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How Insecurity Impacts Mobile Phone Subscription in Nigeria

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Latest telecommunications special edition poll results released by NOIPolls Limited have revealed that a higher proportion of Nigerians use 2 phone lines either registered under one network provider or under two different ones.

This trend has been consistent from 2012 to 2014; however, a 5-point reduction in the proportion of Nigerians in this category was seen from 2012 to 2013 and 3-points increase in 2014.

An assessment of the mobile network used by Nigerians placed MTN as the highest used network in the past two years (2012-2013) and even in the present times; although subscription to this provider has consistently declined within this period.

According to the MTN group, this decline has been mainly due to ‘regulatory restrictions’ imposed by the telecoms watchdog and growing spate of unrest by Boko Haram especially in the Northern part of Nigeria.

Other Networks used by Nigerians in the order of higher subscribers include; Airtel (45%), Etisalat (33%), Glo (28%) and Visafone (1%).

In line with this, the proportion of Airtel subscribers which seemed steady from 2012 to 2013 at (39%), picked up by 6-points in 2014 (45%), thus, making it the only network that has seen a considerable growth in the proportion of its users.

This increase may have been driven by the discovery of the cheaper tariffs offered by this network compared with other networks. 

More findings on the usage of phone lines revealed a higher proportion of subscribers (76%) use MTN as their main line; this could have been as a result of a first mover advantage earned by this operator.

In addition, 15% of mobile network subscribers indicated Airtel as their main line, 5% indicated Glo, while 4% of subscribers use Etisalat as their main line.

An assessment of the services provided by network providers revealed that a higher proportion (64%) of mobile phone users across all networks are getting value for money from their main network provider through the ‘quality of network services’ (27%), ‘bonus offers’ (25%) and ‘cheaper tariff’  (23%) among others.

Furthermore, MTN ranks highest for providing best services in Nigeria in 2014, followed by Airtel and Etisalat (68%, 17% and 11% respectively) and to further improve the quality of services of Network providers, subscribers have suggested the ‘reduction of tariff’ (30%) as a measure for improving the quality of telecommunication services while capitalizing on ‘wider network coverage’ (22%) and ‘improved network services’ (22%).

These were some of the key findings from the Telecommunications snap poll conducted in the week of November 17th 2014.

At the dawn of the 21st century, mobile network providers were granted licenses to operate in Nigeria, hence, the introduction of the Global System for Mobile Communication (GSM) which subsequently changed the frontage of telecommunications in Nigeria.

In the present times, figures obtained from Nigerian Communications Commission (NCC), reveals that the teledensity of the country’s telecommunications industry increased to 96.08 per cent in September, from the 90.78 per cent in March 2014 just as active lines in the nation’s telecommunications industry increased to 134,507,329 in September 2014.

Nigeria’s teledensity is currently calculated by NCC on a population of 130 million people.

Given this major breakthrough in the telecommunications industry, and with the competitive nature of the industry due to the advent of different players, ‘Quality of Service’ has been the major criteria for measuring the satisfaction of mobile network subscribers.

In line with Section 89 of the Nigerian Communications Act 2003 which mandates the Commission to monitor all significant matters relating to the performance of all licensed telecoms service providers, the Commission placed a ban on the sales of new SIM cards in March 2014 and on promotions or bonus offers on some mobile networks operators recently, following the failure of these operators to meet the various Quality of Service (QoS) Key Performance Indicators (KPIs).

Against this background, NOIPolls conducted it special edition poll on the telecommunications in Nigeria, to explore the current state of the sector from the perspective of consumers. The poll sought to measure the following:

Key Findings:

Respondents to the poll were asked ten specific questions; only 6 of these questions are discussed in this release. With the aim of assessing the usage of mobile phone lines in Nigeria, respondents were asked: How many phone lines do you currently use?

Findings from the current poll highlights that a higher proportion of Nigerians use 2 phone lines.

These lines could either be registered under one network provider or under two different ones.

