Connect with us

Telecom

SA Telcos Rue Shrinking Revenue, Eye Enterprise Market Elsewhere

Published

on

Yunus Carrim, Communications minister, South Africa
Kindly share this post

Operators in South Africa telecoms market are seeking opportunities in enterprise market for long-term growth after recent trading result saw revenue tumbling to record lows.

Business Monitor, the leading, independent provider of proprietary data, analysis, ratings, rankings and forecasts covering 195 countries and 24 industry sectors captured the decline in its just released findings.

The report “South Africa Telecoms Report” said that Vodacom reported a 1% decline in Q213 revenue compared to the previous quarter, while MTN reported a 1.4% drop in revenue in H113 compared to H212.

According to Business Monitor, both operators attributed the weak results to price competition and the interconnection rate cuts in March 2013.

Business Monitor believe this trend is unsustainable amid rising operating costs.

“They therefore expect operators to aggressively develop new revenue streams that will be less reliant on the consumer market in view of the risk of further ARPU erosion from the proposed telecoms pricing policy.

Vodacom and MTN are already pursuing a service diversification strategy with investment in non-voice solutions such as M2M and cloud computing. We expect other operators in the market to seek similar opportunities in the enterprise market to sustain long-term growth” Business Monitor reported.

According to Business Monitor, South Africa dropped two places to third position in this quarter’s update to Business Monitor’s Risk/Reward Ratings for Sub-Saharan Africa, with an aggregate score of 53.3, compared to 55.7 in the previous quarter. South Africa’s Industry Rewards rating dropped due to falling ARPUs, which Business Monitor believes are related to the regulator’s imposition of asymmetrical MTR cuts.

That said, South Africa remains the region’s largest economy and operators boast a healthier subscriber mix than much of the rest of the region, keeping its scores above the regional average.

However, its more mature mobile market means that growth prospects are slower than many of its neighbours and Business Monitor expect operators to diversify their revenue streams in order to sustain revenue growth.

Vodacom is inching closer to acquiring alternative fixed-line operator Neotel.

In September 2013, Bloomberg reported that Vodacom has entered into exclusive talks with Tataommunications, which owns a majority stake in Neotel, to acquire the fixed-line operator in a deal valued at around S$502million.

Business Monitor believes the takeover of Neotel, if completed, would open new growth opportunities for Vodacom, particularly in the corporate segment, and create new competition dynamics that could challenge Telkom’s dominance of the fixed-line sector over the long-term.

The South African government plans to introduce a transparent pricing policy in the telecoms sector as part of its ongoing programme to reduce the cost of communications.

According to Yunus Carrim, Communications minister, the policy is expected to be finalised by end-2013.

Although details of the exact tools that may be used to reduce costs have not been disclosed, Business Monitor notes the end result of the policy poses downside risks to operators’ revenues from traditional telecoms services.

Meanwhile, in October 2013 the Independent Communications Authority of South Africa (ICASA) drafted regulations to impose cost-orientated pricing on mobile and fixed termination rates, following a review on industry conditions.

According to the proposal, ICASA suggested a reduction in the current mobile termination rate of S$0.04 a minute to $0.02 in March 2014, while further reducing the termination rates to $0.015 and $0.01 in March 2015 and March 2016, respectively.
 
In the fixed-line market, the regulator proposed a rate of $0.019 for cross-net calls and $0.012 for on-net calls between 2014 and 2016, keeping asymmetric rates unchanged.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

Airtel AI Blocks 84 Percent of Spam SMS in Nigeria

Published

on

Kindly share this post

Nigeria has recorded an 84 Percent  decline in spam SMS after Airtel Africa deployed its Artificial Intelligence-powered spam detection tool, Spam Alert.

Airtel AI Blocks 84 Percent of Spam SMS in Nigeria

According to Airtel, the free service has flagged over 205 million fraudulent and unsolicited messages across 13 African markets within six months.

