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InfraCos’ Viability, Incentive Beyond Subsidy

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Early this week Nigerian Communications Commission, NCC, said it has concluded process for the disbursement of subsidies to the six licensed Infrastructure Companies (InfraCos).

 

Prof. Umar Danbatta, executive vice chairman of NCC, disclosed this when delegates from the United States Trade and Development Agency (USTDA) paid him a courtesy visit at the commission’s headquarters.

 

Danbatta said that the planned disbursement was part of the commission’s strategies to boost broadband penetration and make it pervasive nationwide.

 

He said that the subsidy would augment the InfraCos’ Capital Expenditure (CAPEX). And that the InfraCo scheme had a public-private partnership (PPP) arrangement, with a subsidy component that was being worked out for the licensees to fast-track deployment in their respective zones.

 

Even as subsidy is part of the challenges InfraCos are faced but their survival goes beyond subsidy as other bottleneck that have over the years prevented the first set of licensee from deploying infrastructure still remain.

 

It would be recalled that IHS that returned its lnfraCo license cited frustration it faced in securing right of way approval to deploy infrastructure and not subsidy.

 

MainOne another InfraCo licesee for Lagos are having running battle with Ibile holdings a holding company Lagos state government transferred the authority to grant ‘Right of Way’ that made NCC to intervene.

 

Acknowledging this Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), said that subsidy is not necessarily the major challenge holding InfraCos from deploying.

 

“The Right of Way (RoW) issue in certain states is a major challenge to the viability and commercial incentive to rolling out in un/underserved areas. With NCC now agreeing to back ended disbursement of the subsidy after technical auditing, it should encourage those InfraCo licensees that have gained agreements with certain states at N145 per linear meter for RoW to go ahead and rollout so that they can gain access to the subsidy,” he said.

 

He explained that what subsidy does for the InfraCos is that It discounts the input costs associated with fiber deployment and this provides an InfraCo with the ability to sell its services to the communities served.

 

On the way forward, he urged government to provide an enabling environment that provides the InfraCos opportunity to gain the courage to address the complex challenge of achieving a moderate rate of Return on Capital expended.

 

“There should be continued collaboration between NCC, state governors, and local community representatives to achieve a win-win outcome on driving deeper broadband penetration.

 

Nigeria CommunicationsWeek investigations revealed that leasing of intra city fibre optic costs N200, 000 to transmit 20mega byte of bandwidth from Victoria Island to Ikeja in Lagos Nigeria.

 

It was also gathered that some existing national and metro fibre links are not being used by operators as a result of high cost which is why stakeholders are calling for articulated business friendly policy in the deployment and provision of telecommunications transmission infrastructure in the country.


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Airtel Nigeria Leads Telecom Market Surge

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In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year.

According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29%, solidifying its position as a leading telecom provider in the region.

In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19% decline in market share and 9mobile experiencing a 0.5% decrease.

Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58% drop in its share of internet subscribers.

Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165% basis points increase.

This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.

Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.

 


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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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