Telecom
Stakeholders Worry Over Possible Dominance of Starlink on Nigeria’s ISPs Market
Contrary to popular opinion, stakeholders in the Nigerian telecommunications industry have expressed their worries over the possible dominance of Starlink in Nigeria’s Internet Service Providers (ISPs) market.
They expressed their views at the Telecom Sector Sustainability Forum third edition (TSSF 3.0) organised by Business Remarks themed “Starlink: A Threat or Prospect to the Sustainability of Nigeria ISPs, MNOs and Infracos held in Lagos.
Acknowledging the fact that the emergence of Starlink has re-introduced satellite internet technology to the market space, Nigeria ICT stakeholders however noted that the telecoms regulator needs to address the business model to protect local players and create healthy competition.
Recall, SpaceX’s satellite internet service, Starlink announced its availability in Nigeria, months after it signed an agreement with the Nigerian government to bring in its satellite-based internet coverage, thereby, making Nigeria the first African country to use satellite internet and 46th in the world.
The public believes that the introduction of Elon Musk’s satellite internet service, Starlink will widen competition in the Nigerian internet market while disrupting the internet market.
Starlink was included alongside 37 other Internet Service Providers, increasing the number of ISPs issued licenses to operate in Nigeria to 255 as of September 2022, up from the 187 reported in December 2021.
Speaking at TSSF 3.0, eStream Network Chief Executive Officer, Muyiwa Ogungboye who was ably represented by the Chief Operating Officer, Mr Martins Akingba stated that Starlink can be a threat to the local ISPs if the gaps found with the solutions are treated.
According to him, if the objective of the Nigerian Communications Commission (NCC) with Starlink’s introduction is to provide high-speed internet access to underserved and rural areas in the country, this solution will not serve the purpose.
Stating that Starlink is not designed for the Nigerian rural market, Akingba highlighted pricing and lack of local and after-sales support as part of the reasons.
Furthermore, he said ISPs served both the retail and the enterprise markets. In his words “A lot of our enterprise market is already considering the solution but security is a major concern because they do not have an idea of how the traffic is being routed.
“As an ISPs local player, the advent of Starlink makes us question if the regulator is really careful of the investments made by players in this industry, millions of naira have already been invested in infrastructures even in the underserved areas,” he asked.
Also speaking, the Chief Executive Officer, Pan African Towers, Azeez Amida who was represented by the General Counsel, Babatunde Olaniyan said Starlink might both be a threat and a prospect but the wide adoption of the 5G network in Nigeria will pose a greater challenge to the solution.
On his part, the Chief Executive Officer of VDT Communications, Mr Biodun Omoniyi encouraged local players not to see the solution as a threat because Starlink is a leo-satellite, not too far fetch from the satellite technology.
He posited that as a disruptor, local players need to identify the gaps and fix them to have an edge over the solution.
“There will definitely be some adjustment in the market, and not a case of the winner takes all kind of situation. Some people will take up the solution, some will continue to rely on their mobile devices for internet access and others will be for fixed wireless access. If this happens, the consumers are provided with alternatives.” Omoniyi noted.
Although, he said being the first to launch is not really a big thing but is the industry, players and citizens are protected. Is the data accessible to the regulators, how do we do KYCs, and can the rural dwellers afford it, questions such as these need to be asked following the solution emergence in the Nigerian space.
Ominiyi charged the regulators to licence both the sellers, agents and providers to create a better ecosystem while encouraging operators to address their business models (pricing, positioning and support) to stay afloat and be profitable in the market.
Mr Lanre Olanrewaju, Chief Executive Officer, Equinoxcore Technology, spoke on the challenges subscribers are facing such as loss of money, falling victim to fraud, poor signal quality due to poor installation, data loss, and irregularity in the cost of gadgets.
According to him, the lack of physical office and after-sales support is a major concern for users and this challenge will continue to persist if there are no proper regulations around this.
Lanre noted that the disruptive agenda might not be achieved. On contribution to the economy, he asked if the organisation pays VAT.
