Telecom
Navigating the Path to Sustainable Telecom Services for Subscribers
By Dinesh Balshingh
As Nigeria continues its journey towards becoming a digitally driven economy, reliable telecommunications services remain the backbone of our collective progress. At Airtel Nigeria, we are committed to delivering world-class connectivity to millions of Nigerians, enabling economic growth, empowering businesses, and enhancing lives.
We understand that the future technology needs of the country, as ushered in by the highspeed 5G era of AI, Cloud computing, Data science applications, and Blockchain, should be directing significant investments towards building a resilient network. However, the industry faces significant challenges that require a closer look as we strive to maintain the high standards that our customers deserve.
Increased Intensity of Investments: The increasing demand for digital services across sectors such as education, media, banking, transportation, and manufacturing has come with an increased demand on telecom capacity.
Upgrading networks to deliver more data capacity is key to a sustainable future. To help ensure that the Nigerian economy keeps pace with the global improvements in technology and communications while supporting the aspirations of consumers, we also take on the responsibility of executing new technology and system upgrades as well as improved security. Data security is now more than ever a priority as more and more people upload personal information online.
All of these require significant investments which are sourced from the international markets at costs denominated in US Dollars. In the past three to four years, for instance, the dollar has gone from exchanging for about N500 to over N1,600.
This more than three-fold increase in foreign exchange conversion exponentially increases the cost of investments required to run a good quality network.
In addition to this unprecedented hike in capital expenditure, the operating costs have surged dramatically, with operating expenses rising by over 300% in the last 18 to 24 months alone.
While several critical areas of the business are impacted, I would, for expediency, focus on three of those areas: Rising Energy Cost, Infrastructure Challenges, and a Commitment to Quality Service.
Rising Energy Costs: Powering telecommunication infrastructure requires significant energy resources. Energy is the single largest operating cost for running a network. With increasing global energy prices and while efforts are ongoing to fully stabilize power supply in Nigeria, Airtel Nigeria and other operators in the sector are incurring soaring costs to keep networks running seamlessly.
Infrastructure Challenges: The industry continues to grapple with rampant fiber cuts and vandalization of critical infrastructure. These incidents not only disrupt services but also demand substantial investments to repair and maintain facilities.
Commitment to Quality Service: Despite these challenges, Airtel Nigeria has remained steadfast in ensuring quality of service. From expanding 4G and 5G networks to meeting growing demand in urban and rural areas, we have painstakingly absorbed the rising costs of these obligations to avoid compromising the customer experience and ensuring Nigerians, regardless of their location, have access to mobile communication and remain connected to the digital economy.
Telecommunications operators have worked tirelessly to sustain services despite keeping tariffs unchanged for the last 10 years. While tariffs have remained static for over a decade, the economic realities necessitate a review to ensure the sustainability of services hence our recent application to the government for tariff adjustment which if approved will be a step towards addressing this imbalance.
It is not a decision taken lightly but one borne out of the need to guarantee continued investment in network expansion, technology upgrades, and improved service delivery.
The telecommunications sector is pivotal to Nigeria’s ambition to become a digital economy leader in Africa. Meeting this aspiration requires operators to make substantial investments in network infrastructure, spectrum acquisition, and innovative solutions. These investments come at a cost, one that must be shared proportionally to ensure long-term viability.
At Airtel Nigeria, we remain resolute in our commitment to:
Delivering Quality Services: As the government continues to monitor operators’ compliance with service quality standards. Airtel is dedicated to surpassing these benchmarks, ensuring customers experience uninterrupted and superior connectivity.
Driving Economic Growth: By expanding our network and enhancing digital inclusivity, we are enabling the government’s economy turnaround agenda and fostering opportunities for all Nigerians.
Being a Reliable Partner: Despite industry challenges, we are steadfast in our role as a trusted partner in Nigeria’s digital transformation journey.
