Telecom

Technological Changes and Telecom Access Issues

Published

16 years ago

February 8, 2010

Kindly share this post

One major challenge in telecommunications development in countries especially, those referred to as third world is providing telecommunications access to semi urban cities as well as rural areas.
To most operators in these countries, providing access to people living in those areas is not always a priority, basically because they are not commercially viable. Operators of telecommunications services are in the business to make profit and therefore could not afford to spend investors’ money on projects that does not have return on investment such as providing services to rural underserved areas.
In most developing economies, efforts at increasing access to people living in rural but underserved areas are pioneered by government through its agency saddled with the responsibility of regulating the sector. What the authorities does is to grant operators incentives that motivate them to expand their operations to those commercially none viable areas.
Over the years, telecommunications sector like any other sector in the economy are witnessing technological changes each time there is a new technology operators invest money in upgrading its equipment to the new technology.
Unfortunately, most of the new technologies instead of assisting operators in their effort to increase access to less developed areas through making the cost of providing services to such areas cheaper, concentrate more on service efficiency and network capacity to deliver several services.
More so, as these happens it increase cost of acquisition of hardware equipment required to access such service. For instance, when Global System for Mobile communications (GSM) operators upgraded their network from 2.5 Generation to third generation which allows subscribers to use voice, data and video simultaneously, the cost of handset that makes this possible were nowhere near average Nigerian.
Overview of technological changes
Although, Nigeria started late in the business of telecommunications, it has witness some technological upgrade by operators in the industry, all geared towards improvement of service delivery but none that seek to address access concerns to rural areas as well as making such service within the reach of a common man.
The first set of GSM operators that launched services after the industry was liberalized in 2001 used second generation technology to deliver services. Second generation 2G cellular telecom networks were commercially launched on the GSM standard in Finland in 1991. Three primary benefits of 2G networks over their predecessors were that phone conversations were digitally encrypted, 2G systems were significantly more efficient on the spectrum allowing for far greater mobile phone penetration levels; and 2G introduced data services for mobile, starting with SMS text messages.
After 2G was launched, the previous mobile telephone systems were retrospectively dubbed 1G. While radio signals on 1G networks are analog, and on 2G networks are digital, both systems use digital signaling to connect the radio towers (which listen to the handsets) to the rest of the telephone system.
According experts, digital systems were embraced by consumers for several reasons, which included, the lower powered radio signals require less battery power, so phones last much longer between charges, and batteries can be smaller.
The digital voice encoding allowed digital error checking which could increase sound quality by increasing dynamic range and lowering the noise floor.
The lower power emissions helped address health concerns. Going all-digital allowed for the introduction of digital data services, such as SMS and email. With analog systems it was possible to have two or more "cloned" handsets that had the same phone number.
A key digital advantage not often mentioned is that digital cellular calls are much harder to eavesdrop on by use of radio scanners. While the security algorithms used have proved not to be as secure as initially advertised, 2G phones are immensely more private than 1G phones, which have no protection against eavesdropping.
However, its shortcoming includes in less populous areas, the weaker digital signal may not be sufficient to reach a cell tower. This tends to be a particular problem on 2G systems deployed on higher frequencies, but is mostly not a problem on 2G systems deployed on lower frequencies. National regulations differ greatly among countries which dictate where 2G can be deployed.
Analog has a smooth decay curve, digital a jagged steppy one. This can be both an advantage and a disadvantage. Under good conditions, digital will sound better. Under slightly worse conditions, analog will experience static, while digital has occasional dropouts. As conditions worsen, though, digital will start to completely fail, by dropping calls or being unintelligible, while analog slowly gets worse, generally holding a call longer and allowing at least a few words to get through.
