Telecom

Reducing Operational Cost through Infrastructure Sharing

Published

18 years ago

December 15, 2008

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Telecommunications service providers in the country have severally be lamenting on high cost of providing service, which they claimed is adversely affecting their ability to deliver quality of service as well as meet up with their social responsibilities.
For instance, compared to other developing economies, operators in the country are faced with multiple taxes by different tiers of government, provision of power as well as transmission infrastructure that are none existence. In most developing countries such as Egypt, South Africa, Ghana among others these challenges are not faced by telecom operators in these countries. But the most common challenge that operators around the world are faced with is duplications of infrastructure, where each operator has to deploy the same infrastructure its older competitor has deployed thereby wasting the resources as against sharing such infrastructure for better performance.
Against this backdrop that the International Telecommunications Union (ITU) published a report detailing a set of regulatory strategies designed to lower the costs of telecoms network rollout. The report notes that 2008 has been marked by unparalleled numbers of voice and Internet consumers in both the developing and developed world, the result of which is network growth and expansion.
Options available
This year the report added, has also witnessed an unparalleled global financial crisis which may make it more difficult for investors to obtain financing for continuing network development. Sharing strategies, examined in the new ITU report, are seen as conducive for infrastructure development in the telecommunications/ICT sector, particularly in light of the deepening global financial crisis.
Sami Al Basheer, director of ITU’s Telecommunication Development Bureau, said that sharing strategies are increasingly necessary to ensure that operators can deploy their networks at low cost while guaranteeing that consumers have access to affordable services. "Now, more than ever, sharing strategies make sense as operators are forced to reduce the costs of network deployment as they compete for scarce investment funds. This is a forward-looking perspective in light of the current financial and economic uncertainty," he said.
Sharing strategies he said include the sharing of civil engineering costs in deploying networks, promoting open access to network support infrastructure (poles, ducts, conduits), essential facilities (submarine cable landing stations and international gateways) as well as access to radio-frequency spectrum and end-user devices.
The "Six Degrees of Sharing" theme was first discussed in Thailand during ITU’s 2008 Global Symposium for Regulators last March. Few observers could then have anticipated the rough ride that would be in store for financial markets a few months down the road.
Yet, the guidelines announced in March seem almost prophetic in today’s circumstances. Taking a broad and innovative view of sharing, the world’s regulators sought to capture the productivity of global networks and use it to expand the scope of opportunities for service and content providers and, ultimately, consumers.
Developing countries embraced sharing to make more affordable the expansion of ICT networks to rural and under-served areas. Many developed countries are looking at sharing to reduce the cost of rolling out ultra high-speed broadband networks that reach customers’ homes and apartment buildings.
"Sound business and regulatory practices will contribute to extracting the greatest possible value from existing levels of investment in the telecommunication and ICT sectors. ITU is committed to working with member States and to assist regulators in marshalling the regulatory expertise they need to navigate these rough seas," said Al Basheer.
The booming volume of digital bits generated by the move to convergence and packet-switching has produced a need for increased network capacity. Regulators have a responsibility to create and maintain an environment in which operators and service providers can maximize network capacity and efficiency by fostering capital investment and market expansion as the sector continues to evolve.
The report highlighted that mobile penetration showed high growth rates through 2008. It noted that by year end, mobile networks and subscribers will rise to an all time high, reaching an estimated 4 billion mobile subscribers worldwide. The world it said also counts over 1.5 billion Internet users, a growing number of which use fixed and mobile broadband services. Dial-up is being replaced by broadband across developed and developing countries alike. ITU noted that in developing countries such as Chile, Senegal and Turkey, broadband subscribers represent over 90 per cent of all Internet subscribers.
