Telecom
Nnamani Hails $3.5Bn Acquisition of Teraco By Digital Realty
Accolades have been trailing the recent acquisition of Teraco Data Environments by Digital Realty an American real estate investment trust that invests in carrier-neutral data centers and provides colocation and peering services.
The latest accolade is coming from Engr. Ikechukwu Nnamani, Chief Executive Officer of Medallion Data Centre Limited, who expressed his excitement on the announcement that Digital Realty has acquired controlling stake in Africa’s largest datacenter operator, Teraco Data Environments of South Africa, in a transaction that valued Teraco’s datacenter assets at $3.5bn. This represents the biggest datacenter transaction in the continent.
Teraco is the largest and most densely interconnected data center platform in Africa, with seven state-of-the-art facilities strategically located in the key South African metros of Johannesburg, Cape Town and Durban.
Teraco serves over 600 customers, including more than 275 connectivity providers, over 25 cloud and content platforms and approximately 300 enterprises.
Teraco facilitates approximately 22,000 interconnections between customers and its Isando campus in Johannesburg is one of the most densely interconnected sites in the world, with over 13,000 cross-connects. Teraco also hosts seven on-ramps to leading global cloud service providers in Johannesburg and Cape Town and currently provides direct access to seven subsea cables in Durban on the east coast and Cape Town on the southwest coast
It is worth noting that in October 2021 the Austin Texas, USA based Digital Realty also announced the acquisition of the datacenter assets of Medallion Communications Limited in Nigeria. That marked the first time a global pure real estate investment trust (REIT) will be entering the country and beats rivals including Equinix (NASDAQ: EQIX), CyrusOne (NYSE: CONE), and CoreSite Realty (NYSE: COR) on entrance into the market. With the additional acquisition of Teraco, Digital Realty now controls the two most important datacenter assets in the continent.
The Medallion Datacenter is the number 1 peering and connectivity datacenter in Nigeria and Teraco represents the same in South Africa, two of the largest economies in the continent.
The combination of Teraco’s leading position in South Africa with Digital Realty’s leading connectivity hubs in Nigeria on the west and Kenya on the east coast – along with Digital Realty’s strategic Mediterranean interconnection hubs in Marseille and Athens – is expected to significantly strengthen Digital Realty’s leading pan-African position, enhancing the ability to serve local as well as multinational enterprises and service providers.
When reached for comment on the development, Engr. Nnamani stated the investment into Teraco by Digital Realty is a further testament that Digital Realty is fully commitment to grow the digital economy in not only Nigeria and the West African sub-region but also the whole of Africa.
This he stated will lead to significant foreign direct investment into the economy, boosting the GDP of the African countries, creating employment, and improving the quality of the lives of the citizens in the areas of education, healthcare, e-commerce, entertainment, security, governance, and agriculture amongst others. With the digitization of the economy and implementation of Internet of Things services, datacenters are essential to support these emerging services.
Digital Realty is the largest global provider of cloud- and carrier-neutral data centers, colocation and interconnection solutions. Digital Realty supports the world’s leading enterprises and service providers by delivering the full spectrum of data centre, colocation and interconnection solutions.
PlatformDIGITAL, the company’s global data centre platform, provides customers a trusted foundation and proven Pervasive Datacenter Architecture (PDx™) solution methodology for scaling digital business and efficiently managing data gravity challenges.
Digital Realty’s global data center footprint gives customers access to the connected communities that matter to them with more than 280 facilities in 48 metros across 24 countries on six continents.
Medallion’s Lagos data center is the leading connectivity hub in Western Africa with approximately 70 carriers and internet service providers, over 80 percent of the public peering traffic of the Nigerian Internet Exchange takes place at the carrier neutral datacenter.
Medallion offers access to all the exiting sub marine cables in Nigeria and additional subsea cables scheduled to be in operation in Lagos by 2023 are all expected to use Medallion as a peering point for content and bandwidth distribution.
Telecom
Aliyu Aboki Appointed to Global Submarine Cable Resilience Advisory Body
West Africa Telecommunications Regulators Assembly (WATRA) has announced that Mr. Aliyu Aboki, its executive secretary, has been appointed as a member of the International Advisory Body for Submarine Cable Resilience.
This body, established by the International Telecommunication Union (ITU) in collaboration with the International Cable Protection Committee (ICPC), aims to bolster the resilience of submarine telecommunication cables that form the backbone of global digital connectivity.
Submarine cables, which carry the majority of the world’s Internet traffic, enable essential global services, including commerce, financial transactions, government operations, digital health, and education. Enhancing their resilience is critical for ensuring continuity in a digitally connected world.
Mr. Aliyu Aboki’s inclusion in the high-level International Advisory Body for Submarine Cable Resilience comes at a critical time when disruptions to digital connectivity in West Africa have highlighted the urgent need to safeguard vital telecommunications infrastructure.
As the Executive Secretary of WATRA, Mr. Aboki brings a wealth of experience and a distinctive regional perspective to the Advisory Body’s mission.
His appointment provides an opportunity for the region to contribute meaningfully to shaping global best practices for the deployment, maintenance, and protection of submarine cables, ensuring a stable and resilient digital ecosystem for millions across the continent.