While significant tariff adjustments have become warranted for the sustainability of the industry, Airtel has always been sensitive to affordability and understand that the price adjustments must be done gradually to support our customers’ financial positions.
“We believe that an approval of revised tariffs will empower operators to invest in capacity, expand coverage to underserved areas, aim for advanced security on the networks, and improve service quality and network availability while ensuring that Nigeria remains competitive in the global digital landscape.
As we navigate the present imperatives together, we urge all stakeholders, including customers, regulators, and partners to recognize the importance of building a resilient telecommunications ecosystem. Airtel Nigeria remains committed to delivering unmatched value while supporting the nation’s economic development.
Dinesh Balsingh is the Managing Director/CEO of Airtel Nigeria.
Advertising Regulatory Council of Nigeria (ARCON) is investigating a petition against 9Mobile, one of Nigeria’s top four telecoms companies, over an alleged N1 billion unpaid advertising debt.
In a statement issued at the weekend, the ARCON stated that the petition was filed by advertising agencies alleging that Emerging Markets Telecommunications Services Limited — trading as 9mobile — failed to settle payments for services rendered and has continued to engage new agencies without fulfilling existing obligations.
The regulator identified the alleged activity as a potential violation of the Nigerian advertising code, adding that it might have far-reaching consequences throughout the business.
“It was also alleged that while 9mobile refused to pay or resolve its indebtedness to the agencies, it has gone ahead to brief other agencies to continue its advertising and advertisement business with impunity,” the statement reads.
The ARCON said it would investigate whether 9mobile followed disengagement protocols when transitioning from the owed agencies to new ones and whether there were possible breaches of ethical procedures.
“Advertising debts are beyond agencies,” ARCON added.
“They belong mostly to media houses and third-party vendors/suppliers who are significantly affected by the indebtedness, with multiplier effects on their cash flow and operations.”
The council said it would partner with anti-graft and government agencies to ensure a full investigation and the debt’s resolution — stressing that the borders on economic sabotage.
The ARCON reiterated that the Nigerian advertising industry’s official payment threshold remains 45 days and promised to clamp down on practices that encourage unethical competition and unfair advantage.
“The council will take all necessary actions to eradicate unethical competition and ensure compliance with the Advertising Industry Standard of Practice (AISOP), including adherence to the 45-day credit policy,” it said.
9mobile is a member of the Advertisers Association of Nigeria (ADVAN), and its members are expected to follow advertising regulations and contractual duties within the ecosystem.
Nigeria Internet Registration Association (NiRA) has successfully concluded its 17th Annual General Meeting (AGM), reinforcing its commitment to Nigeria’s digital identity.
(L–R): Ogbuefi Remmy Nweke, Member, Board of Trustees, NiRA; Mr. Ahmad Mukoshy, Newly Elected Executive Board Member, NiRA; Mrs. Seyi Onasanya, COO NiRA; Mr. Adesola Akinsanya, President, NiRA; and Mr. Peter Oluka, Executive Board Member, NiRA.
Held as a hybrid event at the NiRA Secretariat and virtually, the meeting brought together over 325 members, stakeholders, and media representatives to review progress and set future goals.
During the AGM, NiRA President, Mr. Adesola Akinsanya, emphasized the Association’s remarkable growth in 2024, including 94,723 new registrations and 61,227 renewals, bringing the total number of .ng domains under management to 212,890. The accreditation of 23 new registrars further strengthened NiRA’s reach and impact.
A major highlight was the implementation of DNS Security Extensions (DNSSEC), enhancing domain integrity and security. NiRA also launched a Registrar Incentive Programme in Q3 2024 to encourage adoption and reward top-performing registrars.
Strategic partnerships were a key focus, with collaborations across government and private sectors. NiRA continued its long-standing relationship with NITDA, engaged with the Nigeria Data Protection Commission (NDPC), and worked with the Lagos Chamber of Commerce and Industry to support businesses. Other partnerships included efforts with the Nigeria Computer Society and Innovation Support Network (ISN Hubs) to drive internet development in Nigeria.
