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Operational Challenges Forcing Managed Services on Operators

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Telecommunications operators are today faced with a lot of challenges that have made the business not rosy as it used to be some few years ago.
Although, some may look at the situation as fallout of recent economic meltdown and reform in the banking sector which affected the spending habit of ordinary Nigerians who use telecommunications services thereby reducing Average Revenue Per User of operators.
More so, operators are constantly faced with vandalization and theft of their equipment. All the operators both Global System for Mobile communications (GSM) and Code Division Multiple Access (CDMA) have had fair share of theft of their equipment, it was reported sometime that GSM operators losses an average of four generators on daily bases which approximately means that a total of 12 generators are lost everyday. This excluded Etisalat which does not have as much base stations as the Globacom, MTN and Zain, they are still experiencing theft of their equipment as well.
Other operators such as CDMA report lost of their generators at an average of one generator daily. This situation has continued unabated which has forced operators to seek a way of addressing this problem.
Nay, the operating environment in the telecommunications space of the country’s economy has continued to give operators sleepless night. The Association of Licensed Telecommunications Operator of Nigeria (Alton) recently sought the intervention of the Joint Tax Board on the burden of multiple taxation imposed on its members by the three tiers of government. Speaking at an interactive session with the board in Abuja, Mr. Gbenga Adebayo, the chairman of Alton, urged the board to be concise on the type of taxes stipulated by law, which the companies should pay.
He said; “Alton, once again, brings to the attention of the JTB, persistent attempts by certain states and local government authorities to impose multiple and unjustifiable taxes and levies on our members in their respective jurisdictions. This development threatens the laudable efforts of our members to make further substantial investments on their respective networks and provide world class telecommunications services in Nigeria. Alton respectfully seeks the intervention of JTB in addressing the issue of multiple taxation.”
Adebayo noted that when the members refused to pay the levies, the affected states and local authorities resort to closure of their facilities and infrastructure.
This, according to him, has adversely impacted on the network availability, quality of service and finances of member companies.
He alleged that the policemen and thugs, who complement the drive of the multiple tax imposers, made it difficult to resist them.
Adebayo cited an instance where one state demanded N200m as advert levies, and another local government was demanding N18.6m each year as operation levy, office location permit, development levy and ground rent from 2002 to 2009.
“Unfortunately, and contrary to all known norms, these local authorities utilise the services of the police and thugs to drive their demand; making it difficult and, most times, impossible to engage them meaningfully,” he said.
In view of these challenges which have increased cost of doing business in the country, as well as competition which is gradually defining the direction operators should go in service delivery, that operators are been forced to consider managed services as a way out of this quagmire.
Managed service otherwise known as outsourcing, in literal means sourcing from outside. The term is increasingly used to refer to sub-contracting of a set of functions or processes by one firm to another, or to a group of individuals, whose competent is in the area of which it is to manage.
Managed services are being pursued as an active business strategy in the current economic scenario, since it enables an operator to focus on core-competency areas. It also frees the operator from resources and labour intensive functions, which are now performed by trained personnel at much lower costs.
The processes or activities that are being outsourced could range from customer service and telemarketing to IT management, software development, market research and even financial portfolio management. Telecom players are leaving the technology-related aspects of their business to external consultants as they focus upon providing new services to their customers.
  How it started
When operators in the space, be they global system for mobile communications (GSM) or code division multiple access (CDMA) rolled out service over eight years ago after the liberalization policy of the government, little did they realize that their service believed to be a source of joy and enhancement of the people’s social economic life will be a subject of attack by miscreant, armed robbers and communities. Operators who envisaged that the major challenge they are likely to face in doing business in the country is energy problem are now faced with other challenges that were never thought of. Such issues include, vandalization of operators installed equipment- there has been several cases of operators equipment being vandalized by host communities and government contractors.
Although telcos have adopted managed services option in many other areas of their operations, but the most innovative is the offer Ericsson and Aviat to extend the initiative to management of base stations. This is not different from co-location of site being offered by telecommunications infrastructure building companies such as Helios Towers, IHS, Mti, among others. In the Zain and Ericsson deal, the mobile telecommunications operator, awarded to Ericsson a five year network management contract of its GSM/WCDMA networks, and business support systems. Under the agreement, Ericsson is now responsible for the network operations, field operations including optimization, third-party vendor management for Zain’s GSM/WCDMA networks, and business support systems.
Ericsson is now serving more than 4,000 sites across Nigeria on behalf of Zain. As part of the agreement, about 450 employees are being transferred under their existing terms and conditions of service, from Zain to Ericsson, where they will undergo further training in the latest wireless technologies.
Nigeria CommunicationsWeek gathered that such agreement is going to be the hallmark of business model of new owners of Zain, Bharti Airtel. This is sequel to revelation that the company is an expert in outsourcing, having outsourced over 90 percent of its services that are not core to its operation in India it parent country.
MTN also entered into agreement with Communications Network Support Services (CNSS) to manage and operate its wired line services which the company has competent in.
Nigeria CommunicationsWeek investigations also revealed that telecommunications operators have began move to sale their cell sites to infrastructure sharing operators. It was gathered that the sale of their cell sites is part of effort to reduce capital expenditure in view of dwindling Average Revenue Per Use (ARPU) of telecommunications operators.
Nigeria CommunicationsWeek investigations also revealed that operators are going beyond managed services option for their base stations to outright sale of existing base stations. It was gathered that one of the major Global System for Mobile communications (GSM) operator has finalized agreement with a telecommunications infrastructure building company to sale over 70 percent of its existing base stations in the country. Equipment that are being sold in such agreements are steel towers, generators, and land value. Operators retain the ownership of their transmission equipment as the buyer of those sites turn them to co-location site for several users and manage them. 
Although outsourcing by telcos of their network management is relatively new, a typical network management comprises of 50 to 55 percent of the cost of a telco’s operations. System integrators expect this segment to be among the largest segments that could be outsourced to a third-party.
With the proliferation of technology, and increased competition, telecom operators are looking at partners who can help them reduce cost of doing business and in turn enhance customer satisfaction. The operators will then have sufficient time to focus upon their core aspects of their business and plan for strategic initiatives geared towards improved service delivery, rather than thinking about how to replace stolen generator or refilling diesel tanks or proving security at base stations.
However, companies such as Swap Technologies, IHS Plc, Helios Towers, Mti, CV Comm. among others have positioned themselves to offer managed services to telecom operators. They have already started offering the service to some operators while discussions are going on with many which will see by the end of the year 80 percent of telecom operators’ base stations being managed by third-party, in this case licensed telecom infrastructure provider.
Bayo Banjo, managing director, Disc Communications, agreed that outsourcing of network management by telecom operators is a good idea. He cited example of Virgin the second largest telecom operator in the United Kingdom, which does not have a single cell site. He expressed worry over the ability of the initiative to curb the problem of vandalization of telecom equipment.
Banjo added that outsourcing of network management became necessary in view of shortage of qualified telecom engineers to maintain networks as well as corruption which has left operators with the option of outsourcing. This according to him needs to be urgently addressed as it may jeopardize the growth being recorded in the sector which is battling with poor quality of service.