The use of 2 or more lines could probably be driven by the need to overcome certain issues associated with mobile network which could range from accessibility to cost. In addition, 33% of Nigerians use one line, 17% use 3 lines, while 7% confirmed they use more than 3 lines.

The use of 2 phone lines seems like the norm across all geo-political zones, except for the North-West zone where the higher proportion of the residents use one phone line.

The North-East zone (33%: 22%+10%) and the South-West zone (31%: 23%+8%) accounted for the highest proportion of respondents who use 3 or more phone lines.

A 3-year trend analysis on the usage of phone lines in Nigeria revealed a consistent trend of 2 phone line usage by Nigerians from 2012 to 2014, however there was a 5-point reduction in the proportion of Nigerians in this category from 2012 to 2013 and 3-points increase in 2014.

More findings revealed that more residents from the North-East zone use more than 3 phone lines in 2014 compared with the past 2 years with a significant increase of 9-points from 2013 (1%) to 2014 (10%).

A view of the trend on phone usage across age-groups revealed that Nigerians within the age-group of 18-21 years have increasingly adapted the use of 2 phone lines over the years;  from 2012 where it was lowest to 2014 (41%) with the highest record.

This increase in this category of Nigerians has stimulated a drop in the use of 1 line by this age-group. On the other hand, respondents aged 61+ have continuously reduced the use of 3 or more lines to settle for the use of 1 to 2 lines from 2012 to 2014.

Subsequently, with the aim of exploring the mobile network providers used by Nigerians, respondents were asked: Which network provider(s) do you currently use?

Findings revealed that MTN is the highest used line as confirmed by the vast majority of respondents (91%); this is followed by Airtel (45%) and Etisalat (33%).  While 28% of Nigerians use Glo, only 1% of Nigerians use Visafone.

This finding validates the data of the Nigerian Communication Commission (NCC) which revealed the movement of Airtel Nigeria Limited up to the second place in terms of market share on the number of mobile subscribers on its network with MTN maintaining the first position.

Trend analysis on the network providers used by Nigerians from 2012 to 2014 depicts a consistent decline in the proportion of Nigerians who subscribe to MTN from 2012 to 2014 with a total decline of 4-points within this period.

According to the MTN group, this decline has been mainly due to ‘regulatory restrictions’ imposed by the telecoms watchdog and the growing spate of unrest by Boko Haram especially in the Northern part of Nigeria.

While a significant 10-point decline in the proportion of Glo subscribers from 2012 (38%) to 2013 (28%) was seen, there has been no difference in this category of subscribers since then. The same applies to Etisalat with an 8-point decline from 2012 (40%) to 2013 (32%) although a slight 1-point increase was recorded in 2014.

On the other hand, the proportion of Airtel subscribers which seemed steady from 2012 to 2013 at (39%), picked up by 6-points in 2014 (45%), thus, making it the only network that has seen a considerable growth in the proportion of its users, among other findings by NOIPolls.


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ALTON, ATCON Urge FG to Address Telecoms Industry Challenges

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The Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), representing Mobile Network Operators and telecommunication companies in Nigeria, are calling upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

In a statement jointly signed by Engr. Gbenga Adebayo, chairman of ALTON and Engr. Tony Izuagbe Emoekpere, ATCON President, the associations underscored the urgent need for collaborative efforts between the public and private sectors to overcome obstacles hindering the sector’s growth and development.

Infrastructure Deficits: ALTON & ATCON members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

 Protection of Assets and Network Infrastructure: Advocating for legislation that

designates telecommunications infrastructure as Critical National Infrastructure (“CNI”): Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria.

Telecommunications infrastructure undisputedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.

Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.

The associations urge the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.

Cost-Reflective Tariff of Services: ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Regulatory Independence: ALTON & ATCON advocates for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission’s (NCC) or (Commission) domain, which will inspire trust in the telecommunications sector and encourage investment.

Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions.

ALTON and ATCON reaffirms its commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

By fostering a conducive regulatory environment, prioritizing infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.

