News
Telecom Growth on Track but Beware of Landmine
Communications market research firm Infonetics Research has reported that worldwide service provider capex (capital expenditures) are on track to reach $275 billion in 2008, up 10.5per cent from the previous year.
Much of the growth is due to currency appreciation against the US dollar, which peaked in July 2008.
Infonetics’ report, Service Provider Capex, Opex, ARPU, and Subscribers, updated this week to reflect world events, projects a two per cent downturn in worldwide carrier capex in 2009, led by big cuts by Asia Pacific service providers, followed by a flat 2010 and a slow return to growth in 2011 with the start of a new investment cycle.
While a telecom spending plateau was forecast by Infonetics in 2006 to begin in 2009, the global turmoil has shifted it to 2008.
"In this tough economic environment, service providers will sweat their assets, deplete inventories, reallocate capital to revenue generating areas, and use some capital to buy back stocks (take a look at BT). The good news is: most service providers have clean balance sheets, so they are entering the global crisis on solid financial ground. They went through their correction when the Internet/telecom bubble burst, resulting in deep double-digit capex cuts. The bad news is: dismal economic events have culminated in drastic declines of market valuation among companies in nearly every industry/sector, limiting funds to sustain or grow telecom services over the next 6-12 months, leading to capital spending constraints among vendors and carriers. In North America, EMEA, and CALA, we foresee only low-to-mid single-digit cuts because service providers there are already operating at moderate to low capital intensity (the ratio of capex to revenue). But in Russia and Asia Pacific, where capital intensity has been very high, we expect steep, double-digits capex cuts from some service providers," said Stéphane Téral, principal analyst at Infonetics Research.
Other highlights from the report: Wireless services will help keep service providers’ revenue afloat, and prevent telecom from a major slump, worldwide service provider revenue is on track to reach $1.63 trillion in 2008, up 9.5% from 2007, due in large part to currency appreciation, with the rest coming from wireless and the world’s 10 largest service providers (ranked by 2007 revenue) are AT&T, Verizon, NTT, Deutsche Telekom, France Télécom, Vodafone, Telefónica, China Mobile, BT, and Sprint
Infonetics’ capex report features analysis on how the current economic crisis is impacting telecom markets by region, as well as which telecom equipment segments are most and least likely to be affected by service provider capex cuts.
The report series tracks revenue, capex, capex-to-revenue ratios, opex, ARPU, subscribers, and access lines of 164 public and semi-private/government-owned service providers on a monthly and biannual basis. The reports include actual data and forecasts, market drivers, analysis, service provider demographics, and pivot tables for customizing analysis with data viewable by service provider, service provider type, and equipment category. Reports are available for North America, EMEA (Europe, Middle East, Africa), Asia Pacific, CALA (Central and Latin America), and Worldwide.
Adedapo Segun, chief financial officer (CFO), Nigerian National Petroleum Company Limited (NNPC), has explained why there is a missing sum of N210 trillion in the company’s audited financial statement spanning from 2017 to 2023.
According to Segun, the missing funds are cash calls requested by joint venture (JV) partners and settlement to the JVs.
He spokeat a session of the Senate Committee on Public Accounts chaired by Aliyu Wadada.
Segun was responding to an alarm raised by the committee over missing N210 trillion in NNPCL’s audited financial statement.
Recall that Wadada issued a one-week ultimatum to NNPCL to account for the missing N210 trillion.
Reacting, Segun said, “The N103 trillion and N107 trillion are made up of joint venture cash calls that have been requested by the JV operators and JV cash call payments made by NNPCL, which are yet to be reconciled because governance procedures were not done at that time.
“That is why you see the description reflecting those two items would be washed out because they are two sides of the same transaction, which is the cash calls by JV partners and the settlement by NNPCL.”
However, Habu Sadeik, a financial analyst, in a post on X on Thursday, said Segun’s response was unsatisfactory.
Saidik faulted NNPCL’s response about the fund discrepancies, noting that something is not right with the audited financial statement.
“Forget about the senators’ lack of knowledge.
“The CFO’s response is not satisfactory. Are you saying that cash calls worth hundreds of trillions are just appearing on your FS only in 2024 without 31 disclosure?
