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Reducing Capex and Opex through Infrastructure Sharing

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A recent report by Frost & Sullivan finds that mobile network backhaul infrastructure plays a key role in the delivery of services to end users and is likely to be an important spending area for network upgrades during the medium and long terms. “Operators will be upgrading backhaul to match the capacity of core and access networks that have been receiving constant attention. Infrastructure sharing will increasingly be used by operators to reduce capital expenditure (Capex) and operating expenditure (Opex) on backhauls. These trends will create growth opportunities in the Sub-Saharan African mobile network backhaul infrastructure market”. It added that the backhaul infrastructure markets in Angola, Gabon, Ghana and Kenya spent $355 million in 2009 and estimates this to reach $1.45 billion in 2015. “Escalating demand for data services is driving the need for upgrading mobile network backhaul infrastructure. Operators need to share costs and invest in network technologies that support transmission of large quantities of data such as optical fibre,” notes Frost & Sullivan ICT Senior Research Analyst Vitalis G. Ozianyi. Landing of undersea cables on various African countries’ coasts and deployment of enhanced 3G (3G+) and 4G technologies will amplify the increasing demand for data services. Microwave-based backhaul is likely to remain dominant for rural coverage; however, operators are likely to adopt resource sharing to provide higher-capacity backhaul for areas with sustainable high demand. A key challenge will be the high Capex required for new technologies. “The high Capex and Opex associated with deploying and maintaining backhaul infrastructure will influence investment into higher capacity technologies. Furthermore, the inadequacy of other supporting infrastructure, like reliable power supply, will slow the deployment of new technologies,” remarks Ozianyi. Sharing infrastructure will enable operators to cost effectively deploy backhaul networks that meet the increasing demand for data services. Outsourcing of backhaul services can also be used to reduce OPEX in areas with limited demand. Mobile operators need to ensure that their backhaul networks are upgraded to avoid creating a bottleneck between access and core portions. Backhaul networks should be upgraded in response to increasing network traffic. “Since upgrades can be expensive, operators need to segment their markets,” advises Ozianyi. “They can deploy high capacity fibre technologies in high demand areas while wireless backhaul technologies can still be used in low demand rural areas.” In general, co-location is moving or placing things together, and is used to mean the provision of space for a customer’s telecommunications equipment on the service provider’s premises. In the internet world for example, a Web site or an ISP could place its network routers on the premises of the company offering switching services with other ISPs while in the GSM/Telephony world, Operator could decide to share facilities/sites for cost savings reasons. Co-location is sometimes provided by third party company that specializes in collocations. Why share infrastructure Operators can derive savings on Capex and Opex required for site infrastructure build allowing for more efficient utilization of Capex to expand for coverage and capacity. Scarce capital and management attention can be diverted to key value-creating activities such as customer acquisition, service quality, operational and strategic excellence. Infrastructure sharing provides solutions to problems on capital-constrained, high interest rate, high growth environments. By adopting sharing, there is no need for operators to maintain in-house expertise to build, operate and service site infrastructure. There is reduced cost to operators under Towers/Equipment lease, on built in Capex costs and Opex costs resulting in increased operating margins. Addresses regulatory pressure to co-locate and admin costs to operators of managing the co-location process and activity, increased entry speed for new companies. It reduces environmental hazard caused by having so many sites. There are two options available to operators for co-location: Operator to operator agreement where an operator will offer one or more operators a space in his location to share some infrastructure. Third party service provider can provide a site and facilities, for example a Tower for one or more operators to mount their equipments like radios and antennas. What can be shared through co-location? Shelter Space, Tower or Mast Structures Cable Ducts, Earthing Protection System, Lighting Protection System, Rack Space, Fence-wall or palisade fencing, Equipment Shelter Plinth, Transmission Link, AC power (public & private source), among others. Steps required towards co-location According to Gbenga Adebayo, chief executive officer, Communications Network Support Services (CNSS), these steps are identification of the technical requirements of co-location with a view to strategizing on meeting the requirements, development criteria for achieving a fair, effective and balanced site co-location evaluation and implementation arrangement with other operators. Others include development of operator’s policy for co-location and provision of framework for accommodating statutory guidelines within the operator’s policy document, and provision of basic information to Operator’s management to enhance management decision making on proposed infrastructure sharing with a view to harnessing economic advantages derivable from the project. Engr. Ernest Ndukwe, immediate past executive vice chairman, NCC, said that co-location is the next stage of telecommunications revolution in the country, which informed the commission decision under his leadership to license some companies to provide co-location infrastructure. He said that, if operators share infrastructure there will be great reduction in cost, proliferation of mast that distorts beauty of the environment among others. He noted that the commission partnered with Lagos State government to destroy all the mast erected by cyber cafés and others that are no longer in use.


