Telecom
IXPN Underscores Benefits of Collaboration, Peering and Local Hosting of Content
Internet Exchange Point of Nigeria (IXPN), a non-for-profit and membership-based organisation, which provides a platform where networks interconnect directly within Nigeria has highlighted the benefits that come with collaboration among operators, peering in carrier and cloud-neutral data centres and the hosting of content locally in Nigeria, where it is believed does more downloads of content than uploads.
Mr. Muhammed Rudman, Chief Executive Officer of IXPN, highlighted these benefits to stakeholders at an exclusive peering workshop, which was organized by IXPN and Africa Data Centres (ADC) in collaboration with Workonline Communications.
According to Muhammed, there is a lack of collaboration between the various operators in the ecosystem, which has led to duplication of infrastructure and ultimately, high cost of services for the end-users.
“There is a lot of fragmentation in the industry. Despite the Nigerian Communications Commission’s framework for infrastructure sharing, industry players do not collaborate that is why we have duplication of infrastructure which are supposed to be shared,” he told Journalists on the sideline of the forum.
He noted that if industry players collaborate, it will bring down operational costs and capital expenditure.
Speaking on what peering in a carrier and cloud-neutral data centres will bring to the industry and the Nigerian economy in general, Mr. Muhammed who is the immediate past President of the Nigeria Internet Registration Association (NIRA), said peering between Internet Exchange Point and a carrier/cloud-neutral data centres will enhance connections for citizens and organisations alike, and help the economy to thrive.
“Peering through internet exchanges addresses the challenges of traffic by ensuring the shortest possible route is used to reach a given destination. It keeps traffic as local as possible, which improves performance and enables faster connections between networks, facilitating high-speed data transfer, lower latency, increased bandwidth and improved fault tolerance,” he said.
According to him, local hosting of content is a driver for economic growth, stressing that money paid to foreign hosting companies constitutes capital flight, puts more strain on Nigeria’s foreign earnings and slows the growth of local data centers and delays the development of new ones.
He also explained that hosting locally provides additional revenue opportunities to local ISPs and data centers which in turn creates more job and technical competencies. “Local content hosted abroad has higher latency than if hosted locally – over 1000%. But hosting it locally in any of the data centres has a direct and indirect impact on the economy – Job Creation, Tax, a platform for other IT professionals,” he argued.
The implications for businesses who hosted their content abroad are numerous; it affects business continuity, it comes with lower support level and poor update cycles because of conflicting working hours/ this is even as a study shows that a second-long delay causes a 7% drop in conversions, an 11% drop in page views and a 16% drop in customer satisfaction.
Meanwhile, as a way of addressing some of the challenges in the ecosystem, IXPN had organized a free Border Gateway Protocol (BGP) training for network engineers across Nigeria as part of her planned capacity building programme for its increasing members and commitment towards improving the internet ecosystem in the country.
The training was held at the organisation’s corporate headquarter in Lagos, where Muhammed Rudamn explained that Border Gateway Protocol (BGP) is a gateway protocol that enables the internet to exchange routing information between autonomous systems (AS).
“We want to empower empower members of the Internet eXchange Point of Nigeria (IXPN) with the rudiments and workings of Border Gateway Protocol (BGP), which is important to us as a one-stop peering point for service and content providers,” he emphasized.
Telecom
Report Says 71 Percent of Nigerians Don’t Have Access to Regular Internet
A recent report by the Groupe Special Mobile Association (GSMA) revealed that a significant 71% of Nigerians do not have regular access to mobile internet.
“While 29 per cent of Nigerians are regularly using mobile internet, there remains untapped potential; 71 per cent are not accessing these services regularly. An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028.
However, the sector faces challenges to infrastructure deployment,” the report stated.
The details of the study were disclosed during the report’s launch in Abuja, highlighting a critical gap in digital connectivity amidst ongoing discussions about possible tariff increases by Nigerian telecom operators.
The telecom industry is currently advocating for an increase in tariffs to counter various operational challenges. However, the government is pushing for alternative solutions rather than price hikes.
The GSMA report underscored the challenges hindering the expansion of telecom coverage, which include cumbersome and costly rights-of-way acquisition processes and a complex tax environment. These factors collectively make it difficult for the industry to sustain investment levels.
