to put more towers. One tower can service the GSM, CDMA and the Wimax operators, so they don’t have to spend any capital; they reduce their Opex so they can go spend it somewhere else. Whenever we put up a tower, the operators are very happy to come and use our towers for the simple reason of the assurance that we can provide 99.9 percent fully managed service.
Leasing Fibre to Operators
We are looking into doing what is called back haul. Our objective is to do collocation, managed services and backhaul so that we can put fibre on our towers.
Assessment of Telecom Industry 
The telecom industry in Nigeria is still growing.  First it was the voice , 2G  the GSM and the CDMA obviously that has been growing  after the deregulation  and probably  at the end there will be  about 80 to 100 million subscribers because Nigeria is a large country. The second wave of technology which is to provide value added services on top of the voice and the third which is data base services of broadband internet based on 3G and Wimax. I believe as far as telecom sector is concerned the consumers will benefit because it is a competitive market and it is very positive as far as I am concerned
We are the pioneers and as a matter of fact we started the collocation business so the relationship has been very good.  
In essence we provide two services at the moment. We build sites for collocation, meaning sites that allows at least four different operators whether GSM, CDMA, WiMax. Secondly, we manage passive infrastructures on behalf of the operators.
We guarantee 99.9% uptime and so far we have more than 1,000 sites nationwide and we plan to increase it to 2,000 fully managed sites.
Operational Model
The market dynamics is very critical but it is peculiar to emerging markets. Average revenue per user (ARPU) is declining rapidly, interconnect rates are very high, transmission cost is also very high and operating expenses is increasing. The subscribers are becoming increasingly demanding and quality of service is now a big issue. The two key aspects of the lean operator model are managed services and infrastructure sharing. Helios Towers provides these services to enable operators to concentrate in managing their customers, brand, sales and not managed infrastructure.
Capacity to Meet Operators Demand
We are very relevant to speedy roll out of telecom and related services in Nigeria, as a matter of fact; we are the heart of the wireless operators.
We do have the capacity and even with the coming of new entrants into the market. We are rolling out as fast as we can. First of all we are rolling out in the major cities and the smaller cities and then the villages. So far, we have spent over $300 million and recently IFC, granted us $250 funding to roll out additional 1,000 sites. This will bring our sites to over 2,000. Finance is not a problem to us as we are well funded to provide efficient services to the operators.
Managed services allows operators to focus on core strength of managing the business and not running the network, adopt a third party strategy and service consolidation to achieve immediate cost reduction  by 70%, achieve operational excellence in a market where average site  uptime  is only 70% ,focus on service quality improvement to achieve business key performance indicator.
Congestion of the Landscape by the Erection of Towers 
We are a very responsible corporate citizen of the country, and therefore obtain approvals from the appropriate authorities before building our sites. We have a high specification of our sites and our towers do not fall as they are designed for 25 years. They are not local standard but international standard, so we ensure that we get the approval of the government entities concerned before we build our sites.
More so, financially we have not really face challenges in the sense that we have been able to raise money internationally, we are actually a company registered in Nigeria but investment comes from abroad. The biggest challenge that we are facing is finding good quality sites.  If for example you are given the license to operate telecommunication services in Nigeria, and you want to roll out nationwide, you will spend a lot of money in getting a good quality site and besides it will take you sometime to get it.
Effect of Taxes on Bottomline
Whenever you pay taxes, it affects your bottom line. But whatever taxes we pay, operators have to pay if I have five people or four on a tower; I pay only once so I could pass those savings to them, so they don’t have to pay.
Parameter of Your Charges 
Our charges are very affordable. It depends on the space that you want to hang your equipment, if you are a GSM or CDMA operator, you will probably take more space, but the cyber café or Wimax operator, radio station, Television station etc take smaller space and pays lesser than the former. So, our charges depend on the space and specifications of your equipment.
Helios Towers in Future
We hope to see Helios Towers in other African countries. Right now, we are still serving Nigeria because Nigeria is a big market but very soon we are looking forward to exporting our skills to other African countries apart from Nigeria. By 2010, we will probably have close to 2000 towers. We have over a thousand right now.
 

