Telecom

How Telecom Fared in the Out Going Year

Published

16 years ago

December 21, 2009

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Nigeria telecommunications sector in the out going year was felt with mixed given. The sector which has been adjudged the fastest growing in Africa, witnessed low level of activities compared to previous years as it grasp with the effect of global economic meltdown, which led to reduction in the revenue accruing to operators.
The year began with operators seeking a palliative measure in the face of global economic meltdown which forced equipment vendors downsizing as well as withdrawing credit facilities to operators. Telecom operators led by Bayo Ligali, then chief executive officer, Zain Nigeria, said that the sector does not need financial bail out as was the case in United State of America and some European countries, and that they are requesting for tax waivers as a way of cushioning the effect of economic meltdown.
This request was not granted as government through Dr. Ernest Ndukwe, executive vice chairman Nigerian Communications Commission (NCC), explained that the effect of the global economic meltdown will not adversely affect the industry. He added that the industry is doing well and is not likely to be affected by the global crisis as it has the potential to act as a catalyst to other sectors for future economic recovery.
He pointed out that banks still want to do business with telcos because they remain the cash-cow of the economy, stressing that although people may not want to spend more money in other areas, ‘they still will make calls for business and social reasons.”
He anticipated that the sector would advance on its records by improving on broadband penetration, thereby accelerating the social and economic development in the modern world.
However, this did not happen as average revenue per user (ARPU) dropped drastically leading to operators adopting different internal strategy to reduce cost. Among such strategies is reduction in the budget for advert campaigns and downsizing. The situation, was compounded when Central Bank of Nigeria started the recent reform in the banking sector aimed at sanitizing the system, this resulted in banks’ refusal to grant loans to businesses including telecommunications operators while pressurizing those who were given loans to start repaying such loans.
More so, the government in this outgoing year realized the importance of ICT as a viable platform to transform the country’s economy into knowledge based economy. The telecom sector along with increased competition among players have brought substantial benefits to consumers in terms of lower subscription rates and enhanced choice. According to bharatbook research, ‘the country has a huge potential to boost its mobile market given the fact that penetration rate was just around 43% at the end of 2008. With rapidly improving mobile infrastructure and intense competition among mobile operators, the number of mobile subscribers will grow at a CAGR of around 15.5% between 2010 and 2012 and the penetration rate will exceed 75% (by 2012 end)’. In line with the escalating education and business in the country, it noted that the demand for Internet services will soar as businesses need new mediums to get exposure on the global map. Supported by forward-looking government programs, Nigeria is all set to become one of the leading Internet markets in Africa in terms of users, international bandwidth and services offered. The research report projects that the number of Internet users will grow at a CAGR of over 25% during forecast period.
Licensing of 2.3 GHz spectrum band
The licensing process of 2.3 Ghz spectrum band which was expected to boost telecommunications sector in 2009 turn out to frustrate the growth. Nigerian Communications Commission advertised for bidders to the spectrum it got from National Broadcasting Commission (NBC) that was aimed at boosting broadband service delivery. By the end of the bidding time 46 companies applied for the license out of which Mobitel, Spectranet and Multi-Links emerged as winners.
The 2.3GHz licensing round, concluded on May 8, had raised a lot of dust and led to a deluge of petitions to the Presidency with several complaints of a flawed process in the conduct of the exercise. This resulted to Prof. Dora Akunyili, Minister of Information and Communications, directing the cancellation of the exercise and for a fresh and transparent one to be conducted, while money already collected to the tune of N4.104 billion be refunded to the announced winners and for the whole process re-advertised.
One of the grouse of the petitioners is that the NCC only effectively gave the companies that indicated interest in the licence just a week (or five working days) within which to raise N1.3 billion to pay for the licence.
One of the petitions alleged that in the period of economic meltdown, five working days were not enough to raise the amount required before the deadline.
The NCC adverts were published Thursday, April 30, while May 1 was a public holiday and 2-3 fell on a weekend, leaving the firms just five working days to raise the fees.
