Connect with us

Telecom

GSMA Report Favours Competition over Wholesale Networks

Published

on

GSMA.jpg
Kindly share this post

The GSMA has released a new report that predicts a move away from traditional mobile network competition towards single wholesale networks1 which would stifle innovation, restrict investment and take-up of mobile broadband services and ultimately be against consumer interests.

Developed by Frontier Economics, the report, “Assessing the Case for Single Wholesale Networks in Mobile Communications”, examines whether single wholesale networks could meet a government’s objective for improved coverage and explores more effective ways to achieve the same goal.

The report analyses the historic performance of countries with a single network compared to those with multiple competitors to consider how a single wholesale network would likely perform in practice. It finds that in countries with competing networks, 3G covered 36 per cent more population and that overall coverage increased three times faster than in those served by a single network2.

“In 2000, there were as many countries served by a single mobile network as there were those with competing networks. Today only 30 countries, representing less than three per cent of the world’s population, are served by a single network,” said Tom Phillips, chief regulatory officer, GSMA.

“Network competition has produced unprecedented growth and innovation in mobile services, with 3.7 billion unique mobile subscribers globally in 2014, more than US$1.7 trillion of total worldwide investment since 2002 and mobile 3G broadband coverage reaching over half of the world’s citizens3. This indisputable success story should continue in the era of mobile broadband, across the globe and particularly in emerging markets.”

Comparing Single Wholesale Networks with Network Competition

 Advocates of single wholesale networks argue they can respond to issues such as inadequate or slow coverage in rural areas, inefficient use of spectrum and a lack of incentives for the private sector to maximise coverage or investment better than the model of network competition. However, the report demonstrates that the existing approach of network competition offers better long-term benefits:

Network Coverage – Some supporters of single wholesale networks claim they will deliver greater network coverage than network competition. The new report finds this often reflects the existence of public subsidies and other forms of support for the monopoly wholesale network model rather than any inherent advantage over competing network operators.

Innovation and New Services – The report finds that, in practice, single networks typically take 12 to 18 months longer to perform upgrades and embrace new technologies such as 3G, limiting the availability of new services for consumers, reducing quality and increasing costs.

Uncertainty for Investors – When initially established, single wholesale networks would have to co-exist for some period with existing networks.

This will likely lead to a distortion of competition in the market, increasing uncertainty both for those investing in the single wholesale networks and for those investing in existing networks, leading to less investment in mobile broadband services.

Impact of Monopolies – In the longer term, single wholesale networks would need to evolve into regulated monopolies to meet their key objectives.

As monopolies, single wholesale networks will always have incentives to keep prices high and limit investment and will have little impetus to innovate.

Although regulation of the network may attempt to overcome some of these problems, experience shows that this will be difficult in practice and will not match the performance of competing networks. 

Subsidising Network Competition – Although publicly-funded single wholesale networks could be used to deliver coverage in areas into which privately funded competing networks might not be able to serve, the report suggests that policy makers should consider measures to extend the benefits of network competition to those areas rather than replacing competition with monopoly.

This includes imposing coverage obligations at the time of licence award for new spectrum, particularly in low frequency 700MHz and 800MHz bands, and other forms of subsidy such as the award of contracts to cover particular areas using public funds.

Policy makers in a number of countries have been considering establishing a single wholesale network instead of relying on competing mobile networks to deliver 4G mobile broadband services, but there are currently no nationwide initiatives in action.

“No single wholesale network has been fully implemented in any country in the world yet and designing, financing and implementing these networks will likely prove highly challenging. We believe that a radical departure from the approach of licensing competing mobile operators, favoured by policy makers for the past 30 years, would harm a nation’s consumers, businesses and economy,” added Phillips.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

MTN Guns for $2.76bn IHS Towers Buyout in African Telecom Power Grab

Published

on

Kindly share this post

MTN Group, the continent’s telecom behemoth, has plunged into advanced negotiations to acquire the outstanding 75 percent stake in IHS Towers for a staggering $2.76 billion, a seismic move that would hand Africa’s largest mobile operator full reins over one of the world’s premier independent tower companies and redefine infrastructure control across emerging markets.

MTN Guns for $2.76bn IHS Towers Buyout in African Telecom Power Grab

MTN

The proposed transaction, pegged to IHS’s latest New York Stock Exchange closing price where it trades alongside a Frankfurt listing, builds on MTN’s existing 25 percent holding forged in a landmark 2014 deal that saw the operator offload most tower assets to IHS in exchange for cash and long-term leases.

Sources close to the talks confirm discussions remain fluid with no binding agreement yet inked, and both sides caution that negotiations could shift or stall entirely—MTN has signalled readiness to pivot to alternative value-unlocking strategies for its stake if a full buyout eludes grasp.

Strategically, the power play catapults MTN toward vertical integration in a sector where operators increasingly crave direct grip on passive infrastructure to slash lease bills, streamline upgrades, and rocket-roll 4G/5G amid Africa’s insatiable data deluge.

IHS Towers, MTN’s anchor tenant across swathes of Africa with tens of thousands of masts from Nigeria’s 13,500 tenancies—renewed amid naira-dollar tussles—to South Africa and beyond the Middle East into Latin America, represents a golden infrastructure war chest primed for the operator’s 20-nation blitz.

The saga traces to 2014’s seismic sale that freed MTN capital for spectrum wars while birthing enduring lease pacts, now ripe for reversal as governance dust-ups over shareholder nominations and agendas underscore the buyout’s boardroom chess.

