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Stakeholders Seek Review of Telecom Industry Structure for Growth

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Stakeholders in the telecommunications industry have expressed the need for a review of the industry structure for a sustained growth.

 

This is against the backdrop of commencement Nigerian Communications Commission (NCC) commissioned study for the determination of cost based pricing for retail data service in the country.

 

Oladipo Raji, chief executive officer, InfraFocus Technologies, said that focusing the study on determination of cost based pricing of both wholesale and retail data service without reviewing existing industry structure that does not allow operators to deliver quality and affordable services will be effort in futility.

 

He noted that there are several challenges operators are facing that are impacting negatively on their business which requires regulatory interventions.

 

Gbolahan Awonuga, executive secretary, Association of Licensed Telecommunications Operators of Nigeria (ALTON), identified the challenges to include, exorbitant charges on securing ‘Right of Way’ approvals, multiple taxation among others.

 

According to him, ‘any study that is not aimed at addressing these challenges holistically will be counter-productive’.

 

Reacting, Engr. Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), decried the politics being played in the licensing and take-off of INFRACOs identified as a boost in the transmission of bandwidth.

 

“What we witnessed and the records are there for all to see, is the numerous delays and slowing down of government to assist in the realization of the implementation – without government’s full buy-in there were mixed signals sent to the investment community as to exactly how this was going to be realized.

 

“We are still yet to witness any rollout of any fiber by the two INFRACO operators that were licensed in 2015-16 and as yet the remaining five INFRACO licences are still pending – with less than 12 months to go, it’ll take a miracle to move the 21% to 30% by any measure,” he added.

 

Godfrey Efeurhobo, managing director, Smile Communications Nigeria, acknowledged the existence of numerous challenges in the industry which is impacting negatively on the contributions of telecom to the country’s Gross Domestic Product (GDP).

 

“We need a healthy business environment to achieve growth in this sector. I believe that this cost study commissioned today (Tuesday) will highlight issues such as ‘Right of Way’ and multiple taxation which form part of operational cost of operators. At the end of this exercise, some cost that operators bear that are inimical to their operations will be jointly taken up with some agencies of government.

 

“This cost study will be a working document that will help us highlight where NCC can intervene to ensure that we have a profitable business and assist us rollout broadband services and give subscribers quality broadband that they require,” he added.

 


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Telecom

AMN Activates Starlink Cellular Backhaul Connectivity in Nigeria

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Africa Mobile Networks Group (AMN) has said that its first of its base stations in Nigeria to connect to SpaceX’s Starlink constellation is now live and using the LEO satellite network for backhaul connectivity.

AMN Activates Starlink Cellular Backhaul Connectivity in Nigeria

It’s the first AMN base station to connect to Starlink since AMN and SpaceX signed a commercial deal in July 2023 to use Starlink for remote base station backhaul connectivity across Africa.

AMN said in a statement that Starlink’s low-latency connectivity enables its multi-carrier RANs to sustainably provide 2G, 3G and 4G services in remote, rural areas of Nigeria. AMN also said it also paves the way for the launch of 5G services, which AMN plans to do before the end of this year.

AMN, which builds, owns, operates and maintains mobile network infrastructure for African mobile network operators, currently operates 1,600 base stations across Nigeria.

The company said it will continue to install new sites throughout 2024 in Nigeria, as well as Democratic Republic of the Congo, Cameroon, Madagascar, Cote d’Ivoire, Benin and Rwanda. AMN also has operations in Bissau, Ghana, Guinea, Liberia, Sudan, and Zambia.

Starlink has been commercially available to consumers and enterprise customers since January 2023. Last week, according to a report from Nairametrics, Starlink slashed the price of its internet router by 45%, although its monthly subscription rate remains unchanged. No reason was given, but the report suggests the move may be related to the naira’s recent appreciation against the US dollar and other foreign currencies.

According to figures from the Nigerian Communications Commission (NCC), Starlink had over 11,200 subscribers in the country as of the third quarter of 2023 – which also makes it one of the top ISPs in Nigeria, the report said.

 

 

 

 

 

 

 

 

 


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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