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Telcos Resume SIM Card Sales after 2-Week Halt

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Telecommunications operators have resumed full SIM swap and related services following a four-week nationwide outage linked to the National Identity Management Commission (NIMC)’s migration to a new verification platform.

Telcos Resume SIM Card Sales after 2-Week Halt

The outage rendered millions of subscribers unable to perform SIM-related tasks such as swaps, replacements, and activations.

Operators in the industry say the disruption began on June 26, 2025 when telcos temporarily halted SIM registrations and swaps due to unforeseen technical challenges during the transition to NIMC’s upgraded identity verification system.

The migration was mandated to enhance the integrity and efficiency of national identity management but caused major service interruptions across all Nigerian networks.

However, July 21, both MTN and Airtel confirmed via their social media handles that SIM swap services have now fully resumed.

MTN announced: “SIM swaps have now resumed. We can confirm that NIMC services are fully operational and appreciate their support in the migration to a new platform for NIN verification services for the telecommunications industry.

In a public update issued via its MTN Nigeria Support handle on X (formerly Twitter), MTN confirmed that SIM swaps have now resumed.

Telecom operators complained that the portal was unreliable or inaccessible, which resulted in the suspension of SIM swaps, number porting, and new SIM registrations, even though NIMC maintained that the platform was operating as intended.

Unexpected technical difficulties arose during the switch to the new platform, according to the Association of Licensed Telecommunications Operators of Nigeria.

Real-time NIN verification for SIM registration, replacement, and network migration was impacted by these issues.

“Unexpected technical difficulties have surfaced, impacting real-time NIN verification for SIM registration, replacement, and porting, following a recent directive from the National Identity Management Commission mandating Mobile Network Operators to transit to a new identity verification platform,” ALTON stated in a previous joint statement signed by Gbenga Adebayo, chairman, and Damian Udeh, publicity secretary.

 


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Nigeria, Others Achieve 84% Adult Mobile Phones Penetration

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The World Bank has affirmed that 84 per cent of adults in low-and middle-income economies, including Nigeria, own personal mobile phones.

The bank in its Global Findex 2025 report said mobile phone ownership was widespread and nearly everywhere. It said data from the Global Findex 2025 Digital Connectivity Tracker, revealed that “86 per cent of adults worldwide, and 84 per cent of adults in low- and middle-income economies, own personal mobile phones.”