 


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Qualcomm Shortlists Startups for Qualcomm Make in Africa 2024 and Awards 2023 Wireless Reach Social Impact Fund

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Qualcomm Incorporated today announced the shortlisted startups for Qualcomm Make in Africa 2024, as well as the winner of the 2023 Wireless Reach Social Impact Fund.

The Qualcomm Africa Innovation Platform, now in its second year, aims to work with and support the development of Africa’s emerging technology ecosystem by providing mentorship, education, and training programs with a focus on 5G, Edge-AI/ML, Compute, and IoT. This year, Qualcomm received an overwhelming response, with approximately 250 applications from 30 countries.

Highlights: 

  • Startup cohort announced for 2024 Qualcomm Make in Africa startup incubation program featuring technologies.
  • Announcement of the awardee of the 2023 Wireless Reach Social Impact Fund, supporting startups in scaling their societal and market impact.
  • Development of L2Pro Africa website content nears completion, providing free online training on intellectual property protection.

As the first initiative of its kind in Africa, Qualcomm Make in Africa is an equity-free mentorship program that identifies promising early-stage startups keen on applying advanced connectivity and processing technologies such as 5G, Edge-AI/ML, Compute, and IoT to innovative end-to-end systems solutions, including hardware.

These startups have demonstrated exceptional potential in applying advanced connectivity and processing technologies to innovative end-to-end systems solutions.

The selected startups will receive free mentorship, business coaching, access to engineering consultation for product development, and guidance on protecting intellectual property. The 2024 cohort includes the following startups (listed in alphabetical order):

  • Aurora Health from Kenya provides AI-based cardiovascular health care tools
  • CropScan from Kenya uses solar-powered smart farming IoT devices
  • Cure Bionics from Tunisia makes smart 3D printed prosthetic arms
  • DevisionX from Egypt provides AI-based low-code computer vision tools
  • Kalio from Cameroon is building AI tools for Agricultural IoT
  • Kitovu from Nigeria provides tools and software for smart agricultural warehouse management
  • NextAI Studios from Kenya builds AI-based emotion detection into toys for children’s mental healthcare
  • RIM Nextgen from Kenya, uses smart tools for monitoring propane consumption
  • Sparcx from South Africa uses AI for enhancing radar signal processing
  • Vizmerald from Tunisia, is working on AI-based textile industry inspection

Qualcomm is also proud to announce the awardee of the 2023 Wireless Reach Social Impact Fund. This fund, provided by Qualcomm through its Qualcomm® Wireless Reach™ Initiative, aims to support startups in scaling their societal and market impact.

Ecorich Solutions Limited, a female-founded organization based in Nairobi, Kenya, will be awarded funding to help scale the impact of their smart organic food composter.

Wireless Reach funding will support Ecorich to address the dual challenge of organic waste management and the need for sustainable agricultural practices, with the goal of reducing environmental pollution, improving crop yields for farmers, and mitigating waste-related health risks for communities.

The other nine startups from the 2023 cohort will also receive valuable stipends to continue fueling their growth. These startups have showcased innovative uses of wireless technology to address pressing needs in their communities.

In addition, Qualcomm is excited to highlight the progress of the L2Pro Africa IP e-learning Platform, a free online training program designed to empower startups, SMEs, and researchers in Africa to protect, secure, and maximize their innovations. This program has been created in collaboration with Adams and Adams, Africa’s leading intellectual property (IP) law firm.

The education content has been updated with individual filing procedures for patents, industrial designs, and trademarks in the countries of Kenya, Nigeria, Uganda, Ghana, Rwanda and within the two African patent organizations, ARIPO and OAPI.

These step-by-step descriptions of per-country filing requirements empower inventors to interact effectively with IP professionals such as an IP attorney and their respective IP offices.

“I am thrilled with the overwhelming response to the Africa Innovation Platform this year,” said Alex Rogers, President, QTL & Global Affairs, Qualcomm Incorporated.

“The quality and diversity of the applications received reflect the immense talent and potential within Africa’s technology ecosystem.

“We are excited to work with the shortlisted startups and provide them with the necessary resources and support to drive innovation and create a positive impact in their communities.”

