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Stimulating Investment in Telecoms

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Nigeria as one of the largest and fastest growing markets offers particularly attractive opportunities, starting with the fact that less than 40 percent of the country has been covered with telecommunications access as well as its large population which is the basis for telecommunications business.

In spite of huge success recorded so far in the sector especially in the mobile space of the industry growing to about 53 million, there is need for more investors and existing operators to increase their investment in providing capacity. Existing players in all market sectors require additional funding for expanding their networks and services at record pace in order to keep up with demand, and the unified licensing regime opened up new opportunities to existing and new players alike for the provision of next-generation converged mobile, fixed and Internet services.

The few investors who entered the Nigerian market in 2001 and 2002 when it was still considered very risky have experienced triple-digit growth rates every year and amassed huge profits. In the improved economic and operating environment, the market is now also attracting strong interest from leading global telecoms players and international investors, but new technologies, a decline in infrastructure costs and continuing deregulation will maintain opportunities for smaller players as well. This report provides potential investors with an overview and analysis of the Nigerian telecommunications market and delivers insights into current and future investment opportunities that exist in the various market segments while at the same time pointing out the problems and risks involved.

The first seven years of the 21st century have continued to witness an upsurge in the application and use of telecommunications and information technology in nearly all aspects of human endeavor. The wireless revolution, the pre-paid billing platform and the Internet phenomenon have accelerated access to information resources and changed the way people live and transact business. Telecommunications/information technology industry has therefore continued to take center stage in world affairs and will continue to be so far into the foreseeable future.

The wave of Market liberalisation sweeping across the world has positively impacted the continent with several countries opening up to foreign direct investment in the telecommunications sector. It is reassuring to note that it is now widely acknowledged that Africa currently represents a most fertile ground for telecom investment. Notable success stories have been recorded since several African countries embraced market liberalisation, thus encouraging others to move in the same direction.

For instance in Nigeria, Engr Ernest Ndukwe, executive vice chairman, Nigerian Communications Commission (NCC) said that the country’s telecom sector currently growing at 6 million per year which is standing at peak-high level of 45.9m by end of March 2008, both fixed and mobile. Active subscriber rate, by December according to him, will stand at 55 million.

Giving a tip of what the market can still offer, Ndukwe pointed out that the market is expected to hit 8 million subscribers annually for the next five years.

But what the NCC plans to do, according to him may increase the figures. Explaining that the role of the Commission is to encourage investment and protect all stakeholders in the industry, he explained that the advent of new technologies like broadband would encourage penetration to remote areas of the country and help bridge digital divide.

He promised new regulations that would urgently promote broadband technology and encourage investors to come into the sector.

Today, owing to several factors including government’s genuine deregulation policy, and the huge potential of the Nigerian market, so much has been achieved within a very short time. Through the national regulatory authority, the Nigerian Communications Commission (NCC), government has proved itself fully committed to the liberalization of the telecom market. Since year 2000, Nigeria has transparently licensed major competitive operators, settled interconnection disputes, constantly held open consultations with stakeholders, enacted new telecom laws, regulations and guidelines, and provided custom duty concession on equipment imports, among others.

These activities have encouraged investment and promoted competition in the industry, resulting in the exponential growth in the number of subscriber lines. It is instructive to note that the growth in subscriber lines has come as a result of a boom in private investment in the telecommunications sector. Recognizing the huge unmet demand and hunger of consumers for phone services and the potential of the Nigerian market, investors pumped in close to $4.00 billion USD into the sector by December 2003. Today, investment in the telecom sector ranks second only to that in the oil industry. According to Ibrahim Nakande, Minister of State for Information and Communications, since the liberalization of the telecom sector and the advent of GSM in Nigeria, Direct Foreign Investment of over $12 billion has flowed into the country. Aside the $2.6 billion generated through licensing fees alone notable investment witnessed in the sector especially through acquisition of local operators by foreign operators these include, Telkom of South Africa acquisition of 75% equity in Multi-Links for $280 million, MTN acquisition of VGC Communications at $65 million, MTN acquisition of XS broadband for $32.1 million and Zain acquisition of over 60% stake in Vmobile for $1billion among others. These are outside huge investment made by these operators and others in the sector in building their network as well as expansion.