While digital calls tend to be free of static and background noise, the lossy compression used by the codecs takes a toll; the range of sound that they convey is reduced. You’ll hear less of the tonality of someone’s voice talking on a digital cellphone, but you will hear it more clearly.
2.5G is a stepping stone between 2G and 3G cellular wireless technologies. The term "second and a half generation" is used to describe 2G-systems that have implemented a packet switched domain in addition to the circuit switched domain. It does not necessarily provide faster services because bundling of timeslots is used for circuit switched data services (HSCSD) as well.
International Mobile Telecommunications-2000 (IMT-2000), better known as 3G or 3rd Generation, is a family of standards for mobile telecommunications defined by the International Telecommunication Union, which includes GSM EDGE, UMTS, and CDMA2000 as well as Dect and WiMax. Services include wide-area wireless voice telephone, video calls, and wireless data, all in a mobile environment. Compared to 2G and 2.5G services, 3G allows simultaneous use of speech and data services and higher data rates (up to 14.0 Mbit/s on the downlink and 5.8 Mbit/s on the uplink with HSPA+). Thus, 3G networks enable network operators to offer users a wider range of more advanced services while achieving greater network capacity through improved spectral efficiency.
4G refers to the fourth generation of cellular wireless standards. It is a successor to 3G and 2G standards, with the aim to provide a wide range of data rates up to ultra-broadband (gigabit-speed) Internet access to mobile as well as stationary users. Although 4G is a broad term that has had several different and more vague definitions, this article uses 4G to refer to IMT Advanced (International Mobile Telecommunications Advanced), as defined by ITU-R.
A 4G cellular system must have target peak data rates of up to approximately 100 Mbit/s for high mobility such as mobile access and up to approximately 1 Gbit/s for low mobility such as nomadic/local wireless access, according to the ITU requirements. Scalable bandwidths up to at least 40 MHz should be provided. A 4G system is expected to provide a comprehensive and secure all-IP based solution where facilities such as IP telephony, ultra-broadband Internet access, gaming services and HDTV streamed multimedia may be provided to users.
LTE Advanced (Long-term-evolution Advanced) is a candidate for IMT-Advanced standard, formally submitted by the 3GPP organization to ITU-T in the fall 2009, and expected to be released in 2011. The target of 3GPP LTE Advanced is to reach and surpass the ITU requirements. LTE Advanced should be compatible with first release LTE equipment, and should share frequency bands with first release LTE.
The Mobile WiMAX (IEEE 802.16e-2005) mobile wireless broadband access (MWBA) standard is sometimes branded 4G, and offers peak data rates of 128 Mbit/s downlink and 56 Mbit/s uplink over 20 MHz wide channels. The IEEE 802.16m evolution of 802.16e is under development, with the objective to fulfill the IMT-Advanced criteria of 1000 Mbit/s for stationary reception and 100 Mbit/s for mobile reception.
UMB (Ultra Mobile Broadband) was the brand name for a discontinued 4G project within the 3GPP2 standardization group to improve the CDMA2000 mobile phone standard for next generation applications and requirements.
Engr. Bayo Banjo, general manager, Disc Communications, said that technological advancement in telecommunications are products of research carried out by especially equipment vendors, and that these vendors invest in research and development with the idea of making profits from the sale of products of such research.
He added that the guiding principle is demand of the product which often time has a global outlook and such would not want to invest in product whose demand is low. He explained that why technological advancements in telecommunications industry are not looking at a way of making equipments for network roll out that will be cheaper and may not require some basic infrastructure is because such equipment vendors are using their home countries which has such infrastructure as basis for producing any product.
He regretted the situation in the country where 60 per cent of telecommunications activities are centred around cities like Lagos, Abuja and Port Harcourt because government has failed in its effort to provide adequate infrastructure such as electric to the citizens there by forcing operators to concentrate in the cities where residents can provide generators to use their telecommunications equipment required to enjoy telecommunications services.
He noted that presently, telecommunications equipments for network roll out are getting cheaper as a result of economic meltdown and emergence of Asian vendors such as Huawei.