It was also alleged that the exercise lacked transparency as the NCC was accused of adopting first-hand information approach with some companies said to have been favoured over others because they had prior information even before the commission placed the adverts in the papers with a week’s deadline given for payment.
After several efforts made by stakeholders in the telecommunications industry aimed at resolving the issue failed as none of the parties were ready to shift ground that the issue was taken to the president, who ordered the Nigerian Communications Commission to start fresh licensing for the spectrum band, declaring the previous contest void. An official statement by Olusegun Adeniyi presidential spokesman said: ‘having carefully reviewed official reports and representations from stakeholders, and after availing himself of competent advice on the recent licensing of the 2.3GHz spectrum band, President Umaru Musa Yar’Adua has come to the conclusion that the letters and spirit of the stipulated rules and guidelines were not adequately complied with.’
Undersea Cable Initiative
The outgoing 2009 will ever be remember in many years to come as it witness the landing of the first single company initiated submarine cable, Glo 1 in Lagos. The 9,800 km cable stretching from the UK across all the West African countries was anchored to its landing station in Nigeria at Alpha beach in Lagos.
The trend in the global telecommunication industry is for a consortium of companies to build submarine cables as was the case with the SAT submarine 3 cable which was built by a consortium of 36 countries.
The project jointly executed by Globacom and its partners, Alcatel Lucent is expected to give Nigeria lead in telemedicine, eCommerce and egovernance among other practices that transform economies.
Jameel Mohammed, the group chief operating officer of Globacom Limited, said Glo 1 would deliver transmission capacity that would radically change Nigeria and West Africa’s economic landscape by linking 17 countries to the rest of the world.
Jameel said the landing of Glo-1 was another milestone in the history of Nigeria’s communications industry, adding that the cable would provide unprecedented high speed Internet services and make telecom services much faster, more reliable and cheaper for consumers.
The Globacom GCOO said implementing submarine cable projects, particularly the one spanning about 10,000 km from London to Lagos, is an initiative that usually takes between two to two and a half years to complete.
He said because the cable passed through various territorial waters and jurisdictions of several African countries, Globacom had to contend with lengthy approval processes.
He said Glo-1’s current and upgradeable capacity is enough to provide whatever broadband capacity Nigerians require for the next 15 to 20 years at the minimum projections.
The telecoms giant had factored Nigeria’s long term bandwidth requirements into the equation, he said, adding that Glo 1 can carry voice traffic of all operators internationally.
Mr. Adewale Shangowawa, Globacom’s executive director, Human Resources, noted that with the landing of the Glo1 submarine cable, Globacom has scored another first and as well has taken a bold step to give Nigeria the lead in the magical broadband revolution in Africa.
The cable which is of the 32 STM 64 type has virtual infinite capacity and therefore offers sufficient capacity for traffic for the Globacom’s mobile, fixed, and internet telecommunication services.
This will translate into much faster and more robust connectivity for voice, data and video. The cable will connect 14 West African countries through the branching units to the rest of the world. It will boost economic activities in the region, create job opportunities and serve companies in Europe and Africa.
The year also witnessed the completion of survey work on the route where the first private sector led and funded international telecommunications highway project between West Africa and the rest of the world, known as the MainOne Submarine cable will be laid.
The main route survey operation followed the completion of the 27 kilometres in-shore survey operation, near Portugal. The in-shore survey which commenced in January ahead of schedule was completed successfully in February. "Kommandor Jack" the MainOne cable survey vessel started mobilization in Lisbon, Porugal on Wednesday March 25 and arrive Nigeria in October.
Mrs. Funke Opeke, chief executive officer, MainStreet Technologies, owners of MainOne cable, said the submarine cable project will further reduce the cost of telecom services in the country by between 10 to 20 percent of what is currently paid for such services. The project, according to her, will provide unlimited transmission capacity at improved rate and reduced prices, such that it will enhance speed of Internet browsing. The technology, she explained, will help telecom operating companies who connects to the submarine cable, to have enough transmission capacity to offer services and still sell to smaller operators, if they so desire.
The Main One project will also ease the difficulties of switching traffic between African countries, eliminating the inconvenience and added costs of fist routing traffic to Europe. The first phase will span 7,000 kilometres and is billed for completion in June 2010.

