Telecom
GSMA Report Favours Competition over Wholesale Networks
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.
Telecom
Meta Plans $10Bn Subsea Cable Project to Boost Connectivity
Meta, the parent company of Facebook, Instagram, and WhatsApp, reportedly plans to invest over $10 billion in a privately owned subsea cable network spanning more than 40,000 kilometers.
This ambitious project aims to enhance Meta’s control over its vast internet traffic, reduce dependence on telecommunications companies, and mitigate geopolitical risks.
The proposed route is expected to connect the U.S. East Coast to India via South Africa, and then from India to the U.S. West Coast through Australia, forming a “W” shape around the globe.
The initiative reflects Meta’s strategic move to secure its infrastructure amid growing geopolitical tensions and concerns about the vulnerability of undersea cable.
According to sources close to the company, the initiative, still in its early phases, would be Meta’s first fully owned and operated subsea cable.
This bold move underscores Meta’s focus on strengthening infrastructure to support its platforms, which generate 10% of fixed and 22% of mobile internet traffic globally, as first reported by TechCrunch.
Sunil Tagare, industry expert, who reported the plans in October, noted that the project’s initial budget of $2 billion will likely increase significantly.
“This is a monumental project in both investment and scale. The shortage of cable-laying ships and resources could lead Meta to build the cable in phases,” Tagare explained.
Although Meta has yet to publicly confirm the plans, an official announcement regarding the route, capacity, and objectives is anticipated in early 2025.
Logistical Hurdles: Meta faces difficulties securing the resources needed for a project of this scale. Cable-laying ships are in limited supply, with tech giants like Google already monopolising contracts with firms such as SubCom.
Tight Market Conditions: Ranulf Scarborough, a submarine cable industry analyst, highlighted the constraints. “The tight market for specialised resources means Meta may need to adopt a phased construction approach, potentially extending the timeline.”
Meta’s infrastructure initiatives are led by Santosh Janardhan, its head of global infrastructure. Reports suggest the project is being developed from its South African operations, indicating the growing significance of emerging markets in Meta’s strategy.
Traditionally dominated by telecom carriers, subsea cable construction has seen a shift as content-driven companies like Meta seek greater control over the infrastructure delivering their services.
If successful, this cable will strengthen Meta’s ability to handle data traffic independently, reduce reliance on shared networks, and unlock opportunities in underserved regions.
Telecom
UBA Partners NIBSS on NQR Payment Solution
United Bank for Africa (UBA) on behalf of Nigeria Inter-Bank Settlement System (NIBSS), other Banks and financial institutions, has successfully hosted the inaugural Annual General Meeting (AGM) of the NQR Industry Committee reinforcing the importance of cutting-edge Quick Response (QR) payment solution.
This is a significant move aimed at enhancing financial inclusion and the digital payment landscape in Nigeria.
This innovative collaboration is set to provide customers with a seamless, efficient, and secure payment experience, while also driving financial inclusion and deepening the country’s digital payments ecosystem.
The AGM underscored the shared vision of NIBSS, UBA, and all participating banks to leverage NQR in creating a more inclusive, efficient, and innovative payment system in Nigeria.
The landmark event brought together leaders and innovators in the Nigerian banking and payment ecosystem, reaffirming a collective commitment to advancing financial inclusion and digital payment solutions across the country.
In his welcome address, Mr. Shamsideen Fashola, group head of Retail and Digital Banking, UBA, emphasized the critical role of innovation, adoption, and collaboration within the banking and payment ecosystem in delivering sustainable value to stakeholders and customers.
He also reaffirmed UBA’s dedication to driving payment innovation.
As the event host, UBA underscored its strong commitment to advancing cutting-edge payment solutions that align with Nigeria’s push toward a digital economy.
According to a statement from the organizers, “This collaboration is set to unlock new opportunities for consumers, businesses, and financial institutions across Nigeria”
It further noted that through its leadership in hosting the AGM, UBA further solidified its position as a champion of transformative financial technologies designed to improve accessibility, security, and convenience for Nigerians.