Expressing his concern, the Head of Operations, Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr Gbolahan Awonuga said the licenses given to Starlink might lead to the extinction of ISPs and also the domination of the market space if not checkmate.
Awonuga urged NCC to create a level playing field for operators bringing to remembrance the extinction of CDMA in the Nigerian Telecoms market. He also make case for affordable internet service for consumers.
In addition, the Executive Secretary of the Association of Telecommunications Companies of Nigeria (ACTON), Mr Ajibola Olude stated that the regulatory safety might be weak, once there is no balancing game.
He also urged NCC to create guidelines to safeguard local players, edges on the value chain such as generating employment opportunities and restrictions in the rural areas.
On her part in her welcome address, the Convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remarks stressed that given the internet’s increasingly important role as a communication tool, internet connectivity has become a vital component of daily life, and many nations have embarked on ambitious projects to expand and improve access to the internet.
“It is believed that the use of satellite technology in Nigeria dates back to the military era and also a known fact that satellites have played a fundamental role in providing connectivity. In the last few years, the space industry has seen a rapid increase in satellite launches.
“Although Nigeria is regarded as Africa’s fastest-growing telecommunications market, its broadband penetration is largely dependent on fibre connectivity,” she said.
She recalled that at the first edition of the telecoms sector Sustainability Forum, the Nigerian Communications Commission (NCC) noted that as a result of the challenges militating against ISPs, deliberate policies and regulations are being looked at in the Commission in ensuring that ISPs and other smaller players in the industry thrive.
Olanrewaju stated further that it is on this basis that stakeholders and experts were assembled to dissect this edition’s theme.
9 Payment Service Bank (9PSB), Nigeria’s digital payment service bank, focused on financial inclusion has reiterated its support to Nigerian women entrepreneurs and Small and Medium Scale Enterprises through its agent banking business opportunities that will scale up their revenue base and improve their standard of living at the 2024 South-West Women Chamber of Commerce and Industry, Emerging Market Emerging Market Summit and Expo.
The event themed: Women Entrepreneur as Catalyst for Sustainable Development and Economic Growth held at Lagos State Co-operative Federation (LASCOFED) aimed at training and empowering over 500 women participants on entrepreneurship skills and fostering market link and economic growth, had in attendance women entrepreneurs and SMEs owners across South-West region who have been using their skills and resources to make purpose driven contributions to the society.
Speaking at the event, the Chief Executive Officer, and Managing Director, 9 Payment Service Bank, Branka Mracajac, represented by the Head of Sales Distribution and Strategic Partners, 9 Payment Service Bank (9PSB), Kunle Isiaka commended the women for their resilience and viable contributions to their communities through the various initiatives and businesses.
‘’I am indeed very thrilled to see these amazons who have been breaking all barriers without limitation in all strata of the society, women are truly the bedrock of the society, when a woman is trained, a nation is of course trained, we cannot over emphasize the need for the women the be financially included, empowered, and given the required support to thrive.
It is understood that a reasonable number of the women folks lack the basic financial knowledge, and many are financially excluded from the formal financial system, this has impacted to an extend their means of doing business.
A report by EFInA states that at least thirty-eight million (that is, 36%) Nigerian adults still do not have a bank account but majority of them have phones, it also shows that four out of every 10 Nigerians are financially excluded, and they are mostly females.
In Lagos State, there are at least eight million adults between the 18 years and above who live in Lagos and more influents daily. Out of this number, 54% of adults are business owners or traders and 28% of them receive payment digitally. With this statistics, 9 Payment Service Bank is working and consolidating on these areas.
“In addition, 91% of Lagos adult females are currently financially served, 6% of women in Lagos have access to credit facility, while we focus on the 8% excluded Lagosian, although our license does not permit us yet to give out loans, but we are doing everything possible to ensure we support the women through our agent banking training geared towards women empowerment,” Kunle added.
