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Competition is Both Helping, Hurting Telecoms Industry

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A colleague of mine recently bought a smartphone. On a limited budget, he was able to find an excellent phone with a sharp 5.5inch display, 32 GB storage, and an 8 MP camera, running the latest version of Android for a little over $100.

I spent a few minutes looking at the device and marvelling at the fantastic value for money, and it hit me – consumers have never had it better, but telecoms companies have never been under more pressure.

Samsung – the world’s largest mobile device manufacturer recently recorded a 37.6% drop in profits, due to competitive pressures.

Even with a global brand and large advertising revenues, it has become extremely difficult for Samsung to compete with over 100 different mobile device manufacturers all struggling for market share (and profitability).

This is only part of the story.
There are 4 main smartphone software platforms – Apple iOS, Android, Windows and Blackberry. Of these platforms, Android owns over 83% market sharewhilst iOS owns about 13% market share (Gartner). 

The Android platform is owned by Google, and is provided free of charge to handset manufacturers to use on their devices. 

This has made it relatively easy for manufacturers to enter the market, as Google manages the platform and has created an attractive and profitable ecosystem for application developers to deliver their content to subscribers.

Google in turn makes money from this platform using an advertising supported model.

Most of the smartphone devices sold by Samsung run on the Android platform,they therefore have to compete for market share with over 100 device manufacturers and can only distinguish themselves on hardware specifications, and to a limited extent on software customisation and services.

Consumers are therefore spoilt for choice, as manufacturers are stuck in a race to the bottom on price.

Even Apple with its unique combination of hardware, software and services, and sky high profitability, recently suffered a share price drop when it announced record-breaking- yet-lower-than-expected sales and revenue figures.

Apparently, investors are concerned about Apple’s growth prospects in light of current market dynamics.

This is in spite of the fact that Apple already makes over 90% of all profits in the entire smartphone industry, leaving all other operators to struggle for just 7% of smartphone profits (Forbes).

Telecoms operators and service providers are also facing similar struggles globally.

Traditional operator revenue streams (voice telephony and SMS) are declining and will continue to do so. In the near future, Cisco predicts that voice will make up less than 10% of total mobile traffic.

Subscribers are increasingly turning to cheaper over-the- top (OTT) alternatives such as WhatsApp and Skype, to make calls and send messages.

These OTT players have typically lower entry costs but global reach, and pose a significant challenge to existing telecoms operators.

For example, the total number of mobile VoIP minutes is expected to grow from 15 billion in 2010 to 471 billion in 2015 (Juniper Research).

Furthermore, Telecoms subscribers now have much higher expectations from their providers, and telecoms operators are scrambling to find waysof providing differentiated customer service to address the needs of their subscribers, to avoid losing them to rivals – especially now that technology has reduced the hurdles of switching between telecoms providers.

Almost all Telecoms operators are therefore looking to data services to drive growth.

However, the competition for provision of data services is fierce – especially since this strategy puts them in direct competition with traditional internet service providers in many cases.

Telecoms operators and service providers therefore now face pressures from both sides as well.

Traditional revenue streams are drying up due to competition from OTT players (amongst other factors), and there is increased competition in new areas of interest.

The scenario is also causing a race to the bottom on price for telecoms services.

Competition is supposed to be a good thing for consumers.

It is meant to create a situation in which they get the best value (and price) for goods and services.

At the moment, consumers have never had it better – they can choose their devices from an increasing list of manufacturers at constantly decreasing prices, choose their connectivity from a bouquet of offers with constantly decreasing prices, and choose their applications from a collection oflow cost or free options. However, at some point this competition could turn out to be a poisoned chalice.

What happens if device manufacturers and telecoms operators start (continue) going out of business? 

Now that consumers’ appetite has been whet, is it sustainable to continue to expect prices to drop? Should regulators be doing more to ensure an even playing field?  Should governments do anything to protect their companies from global competition?Should the principles of free markets be allowed to prevail?

A lot of difficult questions need to be asked and answered in the global telecoms industry – and these questions equally to the local industry.