A growing array of broadband wireless systems are now available, opening the way for users in developing countries to access the Internet on mobile phones and other handheld devices. At the same time, more developing countries are deploying national fibre backbones and backhaul networks to transport their growing data-rich traffic. In addition, several new international submarine cable networks are set to connect developing countries to the global network of Internet backbones – just as a group of high-tech entrepreneurs are working to revive plans for a constellation of broadband satellites to connect the developing world. The Trends report catalogues efforts by governments, and in particular ICT regulators, operators and service providers to expand the reach of affordable broadband services and meeting universal access goals.
How to grow the sector
What had been foreseen as ideal strategies to extend broadband network access in developing markets may now be viewed as a prescription for the entire world. If the sources of capital for network investment suffer a temporary drought, policy-makers could take steps to make their markets more amenable to the shrinking pool of investment, such as lower investment barriers that inhibit capital flows from one country to another.
Reduce of regulatory barriers (high licence fees or market-entry bans) that represent hostile environments for capital investment and market growth.
Share essential facilities, such as cable landing stations, local switching centres or fibre backbone networks.
Adopt rules to provide for infrastructure sharing, particularly "passive" sharing of towers, ducts, rights-of-way and other support facilities.
Overhaul and streamline cross-agency processes to create a ‘one-stop shop’ for various network-related authorizations, such as land management, port access, environmental and safety permits.
Add innovative spectrum management mechanisms that promote increased sharing and efficient use of spectrum.
Amend regulatory frameworks to eliminate discriminatory rules that favour one company or industry over another in a converged services market
Ensure that government policies and rules maximize the ability of incumbents and market entrants to choose between different opportunities for business plans and long-term strategies, including resale, wholesale, and niche markets.
Most of these initiatives are beginning to take root in the country’s telecommunications space, before now, idea of co-location of infrastructure was strongly opposed by operators who were fighting over subscribers, but, when the cost of providing service kept rising as well as intervention by Nigerian Communications Commission that began enlightenment of operators on the need to co-locate that they started adopting the option. Today, there are over 1000 co-located sites in the industry.
This also provided opportunity for investment as some investors have begun to build and operate cellular site for operators to co-locate. Notable among them are Infrastructure Hi-Tech Services (IHS), Hilios Towers, among others.
Mr. Gbenga Onakomaiya, chief commercial officer, IHS, said that the idea of building and managing of sites for mobile operators is to take off the problems being faced by operators in managing sites such as youth restiveness, generator theft and taxes.
He explained that an operator in the country spends average of $6,000 per month to maintain a site, but with co-location option such operator spends $2,000 per month. This according to him is cost effective as well as big relief for them. “Initially, everybody wanted to provide services by themselves but now they are seeing the economic sense as sites are growing, and maintenance is becoming big financial burden. They need to focus their attention to their core business of running the network,” he said.
Although NCC has been advocating for sharing of infrastructure as a faster way of expanding network roll out especially in underserved areas, and has expressed it readiness to monitor the implementation of the option by operator by next year. This ITU report is seen as a desired encouragement to some operators whose parent company may not be favourably disposed to it.
Industry watchers who spoke to Nigeria CommunicationsWeek expressed worry over implementation of sharing of infrastructure. They argued that as operators are encourage by every means to share infrastructure, measures should be put in place to address vandalisation which is likely to have adverse effect on service delivery. They explained that if a shared infrastructure is vandalised, it will affect all the networks sharing that infrastructure.