Nigeria registered the sharpest decline, while Kenya recorded the highest flagged spam volume with 68 million messages, followed by Tanzania with 47 million and Zambia with 33 million.

Spam Alert prefixes suspicious SMS with “SPAM Alert,” providing users with real-time protection against phishing scams and nuisance texts without requiring extra applications.

Sunil Taldar, CEO, Airtel Africa, said the solution demonstrates the company’s commitment to tackling digital fraud as smartphone penetration expands across Africa.

Currently active in 13 of Airtel’s 14 markets, including Nigeria, Uganda, Zambia, and Tanzania, the service has cut overall spam SMS by 12% across the continent. Seychelles will join soon, Airtel confirmed.

In Nigeria, Airtel reported that between March 13 and May 20, 2025, the system intercepted more than 9.6 million suspicious messages, of which over 9.1 million originated from off-network sources. T

he AI-powered system scans all SMS in real-time using 250 parameters, including sender identity, link structure, and regional anomalies, processing each message in under two milliseconds without storing content.

The Nigerian Communications Commission (NCC) welcomed the innovation.

Dr. Aminu Maida, executive vice chairman, said the initiative strengthens consumer protection at a time when spam and fraud are growing more sophisticated. He stressed the need for more collaboration between operators and regulators to reduce digital risks.

The NCC’s 2023 Industry Risk Report had ranked phishing and bulk unsolicited messaging among the top threats facing subscribers, especially in rural areas and among first-time smartphone users.

Airtel’s initiative is expected to ease these concerns by reinforcing trust in mobile communications.

 

 


Kindly share this post
Continue Reading

General News

Why Elon Musk Halted Sales of Starlink in Lagos, Abuja

Published

on

Kindly share this post

Starlink, the satellite internet provider operated by Elon Musk’s SpaceX, has stopped taking new orders for residential kits in parts of Lagos and in Abuja after network capacity was reached, the company’s online ordering page shows.

starlink

Neighborhoods listed as sold out include Victoria Island, Ikoyi, Lagos Island and Surulere.

Prospective customers in those areas can join a wait list by paying a deposit and will be notified when service space opens.

At Chevyville Estate in Lekki, one resident trying to subscribe was met with a message that read: “Starlink service is currently at capacity in your area. However, you can place a deposit now to reserve your spot on the waitlist and receive a notification as soon as service becomes available again.”

That experience mirrors what consumers in other busy districts are seeing.

A Starlink engineer who spoke on condition of anonymity to discuss internal limits said the company temporarily closes new sales in zones where adding customers would degrade service for existing users.

“It happens when the area cannot take a new customer due to its designed capacity at the time,” the engineer said.

“This also helps preserve a steady connection for people already online.” Remedies can include adding more ground infrastructure, securing regulatory clearances, or expanding satellite coverage.

Since entering Nigeria, Starlink’s monthly fee has climbed: the service began at about N38,000 (roughly $25), rose to about N45,000 ($30) and — by 2025 — was charging roughly N56,000 ($37).

Starlink has cited naira depreciation, higher operating expenses and costs tied to meeting rules set by the Nigerian Communications Commission for the increases.

Those higher prices, and the service interruptions, appear to have affected subscription numbers. After a near eight-month pause that began in November 2024 and was tied to limited bandwidth and regulatory issues, orders resumed in late June 2025.

Still, data from the NCC show active Starlink users in Nigeria fell from 65,564 in the fourth quarter of 2024 to 59,509 in the first quarter of 2025, a decline of more than 6,000 users, or about 9 percent.

Analysts point to the price rises, service holds and economic pressure as key reasons for the drop; some customers have switched to cheaper alternatives or stopped service.

As Elon Musk maintains his position as the world’s richest individual, with a net worth of $429 billion (according to the Bloomberg Billionaires Index), his commitment to global digital inclusion through Starlink remains a central focus.

Starlink’s activity in Nigeria is part of a wider push across Africa.

