Connect with us

Telecom

SA Telcos Rue Shrinking Revenue, Eye Enterprise Market Elsewhere

Published

on

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

Gwandu Urges African Countries to Unite for 600MHz Spectrum Allocations

Published

on

Kindly share this post

Dr. Bashir Gwandu, former Acting Executive Vice Chairman and CEO, Nigerian Communications Commission (NCC) and former EVC/CEO, National Agency for Science and Engineering Infrastructure (NASENI), has urged African countries to unite and work together to secure 600megahertz (MHz) band spectrum allocations.

The independent telecom expert stated this at the just concluded 9th Sub-Sahara Spectrum Management Conference 2024, held in Nairobi, Kenya on 6-7 November, organised by Forum Global on the third theme: “From WRC-23 to WRC-27- Emerging Landscapes  & Technologies and the Path Ahead.”

Dr. Gwandu who held various chairmanship positions at the both the ITU and Commonwealth including the ITU Radiocommunications Advisory Group (the RAG), The Joint Task Group, and Commonwealth ITU Group (CIG), made the call during his opening remarks on the 600MHz spectrum discussions.

While making a presentation on the session: “The shape of Post-WRC spectrum ecosystems”, he called for cooperation among African countries at the forthcoming World Radiocommunications Conference 2027 (WRC-27) to enter Footnote 5.307A, which are radio regulations used to make spectrum allocation for a country or some countries.

Dr. Gwandu who played a key role in founding the ATU (African Telecommunications Union) WRC coordination meetings had expressed disappointment that the continent’s focus on collaborative efforts was waning.

At the core of the discussions was the 600MHz (3GGP n71) band, a key frequency range that many countries worldwide are increasingly allocating for IMT to support 4G and 5G networks.  While several nations in Regions 2 and 3, as well as some in ITU Region 1, have designated this band for mobile, some African countries are not yet ready to make the switch to co-primary allocation.

Eleven African countries had sought request at the WRC-23 for primary mobile allocation of spectrum and IMT identification in the 614-694MHz band, but only Egypt was granted while countries like Rwanda, Guinea, Benin Republic, and Cameroon, blocked requests from 10 other African nations with similar aspirations.

The 10 countries that were blocked include Nigeria, Senegal, Mauritania, Libya, Chad, Gambia, Sudan, Namibia, Somalia, and Tanzania.  Dr Gwandu posited that fighting for status quo to remain or ‘No Change’ in this case is akin to refusing an available front seat and fighting for a back seat.

“Therefore, colleagues, something clearly went wrong at WRC23, and we as Africans need to address it. We must work together, have positive dialogue on challenges, and optimize the use of opportunities.

“Reasonable countries have always found solutions to accommodate needs of their neighbours instead of blocking them,” he said, urging African Telecommunication Union (ATU) to remain effective by following its rules.

He said the 600MHz band issue is clear: the world is moving towards IMT in this band, with some countries ready now and others later. “Eventually, most of us will adopt it. Many region 2 and Region 3 countries have taken primary allocation to mobile in the band, and even in region 1, a number of countries have already changed the use status of this band to include either primary or secondary mobile,” he said.

Dr. Gwandu urged that those not ready not to obstruct others that are prepared to move forward. Countries develop at different rates, and the ITU Resolution 26 that requires consent before amending footnotes is intended to promote harmonization, not to delay a clear direction, or block progress, he said, adding that there is need to provide regulatory certainty to different industries.

According to him, if many countries in other regions and Africa have not taken the steps to upgrade the mobile service in the band, “then yes, we can try to convince colleagues in Africa to hold, but, this is not the case. The direction is now clear – 600MHz band will be allocated on primary basis to mobile. It is almost black and white,” he added.

“When we meet as a family, we must be honest with ourselves. Some of us who helped to initiate the ATU WRC coordination meetings are disheartened by how we, as Africans, continue to fight each other in order to win the occupancy of the back seat, whilst neglecting each other’s interests.

“When making decisions, we must consider the unique circumstances of each country, such as geographical size, population and data demand, the capital expenditure required for coverage, the dispersed nature of our rural settlements, the 50 per cent urban to rural connectivity-divide in Africa and the energy costs to power the high throughput systems in rural areas,” he added.

The telecom guru said these factors differ for each country, and thus the frequency allocation solution for a smaller country like Rwanda or Benin cannot be the same for larger nations like Nigeria or Namibia.


Kindly share this post
Continue Reading

Telecom

MTN Foundation Shines Bright at 8th Tech Innovation Awards with Multiple Wins

Published

on

Kindly share this post

MTN Foundation has affirmed its leadership in innovation through CSR initiatives, receiving the “Transformational Solutions in Education & Skills Acquisition Award” at the eighth edition of the Tech Innovation Awards, which held on November 2, 2024 at Oriental Hotel, Lagos.

Executive Director of the MTN Foundation, Odunayo Sanya was recognized as the “Corporate Social Investment Personality of the Year”, while the MTN Foundation team was named “Foundation Team of the Year”.