Among NiRA’s recent initiatives were Tech Convergence 1.0, a flagship event exploring technology and creativity, and the 7th edition of the prestigious .ng Awards, recognizing individuals and organizations for their contributions to Nigeria’s digital ecosystem.
The Association also reaffirmed its commitment to Corporate Social Responsibility through the NiRA Kids Foundation (NKF) and .ng Academy, focusing on digital empowerment and capacity building.
The election of new Executive Board of Directors members marked a major step forward, with Mrs. Mary Olaseni, Mrs. Abibat Olatunji, and Mr. Ahmad Mukoshy joining the board, while Mr. Chukwuemeka Fred Agbata and Mr. Destiny Amana assumed new roles. The outgoing board members were recognized for their service and contributions.
The seamless execution of the AGM underscored NiRA’s professionalism and dedication. Moving forward, NiRA remains committed to fostering a secure and resilient digital ecosystem through the .ng domain, positioning Nigeria as a global digital leader.
Telecommunications and digital services provider, Globacom, has partnered with the Federal Ministry of Communications, Innovation and Digital Economy and Huawei Nigerian Enterprises, to provide digital access to 7,000 remote communities in Nigeria with the commissioning of the pilot project in Isuanin Kura in Ibwa 2, Gwagwalada, on the outskirts of the Federal Capital Territory, Abuja on Wednesday.
The project, which is championed by the Ministry, will deliver 2G/3G/4G services, free public Wi-Fi access, digital healthcare and remote learning capabilities to the over 12,000 residents of the community.
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, was full of commendation to Globacom and Huawei for supporting President Bola Tinubu’s commitment to addressing the connectivity crisis affecting more than 20 million Nigerians who currently lack basic telecommunication access in the country.
Said he: “If you bring out your phone in many communities, there is no network at all. This is costing the country significantly because people cannot access financial services, medical care, or education”, adding that this also poses governance challenges as disconnected areas are difficult to administer.
“Where you live should not determine your access to opportunity. We are using innovation to ensure every Nigerian, regardless of location, can thrive in the digital age”, the Minister added.
Globacom’s Group Chief Technical Director, Mr. Sanjib Roy, who spoke on the project said the company worked with the Ministry and Huawei to bring up the site by providing the Microwave backhaul link and access to Globacom’s full core network resources and also manage the operation of the site to ensure uninterrupted voice and data services for the community.
“The Smart Education facility allows for young students within the community to receive education remotely, with the teachers being in Abuja or any other part of the world, while Healthcare delivery has been revolutionised through connected medical equipment that enables remote consultations between patients in Ibwa and doctors and specialists in urban-locations”, Mr Roy explained. The site and all the equipment are powered by solar thereby ensuring clean environment and uninterrupted power supply.
During the inauguration, the system’s effectiveness was demonstrated with the leader of Isuanin Kura, Ibwa 2 Community, Chief Abubakar Bamaiyi, having a live consultation with a medical doctor in Abuja, while the Minister and other guests watched as the students in the local school were being taught via online video by a teacher in Lagos, using equipment provided by Huawei.
Mr Kazeem Kaka, Globacom’s Head of Division, North West, who also spoke at event, said, “For Globacom, this is a continuation of our long-standing mission to democratize access to communication. Since 2003, we have remained at the forefront of efforts to lower the barriers to connectivity—making telephony, internet, and data services more accessible and affordable for all Nigerians.
“Today’s launch reinforces that commitment. We are particularly excited about the impact this initiative will have on education, healthcare, and economic empowerment of Ibwa people”.
In his remarks, Mr Terrens Wu, Managing Director, Huawei Nigerian Enterprises, said his company was proud to be part of the initiative to provide connectivity, and promote learning and healthcare in rural communities through digital technology. His company later gave out 120 affordable smartphones to the community to help them have access to telephony.
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