General News
Nature, Govt Can Force Collocation- Ayonote
Bruce Ayonote is group chief executive/co- founder, Suburban Telecm, an integrated telecommunications service provider based in Nigeria with operations in Europe and the USA.
His experience spans beyond communications and high technology (C & HT) to corporate finance and business development.
Ayonote has deep expertise and working knowledge with the public sector. He spoke with hilary okeke.
Suburban’s solutions to System Breakdown
Our customers are segmented. If you look at the enterprise segment, you would find that it is a more complex one to deal with. For the telco segment, their requirements are very straightforward – they require basic services which they also understand very well and are regulated by ITU, and have clear standards. But on the enterprise side, we have true ICT – a mix of information technology and communications; and there is a lot of subjectivity because you have to look at the business solution – what the person’s business is, how to help him achieve his business objectives – and a lot of businesses are modeled differently. So, there is a bit of that humanistic side that needs to be appreciated. In terms of solutions to provide to them, the solutions or the concerns we have there would be first, scoping and giving a customer a solution to his unique requirements. So, a business solution – the ability to understand what it means to the business and incorporate and merge them together is a very important value proposition to an enterprise. Secondly, like in the case of financial services, we need a lot of security. Cisco® has some very strong products around anti-virus in partnership with other OEMs and software providers. They have advanced security solutions for enterprises. Basically, providing security solution is either in partnership with some of the software providers and some of the OEMs. Also, providing hardware and middle ware in models that are beneficial to the enterprises. Sometimes you can provide managed services in such a way that a lot of capital expenditure is not burnt by the enterprise on those services; and then also flexibility and robustness of the product – giving them options like in the case of upgrade, data connectivity requirement and in the case of open source, flexible and non-proprietary solutions which would enable interoperatibility with other solutions. Basically, understanding what customers want and trying to give them that, regardless of the challenges has been our standard.
Alternatives to Sat-3
In terms of international fibre connectivity, we have built inland fibre cables across borders into multiple West African countries that have access to international fibre cables. We have been given licence by the NCC to build international infrastructure; we see the need for diversity. Basically what you find around our environment is “a fixed pie mentality” – people still see things from a fixed perspective and are not willing to alter or positively change the scenario. Everyone prefers to leave things as they are. In technology, that is not ideal. Things are continuously changing and are rapidly dynamic; and within the confines of the law, we want to be innovative with our solutions. As a solutions provider, one needs to look at how he can augment the existing status-quo and improve it towards a more quality solution. So for us, we have seen very credible alternatives to supporting the existing burden put on top of the existing infrastructure and creating diversity so that there is more resilience on our networks and services. We have built cables into neighbouring countries; we are building cables from more West African countries connecting additional West African countries. To be specific – cables have been built from Ghana into Lome, Nigeria into Benin and Ghana into Ivory Coast. We believe that we are able to also supply landlocked countries like Mali, Burkinafaso, some parts of Nigeria, Niger; and create multiple exits for even providing redundancy on existing infrastructure like Sat-3 and new infrastructure like Main One or even Glo – cables that would come into the country. For satellite, between 2002 and 2007 we did a lot of satellite transmission but the capacity that the market needs is more sustainable on a fibre infrastructure; the kinds of applications also are more sustainable on a fibre infrastructure. To be honest with you, fibre would be the number one preferred technology and satellite will play a very strategic role. But our focus right now is more on the preferred technology. Like I said, diversity is the key. You know, networks are vulnerable to general activities in the environment and sometimes they suffer intentional and unintentional damage, and the integrity of the network is compromised. So, the solution around that is diversity and not a fixed pie. If you have a fixed pie, when there is a problem, you have no alternative to fall back on. What happened to Sat-3 was quite unfortunate but it happens to networks. On the semantics side, we say it is quite a lot of unexplainable scenarios which have buttressed the need for physical redundancy. The solution now is no more how much you can build on your own. It is no longer about how much money or how much infrastructure you have; it is about how well you have partnered to solve your problems. Collaboration is very important in this aspect.