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Uche Ikejimba Secures Sixth Consecutive AMVCA Nomination With Best Unscripted M-Net Original Nod

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Uche Ikejimba, Award-winning producer, has secured her sixth consecutive Africa Magic Viewers Choice Award nod. The organizers made the nomination announcements on Sunday, March 24, 2024, across all Africa Magic channels. It saw Ikejimba clinch a nom in the ‘Best Unscripted M-Net Original’ category for What Will People Say.

In 2022, Ikejimba received two nominations for ‘Best Africa Magic Original Drama Series’ for Unmarried and Dilemma. She secured two other nominations in 2023 in ‘Best Unscripted Original’ for Come Play Naija and ‘Best Original Drama Series’ category for Unmarried.

Speaking about her latest nomination, Ikejimba said, “I’m very humbled and beyond grateful to be receiving my sixth consecutive AMVCA nomination. Anyone who knows me will acknowledge that I often put my blood, sweat and tears into the shows I produce. After Truth won its nomination in 2020, I’ve been holding on patiently for a second win and I hope this is the year. So, here’s my hearty congratulations to my fellow nominees and a huge thank you to the AMVCAs organisers for honoring me.”

Ikejimba is one of Africa’s most-sought after serial producers, and has earned herself the title, ‘Reality TV Series Savant’, with work on 100% Naija, Vodafone Icons, Naija Sings, Calabar Festival Diaries, Big Brother Reunion, Shoot Your Shot, What Will People Say, Come Play Naija, and the more recently airing Husband Material and Overall Best.

She came into the world of Television production as an associate producer on Moments with Mo, the first and only syndicated daily talk show in Africa at the time. However, she has also proven that her talents go beyond producing reality shows or unscripted serials, and she can run with the best in producing original drama series.

In 2016, she landed her first commissioned project with Africa Magic titled Hustle. The series about a young man’s first time in Lagos became an instant hit and ran for three seasons, with 360 episodes. She created, wrote and produced Blink’s original 26-episode drama series titled Truth. The show won an AMVCA for ‘Best TV Series’ in 2020. That same year, she produced and wrote the hit series, Unmarried. The show ran for four seasons and ended on a high.

Off the success of these drama series, she produced Africa Magic’s Dilemma, a 260-episode telenovela. She produced Shallow and the recent Africa Magic fanfavourite original, Manfriend. The show follows the women of the King family and their dysfunctional relationship with the men in their lives. She also produced Showmax’s first original law limited series, AGU in 2023. Her first feature length film, Phantom is a co-production and is also nominated for several awards such as the Toronto International Nollywood Film Festival (TINFF).

Uche Ikejimba has beaten many odds to become a producer and remained steadfast in her commitment to producing the best shows Africa has ever seen. As the continent prepares for the milestone 10th AMVCA, the Reality TV Series Savant and producer extraordinaire is content to celebrate her sixth consecutive nomination. Find out if she clinches her second AMVCA win when the awards air live across all Africa Magic channels on May 11, 2024.