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Telecom

From Import Dependency to Local Capacity: Nigeria’s Tech Manufacturing Journey

Published

9 hours ago

April 7, 2026

Ugo Onwuaso

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The recent escalation in the US-Israel conflict with Iran has delivered a sharp reminder of Nigeria’s economic vulnerability. As oil prices surged past $100 per barrel and fuel costs climbed by 35% at Nigerian pumps, a troubling paradox emerged: Nigeria, a major crude oil producer with Africa’s largest privately-owned refinery now operational, still found itself buffeted by global energy shocks originating thousands of miles away.

From Import Dependency to Local Capacity: Nigeria's Tech Manufacturing Journey

Zinox

The closure of the Strait of Hormuz and resulting disruptions to global energy markets exposed the deeper structural challenge facing Nigeria’s economy. Despite domestic crude production and the operational Dangote Refinery, Nigeria has struggled with rising inflation, which reached approximately 27% in 2025. The crisis illuminated an uncomfortable truth: decades of import dependency have left Nigeria’s economy precariously exposed to external shocks, even in sectors where the country possesses natural advantages.

This vulnerability extends beyond energy. Nigeria’s technology sector offers a particularly instructive case study in the costs of import reliance, and the transformative potential of local capacity as the pathway to economic stability and technological sovereignty.

Against this backdrop, Zinox Technologies stands as a compelling counternarrative. Founded in 2001 by technology entrepreneur Leo Stan Ekeh, Zinox operates West Africa’s only computerized digital assembly plant. As Nigeria’s first indigenous computer manufacturer, Zinox demonstrates what becomes possible when vision, investment, and commitment to local capacity converge.

The company’s reach extends beyond traditional computing. Zinox’s innovation spans renewable energy through iPower and home electronics with iTEC, addressing Nigeria’s chronic power challenges with locally-assembled solar solutions and backup systems designed for Nigerian conditions. This diversification reflects sophisticated understanding: true technological sovereignty requires integrated capabilities.

Zinox’s journey offers a clear case study in how indigenous companies can drive transformation. By focusing on local assembly and manufacturing of computer hardware and digital devices, the company has contributed to building a domestic technology ecosystem that supports government institutions, educational systems, and private enterprises. This approach not only reduces reliance on foreign imports but also creates jobs, transfers knowledge, and strengthens national capacity.

The implications are significant. Every locally assembled device represents a step away from foreign exchange exposure. It also signals a shift in mindset — from consumption to production. In a country where demand for technology continues to rise, especially with the acceleration of digital adoption, the importance of local manufacturing cannot be overstated.

Beyond economics, there is also a strategic dimension. Technology is no longer just a commercial tool; it is a defense tool and a national asset. Countries that control their technology supply chains are better positioned to innovate, secure their data, and compete globally. In this context, companies like Zinox are not merely businesses; they are enablers of national development.

Furthermore, local capacity development has a multiplier effect. It stimulates ancillary industries such as logistics, retail, maintenance, and technical services. It also fosters entrepreneurship, as more Nigerians gain access to affordable and reliable technology tools needed to participate in the digital economy.

Yet, while progress has been made, there is still work to be done. Scaling local manufacturing requires sustained policy support, infrastructure investment, and a deliberate focus on skills development. It also calls for stronger collaboration between the public and private sectors to create an environment where indigenous innovation can thrive.

Encouragingly, the momentum is building. There is a growing recognition that Nigeria must move beyond being a consumer market to becoming a production hub. This shift is not only necessary, it is urgent. Global uncertainties will continue to test economies, and only those with strong internal capabilities will remain resilient.

The current global crisis offers clarity. If the Strait of Hormuz is not reopened or supply chains to imports are fractured, only countries with strong domestic manufacturing capacity will weather the storm. Those dependent on imports suffer disproportionately.

The story of Zinox Technologies underscores what is possible. It shows that with the right mix of vision and execution, Nigeria can chart a new course, one defined by self-reliance, innovation, and sustainable growth. As the country navigates an increasingly complex global landscape, the message is clear: the future belongs to economies that build, not just buy.

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Telecom

Airtel Becomes World’s Second Largest Telco as Global Customer Base Surpasses 650 Million

Published

22 hours ago

April 7, 2026

Chike Onwuegbuchi

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Bharti Airtel has announced a major milestone in its global operations, crossing 650 million mobile subscribers worldwide, a scale that now positions the company as the second-largest telecommunications operator on the planet by customer base.

Crossing this threshold reflects a network of immense scale, the capacity to reach customers across diverse markets with consistent quality, and the ability to deliver experiences shaped by sustained innovation.

In Nigeria, Airtel has continued to scale infrastructure at a pace unmatched in its recent history. Over the past three years, the company has increased its national site count from just above 13,000 to nearly 17,200 sites, including more than 1,560 added in the last twelve months. This expansion deepens capacity in high-demand corridors and extends high-speed coverage to previously underserved regions.

