News
Spending on Telecom, Pay TV Services Hobbled by Inflation – IDC
International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker, has reported that worldwide spending on telecommunication and pay TV services will reach $1,55-trillion in 2023, an increase of 3 per cent over 2022.
The latest forecast is one percentage point higher than the previous forecast published in May.
This is the third increase in the forecast in the last 12 months with inflation being the primary driver.
The geographic regions seeing above-average forecast revisions are the Middle East and Africa (MEA), and Latin America.
This is mainly a consequence of hyperinflation happening in countries such as Turkey, Uganda, Egypt, and Argentina where it has become normal to see quarterly ARPUs (average revenue per user) growing by more than 50% on a yearly basis.
On the other hand, expectations for the telecom services market in Western Europe have been lowered slightly primarily due to a worsened economic environment in a few key countries including Germany.
IDC believes this is the first sign of a new market force emerging that will put the current growth rates under pressure and slowly bring them down toward the end of the forecast period.
Inflation is certainly a global phenomenon, but the trends it shapes in different local markets vary significantly. In many countries, telecom operators were allowed by regulators to increase their tariffs (often applying a Consumer Price Index model), resulting in healthy service revenue growth on an annual basis.
In other countries, however, this move drove the accelerated migration of customers to cheaper tariff packages and cheaper operators so the value growth rates were much lower than the nominal tariff increases.
A third group includes countries such as Italy, where the competitive situation did not permit operators to do any tariff adjustments.
And among a fourth group of countries, mainly the developing countries in Eastern Europe and Africa, tariff increases were prevented by the populations’ low purchasing power.
An analysis by type of telecom services confirms that the well-known trends continue despite the changes in top-line forecasts.
Mobile is and will remain the largest segment driven by the growth in mobile data usage and machine-to-machine (M2M) applications which are offsetting declines in spending on mobile voice and messaging services.
The fixed data services segment will also grow driven by the need for higher bandwidth services will fall over the forecast period as rapidly declining TDM voice revenues are not being offservices. Spending on fixed voice set by the increase in IP voice.
The traditional Pay TV market will decline slightly over the forecast period due to the growing popularity of video on demand (VoD) and over the top (OTT) services, but these services will remain an important part of the multi-play offerings of telecom providers across the world.
Prices of all goods and services have been increasing for quite some time. Economic growth has recently started to decelerate following increases in central bank interest rates.
Consumers and businesses have been under pressure as they try to maintain a balance between rising costs and limited budgets. Although the elasticity of the telecom services is relatively low, and it is hard for customers to imagine everyday life without them, any excessive tariff increases might affect demand.
“Operators need to carefully evaluate every single market for tolerance to price increases,” said Kresimir Alic, research director, Worldwide Telecom Services at IDC.
“They should continuously assess and compare the product mixes, quality of services, pricing, and customer support capabilities of all supply-side participants. That information should help them find a magic percentage that will not scare the customers away, have positive impact on revenues, and help them maintain healthy margins in these turbulent times.”
A former Executive Director at Asset Management Corporation of Nigeria (AMCON), Abbas Muhammed Jega, has shed light on the financial dealings between Arik Air and Union Bank, revealing that the airline’s debt to AMCON was over N100 billion as of 2015 and remained unpaid.
Testifying as the third prosecution witness in the ongoing trial of Ahmed Kuru, former AMCON MD/CEO, and four others, Jega disclosed that AMCON acquired Arik’s loans from Union Bank and Keystone Bank, but not Zenith Bank, which was purchased after his exit.
According to Jega, AMCON discovered in a London meeting that Union Bank had sold them a guarantee rather than a loan, which was meant to cover foreign lenders in case Arik defaulted.
“We invited Arik to resolve the issue with Union Bank, but the arrangement disclosed by me never existed,” Jega said.
Jega attributed Arik’s inability to repay to over-trading, which led to their inability to service existing debts. He revealed that AMCON attempted to restructure Arik’s debt and even offered additional loan facilities to help the airline with working capital problems.
However, Arik failed to meet repayment obligations, prompting AMCON to propose two solutions: a debt equity swap and management control. Both options were rejected or delayed by Arik.
Under cross-examination, Jega confirmed that Kamilu Omokide and Captain Roy Ilegbodu played no role in the loan purchase or London meeting.
The matter has been adjourned to June 30, July 1, and July 2, 2025, for further cross-examination.
The case involves alleged financial misappropriation amounting to N76 billion and $31.5 million, with Ahmed Kuru, Kamilu Omokide, Captain Roy Ilegbodu, Union Bank Ltd, and Super Bravo Ltd as defendants, presided over by Justice Mojisola Dada.
Alhaji Mohammed Idris, Minister of Information and National Orientation is to chair the public presentation of the book Nigeria Media Renaissance: GOCOP Perspective on Online Publishing, a publication of Guild of Corporate Online Publishers (GOCOP). The event is scheduled for 110am on Tuesday June 17, 2025 at the Continental Hotel, Abuja.
President of GOCOP, Maureen Chigbo, who confirmed this development said the book presentation will be graced by eminent personalities from all walks of life, including government officials, captains of industry, media practitioners and other professionals, representatives of international organisations, directors of non-governmental organisations.