Market tremors rippled through IHS shares post-leak, underscoring the $2.76 billion tag’s gravity as MTN eyes cost efficiencies, network agility, and expansion muscle in oil-volatile economies where tower mastery spells survival.

Should the ink dry, MTN vaults to ownership of a colossus fuelling digital bridges from Lagos megacities to rural frontiers, slashing third-party dependence while supercharging investments in fibre-deep data dreams and 5G horizons.

Analysts buzz that the mega-deal heralds telecom consolidation waves, with operators reclaiming tower turf to fortify against rivals and unlock synergies in a landscape where infrastructure crowns kings.

Neither MTN nor IHS commented officially by press time, but the high-stakes huddle spotlights Africa’s telecom arena hurtling toward an era where owning the poles decides who dominates the digital skies.


Kindly share this post
Continue Reading

Telecom

NCC, NSCDC Warn Construction Firms Against Damaging Fibre Optic Cables

Published

on

Kindly share this post

Nigerian Communications Commission (NCC) and the Nigeria Security and Civil Defence Corps (NSCDC) have issued a forceful warning to road construction companies, government contractors and civil engineering firms across the country, declaring that the era of unchecked fibre-optic cable damage during excavation works is over, with perpetrators now facing criminal prosecution.

NCC, NSCDC Warn Construction Firms Against Damaging Fibre Optic Cables

NCC, NSCDC

The two agencies, in a joint statement, highlighted the alarming surge in avoidable fibre cuts caused by negligence, poor planning or outright disregard for infrastructure protection protocols, stressing that such incidents severely disrupt Nigeria’s digital backbone and will attract the full weight of the law moving forward.

They described fibre optic cables as indispensable national assets that fuel the nation’s burgeoning digital economy, ensuring uninterrupted communication services, powering emergency response systems, linking businesses for commerce and trade, and enabling seamless government operations at all levels.

Any destruction of these cables, whether through careless excavation, lack of coordination with telecom operators or deliberate sabotage, directly endangers national security, undermines economic stability and compromises public safety, the organisations warned, painting a grim picture of the cascading effects of even brief network outages on hospitals, financial institutions and security agencies nationwide.

Under the Designation and Protection of Critical National Information Infrastructure (CNII) Order 2024, telecommunication fibre infrastructure has been officially classified as Critical National Information Infrastructure, making any damage from unauthorised digging, construction activities or failure to collaborate with relevant authorities a clear-cut criminal offence punishable under existing statutes.

Individuals, private construction companies and even government contractors found culpable will face immediate prosecution and stiff sanctions as stipulated in the Cybercrimes (Prohibition, Prevention, etc.) Act 2015, with the agencies vowing zero tolerance for what they termed economic sabotage disguised as construction mishaps.

“Future damage to fibre optic infrastructure caused by excavation, road construction or any civil engineering activity conducted without due consultation or collaboration with network operators and relevant regulators will attract strict legal consequences,” the NCC and NSCDC declared categorically, underscoring their resolve to safeguard this vital ecosystem through heightened enforcement.

To forestall further incidents, the agencies implored federal, state and local government bodies, road construction firms, utility service providers and private property developers to adopt proactive measures including thorough pre-construction verification of underground fibre routes using approved mapping tools, early collaboration with the NCC, telecom operators and NSCDC both before and during project execution, strict adherence to national guidelines on excavation procedures and right-of-way management, and prompt reporting of any accidental damage to facilitate swift repairs and minimise downtime.

They emphasised that these steps represent the bare minimum for compliance in an era where digital connectivity is non-negotiable for Nigeria’s progress.

Members of the public have also been enlisted in this protection drive, with calls to report suspected sabotage, vandalism or unintended damage to fibre optic installations at the nearest NSCDC office, via email to [email protected] or [email protected], or by dialling the toll-free line 622 for immediate action.

This collaborative approach, the agencies believe, will not only deter would-be offenders but also foster a culture of accountability among all stakeholders handling earth-moving equipment or infrastructure projects in a country racing towards full digital transformation.


Kindly share this post
Continue Reading

Telecom

Google Calls on Africa’s AI Trailblazers for 10th Startup Accelerator Cohort

Published

on

Kindly share this post

Google has flung open applications for its landmark 10th cohort of the Startups Accelerator Africa, doubling down on nearly a decade of continent-wide tech propulsion by targeting Series A pioneers wielding AI and machine learning for scientific and societal moonshots.

Google Calls on Africa’s AI Trailblazers for 10th Startup Accelerator Cohort

Google

The 12-week “AI First” hybrid bootcamp, kicking off April 2026, equips Africa-based or Africa-centric innovators with Google’s AI arsenal, expert mentorship, technical firepower, and investor matchmaking to catapult health and deep-tech ventures into orbit—deadline March 18 at g.co/acceleratorafrica.

“Africa’s tech landscape is seeing a vibrant shift toward deep-tech innovation,” proclaimed Folarin Aiyegbusi, Head of Startup Ecosystem, Africa. “For Class 10, we are focusing on the potential of AI to drive health and societal benefits, providing the infrastructure and expertise to turn these startups into the research labs of the continent.”

Since 2018, the accelerator has turbocharged 180+ startups across 17 nations, unlocking $350 million in funding and 3,700 direct jobs, cementing Google’s role as Africa’s AI innovation forge amid a deluge of homegrown problem-solvers.

Equity-free and hybrid-powered, Class 10 promises Google’s product credits, strategic war rooms, and global networks to forge the next wave of African AI trailblazers reshaping everything from disease detection to climate resilience.


Kindly share this post
Continue Reading

Trending