The latest industry data from the Nigerian Communications Commission (NCC) underscores the significance of this growth. As of December 2025, Nigeria recorded 145,141 base stations across 2G, 3G, 4G and 5G layers. Of this national infrastructure, Airtel accounts for 46,918 base-station layers, reflecting its substantial contribution to the country’s radio access network and its push to absorb rising data consumption.

Nearly 99 percent of Airtel Nigeria’s sites are now 4G-enabled, positioning the operator as one of the few with a near-ubiquitous high-speed broadband footprint. Thousands of sites have been upgraded for capacity in the past year alone, enabling improved speeds and more stable performance during peak usage.

That expansion underpins Nigeria’s rising internet adoption. According to the latest regulator figures, Nigeria’s internet penetration recently climbed above 50%, with Airtel recording among the largest monthly increases in new internet subscribers, driven by network upgrades across states and rural corridors.

Strategic Connectivity and Redundancy

Airtel is also tackling a critical infrastructure challenge for the Nigerian digital economy: reliance on a single international internet gateway. The company is advancing plans for its second submarine cable internet breakout point at Kwa Ibo in Akwa Ibom State, early in the 2Africa cable system rollout, to provide faster and more resilient national connectivity across regions. This significant investment aligns with global best practices in network diversity and redundancy, ensuring a more stable digital experience for consumers and enterprises alike.

Digital Finance at Scale: SmartCash

Airtel’s digital finance arm, SmartCash, has gained traction in Nigeria’s competitive mobile money ecosystem, now serving over 3 million active users. The platform is supported by an expansive agent network and digital services that lower barriers for everyday financial transactions and savings.

Outstanding Human Touch: Retail Reach

Across Nigeria, Airtel’s retail distribution network stands as one of the sector’s most extensive, with approximately 4,000 exclusive outlets bringing services, support, and products closer to customers in small towns, communities, and high-traffic urban hubs. That footprint drives both access and engagement in a market where localized presence remains a competitive differentiator.

As Nigeria’s digital economy continues to evolve, Airtel is committed to sustained innovation — from expanded fibre backbones and advanced mobile broadband to future-ready services that include satellite-enabled solutions and enterprise-grade digital platforms. These efforts help ensure that connectivity, commerce, and creativity thrive across Nigeria and beyond.

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Telecom

Compensation for Poor Service Quality is Automatic- NCC

Published

2 days ago

April 6, 2026

Ebere Melum-Nwogbo

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Nigerian Communications Commission (NCC) has said that compensation of subscribers for poor service quality, such as persistent network outages or failed calls is automatic.

Compensation for Poor Service Quality is Automatic- NCC

This initiative aims to ensure fairness by mandating that operators provide automatic compensation, such as airtime credits, for failing to meet regulatory Quality of Service Key Performance Indicators (KPIs).

According to the NCC, operators are required and mandated to identify affected subscribers and provide compensation directly.

In a framework for compensation of consumers published on its website, NCC said that it has directed Mobile Network Operators (MNOs) to compensate subscribers affected by prolonged or repeated poor quality of service experience within specific Local Government Areas where operators fail to meet regulatory Quality of Service Key Performance Indicators (KPIs).

The NCC also stated that the directive does not replace existing consumer protection mechanisms.

The NCC, said the directive adds a direct compensation mechanism for affected subscribers and aligns with measures set in existing legislations such as the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024.

This directive applies to only Mobile Network Operators licensed and operating in Nigeria that have failed to meet their Key Performance Indicators on Quality of Service. For Internet Service Providers (ISPs) operating in Nigeria, a compensation framework is already in place.

To be eligible to receive compensation

. You experienced poor network service in an affected Local Government Area; and

You made at least one outgoing revenue generating event (billed call, SMS, or data session) during the relevant period.

The compensation covers service failures affecting voice, data, or SMS services.

Operators are required and mandated by existing regulations to monitor their network performance across locations and service disruptions against Quality of Service KPIs.

This enables them to identify affected subscribers without the need for individual complaints.

Only service failures that fall below the defined thresholds set by the Quality of Service Regulations issued by the NCC will qualify for compensation.

Short, isolated interruptions and immediately remedied interruptions may not qualify

Compensation will be provided in the form of airtime credits.

This airtime credit will not have utilisation restrictions, and subscribers will be able to use it for voice calls, USSD sessions, data subscriptions, etc on the operators’ network.

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