Kindly share this post

Telecom

Banks, Telcos Settle Four-Year Dispute over N300Bn USSD Debt

Published

22 hours ago

February 20, 2026

Ebere Melum-Nwogbo

Kindly share this post

Banks and telecommunications operators in Nigeria have ended a four-year dispute over nearly N300bn owed for Unstructured Supplementary Service Data services (USSD), with the debt now fully cleared, according to Association of Licensed Telecommunications Operators of Nigeria (ALTON).

Banks, Telcos Settle Four-Year Dispute over N300Bn USSD Debt

Gbenga Adebayo, chairman, announced the resolution on Thursday during an official visit to Idris Olorunnimbe, chairman, Nigerian Communications Commission (NCC).

He credited the intervention of the NCC, led by Dr Aminu Maida, executive vice chairman of the commission, with bringing the long-standing dispute to a close.

“When Dr Maida assumed office, he inherited significant industry challenges,” Adebayo said.

“One of the most difficult was the USSD debt crisis, a debt burden that grew over four years to nearly N300bn. It had become a systemic risk to our sector and the digital financial ecosystem.

Through firm leadership, structured engagement, and decisive coordination, Dr Maida and his team resolved this issue.

Today, there is no outstanding USSD debt. The ecosystem has fully migrated to end-user billing. What was once a looming crisis has been converted into a sustainable framework.”

The clearing of the debt ends years of accusations and counter-accusations between banks and telecom operators, which had threatened the stability of digital financial services in the country.

Adebayo praised the NCC’s leadership for steering the telecom sector through one of its most delicate periods, noting other interventions, including last year’s approval of a 50 per cent USSD tariff.

He described the resolution of the debt crisis as a milestone for the telecom and digital finance ecosystem, ensuring sustainability and predictability for operators and service providers.

Nigeria’s telco and bank billing for USSD services transitioned to the end-user billing model in mid-2025, moving charges from bank accounts to customers’ mobile airtime, which is deducted directly by telecom operators.

This shift resolved the long-standing dispute in which banks owed operators up to N300bn in unpaid USSD fees.

The transition arose from years of tension between telecom operators, including MTN and Airtel, and banks over USSD revenue sharing, with debts peaking at N250–300bn by 2024.

The NCC, in collaboration with the Central Bank of Nigeria, developed the EUB framework to standardise billing, enhance transparency, and support financial inclusion for unbanked users who rely heavily on USSD codes.

Under the EUB system, charges are now deducted directly from mobile airtime at N6.98 per session lasting up to 120 seconds, with user consent prompts issued before each deduction. Banks no longer bill for USSD services; telcos handle them exclusively, with regulatory safeguards preventing double-billing. Users can opt in or out of the service, and banks are required to notify customers in advance of any USSD session charges.

Migration to the EUB model began between June 3 and 18, 2025, following partial debt repayments amounting to N171bn. By February 19, 2026, banks had fully cleared the remaining debt, solidifying the EUB rollout.

The model improves user control through immediate airtime deductions and session notifications, similar to voice and SMS billing. While some critics have expressed concern over potential burdens on low-income users, the transition strengthens telecom revenue sustainability and contributes to the stability of Nigeria’s digital financial ecosystem.

Credit: Punch

Kindly share this post

Telecom

MTN, FAAN Unveil Free WiFi @ Lagos, Abuja Airports

Published

23 hours ago

February 20, 2026

Ebere Melum-Nwogbo

Kindly share this post

Federal Airports Authority of Nigeria (FAAN) and MTN Nigeria have launched free, high-speed WiFi services for passengers at the international wing of the Murtala Muhammed Airport in Lagos and the Nnamdi Azikiwe International Airport in Abuja.

MTN, FAAN Unveil Free WiFi @ Lagos, Abuja Airports

The partnership, both bodies explained, will be followed up with similar development taking place at the airports in Kano, Port Harcourt and Enugu within the next few months.

Mrs Olubunmi Kuku, managing director of FAAN, officially unveiled the internet service at MMIA Terminal two.

Kuku, who was represented by Capt. Abdullahi Mahmood, director of Airport Operations, described the initiative as a major milestone partnership for the aviation ecosystem.

The FAAN boss said the milestone marked a new benchmark in digital infrastructure and passenger experience across Nigerian airports.

According to her, the free WiFi service will be extended to the MMIA Temporary Terminal within weeks, before extension to Enugu, Port Harcourt, and Kano international airports over the next three months.

“In 21st century Nigeria, no Nigerian airport should be an offline island.

“This collaboration with MTN Nigeria demonstrates how effective Public-Private Partnership (PPP) alignment can modernise infrastructure and strengthen the country’s digital economy,” she said.

Kuku assured travellers that FAAN was committed to closing service gaps and enhancing operational efficiency across airports nationwide.

“This WiFi is our promise that FAAN is listening. We have turned on the signal today, but the signal we are truly sending is this: Nigerian aviation is writing a new chapter; one of innovation, partnership, and unwavering commitment to excellence,” she said.

Kuku said the project was a key component of the digital economy agenda led by President Bola Tinubu and the transformative vision of Mr Festus Keyamo, minister of Aviation.