For example, the Nigerian Communications Commission (NCC) has issued 4G licenses to wireless internet providers to ensure that Nigerian subscribers have access to affordable (and widely available) data services.

However, licenses have not yet been made available for auction to mobile operators.

These operators face increasing pressure as traditional revenue streams are being eroded by OTT players for example, and this erosion is encouraged by the presence of these new wireless internet service providers.

As a result, these mobile operators may not be able to compete effectively as they have to use their limited spectrum to provide the quality of service (QoS) guarantees that traditional voice services demand, whilst trying to compete against providers who do not have this challenge.

OTT players such as WhatsApp do not have a physical presence in most countries in which their services are used, and therefore do not pay taxes or provide jobs in those countries.

Again whilst consumers benefit from better and cheaper services, what happens if mobile operators (who have paid millions of dollars in license fees, and spent millions more on equipment) begin to shed jobs?

What happens if (as) tax revenues from these mobile operators decrease?

Whilst competition can be a very useful tool in providing value to consumers, it can also create scenarios which undermine the benefits it is meant to provide.

Ensuring a vibrant telecoms sector must include maintaining a healthy balance between competitive policies (to provide value for consumers), and policies aimed at ensuring that companies can continue to thrive and provide jobs, benefits to shareholders, as well as tax revenue.


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Study Shows Blocks in Telegram are Pushing the Underground Out

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Modern messengers, such as WhatsApp, Telegram, Signal and others, are often used for illicit purposes. Kaspersky Digital Footprint Intelligence has conducted an in-depth monitoring of over 800 blocked cybercriminal Telegram channels between 2021 and 2024.

While a range of illegal activities continues to be hosted on the platform, its environment has become noticeably more challenging for sustained underground operations.

Telegram’s bot framework and other built-in features make for a low-effort ecosystem for the underworld.

A single bot can simultaneously manage queries, process cryptocurrency payments, and instantly deliver stolen bank cards, info-stealer logs, phishing kits, or DDoS attacks to hundreds of buyers per day, often without operator involvement.

Unlimited, non-expiring file storage eliminates the need for external hosting when distributing multi-gigabyte database dumps or stolen corporate documents. This frictionless automation naturally favours high-volume, low-price, low-skill offerings, such as leaked bank cards or other data, hosting malware, etc.

High-value, trust-dependent deals (for instance, zero-day vulnerability information) still remain on reputation-gated dark-web forums.

Kaspersky researchers found two clear trends related to illegal activities on Telegram. The average lifespan of shadow channels has increased, with the proportion of channels surviving over nine months more than tripling in 2023-2024 compared to 2021–2022. At the same time, Telegram’s blocking activity has risen significantly.

Monthly takedown figures recorded since October 2024 – even at their lowest – are comparable to the peak levels seen throughout 2023, and the overall pace continued to accelerate in 2025. This impedes malicious activities.

Other disadvantages of Telegram for cybercriminals include the lack of default end-to-end (E2E) encryption for chats, the inability to use their own servers for communication (due to the messenger’s centralised infrastructure), and closed server-side code, which makes it impossible to verify its functionality.

As a result, several established underground communities, including the nearly 9,000-member BFRepo group and the Angel Drainer malware-as-a-service operation, have already begun shifting primary activity to other platforms or proprietary messengers, citing repeated disruptions of their activities on Telegram.

“Fraudsters find Telegram a convenient tool for many malicious activities, but the risk-reward balance is clearly shifting. Channels are managing to stay online longer than a couple of years ago, yet the dramatically higher volume of blocks means operators can no longer count on long-term stability.

“When a storefront or service disappears overnight – and sometimes reappears only to be removed again weeks later – building a reliable business becomes much harder. We’re starting to see the early stages of migration as a direct consequence,” comments Vladislav Belousov, Digital Footprint Analyst at Kaspersky.