 


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Dufil Takes Donation of Indomie Noodles Cartons to Vulnerable Communities in Abuja and Environ

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In line with its commitment to provide critical support to indigent members of communities around the country in the face of the ongoing economic challenges, Dufil Prima Foods Limited, makers of Indomie Instant Noodles, in partnership with Golan Helps Abuja Food Bank Initiative (GHAFBI) and Meluibe Foundation on Wednesday, April 17 distributed Indomie noodles cartons to vulnerable communities in Kuje and Kubwa Local Government Areas in Abuja.

With the goal of alleviating hunger and supporting communities across Nigeria, Indomie Instant Noodles has committed to donating a substantial quantity of noodle packs to various NGOs working tirelessly to address food insecurity.

These organizations play a crucial role in reaching remote and underserved areas, ensuring that nutritious meals reach those who need them most.

“We are deeply committed to making a positive impact in the communities where we operate,” said Olusola Olayinka Idowu OON, former Permanent Secretary, Budget and National Planning, and the CEO/Founder of GHAFBI.

“At GHAFBI, we believe that everyone deserves access to wholesome and nourishing food. Our partnership with Dufil Prima Foods to donate Indomie Noodles packs is a big step towards addressing food insecurity and supporting vulnerable communities in Abuja”, said Idowu who was also the former National Conveyor, UN Food System Dialogues in Nigeria.

Speaking in the same vein, Obialunanma Nnaobi-Ayodele, Executive Director, The Meluibe Empowerment Foundation, expressed her gratitude to Indomie Noodles for the partnership. “Our vision as an NGO is to change the world one step at a time, by providing relief and support to vulnerable communities.

This is achieved through collaborations and partnerships, one of which is what we have done with Indomie Noodles. We remain grateful for their support through this food relief initiative”, she said.

By partnering with NGOs, Indomie Instant Noodles works closely with local leaders and community heads in directly engaging with rural communities to distribute noodle packs and provide immediate relief to families facing hunger and ensuring that food assistance reaches those who are most in need, especially in hard-to-reach areas.

“We are grateful for the opportunity to collaborate with NGOs and community leaders to make a meaningful difference in the lives of people facing food insecurity”, said Temitope Ashiwaju, Group Corporate Communications and Events Manager, Dufil Prima Foods Limited. “Together, we bring hope, love and relief for all”.

The community leaders and some of the beneficiaries also expressed their immense gratitude to Indomie for the support, stressing the impact the products donated will have in alleviating hunger in their communities.

Speaking at the outreach centre, His Royal Highness, Muhammed D. Jibril, Community Leader of Gbazango Community in Kubwa Local Government Area said: “I am very grateful to Indomie Noodles for coming to our aid in these challenging times. I pray for more expansion and growth for the business and may God bless Indomie Noodles”.

Other communities who benefited from the product donations include Wunmi, Tondo, Godoji and Shazhi communities in Kuje Area Council of Abuja.

Dufil Prima Food’s donation of Indomie Noodle packs underscores its commitment to corporate social responsibility and its dedication to supporting communities in need. By providing essential food relief, Dufil Prima Foods is contributing to the well-being and resilience of vulnerable populations in Nigeria.

Indomie Instant Noodles remains dedicated to bringing joy to mealtimes and making a positive impact in communities around the world.


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Verra Certifies d.light’s Clean Cookstove Projects in Sub-Saharan Africa

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A series of pioneering projects by d.light, the global provider of transformational household products and affordable finance for low-income households, to distribute 600,000 energy-efficient clean cookstoves in Kenya, Nigeria, and Uganda have been officially certified by global verification body Verra.

This certification confirms the d.light projects as trusted, verified sources of high-quality carbon credits in the voluntary carbon markets (VCMs).

The d.light projects aim to simultaneously reduce carbon emissions, tackle indoor air pollution, and reduce deforestation through the sale of highly efficient biomass cookstoves subsidized by the revenues from the sale of carbon credits.

Since their launch in late 2022, the projects have positively impacted more than one million lives and are projected to transform more than three million lives by 2025.

Commenting on the news, Karl Skare, d.light’s Chief Product and Strategy Officer, emphasized the projects’ positive impact, “With these projects, we’re not just addressing environmental concerns but also enhancing quality of life for millions.

“Each project underscores d.light’s commitment to practical, innovative solutions that address both environmental and social challenges, as part of our mission to transform the lives of one billion people by 2030.”

Each year, domestic cooking emissions contribute more than two percent of total global GHG emissions and up to 25 percent of anthropogenic black carbon emissions.