Speaking on his appointment, Mr. Aboki stated: “The recent disruptions to telecommunications services across West Africa, caused by damage to vital submarine cables, underscore the fragility of our digital infrastructure.
“These incidents, which affected countries such as Côte d’Ivoire, Ghana, Nigeria, and Liberia, resulted in significant connectivity issues and highlighted the urgent need for enhanced resilience in our submarine cable systems.
As Executive Secretary of WATRA, I have witnessed firsthand the critical role that secure and reliable digital connectivity plays in driving economic development, supporting government operations, and enabling access to essential services across the region.
This appointment to the International Advisory Body on Submarine Cable Resilience presents an opportunity to strengthen global collaboration and bring the perspectives of West Africa to the forefront of discussions on protecting these crucial infrastructures.
It is vital that we work together with other experts and stakeholders to develop strategies that ensure submarine cables are more resilient to disruptions, safeguarding the continuity of services that are fundamental to the global digital economy.”
The Advisory Body brings together 40 global leaders, including Ministers, Heads of Regulatory Authorities, industry executives, and experts.
Co-chaired by Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, and Prof. Sandra Maximiano, Chair of the Board of Directors of the National Communications Authority of Portugal (ANACOM), the group will work to develop strategies that enhance the security and resilience of submarine cable infrastructure worldwide.
WATRA’s participation in this global effort reaffirms its leadership role in driving policies that prioritize digital connectivity, economic growth, and sustainable development.
By representing the region’s interests, Mr. Aboki will ensure that West Africa continues to play a vital role in shaping the future of telecommunications.
Telecom
Netflix Exits Nigerian Movie Market After Eight Years
Netflix, the international movie streaming giant, has reportedly exited the Nigerian movie market after eight years of operation.
The development was disclosed by renowned Nigerian filmmaker Kunle Afolayan during his speech at the 2024 Zuma Film Festival.
Although Netflix has yet to release an official statement, Afolayan, who has collaborated with the platform on several projects, confirmed the withdrawal, emphasizing that it was intentionally kept away from the public.
Netflix, which launched in Nigeria in 2016, has been a significant player in the local film industry, providing financial support for producing Nigerian content. However, according to Nollywood Wire, the platform officially exited the market in November 2024.
The report states that Netflix informed its frequent collaborators about its decision to scale back on acquiring Nigerian content. The reason for this withdrawal remains unclear, as Netflix has not provided any explanation or statement regarding the move.
The platform’s departure marks a significant shift in the Nigerian film industry, which has relied heavily on streaming services like Netflix for global visibility and funding.
Telecom
Telecoms Subscribers to Petition National Assembly Over Controversial 5% Tax
The National Association of Telecoms Subscribers (NATCOMS) has announced plans to petition the National Assembly over the Federal Government’s renewed push to impose a 5% excise duty on telecommunications services.
The association, representing millions of telecom users in Nigeria, is set to meet on Wednesday to finalize its petition, urging lawmakers to halt any legislative approval of the proposed tax while a court case challenging its implementation is ongoing.
The case, currently before the Lagos Division of the Federal High Court, has been adjourned to March 13, 2025. NATCOMS President, Adeolu Ogunbanjo, told The newsmen on Monday that the petition is necessary to prevent the National Assembly from unknowingly passing the tax into law.
“We are meeting this Wednesday to finalize the arrangement to write the National Assembly. If we don’t inform them that there is a pending court case, the Assembly might unknowingly pass the bill into law. That would be disastrous for subscribers and the industry,” Ogunbanjo said.
NATCOMS has consistently criticized the proposed excise duty as excessive and detrimental to telecom users. Ogunbanjo noted that telecom services are already subject to over 40 different taxes, and adding another levy would significantly increase the financial burden on subscribers. The association’s National Secretary and Legal Adviser, Bayo Omotubora, described the tax as double taxation and unconstitutional.
“The case is before the Lagos High Court and has been adjourned to March 13, 2025. Until a decision is made, implementing this tax would be illegal and unconstitutional. The Federal Government must respect the judicial process,” Omotubora said.
The 5% excise duty is part of a broader tax reform initiative outlined in the proposed “Nigeria Tax Act.” The bill seeks to consolidate tax laws and impose taxes on various transactions, including telecom services regulated by the Nigerian Communications Commission.
Introduced in 2022 under former President Muhammadu Buhari, the tax faced public backlash, leading to its suspension in July 2023 by President Bola Tinubu. However, the government has recently revived the plan to boost revenue amidst economic challenges.
NATCOMS emphasized that the government must wait for the court’s decision before proceeding with the tax. “We are not just fighting for the legality of this tax but also to protect millions of Nigerians who rely on affordable telecom services,” Omotubora added.
The association’s petition to the National Assembly will highlight the ongoing legal battle and the economic implications of the proposed tax. “The Federal Government must respect the judicial process and suspend any action on this tax until the matter is resolved in court,” Ogunbanjo said.
NATCOMS has called on stakeholders to join its fight against the tax, describing it as an unnecessary burden on telecoms subscribers and the industry.
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