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Telecom Subscribers Spend N335.94Bn on Calls, SMS, Data in May

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Telecommunications consumers in the country spent some N335.94 billion in May, according to findings by Business A.M.

Telecom Subscribers Spend N335.94Bn on Calls, SMS, Data in May

In arriving at the figures, Business A.M, estimated that each active telephone line averagely spent N1, 747.26 ($4.50) during the month.

Similarly, total active telephone lines in the country increased to 192.27 million in May, rising by additional 1.46 million lines from April’s record of 190.81 million, according to the latest industry statistics obtained from the Nigerian Communications Commission (NCC).

As active subscriptions increased, so also did the Average Revenue per User (ARPU), which is a measure used primarily by consumer communications, digital media, and networking companies, as the total revenue divided by the number of subscribers.

The upward movement has been observed in two consecutive quarters as ARPU went up by 20 per cent to hit $4.25 in Q1, 2020 from $3.87 in Q4 of 2019; and sustained to settle at $4.50 in Q2, 2020.

This is in contrast to the conventional trend whereby rise in the number of active lines often distributes estimated revenue to total subscriptions and thus trigger contraction in ARPU.

Recall that industry observers had earlier projected increase in revenue for telecoms operators as lockdown and social distancing employed as preventive measures for COVID-19 have kept people at home and forced enterprises to divert operations and activities to the virtual space, resulting in more reliance on data and telephony in its entirety.

This has been supported by disclosure by Muahamed Rudman, chief executive officer of the Nigerian Internet Exchange Point (iXPN) who reported more than 10 per cent in internet traffic less than two weeks into lockdown in Nigeria.

As this development seems to ignite insinuations that operators are cashing in big on the development and that active telephone lines are rising, industry experts have been quick to call for a critical digestion of the figures.

Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), has cautioned that the figures must not be celebrated yet, hinting that the observed rise in revenue is claimed by just a few operators, leaving the majority of other telecoms players on the other side of the divide.

He noted that only the Mobile Network Operators (MNOs) consisting of MTN, Glo, Airtel and 9Mobile and just a few others have their operations immune to the pandemic.

He said there are many other ATCON members who provide enterprise solutions for companies that are now under locks, and thus losing money to the lull on a daily basis.

He said: “We have to note that obviously, the industry is not just made up of the MNOs alone, there are other players in the market that have had to demonstrate negative numbers

“Negative numbers in the sense that, during the lockdown, employees of enterprises and businesses have stayed at home naturally. So, there have been no services to these enterprises by our members. So we can say this contributed to the change in consumer behaviour in terms of internet usage.

“However, as these slightly uplifted the numbers, they do not compensate for the losses in voice and they do not compensate for the losses in the enterprise segment of the market,” Teniola explained.

This is further supported by data from the industry regulator, NCC, showing that of the current 192.27 million active lines, the MNOs or GSM operators have 190.48 million subscribers on their networks, representing 99.82 per cent market share.

Other players by technology are Voice over Internet Protocol (VoIP) players controlling 0.12 per cent market share; the fixed wireless and wired operators have 0.06 per cent while code division multiple access (CDMA) have completely lost relevance in the Nigerian telecoms market, with 0.0 per cent market share.

In the GSM segment of the market, MTN Nigeria is leading with 76.06 million active lines on its network, which translates to 39.61 per cent market share, followed by Globacom that has 52.06 million customers on its network to cover 27.12 per cent of the Nigerian market.

Similarly, Airtel Nigeria, which remains the closest competitor to Glo serves 51.5 million subscribers on its network, equivalent to 26.83 per cent share while Emerging Market Telecommunications Service (EMTS), operating as 9Mobile in the country, controls 6.37 per cent market share with its remaining 12.23 million subscriptions.

Meanwhile, Visafone, whose subscribers now run on MTN network but captured separately in the NCC data had 137,086 active subscriptions as at May, and this secured for it 0.07 per cent, the smallest market share.

Analysis of trends in telecoms market also shows a sustained uptick in the number of active lines which grew from 184.7 million in December 2019 to 186.02 million in January, 187.44 million in February and 189.28 million to seal the first quarter in March.

The figure moved up again in April by 0.81 one per cent as 1.53 million new subscriptions were recorded on the networks of operators, extending the growth in May by 0.77 per cent with 1.46 million new subscribers.

Similarly, teledensity which stood at 99.96 per cent in April inched up to surpass 100 marks at 100.72 per cent.

Telephone density or teledensity is the number of telephone connections for every hundred individuals living within an area and is calculated based on a population estimate of 190 million people in Nigeria.

The latest rise in teledensity, according to the ATCON president, Teniola, indicates that something is not right with network distribution patterns in Nigeria, noting that despite the rise in the figures, millions of Nigerians, particularly in rural areas still lack access to telecoms services.

He said: “If you look at the increase in subscriptions, you will see that existing customers are picking up other new lines in addition to the ones they have to ensure that they can enjoy many offers and partake in virtual meetings and so on since the COVID-19 lockdown.

“The teledensity is above 100 per cent and anything above 100 per cent suggests saturation of accounts, network coverage and usage. Basically, concentration of services is in the triangular cities of Lagos, Abuja and Port Harcourt. But we have to think about those who don’t have access to services at all.