The company has recently moved to enter markets including Lesotho and Somalia and secured permission to operate in the Democratic Republic of Congo after earlier restrictions,

SpaceX is also working with operators such as Airtel Africa to reach rural areas where wired internet is scarce.

For many users in Nigeria, the appeal of Starlink remains clear: a reliable option where terrestrial networks falter.

But until the company expands capacity or adjusts pricing, consumers in dense urban pockets may have to wait for access or turn to other providers.

 

Credit excluding Headline: Pm News

 

 

 


Kindly share this post
Continue Reading

Telecom

Google Expands Digital Infrastructure with Four New Subsea Cable Hubs and $9m AI Fund for Africa

Published

on

Kindly share this post

Google has announced a new set of investments in Africa, reaffirming its nearly two-decade commitment to the continent’s digital transformation.

The latest commitments focus on empowering Africa’s next generation through AI, unlocking opportunities and expanding on the innovation capacity of young Africans. They cover internet connectivity; youth-led learning and innovation; and skills training.

Connectivity

Google is announcing four strategic subsea cable connectivity hubs in the north, south, east and west regions of Africa. This investment creates new digital corridors within Africa and between Africa and the rest of the world – ultimately deepening international connectivity and resilience, as well as spurring economic growth and opportunity.

This is the latest addition to Google’s Africa Connect infrastructure program, which sees the company build vital connectivity across the continent: including the Google Cloud region in Johannesburg serving users across the continent, the Equiano cable running along the entire western seaboard of the continent, and Umoja, the first fiber optic route to directly connect Africa with Australia (running through Kenya, Uganda, Rwanda, Democratic Republic of the Congo, Zambia, Zimbabwe and South Africa).

Google’s investments to date have enabled 100 million Africans to access the internet for the first time, and the Equiano cable alone is expected to increase real GDP this year in Nigeria, South Africa and Namibia by an estimated $11.1 billion, $5.8 billion and $290 million, respectively.

Youth-led learning and innovation

Enabling Africa’s young people to learn, innovate and lead is critical to Africa’s development and economic growth. That’s why Google is today also announcing free one-year subscriptions to Google AI Pro plan for college students (18 or older) across the continent – starting with Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Rwanda and Zimbabwe. The subscription provides advanced AI to students – from Deep Research, which helps save time with custom research reports and in-depth information from hundreds of sources across the web, to Gemini 2.5 Pro, which provides help with assignments or writing.

Building skills and solutions

Equipping people with AI skills is critical. To date, Google has trained 7 million Africans and plans to train an additional 3 million students, young people, and teachers by 2030. Google is also bolstering local capacity by providing African universities and research institutions with over $17 million in funding, curriculum, training and compute and access to advanced AI models over the past four years – with an additional $9 million planned for the coming year.

On the announcements, Alex Okosi, Managing Director for Google in Africa, said: “Africa’s digital economy holds immense potential, and it will be driven by the talent and ingenuity of its next generation. Today’s announcements, spanning AI education, advanced tools for students, and expanded connectivity, are a unified investment into the upward trajectory of the continent.

“We are committed to providing the foundational infrastructure, the cutting-edge tools, and the financial support necessary for Africa’s youth to innovate, lead, and build a thriving digital world.”

Google’s long term partnership

These announcements are the latest chapter in Google’s long-term investment in the continent, which has delivered on $1 billion of investment. Google’s sustained commitment to Africa has included driving connectivity; training more than 7 million people across the continent in digital skills to support the future workforce; and supporting 153 startups from 17 African nations through the Google for Startups Accelerator Africa, helping them raise $300 million and create 3,500 jobs.

AI creates an unprecedented opportunity to benefit everyone, and Google is committed to making that a reality for people, businesses and communities across Africa. Today’s announcements are another example of how Google is continuing to expand connectivity, increase product access and skills across the continent and enable African-led innovation – with more to come.


Kindly share this post
Continue Reading

Trending