Alhaji Idris was sworn in as Minister of Information and National Orientation on August 21, 2023, following his appointment by President Bola Ahmed Tinubu. With over three decades of experience in broadcasting, newspapering, public relations, and advertising, Idris has brought a wealth of expertise to the role.
His academic background includes degrees in English Studies from Uthman Danfodio University, Sokoto, and Bayero University, Kano. As an entrepreneur, he established notable media outlets such as Blueprint, WE FM radio station, and Rapid Television in Abuja.
He is a prominent figure in professional associations such as National Institute of Public Relations, African Public Relations Association, Public Relations Consultants Association of Nigeria, and Newspaper Proprietors Association of Nigeria.
As the founder of Bifocal Communications, a leading public relations and communications consultancy, Idris has served both local and transnational corporations.
Beyond his professional endeavours, Idris is committed to social responsibility through the Mohammed Idris Malagi (MIM) Foundation, which has positively impacted many lives. As a reward for his contributions to the development of his immediate environment and beyond, The Etsu Nupe conferred “Kaakaki Nupe” on him.
A press statement by the GOCOP Publicity Secretary, Ogbuefi Remmy Nweke, quoted the GOCOP president as saying that the proceeds of the book will be used to fund the N2.3 billion GOCOP MEDIA CENTRE, a multi-purpose resource centre comprising a secretariat, a 21st Century library and event halls, among others.
Nweke further noted that the Guild of Corporate Online Publishers (GOCOP) was established to promote professionalism in online publishing, ensuring its members uphold the fundamental principles of journalism.
Comprising seasoned editors and senior journalists with distinguished career in print and electronic media, GOCOP’s membership has traversed the online publishing, recognizing its pivotal role in shaping the future of journalism globally. With 120 corporate publishers as members, GOCOP continues to uphold the highest standards of online journalism.
Advertising Regulatory Council of Nigeria (ARCON) has issued a stern warning to marketers, content creators, and social media influencers amid an alarming rise in fraudulent, AI-generated advertisements circulating across digital platforms.
Dr. Olalekan Fadolapo, director-general, ARCON, during a press briefing at its Lagos headquarters, decried the “porous” state of Nigeria’s online ad ecosystem and pledged to prosecute offenders to the fullest extent of the law.
Dr. Fadolapo opened the media parley by highlighting how easily unscrupulous operators deploy artificial intelligence tools to produce convincing—but entirely fabricated—advertisements.
“Our social media space has become so porous that people now freely post fake adverts, some of which claim outrageous and bogus benefits,” he remarked.
According to the Director-General, these deceptive campaigns often promise “miraculous cures” or “guaranteed returns” without any credible data or verifiable sources to back them.
Among the most alarming examples cited was an herbal remedy advertisement alleging to cure over 200 ailments—ranging from HIV to cancer—through a single “miracle” concoction.
“Imagine an advert claiming that a single herbal drug could cure HIV, cancer, and more than 200 other diseases,” Dr. Fadolapo said.
ARCON’s DG emphasized that such misleading advertisements not only jeopardize public health—by luring vulnerable individuals into purchasing untested or harmful products—but also undermine consumer confidence in legitimate businesses operating within advertising guidelines.
Dr. Fadolapo pointed to the regulatory vacuum that allows bad actors to exploit the anonymity of social media.
Unlike traditional broadcast or print media—where advertisements must pass through editorial or legal vetting—online platforms can be manipulated with minimal oversight.
Creating an ad using AI-powered design and voice generators, he warned, takes only minutes, making it difficult for regulators to identify the original perpetrators.
“The CBEX case is a painful reminder of what can happen when digital platforms are left unchecked,” Dr. Fadolapo said, explaining that the scheme purportedly defrauded unsuspecting Nigerians of nearly $2 trillion through slick, unregulated social media promotions.
He described how the CBEX promoters used AI-generated video testimonials, falsified financial statements, and cloned websites to entice victims with promises of triple-digit returns on cryptocurrency trades.
Telcos Threaten to Disconnect Banks over Misinformation on New USSD Charges
MTN Nigeria Plans N900Bn in Service Upgrade
NDIC Calls for Inputs to IADI Core Principles for Effective Deposit Insurance
Netflix Hikes Subscription Fees Again in Nigeria over “Market Conditions”
DSO: STBMAN Accuses NBC of Contempt, Seeks Presidential Intervention
E-Business2 days agoNIMC Plans to Register 95 Percent Nigerians by December
News2 days agoJAMB Waxes Worriedly over Rising Digital Exam Fraud
Telecom2 days ago9mobile Nigeria Inks Agreement to Roam with MTN
Telecom2 days agoIHS Nigeria Moves to Enhance G4S Secure Solutions Site Patrols and Increase Operational Efficiency with Patrol Vehicles
Telecom2 days agoBanks, Telcos to Start Deducting USSD Charges from Airtime Today
E-Business1 day agoAXIAN Telecom Invests in Jumia Post-MTN Era
Telecom2 days agoKonga Launches 3rd Edition of Mid-Year Shopping Festival with Unbeatable Discounts
E-Financial2 days agoFitch Upgrades Fidelity Bank’s National Rating to ‘A+(nga)’, Affirms Long-Term IDR at ‘B’