She commended MTN Nigeria for its technical expertise and investment in the project, describing the partnership as purpose-driven and transformative.

On his part, Mr Karl Toriola, chief executive officer of MTN Nigeria, who was represented by Lynda Saint-Nwafor, chief enterprise business officer, assured passengers that the service would be reliable, secure and efficient.

“We are proud to announce the launch of a free WiFi service across major airports in Nigeria in partnership with FAAN.

“This initiative reflects a shared commitment to improving passenger experience and enhancing digital accessibility,” Toriola said.

He noted that airports served as critical gateways for business travellers, tourists, airport personnel and service providers, all of whom required seamless connectivity.

“With this service, travellers waiting to board, in transit, or upon arrival can now stay connected freely and effortlessly,” he added.

MTN Nigeria also announced plans to activate on-ground engagement campaigns at the Lagos and Abuja airports over the next month to drive awareness and encourage usage.

According to the telecom giant, the project reinforces its commitment to national infrastructure development and expanding digital access in public spaces.

Kindly share this post

Telecom

NCC Mulls Sanction on Road Contractors Destroying Metro Fibre of Telcos

Published

23 hours ago

February 20, 2026

Chike Onwuegbuchi

Kindly share this post

Nigerian Communications Commission (NCC) is considering imposing sanction on any road contractor that destroys telecommunications metro fibre across the country.

Idris Olorunnimbe, chairman, Board of Commissioners, NCC, stated this at congratulatory visit to the Chairman by members of Association of Licensed Telecommunications Operators of Nigeria (ALTON) in Lagos yesterday.

According to him, “I think what we need to do to address the damage of metro fibre by government contractors is simply. He who cuts It must fix it, and we’ll take this message to our state governments.

If any contractor knows that if they damage that critical national infrastructure, their work is going to stop and they are going to be the ones to fix it, they will not destroy it.

Responding, Engr. Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), said up until now, there are no consequences for those infractions, and if there are no consequences, the tendency to continue to do bad is very high.

“Contractors of government carrying out roadworks, whether road maintenance or road expansion, and their machines destroy communications super highway at will, if there are consequences, or if there were consequences some of those actions will not have escalated to the level that we are in.

“What the chairman has said today is very important, if you destroy it you fix it. What we are expecting now is that the consequence of managing those problems will be a lot more, and there will be legal deterrent for people from destroying operators’ fibre. I must emphasize the communication super highway. That’s the highway by which all the signals are carried.

“When this highway is broken, it’s like you have a major bridge that’s broken. You can’t reach east, neither can you reach west. And until we take it as the major super communications highway and so protective, we will continue to be where we are.

“That’s actually what it is. When this highway is broken, we are all affected. So, it’s no longer an infrastructure that is for operators, but it belongs to all of us. If I don’t have service on my phone, some of these are the consequence of this violation that we are seeing.

Earlier in his welcome address, Engr. Adebayo highlighted some of the key challenges in the sector which includes: Daily fibre cuts — often caused by federal and state road construction contractors — are creating enormous economic losses.

Nationwide service disruptions
Destruction of critical digital infrastructure
Loss of assets without compensation
Banking, education, and security interruptions

There is currently insufficient institutional recourse for operators when these damages occur. A structured pre-construction fibre mapping and mandatory coordination framework is urgently required.

Key Regulatory Priorities for Sector Stability

Independence of the Regulator

He said regulatory independence ensures:

Credible oversight
Investor confidence
Transparent decision-making
Long-term sector stability

Independence must not only exist in law — it must be visible in practice.

“We recommend: Legislative reinforcement explicitly affirming NCC independence

Clear codification of interaction boundaries between the regulator and supervising authorities
Operational safeguards insulating regulatory processes from undue influence

Multiple Regulation

Overlapping regulatory interventions by various MDAs on matters already within NCC jurisdiction create:

Duplicative investigations
Conflicting directives
Increased compliance costs
Regulatory uncertainty

“We recommend structured inter-agency coordination frameworks and legislative clarification reaffirming NCC’s exclusive jurisdiction over telecommunications matters.

Multiple Taxation

Adebayo stated that operators continue to face excessive sub-national taxes and levies.

Enforcement tactics such as site shutdowns directly affect Quality of Service and national connectivity.

A harmonized national telecom taxation framework is essential for broadband expansion and digital inclusion.

Kindly share this post