“We applaud Qualcomm for launching the second year of its Innovate in Africa Platform, which not only equips the upcoming generation of African entrepreneurs with expertise in pivotal areas like AI/ML, healthcare, agri-tech, smart cities, and communications but also empowers them to safeguard their intellectual property through the complimentary L2ProAfrica program.”, said John Omo, secretary general, African Telecommunications Union (ATU).

Mr. Omo also emphasized that the ATU remains steadfast in its commitment to fostering innovation and entrepreneurship across the continent. “Our youth innovation program, among other initiatives, plays a crucial role in cultivating the talents and aspirations of Africa’s young visionaries,” he affirmed. “We are ready to collaborate with additional partners to realize this objective.”


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Mastercard and CEBIH join forces to bolster cybersecurity in Nigeria

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Mastercard, in collaboration with the Committee of E-Banking Industry Heads for Nigeria (CeBIH), recently hosted the second edition of its annual Fraud Forum in Lagos, Nigeria. Building on the success of the inaugural edition in 2023, this year’s forum convened key industry players ranging from financial institutions, payment service banks, and fintech companies, to discuss critical issues such as threats and vulnerability, intel-sharing, and best practices in combating industry risks.

The cybersecurity event, attended by key public and private sector actors, also covered the regional threat landscape based on Mastercard’s strategic threat intelligence data. This timely intervention is crucial in a region where cyberattacks remain prevalent, especially amidst Nigeria’s rapid economic expansion and widespread adoption of digital financial services.

Recent data from the Financial Institutions Training Centre (FITC) revealed a staggering 276% increase in fraud-related losses within Nigeria’s deposit banks, underscoring the need for continuous vigilance and proactive cybersecurity strategies within the financial sector. In response to the escalating threats amid Nigeria’s bourgeoning financial landscape, key government bodies have called for enhanced collaboration within the payment systems’ ecosystem to curtail the rise in E-Fraud in the country.

“We are excited to continue the Fraud Forum in Nigeria,” said Kari Tukur, Vice President, Customer and Solutions Center, West & East Africa, Mastercard. “With cyberattacks posing serious challenges within the Nigerian financial ecosystem, we take pride in establishing a platform where key stakeholders can convene, network, and exchange best practices to safeguard against potential vulnerabilities. Mastercard remains committed to creating unique and essential solutions to help business owners protect themselves and their customers against vulnerabilities, and this platform provides us with an opportunity to drive knowledge regarding these solutions as we aim to elevate cybersecurity standards and ensure the resilience of the Nigerian financial ecosystem.”

The forum delved into various aspects of cybersecurity, including common attack methods used by cyber criminals, their motivations, the assets they target, and the best practices to safeguard against attacks. Attendees gained valuable insights into the regional cyber threat landscape, with a focus on the financial services sector, which has become a prime target for cybercriminals in recent years. It also presented an avenue for Mastercard to showcase its latest fraud prevention techniques and tools, including the Mastercard Decision Intelligence, a real-time authorization decisioning solution that empowers issuers to approve more genuine transactions while effectively managing risk.

“We are delighted to partner with Mastercard on another edition of the Mastercard Fraud Forum in Nigeria. This event continues to serve as a pivotal platform for industry leaders, stakeholders, and experts to convene and address the evolving landscape of fraud and cybersecurity challenges, especially in a period marked by increased sophistication. With this year’s edition, we continue to deepen our commitment to fostering collaboration and implementing effective strategies to combat fraud and safeguard the integrity of the financial ecosystem.” Temitope Onibaniyi, Secretary, Emerging Payments of CeBIH, representing Celestina Appeal, the CeBIH Chairman, added.

The forum aligns with Mastercard’s goal of providing clarity to the complex cybersecurity landscape, in a bid to foster an ecosystem where digital transactions are built on trust. As part of its commitment to combating fraud, Mastercard also announced that it will be sponsoring the CeBIH Quarterly Sessions for the second consecutive year, bringing together industry experts to discuss the latest trends in fraud prevention and share best practices for protecting customers.

 

 


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