The AGM featured thought-provoking panel discussions on critical areas of the NQR payment platform, including: Expanding Financial Inclusion; Developing strategies to make QR payments accessible to underserved communities; Improving User Experience; Creating frictionless payment journeys for both consumers and merchants; Driving Bespoke Solutions, leveraging NQR APIs to develop tailored solutions for specific market needs as well as encouraging collaboration among stakeholders to accelerate adoption and scalability.
The NIBSS Quick Response (NQR) payment platform is a revolutionary solution designed to transform how Nigerians pay for goods and services. NQR enables consumers to scan QR codes directly from their bank mobile applications for end-to-end transactions.
The platform caters to a broad range of use cases, including: Making payments fast and convenient for shoppers and merchants; Enabling digital payments for taxis, buses, and other transport services; Allowing users to pay utility bills, subscriptions, and more with a simple scan; Providing cost-effective payment options for SMEs to scale their operations.
During the NQR product launch earlier, the NIBSS highlighted some key benefits of the NQR payment solution.
It emphasised the product’s ability to simplify payment processes through a user-friendly scan-to-pay feature, reduce transaction costs for merchants to boost profitability, and ensure secure transactions by eliminating the need for physical cash or cards.
The NQR also provides merchants with instant value for transactions, improving cash flow and operational efficiency, while promoting access to digital payment solutions to advance financial inclusion.
The 2024 NQR AGM brought together key stakeholders, including the Chairman, Vice Chairman, and members of the Committee of e-Business Industry Heads (CeBIH), alongside senior executives, NQR Champions, and product managers from all participating banks. This gathering provided a valuable platform for dialogue and collaboration within the industry.
Telecom
Ikenna Ikechukwu Emerges Champion at MTN’s mPulse Spelling Bee
MTN Nigeria concludes the grand finale of its highly anticipated fifth edition of the mPulse Spelling Bee Competition on Saturday, November 30, at MTN Plaza Rooftop.
The event showcased the brilliance of Nigeria’s youth, bringing together 20 of the country’s top young spellers in a thrilling and inspiring contest.
The competition, which began in September with thousands of participants across Nigeria, reached its climax as Ikenna Ikechukwu, a student from Glorious Covenant School, Rivers State, emerged as the 2024 mPulse Spelling Bee Champion.
Ikenna Ikechukwu impressed the audience and judges by correctly spelling the winning word, “Cornucopia,” within six seconds to secure the grand prize of a ₦5 million scholarship, a laptop, a smartphone, and mPulse goody bag. Ikenna will also serve as the MTN CEO for a Day. “A special thanks to MTN for this amazing platform that helps students learn, play, and shine. This opportunity has been truly life-changing,” said Ikechukwu.
Speaking at the event, Obiageli Ugboma, Chief Risk and Compliance Officer, MTN Nigeria remarked, “This year, over 40,000 young spellers competed for the chance to stand here today. It is inspiring to see the incredible effort these 20 finalists have put in to make it this far. At MTN, we are deeply committed to education and nurturing young talents.
The mPulse Spelling Bee reflects our belief in empowering the next generation. Today isn’t just about winning; it’s about celebrating effort, resilience, and the role models these students have become for their peers.”
In addition to the individual prizes, the champion’s school, Glorious Covenant School, was awarded an ICT lab equipped with 10 laptops and MTN 5G routers, while the student’s teacher received ₦500,000 in cash.
The second and third-place winners, Ayomide Ibigbemi and Munachimso Opara, also received significant prizes, including scholarships, laptops, and smartphones, reinforcing MTN’s focus on rewarding excellence in education.
For the first time, the grand finale was streamed live on the mPulse website mpulse.mtn.ng, myMTN app, and on Event channels 198 and 49 on both DSTV and GOTV, allowing Nigerians nationwide to witness the brilliance of these young spellers.
The livestream attracted thousands of viewers, who cheered and celebrated the contestants from the comfort of their homes.
As the 2024 edition concludes, MTN reaffirms its dedication to promoting literacy and digital inclusivity through initiatives like the mPulse Spelling Bee.
The mPulse Spelling Bee has grown into a hallmark event for Nigerian primary and secondary students, creating a lasting impact on participants and their communities.
The stage is now set for future editions as MTN continues to bridge gaps in education through innovation and empowerment.
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