In summary seven years of Telecom Sector Reform has brought about substantial private sector investment, increase in number of market players, Unprecedented Growth in the Network, Expanded geographical coverage, empowerment of the citizenry, employment Creation and economic Stimulus.

The role of a regulator in a developing economy is typically very demanding and encompasses far-reaching and multi-disciplinary issues. To be successful, the function should be based upon a well defined set of objectives which typically includes attracting investment, infrastructure planning and development, sector efficiency improvement, quality of service improvement, encouragement of competition, eliminating barriers to market entry for new operators, protection and empowerment of the consumers and promotion of the general socio-economic well being.

Regulatory functions cover virtually every aspect of telecommunications network and service provision including tariff, technical standards, allocation of scarce resources, fair competition and inter-operator issues such as interconnectivity and interconnect termination rate.

The state has a duty to encourage investment in the sector with the sole aim of making access to good quality Information and Communications Technology resources available to all its citizens at affordable prices. Regulation therefore draws its relevance from the widely accepted role of the State as a motivator and impartial umpire.

In order to optimize and accelerate growth in telecoms sector in Nigeria, attention must continue to be paid to key issues that affect investment flow such as: sound economic and fiscal policies; minimum investment risk; guaranteed investment protection; improved support infrastructures; minimum political and bureaucratic interference; stability of government and government policies; independent and strong regulatory institution; good enabling laws for the sector, and so on.

Telecommunications technology has been nationally acknowledged as presenting copious opportunities for the creation of unprecedented wealth for Nigeria. Thankfully, former president Obasanjo’s government demonstrated the political will necessary to foster an environment conducive for investment in this sector. Nigeria has progressed from the telecommunications dark ages before the year 2000, to a telecommunications revolution that is opening up new possibilities and frontiers across business, political, social and economic landscape.

The sector today requires massive inflow of private investments for infrastructure upgrade and expansion. Half-hearted market liberalization measures have denied many African countries access to investment dollars that could have been available to the sector both from within and outside such countries. Governments must therefore resist pressures to protect incumbent operators to the detriment of timely establishment of truly competitive markets.

The need for Government to provide the right environment that will attract serious investors and for market forces to thrive cannot be over emphasized. All policies must of necessity be aimed at attracting new sources of capital, accelerating network expansion, improving pricing, enhancing quality of service, introducing of new technologies and providing access to ICT resources to all citizens at affordable prices.

The expansion of our telecommunications facilities must go side by side with the development of the human resource capacity that will support the industry. We must develop knowledge, skills and competencies to understand, plan and deploy the complex networks of wireless systems, fiber optics, satellite systems, computers, Internet webs and a host of other telecommunications and information technologies.

Manpower requirements for ICT infrastructural development does not only stop with the engineers and technicians. Well trained personnel in other specialist areas such as financial planning, law, accountancy consultancy services, business management, personnel management, among others, are also required. Such skilled staffs, which are mostly needed in the middle and upper management levels, need to be well trained and up-to-date. Network operators should see development of human capital as an integral aspect of their investment in network expansion in order for such network elements to perform optimally.


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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.

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Chamber Raises Alarm over Increasing Telecoms Infrastructure Vandalism

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Lagos Chamber of Commerce and Industry (LCCI) has raised an alarm that members of the business community have drawn it’s attention to the rising incidents of vandalism of telecommunications infrastructure across Nigeria.

Chamber Raises Alarm over Increasing Telecoms Infrastructure Vandalism

Dr. Chinyere Almona, director general of LCCI,

Dr. Chinyere Almona, director general of LCCI, who stated this in Lagos recently, said that the increasing infrastructure vandalism was posing a serious threat to economic productivity, national security, digital inclusion, and investor confidence.

According to her, “our members have drawn our attention to the rising incidents of vandalism of telecommunications infrastructure across Nigeria. This trend is a serious threat to economic productivity, national security, digital inclusion, and investor confidence.