Sharing Cable Infrastructure and Associated Problems
Yes, there are problems and they are created more by people. At the end of the day, it is people who build and operate networks. So, when someone says he does not want to share infrastructure, there is nothing you can do to make him change his mind. Ultimately, collocation and infrastructure sharing are functions of the desires and intentions of the individuals that run the businesses, and when it is in their strategic interest to share, they tend to share and when it is not, they do not. Everyone has his reasons for doing whatever he does. For collocation to materialize in this environment, there are two ways. One is that it would take a natural course. In a free market economy, they say the functions of demand and supply determine the market. Now, when it becomes more expensive for you to keep on building infrastructure, you would now appreciate the need to share. When it becomes unattractive to keep on building and when people do not see any benefit from it, then they will share. The second way is when government exercises its power to enforce the law. Already, the law says you should share infrastructure wherever there is infrastructure to be shared according to the licences the NCC has given to telecommunication providers in Nigeria. But obviously, the regulator can only act on information or specific reports they get from the operators. I personally have gone to some operators and pitched the idea to share infrastructure in win-win situations, which I thought were very credible but they did not see the light of day. Well, I only hope it appeals to the owners of those infrastructures to share them.
Extent of Internet Penetration and Need for Improvement
The aggregate amount of the Internet in Nigeria today is around 2GB. Within West Africa, we see a total usage of about 600MB, and we still think that the penetration is very low. We think that in the next 2-3 years, we should be looking at 20-25GB of internet connection and penetration. We expect to see a huge growth in Internet penetration by 2009 and 2010. The major factors were availability of international bandwidth over fibre. Obviously, there is a difference when you use the Internet over fibre and when you use it over other technologies because of feed. When you do not get the kind of feed you want, some applications are not that effective and that then makes the users not interested. Cost is another consideration. By providing fibre bandwidth, we have noticed an increase in penetration. Before our intervention into the market, the total bandwidth in the country was below 900MB. Since we came, we have brought about 1.2GB into the market, which has also increased Internet penetration. The more bandwidth becomes available, the more penetration into the society. In terms of cost, we have also done a great job in reducing the cost of the Internet and this in turn, has been beneficial to the end-users – better quality and better cost; and our interest is to increase the capacity and reduce cost over time. So, there is more adoption of the Internet within the country and we believe that when there is more adoption, the business model can change; more value-added services being supplied, and then the basic requirement of having Internet access would be achieved. There is a significant social angle in achieving our objectives.
Challenges of Operating in Nigerian Environment
One of these challenges is high level of corruption in our environment and it manifests in various ways, and that is very contrary to my belief. That is one challenge I face a lot, which that has made me lose a lot of opportunities. Sometimes, I might have to just walk away or lose the interest I have in a prospect. The other one is the capital requirement of running an infrastructure-based business like this. Even though you can get that money from people or from banks – people in terms of high net-worth investors – a lot of people do not have that kind of capacity that we are talking about and the banks also do not understand the business; they are very short term in nature. It might be the nature of their terms with the depositors who bank with them on short term basis and that translates back to their lending style. So, we are not able to get long term financing at reasonable interest rates. The distraction in raising financing is overwhelming, it divorces you from your core responsibility of sales and developing your business and that is a major struggle. Be that as it may, we have been very lucky. Customers are another challenge; sometimes they do not like to pay for services rendered and that is a humbling experience. See, people problem is not a joke.
Techeconomy, a leading technology and digital economy publication, will celebrate its ninth anniversary with a one-day conference and awards ceremony aimed at promoting conversations on Nigeria’s digital economy and recognising excellence in innovation and technology leadership.
Techeconomy
The anniversary event, scheduled for Sept. 24 at the Civic Centre, Victoria Island, Lagos, will feature GrowthX by Techeconomy, a conference expected to bring together policymakers, regulators, industry leaders, investors and innovators to examine the future of Nigeria’s digital economy.
The event will also host the Technology Innovation and Leadership Awards (TiLAwards), which will honour organisations and individuals for outstanding contributions to innovation, leadership and digital transformation across various sectors.