“If it’s a cash call, why hasn’t the disclosure said so?
“Which cash call is over 100 trillion?
“Something is definitely not right, and I hope they retrospectively correct that FS.
“Someone somewhere did a chef’s work,” he wrote on X.
PalmPay, Nigeria’s leading fintech company, has partnered with Globacom to launch the second edition of the “Recharge and Win Bonanza” campaign. The promotion, which runs from June 19th to August 8th, 2025, offers Nigerians the chance to win amazing prizes when they purchase Glo airtime and data via the PalmPay app.
According to a joint statement by PalmPay and Globacom, “A weekly live raffle draw will be held and streamed on PalmPay’s official social media channels throughout the campaign. Customers who make Glo transactions through the PalmPay app will be eligible to win prizes, including the iPhone 15 Pro, Infinix Hot 40, and other exciting items”.
To participate, interested customers can log onto http://bit.ly/PalmPaySms .
The statement added that all transaction above N500 gives participants an extra shot at winning, adding that daily social media challenges will also offer participants a chance to win cash prizes.
Additionally, PalmPay users can enjoy up to 6% cashback when they buy Glo airtime and data through the PalmPay app. As an added bonus, customers who have not subscribed to a Glo data plan in the last 90 days will receive a 100% bonus on their recharge during the campaign period.
Wayne Ruppel, Head of Billers at PalmPay Limited expressed excitement about the partnership, stating that, “This collaboration is a major step in our mission to deliver MORE – more support, more rewards, and more innovation to our customers.
Partnering with Glo, a leader in the telecommunications sector, is a testament to our shared commitment to improving everyday experiences for all Nigerians. We are excited to reward our users and encourage everyone to take full advantage of this exciting opportunity.
Globacom also expressed delight at creating additional value for its subscribers through unique customer-appreciation schemes.
“Our partnership with PalmPay on the “Recharge and Win Bonanza perfectly underscores our commitment to delivering exceptional value and experiences. Over the years, we have always sought innovative ways to enrich the lives of our customers. We, therefore, enjoin our subscribers to utilize the opportunity provided by the bonanza and enjoy the many benefits it offers”, the company stated.
PalmPay and Glo will collaborate throughout the campaign period to deliver exceptional customer experience, reward loyalty, and reinforce their shared mission to make digital transactions more accessible, rewarding, and secure for millions of Nigerians.
News
UK Reaffirms 99% Duty-Free Access for Nigerian Exports Under Developing Countries Trading Scheme
United Kingdom has reiterated its long-term commitment to strengthening economic ties with Nigeria, confirming that 99% of Nigerian goods will continue to enjoy duty-free access to the UK market under the Developing Countries Trading Scheme (DCTS).
Dr. Richard Montgomery, British High Commissioner to Nigeria
The announcement reinforces the UK’s intention to bolster sustainable trade with Nigeria, boost export competitiveness, and promote inclusive economic growth across both nations. Introduced in June 2023, the DCTS is designed to reduce tariffs and simplify export rules for developing economies. It currently benefits 37 African countries, with Nigeria being a key player.
Nigerian exporters are set to gain substantial advantages from the scheme, which allows over 3,000 products—ranging from cocoa, plantain, and shrimp to processed items like cocoa paste, palm oil, and cotton garments—to enter the UK duty-free or with reduced tariffs. This shift supports value addition in Nigeria’s export ecosystem, encouraging the move from raw to processed exports.
British High Commissioner to Nigeria, Dr. Richard Montgomery, said: > “Nigeria stands at the heart of the UK’s global trade ambitions. This isn’t just about improved market access—it’s about building a fairer, freer global trading system that supports economic growth and job creation, both in developing countries and in the UK.”
He further noted that through the UK-Nigeria Enhanced Trade and Investment Partnership (ETIP), the UK continues to work closely with the Federal Ministry of Industry, Trade and Investment (FMITI) to tackle export challenges and maximise opportunities under the scheme.
The DCTS aligns with broader UK efforts to expand trade relations across the globe, complementing recent agreements with nations such as India and the United States.
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