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Telecom

Starbase Technologies Introduces Yolly, a Reward-Based Social Entertainment Platform

Published

15 hours ago

August 3, 2026

Ugo Onwuaso

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Starbase Technologies has launched Yolly, a new social entertainment platform designed to reward users for watching, streaming and creating content while promoting wholesome digital engagement.

Starbase Technologies

The company said the platform was developed to redefine participation in the digital economy by enabling viewers, creators and brands to earn value from meaningful online interactions.

According to Starbase Technologies, Yolly introduces a reward system powered by Stars, its native digital rewards currency, which users accumulate through activities such as watching videos, live streaming and creating content.

The company said the initiative was built on the belief that everyone contributing to the digital ecosystem should have the opportunity to benefit from the value they help generate.

Unlike conventional social media platforms where monetisation is often restricted to creators with large followings, Yolly allows creators to begin earning from their first stream without meeting follower thresholds.

The platform also provides emerging creators with features including gifting, Boosts and a Founder Creator badge to help them grow their communities from the outset.

Viewers are also eligible to earn Stars through the platform’s Watch+ feature, which rewards users for watching content from their first session.

For brands, the company said Yolly offers an alternative to traditional impression-based advertising by providing verified engagement metrics, real-time performance dashboards and brand safety controls to improve campaign measurement and audience interaction.

Speaking on the launch, the Head of Business at Yolly, Emeka Okenwa, said the platform was designed to create a more inclusive and rewarding creator economy.

He said the rewards ecosystem prioritises wholesome content and genuine community engagement rather than content driven solely by algorithms or viral trends.

“The platform has been developed on the premise that the future of the creator economy should be more inclusive, more rewarding and built around genuine communities rather than algorithms alone,” Okenwa said.

He added that Yolly was created to encourage family-friendly content while providing viewers, creators and brands with a trusted environment to connect, create and grow.

According to the company, the platform features content across entertainment, sports, lifestyle, education, technology and live events.

Starbase Technologies said the launch forms part of its broader vision of connecting creators and innovators through technology solutions that expand opportunities within the global digital economy.

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Telecom

Isolation Is Economic Suicide – Jonas Warns Stronger African Nations Against Self-Delusion

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15 hours ago

August 3, 2026

Ugo Onwuaso

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Mcebisi Jonas, Chairman of MTN Group, has called on African leaders and businesses to deepen regional cooperation, warning that no country on the continent can achieve lasting prosperity in isolation.

Isolation Is Economic Suicide - Jonas Warns Stronger African Nations Against Self-Delusion

Mcebisi Jonas, Chairman of MTN Group

Jonas made the call during the MTN Y’ello Chair event held on Aug. 2, where he urged Africa’s largest economies to work together to unlock the continent’s economic potential.

He said the fortunes of businesses operating across Africa were closely linked to the continent’s overall economic performance.

“Our fortunes as MTN are intertwined with the fortunes of the continent. If the continent goes down, we go down. If the continent is lifted up, we also are lifted up,” he said.

According to him, corporate success cannot be sustained where regional economies remain weak or fragmented.

Jonas cautioned major African economies, particularly Nigeria and South Africa, against adopting inward-looking economic policies, stressing that their long-term prosperity depends on stronger collaboration with neighbouring countries.

“If the continent is to be propelled beyond where it is, trade between South Africa and Nigeria must improve.

“If the big economies of the continent are not working together, are not aligned in terms of agenda and are not trading with each other, then you have a problem,” he said.

He advocated the creation of a pragmatic coalition of Africa’s leading economies, comparable to the Group of Seven (G7), to coordinate economic priorities, strengthen regional integration and accelerate development across the continent.

Jonas also called for increased investment in cross-border infrastructure, including energy, transport, logistics and financial systems, to facilitate trade and improve economic resilience.

According to him, Africa’s long-term growth will depend on its ability to function as a cohesive and interconnected economic bloc.

Recent trade figures indicate growing commercial activity within the continent.

According to the African Trade Report 2025 published by the African Export-Import Bank (Afreximbank), intra-African trade increased by 12.4 per cent to 220.3 billion dollars in 2024.

The report showed that South Africa remained the continent’s largest intra-African trading nation with 42.14 billion dollars in trade, while Nigeria’s intra-African trade rose significantly to 18.43 billion dollars, from 8.1 billion dollars recorded in the previous year.

Despite the progress, Jonas noted that regulatory bottlenecks, infrastructure deficits and other cross-border barriers continued to limit the full potential of trade among African countries.

He urged governments to pursue policies that encourage greater regional integration, describing continental cooperation as essential for sustainable economic development.

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Telecom

Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-dealing @Pan African Towers

Published

15 hours ago

August 3, 2026

Ugo Onwuaso

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As multiple legal disputes arising from the acquisition of Pan African Towers unfold before Nigerian courts, one name consistently appears across the proceedings: Adefolarin Ogunsanya.

Court filings involving the Board Chairman and DPI partner raise broader questions about shareholder influence, corporate governance and executive independence following the 2023 acquisition.

