Telecom
Nigeria Seeks Joint West Africa Regional Protection of Undersea Cables
Following recent undersea cable cuts that challenged connectivities in many countries in the West African region, Nigeria has called for a coordinated and multilateral approach by the region to protect shared telecommunications infrastructure, and diversify connectivity to ensure uninterruptible connections.
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, made the submission in a statement delivered at the 21st West Africa Telecommunications Regulatory Assembly (WATRA) Annual General Meeting (AGM) which held in Freetown, Sierra Leone, from the 19th to 22nd March 2024.
Dr. Maida, whose message was delivered at the WATRA AGM by the Deputy Director, Public Affairs of the Commission, Nnenna Ukoha, stated that the recent submarine cable cuts that resulted in nationwide outages on multiple networks in 12 African countries has raised the urgent need for the subregion to establish a mechanism to protect itself from damage to submarine infrastructure and its attendant impact on the subregion.
Maida referred to a report by Cloudflare, an IT service management firm, which indicates that about six countries, including four West African countries, were still suffering from the outages caused by the submarine cable cuts, to buttress the call
“Securing telecom infrastructure is paramount for fostering Foreign Direct Investment (FDI) and enhancing investor confidence in the West African sub-region. The reliability and resilience of telecommunications networks are crucial factors that investors consider when evaluating regional opportunities.
“By ensuring the security of these vital assets, we can attract more investment, spur economic growth, and enhance our competitiveness on the global stage. A secure telecoms infrastructure not only facilitates efficient communication and connectivity but also signals a commitment to safeguarding critical assets essential for business operations. This assurance can significantly boost investor confidence and create a conducive environment for sustainable economic development,” he said.
According to him, “the impact of events like cable cuts highlights the need for a coordinated, multilateral approach to protecting shared infrastructure across our member nations.”
Maida therefore, proposed “the urgent need to set up a framework for joint monitoring, risk mitigation, and emergency response procedures for the submarine cables that pass through the sub-region.
“Further to this, we recommend that the WATRA Working Group on Infrastructure expand its mandate to spearhead the development of a comprehensive strategy to safeguard the subregion’s telecommunications networks and associated infrastructure thereby proactively bolstering resilience through improved disaster response protocols to better insulate ourselves from future disruptions.”
He advised that the goals of the Working Group would be to strengthen sub-regional infrastructure resilience, promote the diversification of the sub-region’s connectivity, conduct regular capacity assessments, as well as facilitate the designation of telecommunications infrastructure as critical national infrastructure in member countries.
The West Africa Telecommunications Regulators Assembly, was established in 2002 as a common platform for national telecommunication regulatory authorities in 16 member states to promote the adoption of regulations that stimulate investment in telecommunication infrastructure to deliver more affordable, accessible, faster and secure communication services to citizens.
At the 21st WATRA Annual General Meeting, issues pertaining to accessible and affordable telecommunication services in the sub-region were discussed, including improved consumer protection, quality of service, roaming and conflict resolution for consumers.
A major highlight of the AGM was the reelection of Nigeria’s Engr. Yusuf Aliyu Aboki, as Executive Secretary, for a second term in a unanimous vote by the member countries.
The EVC of NCC commended Engr. Aboki for his firm, inclusive and visionary leadership, which saw the successful delivery of WATRA’s 2022 — 2025 Strategic Plan, noting that Nigeria and indeed the sub-region was proud of the milestones he has achieved during his first tenure.
He further advised the WATRA Executive Secretary to build on the achievements of his first tenure, through stronger partnerships and deeper collaboration while advancing the interests of the sub-regional body.
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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