The report pointed out that mobile phones and the internet had become widespread and essential to daily life in every economy around the world.

A earlier overview had indicated that Nigeria had a high mobile phone penetration rate, with estimates around 85 per cent to 87 per cent in 2024.

This translates to over 200 million mobile connections, making Nigeria a leading market in Africa for mobile phone ownership and usage. While the overall penetration is high, there’s a growing trend towards smartphone adoption, with forecasts predicting over 140 million smartphone users by 2025.

According to DataReporter, a total of 150 million cellular mobile connections were active in Nigeria in early 2025, with this figure equivalent to 64.0 per cent of the total population.

However, note that some of these connections may only include services such as voice and SMS, and some may not include access to the internet.

There were 107 million individuals using the internet in Nigeria at the start of 2025, when online penetration stood at 45.4 percent. Nigeria was home to 38.7 million social media user identities in January 2025, equating to 16.4 percent of the total population.

These headline stats offer a great overview of the “state of digital” in Nigeria at the start of 2025, but in order to make sense of how digital trends and behaviours have been evolving over time, we need to dig deeper into the data.

According to the World Bank, “as of 2024, individual ownership of mobile phones reached 86 per cent of adults worldwide.

“For many people, barely an hour goes by without their using a mobile device to make a call, ext a friend, read the news, access business information, post a meme on social media, pay for something, play a game, engage with a colleague or a customer, or search for information.

“As access to and use of digitally connected technologies increase, people, businesses, and governments place an increasingly high priority on online interactions. “Digitally connected technologies have clear, well-documented benefits.”

It further highlighted that access to mobile phones and the internet was associated with reduced poverty, increased consumption, and more employment for individuals in lowand middle-income economies.

“Women also experience these benefits, as internet access enables access to flexible jobs3 and has been shown to increase female labor force participation. “Mobile phones also facilitate information sharing.

For instance, in agricultural contexts, farmers’ access to real-time prices and buyer demand data can inform their decisions on where to sell, enhancing market efficiency and reducing the distances they would otherwise travel to get the best return for their product and time.

“Internet access also helps create jobs and aids individuals and countries in exporting goods and services,” it added. The World Bank further noted that owning a mobile phone furthermore enabled financial access through mobile money and other mobile financial services.

It added that these financial accounts and services, typically offered by mobile network operators or fintech firms and accessed via networks of local agents, were associated with lower rates of poverty, increased consumption and savings,and greater resilience to economic shocks.


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Sophos Secures Leadership Spot in 2025 Gartner Magic Quadrant for Endpoint Protection

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Sophos, a global leader of innovative security solutions for defeating cyberattacks, today announced that it has been named a Leader in the 2025 Gartner Magic Quadrant for Endpoint Protection Platforms (EPP), marking the 16th consecutive time the company has received this recognition.

Sophos has been recognized in the Gartner Magic Quadrant for Endpoint Protection Platforms (EPP) since the inaugural publication for this category in 2007.

Sophos’ market-leading endpoint security solutions include Sophos Endpoint powered by Intercept X, Sophos Extended Detection and Response (EDR/XDR), and Sophos Managed Detection and Response (MDR).

Over 300,000 organizations trust Sophos endpoint security solutions to defend against cyberthreats, including advanced remote ransomware attacks and active adversaries.

Unique to Sophos, the solution includes adaptive defenses that automatically disrupt attackers by dynamically adjusting protection levels based on threat context.

“Sophos’ strength lies in its prevention-first strategy, designed to stop breaches before they start, adapt defenses in real time, and strengthen detection and response when it matters most,” said Kyle Falkenhagen, SVP, Product Management, Sophos. “We believe that receiving this recognition in the highly competitive endpoint security market for 16 consecutive reports reflects our relentless focus on developing innovative solutions that stay ahead of the global threat landscape and the adversaries we face every day.”

Sophos and Secureworks: The future of protection, detection, and response

Following Sophos’ acquisition of Secureworks in February 2025, combining two leading and complementary portfolios to offer a comprehensive suite of solutions for small, midmarket and enterprise organizations.

Secureworks Taegis XDR customers can use Sophos Endpoint to elevate their cyber defenses, at no additional charge, delivering both improved protection and return on investment.

The integration of Secureworks also adds a new Counter Threat Unit (CTU) to the Sophos X-Ops advanced threat response joint task force, further expanding the rich threat intelligence that informs all customers’ defenses.

Backed by Sophos’ advanced security technologies and a broad network of intelligence contacts and partners, the CTU plays a critical role in identifying and tracking threat actors and analyzing anomalous activity, uncovering new attack techniques, threats, and major shifts in the threat landscape.


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