Highly energy-efficient cookstoves solve this problem by reducing biomass use by up to 70 percent compared to traditional cooking methods, cutting emissions of both carbon dioxide and black carbon.

The d.light projects are expected to reduce emissions by up to 12 million tons, contributing to climate change mitigation. These emissions reductions will be registered as carbon credits in the voluntary carbon market.

As well as reducing emissions, clean cookstoves are also a benefit to public health. According to the World Health Organisation, exposure to smoke from cooking fires causes an estimated 3.2 million premature deaths worldwide each year and is still one of the predominant causes of pollution-related illness and death in Africa.

In Uganda, for example, less than one percent of the population has access to clean cooking, household air pollution is the one of the largest risk factors for death and disability.

In addition, switching from traditional three-stone open fires to cleaner, energy-efficient cookstoves significantly reduces deforestation and reduces threats to wildlife and biodiversity caused by habitat loss.

Skare explained, “By subsidizing energy-efficient cookstove costs through carbon financing, d.light makes clean cooking accessible to more households, which in turn leads to healthier living conditions and conserves natural resources as well.

“Our projects in Kenya, Nigeria and Uganda are models of how sustainable investments can yield multiple co-benefits, aligning with global efforts to combat climate change and also promoting socio-economic development.

Skare added, “d.light now has projects certified by both Gold Standard and Verra, the world’s two leading certifiers of carbon credits. Organizations looking for ways to offset their own emissions can be confident that when they purchase carbon credits in d.light’s clean cooking projects in sub-Saharan Africa, they are investing in transformative initiatives that reduce harmful emissions, improve people’s health and quality of life, and help conserve the environment as well.”

 


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Remedial Health Unveils New App with Digital POS to power operations for Africa’s Neighbourhood Pharmacies

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Remedial Health, a health tech startup that develops solutions to make Africa’s pharmaceutical value chain more efficient has unveiled an updated version of its customer-facing app, designed to function as an operating system for neighbourhood pharmacies and Proprietary Patent Medicine Vendors (PPMVs) across the continent.

The new app comes with a digital POS terminal to support payment collection, virtual business accounts to receive payments, an in-built barcode scanner feature for recording product sales and store-switch functionality to enable the seamless management of multiple stores, as well as inventory management solutions for restocking and easily identifying short-dated products.

The app also offers comprehensive financial reporting to manage profit and loss, and data analytics to inform decision making.

Despite accounting for 85 per cent of retail medicines sold in Africa’s pharmaceutical industry (projected to reach $70 billion market size by 2030), the absence of bespoke digital tools to manage their unique sales and inventory management needs means neighbourhood pharmacies and Proprietary patent Medicine Vendors (PPMVs) are unable to run their operations as effectively and profitably as possible.

At the same time, the reliance on paper-based inventory and sales management processes means manufacturers have limited empirical insights into customer behaviour to inform their decisions on production and distribution.

The new Remedial Health app has been designed specifically for healthcare businesses in Africa, with tailored features that have been designed to support effective decision making to drive business growth and profitability.

Starting in Nigeria, healthcare businesses can access vetted medicines, and manage their sales and inventory on one easy-to-use platform, freeing up time and capacity to effectively serve their customers and communities.

The app also enables Remedial Health to provide consolidated, real-time data on market behaviour to manufacturers for increased profitability and better decision-making across the value chain.

According to Samuel Okwuada, CEO, and co-founder of Remedial Health, “Neighbourhood pharmacies and PPMVs represent the frontline of healthcare delivery in Africa but they have historically been left to their own devices to figure out how to be efficient and profitable.

“Our mission is to empower these essential service providers with the tools they need to manage day-to-day operations and seamlessly run their practices effectively. We spent a lot of time interacting with our customers in the process of delivering this product and the feedback has been great.

“We are excited by the opportunity to get the app into the hands of pharmacies and PPMVs across the country to support their ongoing success, as well as the health and wellbeing of the nation”.

In 2023, Remedial Health sold more than 300 million individual packs of medicines to 7,500 hospitals, neighbourhood pharmacies and PPMVs across all 36 states of Nigeria.

Its customers also improved their profits by 30 per cent on average, with access to more than 8,000 vetted products at the same, or better than, open-air medicine market prices.

They can also access same-day delivery and leverage inventory financing to minimise cash-flow friction for routine orders and maximise sales opportunities.


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