Telecom
Data Floor Plan: ALTON Cries Out “ISPs Selling Below Cost”
Association of Licensed Telecommunication Companies of Nigeria (ALTON) has called on the National Assembly to urgently review the position on the telecommunications Data Floor Plan.
To save the ‘smaller’ internet service providers (ISPs) from imminent shutdown, the Association lamented that most of the ISPs are operating under harsh economic conditions, and forced to sell data to subscribers at ‘unprofitable costs’.
According to the Association, there is urgent need for the National Assembly to allow the Nigerian Communications Commission (NCC) and other stakeholders to immediately revisit the suspended Data Floor Price.
Data Floor Plan Price is a partial price control measure, which is the lower limit price to check unhealthy but foster healthy competition among players.
The price floor is a means of controlling anti-competitive behaviors by operators considered to have attained the dominant status in the industry.
However, there is a limit to how low ISPs could charge for data services; the regulator in October 2015, approved the removal of data floor price, giving internet service providers opportunity to drop their data prices as low as they can in order to survive.
But, this was vehemently opposed by Nigerians, which led to the National Assembly ordering the NCC to back off the process.
Speaking at a recent ICT Journalists’ organised breakfast discussion, Engineer Gbenga Adebayo, president of ATCON said, “It is an issue we have treated extensively, but the way it’s perceived by the public is as though the operators have come to take something away from them. Reality of the matter is there is a cost and there is price. Cost is how much it takes to provide the service.
“Price is the cost plus your margin. It is a basic economics. What it means some of the service offerings today, providers are selling at cost and in some cases, below cost. When I came on this role, we had 35 members; some of you know them- Reltel, Intercellular, Mobitel, VGComs, Starcomms, Multilinks, MonaCom and the rest of them. Before then, these people have done other businesses and were successful, but when they came to the telecoms, due to the circumstances, so to say, they didn’t succeed. Where are they today. So, we have today, the big and mega big. It’s only the small provider that changes the rules of the game”.
He said that the present data floor plan gives room for the emergence of monopoly in the data segment of the market.
“If we do not allow the small providers to survive, competition will not thrive. Let me remind us where we are coming from: the bigger operator told us per second billing was not possible and we believed it. But while a smaller operators in those days, came and said ‘from today I will start with per second billing. it changed the rules of the game.
“Imagine if a situation never allowed a small player to compete, what would have happened? Recently, I was asking, where are the ISPs? Do we still have ISPs? The story is a very simple one: you approach NCC and apply for licence as internet service provider. They give you this license; you approach the operator to buy bandwidth to resell and redistribute to your customers.
“The day your service is commissioned on SAT, the Big operator comes with the mega package; half your package. How will you survive. So, we are saying, unless we are allowed for a minimum level of price, it will be very difficult for the small players to survive. Someone said to me: if you people think you cannot make profit and then you want to increase rate, you people should leave that business.
“Our answer: no problem! It is a simple story. But when the small players leave, the big player will still decide on what they want to do. The truth: the small player will leave in the first day; if the circumstances don’t change, the big players will leave the second day. It is only a matter of time.
“Some stories I read few days ago, I read similar stories 10 years ago. We remember the story of late Laba Joseph. What led to his death? Bank debt! In those days, it was for a small player. The society didn’t attach much meanings to it; today, it has become the topic of the day, because it happens to them, they are one of the mega players”, he said.
In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year.
According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29%, solidifying its position as a leading telecom provider in the region.
In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19% decline in market share and 9mobile experiencing a 0.5% decrease.
Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58% drop in its share of internet subscribers.
Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165% basis points increase.
This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.
Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.
Google Developer Groups Lagos (GDGLagos) has announced a regional edition of the global #BuildWithAI hackathon, in partnership with SeerBit, Africa’s most trusted payment solutions provider and GOMYCODE.
This hackathon, taking place on Saturday, April 27th and Wednesday, May 1st, 2024, will empower participants to explore Google’s AI tools, Gemini and Vertex AI and develop innovative solutions for real-world challenges.
“We are excited to partner with Seerbit and GoMyCode to bring the #BuildWithAI hackathon to Lagos,” says Co-Organizer, GDGLagos, Femi Taiwo. “This event fosters innovation and empowers individuals to use AI to solve real-world problems. We encourage everyone interested in AI to join us for this inspiring event.”
Founder & CEO of SeerBit, Omoniyi Kolade articulated the profound impact of this collaboration, stating, “At SeerBit, we are committed to pioneering innovative solutions that enhance financial security and foster trust in digital transactions. Collaborating with GDG Lagos amplifies our quest to combat fraud effectively. Together, we aim to empower developers to harness the power of technology for the greater good, ultimately benefiting society as a whole.”
“At GOMYCODE, we are committed to unlocking the potential of innovators across Nigeria and beyond through accessible technology education. The ‘Build With AI’ hackathon with Google Developer Groups Lagos offers a hands-on chance for innovators to use AI for real-world solutions. We’re excited to create a space where technology meets creativity, empowering participants to actively shape the future,” Country Head, GOMYCODE Nigeria, Babatunde Olaifa said.
The #BuildWithAI hackathon aligns with Google’s global initiative to democratize access to AI technology. This regional event in Lagos offers a unique opportunity for developers, data scientists, designers, students, and anyone curious about AI to:
- Gain hands-on experience with Google’s cutting-edge AI tools, Gemini and Vertex AI.
- Tackle real-world challenges across various sectors like sustainability, finance, education, healthcare, and social good.
- Leverage SeerBit’s expertise in digital payments to create solutions with tangible applications.
- Develop in-demand skills with the support of GoMyCode’s training resources.
- Collaborate in teams and network with fellow AI enthusiasts.
- Compete for a chance to win a cash prize of NGN 1,000,000, office space to further develop their winning solution, and the opportunity to partner with SeerBit, with NGN 500,000 and NGN 250,000 for second and third place respectively.
The GDGLagos #BuildWithAI hackathon serves as a springboard for the global Google AI Hackathon, taking place online. This international event focuses on pushing the boundaries of what Generative AI apps can do with Gemini. Participants in the Lagos event are highly encouraged to consider entering the global competition as well.
GDGLagos will provide ongoing support and guidance to the regional winner as they prepare to compete on the global stage. This includes access to mentorship, resources and technical expertise to help them refine their solution and showcase their talent to a worldwide audience.
Startup founders, experienced developers, data scientists and expert resources and designated mentors will be available during the hackathon to provide guidance, refine ideas, answer questions and offer technical support to participants. This ensures they receive the necessary guidance to tackle the challenges and bring their innovative ideas to life.
Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.
The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.
Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.
“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”
According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.
Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.
With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.
Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.
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