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Market Imbalance Bane of Broadband Progress in Nigeria– Willsher

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Matthew Willsher, CEO, Etisalat Nigeria
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Matthew Willsher, chief executive officer of Etisalat Nigeria has once again urged the Federal Ministry of Communications Technology and the Nigerian Communications Commission (NCC) to put in place policy and regulatory interventions to address challenges affecting broadband development in Nigeria.

In a paper presented at the 2015 Commonwealth Broadband Forum in Abuja recently, Willsher identified the current situation where most of the telecommunication sector revenues and profits go to one operator while others struggle to survive, as being largely responsible for the broadband investment deficit and resultant low broadband penetration in Nigeria.

Willsher stated that, the presence of several struggling operators, many of whom are barely active, in an industry the size of Nigeria’s, is indicative of serious underlying issues with value distribution across the industry.

“This”, he noted, “is highlighted by the concentration of 70% industry EBITDA and probably all of the industry’s net profit in one operator to the detriment of the rest of the industry.”

Nigeria, he observed, has underperformed in the area of broadband development in comparison to its peers.

“Nigeria’s mobile broadband penetration stands at 10.1% while the average for peer countries in Africa is 30%.

Peer countries have an average Smartphone penetration of 26% while Nigeria’s Smartphone penetration averages 12%,’ he said.

He called for tailor-made regulations to enable unprofitable operators compete more favourably in order to attract a greater share of the currently lopsided value in the industry.

According to him, “it is perfectly normal to have asymmetric regulation in a market where one operator holds the sort of market share and significant market power – and pertinent to ask is whether Nigeria can learn from the success of other markets in restricting dominant players in the interests of the industry and the country at large”.

The Etisala CEO opined that if struggling operators can extract a better share of industry value, they are more likely to increase their broadband investment which will drive broadband development in Nigeria.

He also identified inadequate spectrum to support broadband deployment as a key challenge in the provision of broadband services in Nigeria.

“Mobile broadband is clearly Nigeria’s best route towards achieving its broadband coverage objectives given the high cost associated with fixed broadband. The most valuable coverage spectrum is underutilized with the sub-optimal use of the 800MHz spectrum and the delays being experienced in the freeing up of the 700MHz spectrum. Clearly, Nigeria will be unable to meet the June 17th 2015 deadline set by the ITU to migrate from analogue to digital broadcasting,” Willsher said.

He further identified the recent devaluation of the naira and difficulties with sourcing foreign exchange to fund equipment purchases as another key challenge affecting not just broadband development but the telecommunications industry as a whole.

According to him, “the recent closure, by the Central Bank of Nigeria (CBN), of the Wholesale and Retail Dutch Auction windows, where telecommunications operators would previously have sourced foreign exchange to fund equipment purchases at lower rates has forced operators to source foreign exchange at significantly higher rates through the interbank foreign exchange market which is mostly unable to meet demand. Moreover with very high cost of borrowing in Nigeria, funding capital investment from long term instruments adds as much as 30% to the purchase price.”

Willsher called on all stakeholders to take necessary action to ensure that Nigeria’s broadband is developed to its full potential.

This is, he noted, is imperative as studies show that broadband has the potential to drive GDP growth in excess of N400bn between 2014 and 2018.

 


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Telcos Mull Introduction of Different Tariff Plans for Different States

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Telecommunications operators in Nigeria are considering shifting from the current national tariff structure to a regional tariff regime that accounts for state-specific operational challenges.

Telcos Mull Introduction of Different Tariff Plans for Different States

They say this is because the challenges and costs of running their businesses vary significantly from state to state.

Currently, phone companies in Nigeria have a single national tariff for their services, meaning everyone pays the same amount no matter where they live.

However, the telcos argue that this system doesn’t account for the fact that some states have higher operating costs due to issues like attacks on their equipment and multiple taxes.

This proposal was discussed at the 7th edition of the Policy Implementation Assisted Forum (PIAFo) in Lagos, where industry leaders highlighted the need for a pricing model that reflects the ease—or difficulty—of doing business in each state.

Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), specifically pointed out that the high cost of doing business in some states is a major concern and increases their expenses. He suggested that if negotiating with certain states to reduce these costs is impossible, then the added expense of operating there should be reflected in the service prices in those areas.

“We may have to reconsider the issue of our national tariffs and look at regional tariffs. If you are aware that the cost of doing business is high in a particular state and it’s impossible to negotiate with them, factor the cost of deployment in those areas into the cost of providing services,” he said.

Tony Emoekpere, president, Association of Telecommunications Companies of Nigeria (ATCON), agreed that the current national tariff is unfair because operational costs are not the same across the country.

He believes that states that make it easier for telecom companies to operate should be rewarded, while those that create difficulties should see higher service costs.

 

 


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9mobile Denies Shutdown Rumours, Promises Improved Services

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9mobile, telecommunications operator, has described as untrue the rumors suggesting that it has shut down its operations.

 

according to the telcos, these claims are entirely baseless and aimed at causing unnecessary panic among our valued subscribers, the mobile operator said in a statement.

“We understand that some customers have recently faced challenges, particularly with Mobile Number Portability (MNP), a service that enables seamless network switching.

“We want to clarify that 9mobile has never restricted customers from porting to other networks. We remain fully compliant with industry regulations and committed to delivering fair, transparent, and customer-focused services.

“While there have been temporary technical challenges affecting MNP, these issues have now been largely resolved. Some minor delays may still occur due to ongoing system optimizations, but we are actively working to ensure a smoother experience for all users.

“As a proudly Nigerian brand, we embody the resilient spirit of our people and remain steadfast in our commitment to overcoming challenges. We acknowledge the temporary service disruptions some customers may have experienced in different locations.

“However, we assure you that these disruptions are part of a broader transformation effort aimed at modernizing our infrastructure and improving overall service quality.

“Our ongoing investments in network upgrades and service expansion will soon yield significant improvements, ensuring reliable connectivity for individuals, businesses, and communities.

“We sincerely appreciate the patience and loyalty of our subscribers during this transition. While challenges exist, we are making significant progress and are confident that brighter days are ahead. We remain dedicated to providing exceptional service and keeping you connected to limitless opportunities”.


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TikTok and Truecaller Face NDPC Investigation Amid Data Protection Concerns

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Nigeria Data Protection Commission (NDPC) has initiated an investigation into the data processing practices of Tiktok and Truecaller, following growing concerns about potential privacy violations.

Dr. Vincent Olatunji, the Chief Executive Officer of the NDPC, made the announcement today during a press conference in Abuja, where he also revealed the issuance of the Nigeria Data Protection Act – General Application and implementation directive (NDPC Act – GAID), 2025.

Dr Olatunji stated that the commission’s primary concern is how these platforms manage Nigerian users’ personal data, including potential breaches of consent, data sharing with third parties, and overall compliance with the Nigeria Data Protection Act (NDPA), 2023. He confirmed that the NDPC is actively investigating Tiktok and Truecaller’s data processing activities to ensure they comply with Nigeria’s data protection laws.

“The goal is to safeguard the privacy rights of Nigerians and hold organizations accountable for how they collect, store, and use personal data,” he added.

This investigation comes amid increasing scrutiny of global tech companies regarding data privacy, especially concerning how personal information is processed, stored, and transmitted beyond national borders.

The NDPC act – GAID, 2025, issued today, provides a detailed framework for implementing Nigeria’s data protection law, outlining compliance guidelines, enforcement mechanisms, and obligations for both public and private organizations.

Dr Olatunji emphasized that the directive aims to strengthen Nigeria’s digital economy by fostering trust in data governance while ensuring individuals’ rights to privacy are respected in accordance with international best practices.

He reiterated that companies operating in Nigeria must comply with the country’s data protection regulations or face regulatory actions, including fines and potential restrictions.

The NDPC has urged the public to report any data privacy violations and reaffirmed its commitment to transparency and due process in its investigations.

The commission noted that reporting data breaches has become more accessible through dedicated channels on its official website.


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