“Telecommunications infrastructure remains critical to modern economic activity, supporting banking services, e-commerce, education, healthcare, logistics, public administration, and millions of small businesses.

Persistent attacks on fiber-optic cables, base stations, power systems, and related assets disrupt essential services, increase service providers’ operating costs, and reduce service quality for consumers and businesses.”

Speaking further, Dr. Almona explained that “to address this challenge, the chamber urges governments at all levels to treat telecommunications infrastructure as critical national assets that require stronger protection.

“This should include enhanced security surveillance, stricter enforcement of laws against vandalism, faster prosecution of offenders, and closer collaboration between security agencies, regulators, communities, and network operators.”

She added: “The Chamber also calls for improved rightof-way management, better coordination during road construction and urban works, and stronger public awareness campaigns on the economic damage caused by vandalism.”


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Firm Shares 5-step Safety Action Plan on What to Do When You Discover Your Phone is Missing

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Misplacing a device, or having one stolen, is a stressful occurrence. Along with the inconvenience of no longer having a smartphone or tablet, comes the risk of unauthorised access to banking accounts and the potential for identity theft. With this in mind, Kaspersky experts have released a practical, minute-by-minute action plan for the moment you realise your phone is missing.

Step 1: Try to locate it via another device

The first step that could help to find your phone is to activate the Find My Device feature for Android or Find My for iOS to locate it. You can enter your Google or Apple ID account from the other device and see the list of devices linked to the account. Kaspersky for Android users can locate their device using the “Where Is My Device” feature via the My Kaspersky web portal. It is important that in order to use any functionality related to the device location, all those features must be activated in advance.

Step 2: Block your phone and watch for scammers

After logging into the account and finding the missing device in the device list, set it to “Lost” mode. After that click the “Вlock” button. You can set a new password, as well as add a message or a contact number that the person who found the phone will see. If the device is not connected to the Internet, the lock will take effect as soon as it connects.

Along with locating the device, Kaspersky for Android users can go beyond simple locking:

  • Turn on a loud alarm, even if the phone is on silent. Perfect for finding it under a couch or forcing a thief to abandon it.
  • Take a Mugshot. On devices with a front camera, Kaspersky captures a photo of the person currently using your phone. This evidence can be shared with authorities. Kaspersky’s Mugshot feature works even if the thief ignores native lock commands.

Stay cautious, if the phone falls into the hands of intruders, they may try to contact you and extort personal data to access the phone. It’s highly recommended to warn your friends and relatives about the device loss whilst your mobile phone can be used for calls or messages from your number with requests for money or questions, all of which should be ignored.

Step 3: Block access – SIM, bank cards, passwords

Promptly contact the mobile operator and block your SIM card, so you will eliminate the risk of using it for unscrupulous purposes. Also contact your bank to block any cards linked to the device or unlink those accounts.

After that, think about resetting passwords for all important services and log out of your accounts wherever possible. If you use a password manager, change its master password to protect all saved credentials.

If you’ve enabled SIM Watch in Kaspersky’s app in advance, the solution automatically blocks the device the moment someone inserts a new SIM card. This stops thieves from using their own SIM to bypass your locks.

Additionally, it’s recommended to protect the Kaspersky app itself from being uninstalled. Thieves often try to remove security apps first. Kaspersky’s anti-uninstall protection (one of the features of Where Is My Device) prevents the app from being removed and blocks changes to system settings – without your screen lock password.

Step 4: Check for the backups

As for other data such as photos, notes or messages stored on the phone, unfortunately, it will be only possible to restore it if you have backups or syncing with the cloud configured. If you had enabled device backups before the loss, you can restore almost everything, from contacts and photos to text messages.

Step 5: Remotely erase your device, if there is no hope of finding it

In parallel with how you perform all the actions described above, it is highly recommended to report the loss to local authorities and follow their guidance. However, if you are certain that the phone cannot be recovered, the final recourse is to completely erase all data from the device. This can be performed via Find My Device feature for Android, Find My for iOS or from the My Kaspersky web portal (for Android).