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Galaxy Backbone Marks Two Decades of Powering Nigeria’s Digital Evolution

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Galaxy Backbone Limited (GBB), the Federal Government’s leading ICT infrastructure and shared services provider, will mark its 20th anniversary in June 2026 with a grand celebration that reflects two decades of innovation, resilience, and national impact.

Since its inception in 2006, Galaxy Backbone has been at the heart of Nigeria’s digital transformation journey; building the technological foundation that supports modern government operations and public service delivery. What began as a bold vision to connect government has grown into a critical national platform that drives efficiency, transparency, collaboration and innovation across the public sector.

Over the last 20 years, GBB has helped redefine how government works. By providing secure connectivity, enterprise-grade data centre services, cloud platforms, and digital collaboration tools, Galaxy Backbone has enabled Ministries, Departments and Agencies (MDAs) to move from fragmented, paper-based processes to more integrated, technology-driven systems.

This transformation has improved government-to-government coordination, strengthened engagement with businesses, and enhanced the delivery of services to citizens. Today, the digital infrastructure powered by Galaxy Backbone supports thousands of government users, hundreds of institutions, and critical national platforms that Nigerians rely on daily.

A key part of this journey has been the Federal Government of Nigeria’s investment, managed by GBB in robust national infrastructure, high-capacity and world class data centres, fibre-optic connectivity across multiple states, secure hosting services, and shared platforms that have helped government operate more efficiently and responsively. These contributions have played a pivotal role in Nigeria’s progress toward a more digital, agile and citizen-centered public service.

Galaxy Backbone’s impact has earned both national and global recognition. In 2025, the organisation was ranked first overall in the Federal Government Website Performance Scorecard, reflecting its commitment to excellence in digital service delivery. Internationally, GBB, a couple of years ago, received the prestigious United Nations Public Service Award, a testament to its leadership in promoting a whole-of-government approach to digital transformation.

As GBB celebrates two decades of service, this milestone is more than an organisational anniversary; it is a celebration of Nigeria’s digital evolution. It is an opportunity to appreciate how collaboration between government, industry partners, technology providers, and dedicated public servants has helped build a stronger, more connected nation.

The June 2026 anniversary celebration will bring together stakeholders from across the public and private sectors to reflect on the journey so far, acknowledge the partnerships that have shaped this success, and chart an ambitious course for the future. It will highlight how collective effort, shared vision, and innovation have positioned Galaxy Backbone as a strategic national asset.

Looking ahead, Galaxy Backbone remains committed to deepening digital transformation across the country; expanding infrastructure, strengthening cybersecurity, enhancing service delivery, and supporting the Federal Government’s drive for a smarter, more efficient and digitally empowered Nigeria.

At 20 years, Galaxy Backbone stands proud of its past, confident in its present, and inspired by the limitless possibilities ahead.

 


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Galaxy Backbone Marks 20 Years, Tops FG Website Scorecard

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Galaxy Backbone Limited (GBB), Nigeria’s leading federal ICT infrastructure provider, has announced its 20th-anniversary celebration for June 2026, marking two decades since unifying government’s fragmented digital landscape into a secure national platform.

Galaxy Backbone Marks 20 Years, Tops FG Website Scorecard

Galaxy Backbone

The announcement by Head of Media and Corporate Communications Chidi Okpala follows GBB’s top ranking in the 2025 Federal Government Website Performance Scorecard by the Bureau of Public Service Reforms, cementing its leadership in digital service delivery and transparency.

Managing Director Professor Ibrahim Adepoju Adeyanju described the milestone as celebrating Nigeria’s shift from paper-based silos to a cloud-first, integrated government. Achievements include the UN Public Service Award for 1-GOV.net, high-speed fiber deployment for G2G and G2B interactions, IPPIS payroll rollout, and pandemic-era digital support.

The June event will gather public-private stakeholders, global tech partners, and policymakers to unveil GBB’s next-decade roadmap emphasising cybersecurity, AI in public service, and rural connectivity.

GBB positions itself at the forefront of Nigeria’s 2030 digital nation drive, with 20 years of innovation signaling a smarter, connected future.


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