The Tech Innovation Awards saw the coming together of executives, leaders and employees of various organizations in the ICT sector to celebrate businesses and personalities who have contributed to the transformation of Nigeria’s digital ecosystem.

In his opening remarks, convener and Chief Executive Officer of Instinct Wave, Akin Naphtal regarded the event as an avenue to celebrate achievements within Nigeria’s ICT industry and recognize the excellence and grit of people and institutions driving digital transformation.

“We’re not just here to celebrate the innovations and growth in our ICT sector, but also to acknowledge the tremendous resilience that keeps this industry at the forefront of transformation.

“We celebrate excellence, tenacity and audacious dreamers shaping our digital space and pushing the boundaries of what we never thought was possible”.

Commenting on the awards, Executive Director, MTN Foundation, Odunayo Sanya appreciated the organizers of the Tech Innovation Awards, while also affirming the foundation’s commitment to impactful causes.

“I’d like to appreciate Instinct Wave for these awards and for choosing to constantly recognize those who are notably driving innovation in the country.

“Interestingly, this is coming right ahead of MTN Foundation’s 20th anniversary. We strongly believe that everyone deserves to have a great quality of life and access to transformative opportunities.

“This belief has driven us for the past 20 years and will continue to drive our vision of transforming lives and inspiring impact where it matters”.

For two decades, MTN Foundation has brightened lives and improved communities through its diverse CSR initiatives covering areas such as education, arts and culture, music and entrepreneurship.

Through its scholarship awards for undergraduates pursuing science and ICT related courses, the foundation has equipped recipients with relevant skills to aid their success in today’s digital world.

The awards received by the MTN Foundation are a testament to its reach and impact of its CSR initiatives over the past 20 years.

Other notable recognitions at the Tech Innovation Awards were “Telecom Infrastructure Provider of the Year” and “Telecom Infrastructure Team of the Year” received by IHS Towers, as well as the award for “Technology Person of the Year” presented to Chief Executive Officer of Open Access Data Centres, Ayotunde Coker.


Kindly share this post
Continue Reading

Telecom

Dr. Aminu Maida Advocates for Smarter Data Usage at Telecoms Consumer Parliament

Published

on

Kindly share this post

Dr. Aminu Maida, the Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), has addressed consumer concerns on data depletion, emphasizing that the commission’s findings revealed most depletions are due to advancements in technology.

Dr. Maida delivered this message during a keynote speech at the 93rd Telecoms Consumer Parliament (TCP) held at the Communications and Digital Economy Complex Auditorium. The event, themed “Optimizing Data Experience: Empowering Consumers through Awareness and Transparency in a Consumer-Centric Telecom Industry,” underscored the critical need for data transparency and consumer empowerment in Nigeria’s telecommunications sector.

He highlighted the remarkable transformation of Nigeria’s telecommunications landscape over the past two decades, evolving from basic voice services to high-speed data connectivity.

He emphasized the significant impact of 3G, 4G, and now 5G networks on the adoption of digital services such as social media, e-commerce, and online banking. With the increasing demand for data, Dr. Maida addressed pressing consumer concerns over data depletion and billing transparency.

“Despite the advancements in technology, many consumers feel their data depletes faster than expected,” Dr. Maida stated. “Our analysis revealed that data depletion and billing issues are top concerns for consumers.

“In response, we directed Mobile Network Operators and ISPs to conduct audits of their billing systems, which reported no major issues.

“However, perceptions persist due to the impact of high-resolution devices and the complexity of operator tariffs.”

Dr. Maida explained that with the advent of 4G and 5G networks, as well as devices with ultra-high-definition screens, data consumption has naturally increased. For instance, viewing a photo on Instagram that might have required only 100 kilobytes of data five years ago can now consume between two to four megabytes due to advanced camera resolutions. Streaming platforms like YouTube can consume about 3.5 to 5.4 gigabytes per hour, further contributing to data depletion concerns.

To tackle these challenges, the NCC launched a Joint Industry Campaign on Consumer Awareness on Smarter Data Usage, aimed at educating consumers on effective data management.

The campaign spans various media platforms, including radio, television, newspapers, and SMS, offering practical tips for managing data usage.

Dr. Maida also highlighted the NCC’s efforts to simplify tariffs and provide clear, accessible information on data plans and pricing. “Transparency will empower consumers to make better-informed decisions about their data usage and billing,” he asserted.

In addition to these initiatives, the NCC is finalizing Major Incident Reporting Guidelines, which will require operators to inform consumers of major incidents impacting their networks.

The Commission is also working on coverage maps detailing operators’ network strength across the country, allowing consumers to make more informed choices when selecting an operator.

Dr. Maida concluded his speech by reaffirming the NCC’s commitment to transparency and accountability within the sector. “Our goal is to create a truly consumer-centric telecom industry, where consumers feel valued, informed, empowered, and satisfied with the services they receive,” he said.

The 93rd Telecoms Consumer Parliament provided a platform for open and honest dialogue, with stakeholders discussing ways to optimize the data experience for telecom consumers in Nigeria.


Kindly share this post
Continue Reading

Trending