According to a statement issued on Thursday by Peter Oluka, Editor of Techeconomy and organiser of the event, said, the anniversary celebration is intended to reflect on Nigeria’s technology journey over the past nine years while fostering dialogue on emerging opportunities and challenges shaping the country’s digital future.
Oluka said the event would provide a platform for stakeholders from the public and private sectors to exchange ideas on technology, innovation, entrepreneurship, digital policy and economic growth.
He added that the conference would feature keynote presentations, panel discussions and networking sessions involving industry experts, government officials, business executives and technology entrepreneurs.
According to him, the TiLAwards will recognise outstanding organisations and individuals whose innovations and leadership have significantly contributed to the growth of Nigeria’s technology and business ecosystem.
As part of activities marking the anniversary, Techeconomy has invited media organisations to partner with the event through news coverage, publicity and participation.
The publication also expressed appreciation to members of the media and industry stakeholders for their support over the past nine years, describing their collaboration as instrumental to its growth and continued coverage of Nigeria’s technology, business and digital economy.
The organisers said details of the conference programme, speakers and partnership opportunities would be unveiled ahead of the event.
International Trade Union Confederation, (ITUC-Africa), representing trade unions from countries in Africa, has called on Nigeria and other African governments to ensure that industrialisation translates into improved living standards for workers and ordinary citizens.
According to ITUC-Africa, economic growth must lift Nigerians and other Africans out of poverty rather than deepen inequality, frowning at Nigeria’s government plans to remove subsidy on electricity.
Delivering his opening remarks at the New Energy for Africa 11 Convening: African Workers’ Contributions to Energy Sovereignty, Green Industrialization, and a Common African for COP31, Akhator Joel Odigie, general secretary of ITUC-Africa, said, industrialisation remains central to Nigeria and Africa’s liberation and development agenda but warned that it would be meaningless if it failed to improve the welfare of the continent’s people.
He faulted the plans by the Nigerian government to remove so-called subsidy on electricity in 2027, arguing that it is aimed at satisfying the Bretton Woods institutions such as the International Monetary Fund, IMF, and the World Bank.
According to him, such removal would worsen the poverty rate in Nigeria and regress any marginal progress towards industrialisation. Subsidy removal will make electricity inaccessible to workers and the majority of the citizens.
He said, “As we speak now, Nigeria is talking of subsidy removal on electricity. The plan is not to satisfy or help Nigerians, but IMF, World Bank and other donor countries. The talk that subsidy is bad economics is a lie. All developed economies depended on public sector-driven electricity and not private sector.
“For us as Africans, industrialisation is central to our liberation and development. It is part of our aspiration to define our own identity and achieve shared prosperity through an industrialised Africa. Unfortunately, that vision has yet to be realised.
“We have also come to understand that lamenting our circumstances is not enough. Identifying the barriers to Africa’s development or pointing fingers at those who may be responsible does not move us forward. The more important question is: What next? What solutions can we pursue together?
“It is from that perspective that we confront the reality that more than 600 million Africans still lack access to electricity, while privatisation continues to deny many people affordable access to energy. This compels us to ask: What can we do differently?”
According to him, organised labour believes industrialisation can be achieved without worsening the climate crisis if governments, workers and development partners commit to energy justice.
Odigie noted that “When we speak about sustainable industrialisation, we are asking how Africa can industrialise without increasing environmental degradation or worsening the climate challenges our people already experience every day.
“We know this is possible. But it will require negotiation, compromise and genuine partnerships. It demands serious discussions on technology transfer, skills development and financing.”
He stressed that developing technical skills and mobilising investment for energy infrastructure are essential if Africa is to industrialise sustainably, saying “These are not impossible skills to acquire. With the right investment and commitment, Africa can build them. Equally important is access to finance and the resources needed to develop the infrastructure that will support sustainable industrialisation.
“An industrialised Africa has little meaning if it does not improve the lives of our people. Our vision is an Africa where prosperity is shared.
“We must reverse the growing phenomenon of the working poor. We must end the situation where women, children and older persons bear the greatest burden whenever governments attempt to balance national budgets.
