Telecom
Subscribers, Telcos Kick as FG Slams 5 Percent Tax on Calls and Data
Federal government has slammed additional five per cent excise duty, that the telecom subscriber pays, which is different from the cost of voice call..
This was disclosed yesterday at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC).
Mr. Zainab Ahmed, minister of Finance, Budget and National Planning, was represented by Musa Umar, assistant director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, while Frank Oshanipin, assistant chief officer in the ministry, did the ministry’s presentation.
But the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and National Association of Telecoms Subscribers (NATCOMS), have described the move as strange, insensitive, and irresponsible.
However, minister of Finance, Budget, and Planning, at the event, urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.
She highlighted that countries in Africa like Malawi, Uganda, Tanzania, and others have all keyed into this revenue generation pattern.
She emphasised that this is needed to change Nigeria’s economic situation for good.
“The issue of revenue is not something that needs to be shied away from, our revenue can no longer take care of our needs as a country.
“Also Nigeria is no longer making enough money in Oil revenue hence the attention is shifting to Non-revenue”.
She explained that the government is committed towards implementing the regulation in a seamless manner that will not affect Nigerians.
Earlier, in his remark, Prof Umar Danbatta, executive vice chairman/CEO NCC, said the forum is necessitated for stakeholders to get better clarifications on the 5% exercise duty on telecom services implementation.
“As the telecoms industry regulator, the Nigerian Communications Commission has engaged with the Federal Ministry of Finance, the Nigerian Customs Service, and consultants from the World Bank to get needed clarifications.
“These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the Excise Duty.
“Nonetheless, we consider it imperative that these implementing agencies should also meet directly with telecoms industry stakeholders to address areas of concern”, he stated.
On his part, Hameed Ali, comptroller general of the Nigerian Customs Service, urged stakeholders to be patriotic toward implementing the policy.
Hameed represented by Mrs A.S Oshishi, assistant comptroller general NCS, revealed that telecommunications operators are expected to be dully registered with the service for seamless actualization of the process.
“Either to pass the cost to consumer or capture it in an appropriation. The payment is to be made in arrears, on the 21st of every month”, he stated.
Reacting to the development, Engr Gbenga Adebayo, chairman, ALTON, insisted that the new tax burden would be passed to subscribers.
“It is a strange move, it appears a bit unusual. exercise duty is supposed to be apportioned to goods and products, but we are surprised this is on Services.
“We will continue to support the government but ALTON, won’t be able to subsidy this on behalf of subscribers in addition to the 7.5% VAT making it 12.5% payable by subscribers to the federal government.
“We currently pay a lot of taxes, running into 39 of them, so we can add more to our existing burden. We won’t be able to absolve this on behalf of subscribers.
“The 5% Excise Duty will be paid by the subscribers. It will collected by the operators on all voice and data services including OTT and remitted to the Nigerians Customs”, he stated.
Elsewhere, Engr Ken Nnamani president of ATCON, said, “the proposed exercise duty do not comply with principle of taxation, fairness, certainty, convenience and efficiency”.
Nnamani represented by Mr Ajibola Olude, ATCON executive secretary, said FG has continued to turn a blind eye to the issue of foreign exchange, others challenges facing telecom operators in Nigeria.
He added that the telecom industry is bleeding yet the federal government want to exacerbate the plight of operators with additional taxation.
He appealed that the implementation of the exercise duty should be stepped down because many youths in Nigeria will lose their jobs.
He advised that the government should channel its efforts to developing other sectors.
Similarly, Chief Deolu Ogunbajo, president, National Association of Telecoms Subscribers (NATCOMS), said the government’s action is insensitivity and ill-timed.
“It is unfortunate that 5 percent exercise duty is coming again together with other 38 taxes.
He said, other countries in Africa paying 5% tax on telecommunications services do not have 39 others taxes.
In his words, “this is insensitivity, and irresponsible. Government should not kill the telecom industry”.
Telecom
UN Creates Body to Protect ‘Vulnerable’ Submarine Cables after Ruptures
The U.N. technology agency has created a new body to boost protection for submarine cables, aiming to help shore them up against damage and accelerate repairs after a series of high-profile failures.
Sub-sea cables carry over 99% of international data, meaning people all over the world rely on them for emails and text messages as well as video streaming services while governments need them for internal communications, according to Reuters.
Ruptures can be caused by ageing infrastructure, weather, and accidents as well as acts of suspected sabotage such as the severing of two beneath the Baltic Sea in November.
“This body will identify key issues to ensure that submarine cables are built, deployed and maintained with a greater resiliency,” Tomas Lamanauskas, deputy secretary-general of the International Telecommunication Union (ITU) told reporters ahead of the first meeting of the new group.
“It’s definitely not just a technical issue, but an issue that can affect our economies and our societies. And however we see that this critical infrastructure is vulnerable to disruptions,” he said.
Lamanauskas said the ITU sometimes received reports of alleged sabotage but said it was not currently within its mandate to investigate such issues or assign blame.
However, he said that hoped the new body would help address disruptions, whatever the cause, by restoring services more quickly such as through expediting permits.
In 2023, around 200 cable failures were reported, according to ITU data. Overall, about 80% of cable disruptions are thought to be caused by natural hazards or human accidents, such as being pierced by a boat anchor, Lamanauskas added.
Often, data can be rerouted to other cables but in more isolated places such as the Pacific island of Tonga, damage to a submarine cable from a 2022 tsunami cut it off for a month.
The International Advisory Body for Submarine Cable Resilience is composed of 40 experts from around the world from the public and private sectors including representatives from submarine cable operators, telecommunications companies and government agencies.
A follow-up summit is planned in Nigeria in February.