“In the routine of daily operations, it is easy to overlook how many critical aspects of our digital lives are tied to our mobile devices, and how seldom we consider that losing a phone may lead not only to inconvenience, but also to data loss, compromised access to essential accounts, or even identity theft.

At Kaspersky, we think in advance for your safety, going beyond just an antivirus solution. We fully understand the risks and disruptions that a lost or stolen phone can cause. That is why our solutions are designed to mitigate those risks,” comments Dmitry Kalinin, Senior Malware Analyst at Kaspersky.

Step 0: Protect yourself in advance

Here are some additional steps that, if taken in advance, may significantly reduce the negative effects of losing the phone:

  • Enable location tracking. Both Android and iOS have special functionality to track a phone’s location and remotely erase data from it. Kaspersky for Android provides this functionality with the Where Is My Device feature activated.
  • Allow automatic backups. Due to the regular backups all photos, videos, documents, contacts, and other important data can be recovered if the phone goes missing.
  • Store all sensitive data in the protected format. Use a dedicated security solution like Kaspersky password manager, which apart from securely keeping passwords, logins and bank cards, has a special secret vault functionality aimed at storing important documents, for example, scanned Passports/IDs and PDF files, addresses and notes.
  • Set immediate auto-locks. This ensures the phone is always locked when not actively being used, helping to prevent thieves or cybercriminals from accessing stored information.
  • Keep the phone physically secure. While being in a public place, avoid leaving a device unattended or easily accessible such as on tables or in back pockets.

 


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MTN Foundation Expands Digital Access as Iwerekun Junior High School Records Stronger Academic Results

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The recent access to digital tools and facilities in Lakowe’s Iwerekun Junior Secondary School has become a thing of pride. The school is one of the beneficiaries of the MTN Foundation’s What Can We Do Together (WCWDT) initiative. With a student population of over 2,000 (including more than 400 in technical classes), the school needed a suitable ICT Lab last year. A call that WCWDT answered, renovating the ICT laboratory into a world class facility to support the students.

MTN Foundation Expands Digital Access as Iwerekun Junior High School Records Stronger Academic Results

MTN Foundation

According to the Universal Basic Education Commission (UBEC), over 8 million students are enrolled in junior secondary schools across Nigeria, yet only 416,291 teachers. This creates a rising need for better facilities and tools that would support and amplify teaching efforts. With efforts from initiatives like WCWDT communities across the country are getting access to the facilities that will drive educational efforts.

Today, the ICT laboratory has changed the learning experience for many students in the school. What used to be limited access to digital learning tools has gradually become a more engaging and practical learning environment, giving students room to learn, explore and build confidence with technology.

For the school’s Principal, Mr. Azeez Olatunji Fatai, the difference became noticeable almost immediately. “Since the installation of the ICT lab, we have seen significant improvements amongst students,” he said. “Our students now have access to digital tools and learning resources that were previously unavailable, and their confidence in using technology has improved greatly.”

That renewed confidence is beginning to reflect in how students engage both inside and outside the classroom. Recently, the school emerged first in an inter-school competition, a milestone many within the school community see as evidence of the growing exposure and encouragement students now receive. Teachers say students are showing greater enthusiasm during lessons and are becoming more willing to participate in practical and extracurricular activities.

The ICT lab has also strengthened the school’s focus on practical learning. Since November, students have participated in more structured digital learning sessions, while some have also gained additional exposure through extracurricular and skill-based programmes designed to strengthen their digital and technical capabilities.

For the MTN Foundation, this outcome reflects the broader goal of the What Can We Do Together initiative, which continues to address critical gaps in education and community infrastructure.

As nominations open for Phase 6 of the initiative, the Foundation is calling on Nigerians to nominate deserving schools and communities for the opportunity to benefit from upgraded science laboratories and primary healthcare centres, helping to create more success stories like Iwerekun Junior Secondary School and expand access to quality learning and development opportunities across the country.


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