“What does prosperity mean if ordinary people cannot enjoy a decent quality of life? A worker who returns home after a long day’s work should be able to switch on a fan during hot weather, watch television, listen to the news and spend meaningful time with family because electricity is available, reliable and affordable.
“If our people cannot enjoy these basic necessities, then what kind of prosperity are we really talking about?
“Energy justice means energy that is accessible, affordable and capable of improving people’s lives.”
Odigie also renewed ITUC-Africa’s campaign for stronger public participation in Africa’s energy sector, citing Finland as an example of how governments can ensure affordable electricity while working with private investors.
“Recently, we visited Finland, where we observed a successful model that combines public and private participation, with strong public leadership. Energy there is affordable. In fact, electricity costs less in Finland than it does here in Nairobi.
“Our hosts explained that this is possible because the state retains an important role in the energy sector, including the ability to influence pricing to ensure affordability for everyone.”
Ahead of the COP31 climate negotiations, he called for closer collaboration between organised labour and the African Group of Negotiators (AGN), saying trade unions are partners in governance rather than adversaries.
“Trade unions are not antagonistic to governments, even though we are sometimes misunderstood.
“Our responsibility is to strengthen accountability and help governments perform better because, from time to time, leaders can become too comfortable.”
Using a metaphor that drew applause from participants, Odigie likened the role of trade unions to keeping leaders “close to the fire.”
“Our responsibility is to keep the feet of our leaders close to the fire so that their heads do not become too cold. We want them to continue thinking clearly, making sound decisions and remaining connected to the realities faced by ordinary people.
“That is why we are not in opposition. We are not enemies.”
He said organised labour’s partnership with the AGN is intended to ensure African governments enter international climate negotiations with the full backing of workers across the continent.
Speaking, Dr Nana Amoah, chair of the African Group of Negotiators, AGN, said Africa’s energy transition presents both an urgent challenge and a historic opportunity, lamenting that “More than 600 million Africans still lack access to electricity, even though our continent possesses exceptional solar, wind, hydro and geothermal resources. Yet Africa continues to receive only a very small share of global clean-energy investment.”
Represented by Dr George Manful, AGN Senior Advisor, Amoah, said: “This imbalance must be corrected if the transition is to support Africa’s development rather than reproduce existing patterns of dependence, extraction and inequality.
“For the African Group of Negotiators, a just transition cannot be measured solely by installed megawatts, emissions reductions or new electricity connections. It must also be measured by the quality of jobs created, affordability of energy, protection of workers, participation of women and young people, development of local industries, and the capacity of African countries to retain value from their natural resources.
“Initiatives such as Mission 300 must therefore go beyond expanding access. They must strengthen public institutions, mobilise affordable and debt-sensitive finance, support local manufacturing and skills development, and guarantee that no worker, community or vulnerable group is left behind.
“Africa’s critical minerals must similarly become a foundation for green industrialisation—not another chapter of raw-material extraction. Our policies must promote local processing, technology transfer, decent work, environmental integrity and equitable participation in global value chains.”
Allen Onyema, vice chairman, Airline Operators of Nigeria (AON) and chairman, Air Peace, has warned that several domestic airlines could cease operations within the next 30 days unless the federal government urgently intervenes in the challenges confronting the aviation industry.
Allen Onyema
Onyema, gave the warning on Wednesday at the launch of the book, Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, held in Lagos.
He described the aviation industry as capital-intensive but less rewarding, warning that airlines are facing serious threats to their survival.
“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.
The Air Peace chairman also cautioned aviation unions against their planned picketing of airlines over the non-remittance of the five per cent Ticket Sales Charge.
He warned that if any airline is picketed, other domestic carriers would suspend operations in solidarity.
“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt,” he said.
Onyema lamented the harsh operating environment for Nigerian airlines, noting that more than 50 airlines have shut down over the years.
“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in airline business,” he said.
He stressed that airlines were not opposed to helping the government generate revenue but called for a more sustainable approach.
“The airlines are not against helping government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for government,” Onyema added.
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