Despite these hurdles, the report optimistically noted that Nigeria could add 15 million internet users by 2028 with appropriate policy adjustments. It emphasized that achieving universal access to digital connectivity hinges on a wider digital transformation of the Nigerian economy.
The report details the sector’s challenges, stating that “An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment.”
The report also identified key obstacles, such as the rigorous process of securing rights of way and a layered tax regime, which together increase operational costs and stymie sustainable investments. Added financial pressures from rising fuel prices and increased governmental fees further strain telecom operators’ ability to maintain healthy investment flows.
The GSMA report recommended several policy measures to foster a more enabling economic and regulatory environment for the mobile industry.
These include establishing a legal framework to protect critical national infrastructure, simplifying rights-of-way issuance, reducing the tax burden, and cultivating a regulatory climate conducive to robust investment.
“Future policies should be geared towards reducing the cost and complexity of infrastructure rollout to encourage investment and boost the adoption of mobile broadband,” the report advised.
It further highlighted the far-reaching implications of such policy enhancements, noting, “The impact of such actions would go far beyond mobile, driving productivity gains across the economy and creating millions of new jobs in Nigeria.”
Telecom
MTN Group Weighs Down by Nigerian Operations
MTN Group (MTNJ.J), Africa’s biggest telecoms operator, reported on Tuesday an 18.8 per cent fall in first-quarter service revenue, weighed down by the performance of MTN Nigeria
MTN, with 288 million subscribers in 18 markets across Africa, said its reported group service revenue fell to 42.9 billion rand ($2.34 billion) in the quarter ended March 31, from 52.8 billion rand in the same quarter last year.
In constant currency, service revenue, which excludes device and SIM card revenue, rose by 11.1%.
MTN’s service revenue from South Africa surpassed that of Nigeria, its biggest market by revenue, growing marginally by 3% to 10.4 billion rand, while Nigeria tumbled by 52.8% to 10.2 billion rand.
“The macro environment in the first quarter of 2024 remained challenging with ongoing high inflation as well as local currency devaluations in some of our key markets,” Ralph Mupita, group president and CEO said in a statement.
Mupita also cited global geopolitical tensions as a factor impacting the operator’s performance, including the ongoing civil war in Sudan, which severely affected network availability and revenue generation in that business.
MTN was also impacted by subsea cable cuts that resulted in downtime.
Overall reported group earnings before interest, tax, depreciation and amortization (EBITDA) fell by 28.7% to 17.2 billion rand and rose by 3.9% in constant currency.
Reported EBITDA margin declined by 5.8 percentage points to 37.9% due to rising costs and currency depreciation mainly in Nigeria.
The group revised down its anticipated capital expenditure (excluding leases) deployment for 2024 to about 28 billion rand to 33 billion rand from a target of 35 billion rand to 39 billion rand, largely due to a reduction in expected spending by MTN Nigeria.
Telecom
Airtel Excites Business Owners with Unlimited Speed Plan
Telecommunications network, Airtel Nigeria has introduced a groundbreaking new service for business owners called the Enterprise Business Broadband (EBB) Speed Based Plans 3.0. This specially designed plan offers unparalleled connectivity and flexibility with unlimited monthly plans.
Tailored to meet the diverse needs of enterprises, the new EBB plans feature unlimited internet connectivity options, providing the opportunity to without data limitations. Customers also get a chance to select from three dynamic options, from as low as N20, 000 to N60, 000.
The N20, 000 monthly subscription delivers internet speeds of up to 20Mbps, the N35, 000 subscription offers up to 40 Mbps, and, with the N50, 000 monthly subscription users can experience ultimate reliability and speeds of up to 60Mbps, which is perfect for large organizations with high bandwidth requirements.
Speaking on the new unlimited plan, Chief Commercial Officer, Airtel Nigeria, Femi Oshinlaja emphasized the transformative impact of the new unlimited plan.
“We have seen the early adopters of the Speed Based Plans 3.0 express their satisfaction after using this service and we are confident to say that the uninterrupted internet service is a game-changer for business owners.
“We are committed to continuously providing innovative solutions that empower businesses to thrive in the digital landscape, ensuring unparalleled connectivity and reliability for our valued customers,” he said.
According to Airtel, customers get a complimentary router upon purchase. The speed plan also allows customers to have the flexibility to set data usage limits and control access to specific websites on the router, promoting responsible internet usage.
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