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ANALYSIS: SIMs/NINs Directive: Time to Rescue  Telecoms Industry

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By Vanguard Newspaper

The directive last week by the Ministry of Communications and Digital Economy that the National Identity Number, NIN, has become mandatory for a subscriber to carry a mobile phone is not only a slap on the faces of Nigerians already going through very troubled times but a plain manifestation that arbitrariness is being elevated to the dizzy heights of national policy.

Operators have been given only two weeks to comply and ensure that over 190m subscribers on their networks are properly registered. Or your operating license withdrawn.

We view this as a death sentence for the telecommunications industry, and some experts cautioned last week that a reversal of industry fortunes has been set afoot by an obnoxious official proclamation.

One operator moaned that the regulator wants to wipe out at least more than half of the subscriber base of the industry.

We agree that times are desperate in Nigeria, very desperate. Whole mass of students are spirited away from school and they reappear after a whole week in the den of criminals. Road travel has become a nightmare for the ordinary and the mighty ones. Bandits have taken over the roads and the farms.

Quite unfortunately even for the rich, air travel is beyond the reach of those who used to fly except the hedonists who steal the people’s money for plain pleasure.

According to figures from the National Population Commission, NPC, very bizarre decisions are being taken to rubbish the collective intelligence of a nation and expose the citizenry to ridicule before the international community.

So, using failure in security as pressure point, the ministry under the grip of Dr. Isa Pantami has given a directive capable of destroying the entire communications industry except common sense prevails.

The December 15, 2020, statement signed by Public Affairs Director, Dr. Ikechuckwu Adinde, which affirmed earlier directive for operators to totally suspend registration of new SIMs, stated among others: “Operators to require all their subscribers to provide valid National Identification Number, NIN, to update SIM registration records; The submission of NIN by subscribers to take place within two weeks (from today, December 16, 2020 and end by December 30, 2020).

After the deadline, all SIMs without NINs are to be blocked from the networks.” While conceding the pervasive security challenges, there has been outrage across the land; understandably, by subscribers who feel that apart from the suffering that has worsened more because of COVID-19, a major inconvenience is being added to their burden.

Recall that the country’s economy has gone into recession again and is not expected to recover until late 2021, a development that is forcing more Nigerians to fall into the poverty pit.

Vanguard immediately reached out to a powerful industry source to ask if the directive could be executed in two weeks. The answer was an emphatic NO. We also reached out to a source in the regulatory institution. Is this what should have been done? The answer again was NO. Let’s try to unwrap the intricacies of the unfolding story.

The SIM Card registration regime started in 2011. The exercise was carried out simultaneously by licensed agents of the NCC and the mobile operators. NCC was to warehouse the data. An understanding at the time was that, because of the sensitive nature of personal data, all data will be handed over to the National Identity Management Commission, NIMC, whose responsibility it is to manage the National Identity Database.

Till date the progress recorded in that area opens windows to speculations and recriminations. It is interesting to point out here that NIMC was established in 2007. In all the years of existence, the organisation has succeeded in registering only 43.6m! So what magic wand will it wave to accomplish the act in two weeks?

According to figures gleaned from the NCC website, there were 207,954,737 subscribers on the four mobile networks of MTN, Airtel, GLO and 9Mobile by October 2020. An industry source told Vanguard last week that of this figure, about 120m are unique subscribers, discounting double registration of mobile numbers, while the rest could be used in personal internet modems, sectors like banking, vehicle tracking and other sectors where mobile communications have become very handy. There has to be a way to capture these numbers and this cannot be enforced overnight.

Matching the 120m subscriber figure with their NINs is a nightmare which will rubbish the two-week window. For the journey to start at all, all the companies being licensed by NIMC, one expert explained, will have to source for their equipment and get them certified by NIMC before procurement and purchases can take place. To make any meaningful impact immediately, the industry may need at least 250,000 of those machines which are not manufactured here.

Moreover, the NIMC machines are not what are easily sourced in the open market. They are called the 442 machines because they can take four fingers at a go and take the remaining two fingers once. They are more robust than the SIM Card registration machines which can take only two fingers at a time.

The source told Vanguard that this is a logistics nightmare that can hardly be afforded by some of the companies being recruited by NIMC at the moment.

Industry observers are of the opinion that the President Muhammadu Buhari and the National Assembly should put a leash on the minister before he totally destroys the telecommunications industry.

In attendance at the meeting that had to do purely with the regulation of the industry were the CEOs of NCC, the National Information Development Agency, NITDA, and NIMC.

At least one operator told Vanguard they were never at the meeting; instead the minister is taking all the decisions which he is shoving down their throat, thus increasing the fear that the regulator is increasingly losing direction and hold on the industry.

Strains of helplessness are already showing. “We don’t know why the Executive Vice Chairman, EVC, is unable to call some meetings. We are not able to sit down to negotiate on anything,” the source lamented.

Those who fear the directive may become a dangerous super spreader of the COVID-19 pandemic may have been proven right when, last week, somewhere in Abuja, an eye witness told Vanguard that some youths who had gathered for two days at one registration spot, suddenly started demonstrating on noticing the near futility of the exercise and how some advantaged personalities were bending all the rules to favour a few.