“As a bank providing services to the banked and underbanked, we dwell on strategic partnership with other players in the industry because we cannot do it all alone, we have the mandate to drive financial inclusion and ensure that every household is financially included. Also, a robust agent network spreading across the country to facilitate financial transactions have been of tremendous progress.
“We have empowered over 18,000 agents out of which over 45 per cent of them are women. As we make progress in this journey, our Service Location Partners will continue to engage you at your various locations with necessary support to thrive as a merchant in the payment services industry,” he remarked.
Nigerian Communications Commission (NCC) has urged telecommunications operators in the country to embrace infrastructure sharing to reduce their operating cost.
Aminu Maida, executive vice-chairman of NCC,
This is coming on the heels of calls by both Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) for cost-reflective pricing model after 11 years.
But during the 2nd edition of the West African Telecoms Infrastructure Summit and Exhibition at the weekend in Lagos, Aminu Maida, executive vice-chairman, NCC, said operators in the telecommunications sector could reduce their cost and enhance service delivery through partnerships.
Maidan was represented by Mr Victor Adoga, head, Next Generation Technology and Standards at the NCC.
He said the short-term remedy is public-private partnerships, infrastructure funds, and innovative financing models like Infrastructure as a Service.
He said, “Today, we boast of over 219 million mobile subscribers and a burgeoning tech-savvy population eager to harness digital technologies.
“However, while our growth has been remarkable, it has not been without its challenges. Issues such as uneven service distribution, infrastructural deficits, and regulatory uncertainties have occasionally hindered our progress.
“Yet, each challenge also presented a unique opportunity for growth and innovation.”
The NCC boss also advised the operators to embrace Artificial Intelligence (AI) and machine learning to optimize network management, predict maintenance needs, and enhance customer service through automation, and advanced analytics is also necessary.
“Another strategy is developing smart infrastructure, because as cities become smarter, telecom infrastructure must evolve to support an array of smart city applications, from traffic management systems to public safety solutions,” said the EVC.
Wale Owoeye, the Managing Director/CEO of Cedarview Communications Limited, a leading ICT firm based in Lagos State, has been honored as one of Nigeria’s 50 most influential personalities in the digital economy.
He received this prestigious recognition at the recent “50 Most Valuable Personalities in Nigeria’s Digital Economy” event held in Lagos.
Organised by IT Edge News Africa, the event brought together key stakeholders from various sectors, including prominent industry associations such as the Association of Telecommunications Companies of Nigeria (ATCON), Association of Licensed Telecoms Operators of Nigeria (ALTON), and the Association of Licensed Data Protection Organisations of Nigeria (ALDAPCON).
Dr. Vincent Olatunji, the National Commissioner/CEO of the Nigeria Data Protection Commission (NDPC), Ike Nnamani, CEO of Digital Realty Nigeria, and Prof. Nentawe Goshwe Yilwatda, a distinguished scholar and politician, delivered keynote presentations.
Olatunji emphasized the crucial role of data protection in the digital economy, while Yilwatda outlined essential steps for Nigeria to maximize opportunities in the digital economy and the Fourth Industrial Revolution (4IR).
Nnamani, whose presentation focused on the “Myths and Realities of the Nigerian Digital Economy,” underscored the accelerated digitization of both consumer and enterprise sectors in Nigeria, driving demand for digital skills and data center capacity.
Gathering recognizes Owoeye’s exceptional contributions to Nigeria’s digital economy
The gathering recognized Owoeye’s exceptional contributions to Nigeria’s digital economy. With a remarkable career in Nigeria’s ICT/telecoms sector, Owoeye has successfully steered Cedarview Communications to expand its presence to Port Harcourt and Abuja, offering a wide range of Value Added Services (VAS) in the telecoms market.
Cedarview has also established strategic alliances in Asia, Europe, and the US to facilitate growth in its operational areas. Additionally, Owoeye serves as the VAS Coordinator for the Association of Telecommunications Companies of Nigeria (ATCON), further solidifying his impact on Nigeria’s digital economy.
Published since 2009, IT Edge News Africa is one of Africa’s leading technology and business publications.
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