Telecom
Glo Lucky Number Draw Game Winners Get Cash Prizes
Subscribers who won in the Glo Lucky Number game have received their prizes at a presentation ceremony held in Lagos. The prizes ranged from N1m to N100,000.
Globacom’s Head of Value Added Services disclosed that the Lucky Number game is for everyone on the Glo network. Said he: “Customers can subscribe in two ways. The first is to dial the USSD code *4445# and follow the instructions. They can also text WIN or WINOT (daily), LW or LWOT (Weekly), LM or LMOT (Monthly) to the short code 4445”.
In all, seventeen lucky subscribers who made the first set of winners received cash prizes ranging from N100,000 to N1,000,000 while winners outside Lagos got theirs at designated locations across Nigeria. Globacom said just many more Glo subscribers would emerge winners in the weeks and months ahead.
The daily draw game was created in collaboration with NCC-licensed Aggregator, Pisimobile, and VAS Provider, Yellowdot. Subscribers’ mobile numbers are automatically entered into a random selection process while the winning numbers must sequentially match a randomly selected number from the pool of active Glo subscribers, matched from right to left.
Lagos-based dry cleaner, Yusuf Malzo from Bauchi State, a N1,000,000 winner was excited saying “The money would come in handy in expanding my business”.
Also, Olajide Afolabi, a security man based in Ondo town, won N500,000. He disclosed that he had been playing the number game for some time, though he had been unlucky. “Just as I was about giving up, my name was announced as a winner”, he disclosed adding, ” I promise to continue to play as the money has changed my life”.
A Lagos-based driver, Emmanuel Henry who said he placed himself on auto play every day and every month received a N100,000 prize. He noted that his prize had prompted him to keep playing the number game in order to win more money.
Telecom
Mobiles Poised for Second Lives this Christmas as a Third of Consumers ‘Recycle’ Phones Within the Family
Millions of family members will receive ‘hand-me-down’ mobiles this Christmas, as tech-savvy younger consumers upgrade their phones to the latest model.
However, while globally a third of us will give our old phones to family or friends, around 75% of consumers still have at least one older phone sitting in the junk drawer, according to early figures from a new survey of 10,000 consumers across 26 countries by the GSMA, which represents mobile operators worldwide.
Globally, over 40% of mobile phones have some form of ‘second (or third) life’; being passed down to family members or friends and traded in for newer models, often over the Christmas period.
Around 14% of phones in current use globally were purchased used or refurbished, with nearly 10% of UK consumers buying refurbished phones, compared to a global average of 4%.
The used smartphone market grew by 6% in 2023, while sales of new handsets declined by 4%. Furthermore, the growth rate for reused and refurbished devices is projected to continue outpacing that of new smartphones in the coming years.
However, nearly one-third of consumers hold on to their previous phones as backups, contributing to an estimated 5-10 billion ‘pre-loved’ phones sitting idle worldwide. Many (27%) keep these devices out of concern for losing stored photos and memories, while a further fifth of consumers hold on to their devices because they don’t know what to do with them.
While receiving cash is the strongest incentive to get respondents to hand in their phones for reuse or recycling, equally important is knowing their data would be deleted properly.
Early figures from the GSMA’s global consumer survey into recycling and reuse of mobile devices, which will be released at MWC Barcelona, the mobile industry’s largest annual event in March, also found that:
- The average age of phones before replacement is around 3 years, with the vast majority of phones (75%) lasting between 1-3 years.
- Almost 60% of consumers expect to purchase their next phone within the next two years.
- Older people use phones for longer before replacing them, with over 40% using their phones for longer than 3 years.
- The top two factors that drive replacement of phones are 1) battery life (very important for 90% of consumers) and 2) poor performance / slowing down (87%). 50% said they would replace phones just to get the latest model.
- 75% of respondents had at least one old phone at home not in regular use with nearly half (46%) having at least two old phones.
Encouragingly, nearly half of consumers (49%) said sustainability is a “very important” factor in their next mobile phone purchase, and this is higher amongst younger consumers, demonstrating that interest in more sustainable and circular mobile devices is growing.
Steven Moore, Head of Climate Action at the GSMA, said: “This extensive survey shines a light on how many of us around the world are more aware of the environmental impact of our phones, want to use them for longer, but also want secure and easy ways to trade them in responsibly. With these markets only expected to grow, this presents many opportunities for companies to innovate to serve this demand.”
Reuse and recycling are increasing points of focus for mobile operators worldwide, as they move towards a more circular economy for mobile devices and network equipment –16 mobile operators have signed up to the GSMA’s pace-setting targets on circularity of mobile devices, and the GSMA’s recently launched Equipment Marketplace is helping operators reuse expensive and material-intensive network kit.
Meanwhile countries such as Australia have introduced dedicated targets and even recycling schemes for mobile phones, with positive results – survey results show that Australia has the world’s highest recycling rate for mobiles.
Recycling devices can reduce the need to mine for new materials and avoid environmental impacts while supporting the mobile industry to move towards its ambitious 2050 Net Zero goal.
A refurbished phone has just one-tenth the environmental impact of a newly manufactured phone. The GSMA estimates that if properly recycled, five billion mobile phones – just half of our latest estimate of dormant devices – could recover USD 8 billion worth of gold, palladium, silver, copper, rare earth elements, and other critical minerals, and enough cobalt for 10 million electric car batteries.
Using such materials could help manufacturers develop more robust and secure supply chains and lower the impact of mining operations on biodiversity and communities in sensitive global regions.
At the same time, operators recognise that further work is needed to address concerns that stop people from returning handsets, such as data privacy, the need to save precious memories stored on devices, and the desire to keep a spare device.
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