The relationship did not begin in conflict. According to court filings, former Pan African Towers CEO Azeez Amida played a leading role in identifying and engaging investors after the company’s shareholders decided to pursue a sale.

The filings state that negotiations led by Amida culminated in the acquisition of Pan African Towers by Development Partners International (DPI), Verod Capital Growth Fund III LP and African Development Partners International LLP in a transaction later recognised as African Deal of the Year. Less than three years later, the same acquisition has become the subject of three separate court cases, bringing its governance arrangements under judicial scrutiny.

According to separate Federal High Court filings, the Management Incentive Plan (MIP) was more than a compensation proposal—it was a key factor in Amida’s decision to select the DPI, Verod and African Development Partners consortium to join him in acquiring Pan African Towers from Chapel Hill Denham, Nigeria Infrastructure Debt Fund and Prime Infrastructure West Africa.

The affidavit states that Amida held discussions with several investment firms before ultimately recommending the consortium.

He alleges that he made it clear from the outset that management would retain a minimum 5% equity interest following the acquisition, a proposal the consortium accepted through the MIP and accompanying Term Sheets. According to the pleadings, that arrangement distinguished the consortium from competing investors and ultimately secured Amida’s support for the transaction.

The court documents place Board Chairman Adefolarin Ogunsanya at the centre of those negotiations. Among the exhibits is an email from Ogunsanya forwarding a document titled “PAT – MIP analysis.xlsx,” described as “an excel working of the incentive scheme,” together with an invitation to walk Amida through the proposed structure.

The MIP projected that Amida’s proposed 5% equity participation could generate returns exceeding $30 million, which he alleges formed a significant part of his decision to proceed with the consortium.

According to the claimant, those equity arrangements were never implemented after the acquisition closed, giving rise to the separate Federal High Court action in which he seeks damages exceeding $30 million.

DPI, Verod and their respective limited partners are yet to file a substantive defence more than twelve months after the suit was commenced.

According to filings governance tensions emerge after acquisition which Amida’s defence is in contention that governance dynamics changed significantly after the acquisition.

The filings allege that shareholder representatives and board members became increasingly involved in operational matters ordinarily reserved for executive management, particularly procurement and commercial negotiations, including advocating sourcing decisions involving companies in which they held interests.

The defence identifies Board Chairman Adefolarin Ogunsanya as one of the directors involved in those discussions, alleging that governance and procurement disagreements became a defining feature of the relationship between management and the new ownership structure. Those allegations remain disputed and will ultimately be determined by the court.

According to the filings, following the appointment of a new Chief Financial Officer, Amida deliberately stepped away from final expenditure approvals because of governance concerns and the potential for conflicts of interest.

Instead, the defence states that payments followed the company’s established approval process, with departmental reviews culminating in final approval by the Chief Financial Officer, who was hired by the consortium and remains in the company till date.

The defence argues that many of the expenditures now challenged were processed under that framework. It further notes that the Chief Financial Officer responsible for those approvals remains with Pan African Towers and has since been promoted, a fact Amida contends is relevant to the court’s assessment of responsibility for the approval process.

The defence disputes that the transactions were unilateral decisions by the former CEO, arguing that the expenditures passed through multiple approval layers involving Human Resources, Finance, Procurement, Executive Management and, where necessary, the Board. Internal emails, approval workflows, WhatsApp communications and financial records have been listed among the evidence to be relied upon at trial.

The defence further contends that the hospitality, investor engagement and related business expenses were recognised in the company’s audited financial statements and approved through established corporate processes before later becoming the subject of litigation.

Board Chairman Adefolarin Ogunsanya’s recurring role across the various proceedings is one of the more notable features of the litigation.

According to the pleadings, he participated in negotiations surrounding the Management Incentive Plan, later signed the October 2024 query issued to Amida before the Mutual Separation Agreement, and subsequently declined a demand for an amicable settlement in the National Industrial Court dispute.

Amida now alleges that Pan African Towers’ Federal High Court action is retaliatory and intended to pressure him in connection with his earlier proceedings against DPI, Verod and other parties involved in the acquisition. Those allegations remain contested and will ultimately be determined by the courts.

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