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Banks Close 2m Accounts over BVN, NIN, Others

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Commercial banks in Nigeria closed 2.021 million bank accounts in the first quarter of 2024, Q1’24, to clean their books of questionable accounts and comply with regulatory orders on the linkage of bank accounts to the National Identity Number (NIN).

Banks Close 2m Accounts over BVN, NIN, Others

This is contained in a report by the Nigerian Interbank Settlement System (NIBSS), which also indicated that the number of inactive bank accounts grew month-on-month, MoM, by four million or 2.0 per cent to 19.7 million in March 2024 from 19.3 million in the previous month, February.

A bank account is classified inactive when it records zero transactions including deposits, withdrawals, transfers or point-of-sale transactions for six months.

However, details of the “Industry Bank Account Database”, a monthly data reported by banks, and compiled by the Nigerian Interbank Settlement System, NIBSS, also indicated that the number of active bank accounts grew by 6.62 million or 3.0 per cent to 219.64 million from 213.02 million in February.

Recall that in December 2023, the CBN issued a directive to all commercial banks in the country to restrict tier-1 accounts without proper Biometric Verification Number (BVN), and National Identity Number, NIN, that are not linked by Thursday, March 1st, 2024.

According to NIBSS data on BVN enrollment count, 61.6 million Nigerians have BVN as of April 2024.

 

Credit: Vanguard

 

 


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Dubai-Based Citizenship Firm Imperial Citizenship Expands to Lagos, Targets Africa’s Growing Wealth

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Imperial Citizenship, a Dubai-based firm specialising in Citizenship and Residency by Investment (CRBI) solutions, has set its sights on Africa’s burgeoning wealth with the launch of a new office in Lagos, Nigeria.

This strategic move positions Imperial Citizenship to capitalise on the continent’s growing population of high net worth individuals (HNWIs) seeking international investment and mobility options.

Imperial Citizenship boasts a proven track record of success, having secured over 2,000 approvals for clients seeking alternative citizenship and residency pathways. Their partnerships with over 15 governments worldwide provide a diverse portfolio of investment opportunities that adhere to strict international regulations.

With its Lagos launch, Imperial Citizenship begins its foray into Africa. The continent boasts a burgeoning HNWI population, according to PwC, presenting a lucrative market for investment firms like Imperial Citizenship.

According to the World Bank, African economies are projected to grow by 3.4 % in 2024 as the African Development Bank Africa has reported that Africa will account for eleven of the world’s 20 fastest-growing economies in 2024. Highlighting the market’s potential, Mr. Zaid Al Hindi, Founder and CEO of Imperial Citizenship, says, “our expansion into Lagos allows us to directly cater to this affluent segment, offering them strategic solutions for global asset diversification, optimised investment opportunities, and enhanced global mobility.”

“At Imperial Citizenship, we do not operate through intermediaries, as we differentiate ourselves through direct government partnerships. This ensures transparency, legality, and efficiency throughout the application process, providing peace of mind for investment-minded clients” Zaid stated during the launch event in Lagos.

Speaking on the company’s approach to CRBI, Zaid mentioned, “At Imperial Citizenship, we prioritise a client-centric approach. We go beyond simply offering programs; we provide dedicated advisors who understand the unique needs and aspirations of each client. This personalised service ensures clients receive tailored investment options that align with their financial goals and risk tolerance”.

The launch of the Lagos office underscores Imperial Citizenship’s commitment to global expansion. With physical offices in Dubai and now Nigeria as well as operational representatives in Mexico, Algeria, and Turkey, Imperial Citizenship demonstrates its ability to cater to a geographically diverse clientele.

Looking ahead, Zaid highlighted that Imperial Citizenship plans to broaden its service offerings and expand its reach into new markets. By strategically targeting Africa’s rising wealth, Imperial Citizenship is well-positioned to solidify its role as a leading player in the CRBI industry, offering investors a gateway to global opportunities.


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