Connect with us

Telecom

IDC Commends Telcos over Outsourcing Business Models

Published

on

Kindly share this post

International Data Corporation (IDC) has commended mobile network operators in the country for adopting outsourcing business models aimed at reducing operational costs and sustain profitability.

According to a statement from IDC, “the business models employed by Nigeria’s mobile network operators (MNO) are undergoing a notable period of evolution. Spurred by the pressing need to optimize or even reduce costs relating to network operations and maintenance fees, MNOs in the country are increasingly scoping outsourcing models in collaboration with third-party infrastructure providers rather than deploying and owning their entire network infrastructure themselves.”

“This quest to sustain profitability is not unique to Nigerian operators, with the trend proving popular globally. But there are distinct forces at play within the Nigerian market that are making profitability ever more challenging for operators in the country. Legacy voice revenues are steadily declining, competition is forcing down tariffs, and, in general terms, the average revenue per user is falling and is expected to continue doing so”.

The statement added that: “To combat this, attention is been diverted to boosting the provision of data services as operators strive to generate additional revenue streams, but such efforts bring with them additional capital and operation expenditure requirements for new and improved data network infrastructure. Such costs are already impacting negatively on the profitably of MNOs in the country, and generally relate to factors like the acquisition of land, power generation, security and generator maintenance.”

So far, MTN, Airtel, and Etisalat have all signed some form of outsourcing contract with a telecom equipment vendor or telecom infrastructure provider.

Etisalat has even gone a step further by forming a strategic IT outsourcing partnership with Huawei that will see the Chinese company take over responsibility for the operations and management of Etisalat Nigeria’s IT network.

This increasingly popular approach is expected to enable MNOs to focus more on their core business — providing improved customer experience through excellent network service.

“IDC believes the evolution in business models employed by Nigerian MNOs is a step in the right direction. In the long term, we expect this trend to lead to a notable improvement in the quality of service on the networks provided by these MNOs. There will also be a dynamic shift from cost reduction efforts to efficiency enhancements on the part of third-party infrastructure providers. As the market matures, competition will force a need for differentiation among third-party infrastructure providers and this will ultimately lead to an improved value proposition. Finally, as more successful outsourcing case studies emerge, there will be a quest for increased efficiency in terms of capacity management, network planning, and end-to-end performance management. IDC predicts that this will eventually lead to one or two MNOs outsourcing their entire core network infrastructures,” said Oluwole Babatope a telecommunications and networking research analyst with IDC West Africa.


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

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Published

on

Kindly share this post

Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


Kindly share this post
Continue Reading

Telecom

Telegram Eyes 1Bn Users amidst Political Pressures

Published

on

Kindly share this post

Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


Kindly share this post
Continue Reading

Telecom

NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

Published

on

Kindly share this post

To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


Kindly share this post
Continue Reading

Trending