The desperation to register will obviously rubbish the PTF recommendation on social distancing in a season of pandemic. Meanwhile, more trouble looms for the industry.

A knowledgeable industry source told Vanguard that, if not properly managed, the directive could destroy half the base of the industry, stymie revenue and investment, and lead to massive job losses.

But all these could pale into insignificance if the minister ever executes his growing threats that “violations of this directive will be met by stiff sanctions, including the possibility of withdrawal of operating license.”

This is hardly the way to speak to organisations that have invested heavily in your economy.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

PAT Taps Osi as CEO

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Pan African Towers (PAT), a Nigerian infrastructure provider serving 9mobile and Spectranet, has appointed Echezona Osi as chief executive officer.

PAT Taps Osi as CEO

Echezona Osi

Adefolarin Ogunsanya, company’s, board chairman,  explained in a statement that Osi would succeed Oladipo Badru, whose tenure lasted nine months in acting CEO position. Osi has more than 28 years of experience in the telecommunications sector across various regions of Africa.

Prior to his appointment as CEO, he had served as the head of network deployment at Airtel Nigeria, operations director and chief technical information officer at MIC Tanzania, chief technology officer roles at IPT PowerTech Nigeria, Rhino Niger Networks and Biswal Nigeria.

He obtained a degree in electrical/ electronic engineering from the University of Benin and a postgraduate diploma in data science and business analytics from the University of Texas.


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NCC Introduces N10m Licence Fee for Bulk SMS Service

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Companies sending bulk international text messages, also known as Application-to-Person (A2P) messages, will now have apply for a licence that costs N10 million.

NCC Introduces N10m Licence Fee for Bulk SMS Service

This is part of new rules introduced by the Nigerian Communications Commission (NCC) aimed at cleaning up the system, fighting fraud, blocking spam messages and stopping money from leaving the country unchecked.

These A2P messages are the kind customers get from banks, online stores, hospitals and political campaigns, automated texts sent from apps to their phones.

According to the commission, the bulk international text message system has been poorly regulated, allowing misuse and invasion of privacy.

“The International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities,” the NCC said.

The regulator warned that without action, the problem would worsen as more people use mobile phones and digital services.

To solve this, the NCC is creating a central platform, or gateway, through which all international bulk text messages must pass through.

The agency said this would help to monitor messages in real time, ensure proper fees are paid, and make sure the money stays in Nigeria where it can contribute to the economy.

As part of the incoming change, service providers must follow strict rules, including strong data protection, spam filters, and message encryption.

Also, they must also work with local mobile networks and make sure all messages come from a verified sender

The NCC warned that any message without a proper sender ID will be blocked and not delivered to users.

To protect users from unwanted texts, the new rules say companies must get clear permission before sending any promotional content.

The rule also says people must also be able to choose whether they want to receive such messages or not.

Companies are now required to keep records of all messages for at least six months and must clearly state all charges involved.

The NCC said fees for help requests, cancellations, or service info must be transparent and not include hidden charges.

The commission will issue licences to several providers to encourage healthy competition but may limit new licences if needed.

Only companies that show they can stop fraud and safely deliver messages will be allowed to operate. They must also regularly report their message traffic and finances to the NCC.

It warned that any company that breaks the rules risks getting fined, suspended, or having its licence revoked.

Offences like charging illegal tariffs, ignoring security rules, or avoiding taxes will be punished, the NCC said.

The commission added that the new rules follow the Nigerian Data Protection Act 2023 and support the federal government’s goal of strengthening cybersecurity and controlling Nigeria’s digital space.

The framework will also be reviewed from time to time to keep up with new technology and market trends.


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MTN Nigeria Targets $1Bn Cloud Market with Largest Modular Data Centre

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MTN Nigeria has launched what it claims is the country’s largest prefabricated modular data centre, marking a bold push into the country’s fast-growing cloud market and taking aim at global giants such as Amazon Web Services, Microsoft Azure and Google Cloud.

MTN Nigeria Targets $1Bn Cloud Market with Largest Modular Data Centre

Karl Toriola, CEO, MTN Nigeria.

The shift comes as demand for cloud services in Nigeria soars — driven by the uptake of mobile apps, fintech tools and e-learning platforms — while foreign providers have become costlier in the wake of the naira’s sharp devaluation.

“This is one of the biggest data centres in West Africa and probably one of the biggest in Africa,” said Karl Toriola, CEO, MTN Nigeria.

He described the new Tier III-certified facility, with locally hosted cloud services, as “transformative for the technology ecosystem in Nigeria and very supportive of the federal government’s agenda”.

MTN Nigeria, the country’s largest telecoms provider, has so far invested $120m in the first phase, delivering an IT load of 4.5MW. A second phase, set to double capacity to 9MW, is budgeted at $135m.

“We already have data centres that are running our existing capacities,” Toriola said.

“We will go to 9MW in short order, possibly 14MW, and we can expand even further.”

He said the facility would allow local hosting for tech developers, large enterprises including banks and oil companies, and government agencies — markets long dominated by foreign cloud providers.

“Multinational companies such as Netflix, Facebook and Instagram can also host a lot of their data here. That improves the quality of service and reduces the cost of storage,” he added.

 


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