“The narrative around the number suggests that there are a lot of people who have access and can afford cost of data but they are concentrated, particularly in those cities of the country where penetration of broadband is, predominantly Lagos which takes about 15 per cent of the country’s current 40 per cent broadband penetration by subscription, and not by individual,” he explained.

As he cited the issue of young Nigerians who cannot access education online because of lack of access and affordability, he said solving the problem will depend primarily on expanding the service to them.

“I think that what we need to do is to look at the Nigeria National Broadband Plan (2020-2025) and see those areas that we really need to plug in to get a diminutive unique subscriber number that reflects the GDP increase that we are expecting in the country,” Teniola concluded.


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ALTON, ATCON Urge FG to Address Telecoms Industry Challenges

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The Association of Licensed Telecom Operators of Nigeria (ALTON) and The Association of Telecommunication Companies of Nigeria (ATCON), representing Mobile Network Operators and telecommunication companies in Nigeria, are calling upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

In a statement jointly signed by Engr. Gbenga Adebayo, chairman of ALTON and Engr. Tony Izuagbe Emoekpere, ATCON President, the associations underscored the urgent need for collaborative efforts between the public and private sectors to overcome obstacles hindering the sector’s growth and development.

Infrastructure Deficits: ALTON & ATCON members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

 Protection of Assets and Network Infrastructure: Advocating for legislation that

designates telecommunications infrastructure as Critical National Infrastructure (“CNI”): Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria.

Telecommunications infrastructure undisputedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.

Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.

The associations urge the government to prioritize the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.

Cost-Reflective Tariff of Services: ALTON and ATCON respectfully reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.

For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.

ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Regulatory Independence: ALTON & ATCON advocates for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission’s (NCC) or (Commission) domain, which will inspire trust in the telecommunications sector and encourage investment.

Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions.

ALTON and ATCON reaffirms its commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

By fostering a conducive regulatory environment, prioritizing infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development.

 


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Qualcomm Shortlists Startups for Qualcomm Make in Africa 2024 and Awards 2023 Wireless Reach Social Impact Fund

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Qualcomm Incorporated today announced the shortlisted startups for Qualcomm Make in Africa 2024, as well as the winner of the 2023 Wireless Reach Social Impact Fund.

The Qualcomm Africa Innovation Platform, now in its second year, aims to work with and support the development of Africa’s emerging technology ecosystem by providing mentorship, education, and training programs with a focus on 5G, Edge-AI/ML, Compute, and IoT. This year, Qualcomm received an overwhelming response, with approximately 250 applications from 30 countries.

Highlights: 

  • Startup cohort announced for 2024 Qualcomm Make in Africa startup incubation program featuring technologies.
  • Announcement of the awardee of the 2023 Wireless Reach Social Impact Fund, supporting startups in scaling their societal and market impact.
  • Development of L2Pro Africa website content nears completion, providing free online training on intellectual property protection.

As the first initiative of its kind in Africa, Qualcomm Make in Africa is an equity-free mentorship program that identifies promising early-stage startups keen on applying advanced connectivity and processing technologies such as 5G, Edge-AI/ML, Compute, and IoT to innovative end-to-end systems solutions, including hardware.

These startups have demonstrated exceptional potential in applying advanced connectivity and processing technologies to innovative end-to-end systems solutions.

The selected startups will receive free mentorship, business coaching, access to engineering consultation for product development, and guidance on protecting intellectual property. The 2024 cohort includes the following startups (listed in alphabetical order):

  • Aurora Health from Kenya provides AI-based cardiovascular health care tools
  • CropScan from Kenya uses solar-powered smart farming IoT devices
  • Cure Bionics from Tunisia makes smart 3D printed prosthetic arms
  • DevisionX from Egypt provides AI-based low-code computer vision tools
  • Kalio from Cameroon is building AI tools for Agricultural IoT
  • Kitovu from Nigeria provides tools and software for smart agricultural warehouse management
  • NextAI Studios from Kenya builds AI-based emotion detection into toys for children’s mental healthcare
  • RIM Nextgen from Kenya, uses smart tools for monitoring propane consumption
  • Sparcx from South Africa uses AI for enhancing radar signal processing
  • Vizmerald from Tunisia, is working on AI-based textile industry inspection

Qualcomm is also proud to announce the awardee of the 2023 Wireless Reach Social Impact Fund. This fund, provided by Qualcomm through its Qualcomm® Wireless Reach™ Initiative, aims to support startups in scaling their societal and market impact.

Ecorich Solutions Limited, a female-founded organization based in Nairobi, Kenya, will be awarded funding to help scale the impact of their smart organic food composter.

Wireless Reach funding will support Ecorich to address the dual challenge of organic waste management and the need for sustainable agricultural practices, with the goal of reducing environmental pollution, improving crop yields for farmers, and mitigating waste-related health risks for communities.

The other nine startups from the 2023 cohort will also receive valuable stipends to continue fueling their growth. These startups have showcased innovative uses of wireless technology to address pressing needs in their communities.

In addition, Qualcomm is excited to highlight the progress of the L2Pro Africa IP e-learning Platform, a free online training program designed to empower startups, SMEs, and researchers in Africa to protect, secure, and maximize their innovations. This program has been created in collaboration with Adams and Adams, Africa’s leading intellectual property (IP) law firm.

The education content has been updated with individual filing procedures for patents, industrial designs, and trademarks in the countries of Kenya, Nigeria, Uganda, Ghana, Rwanda and within the two African patent organizations, ARIPO and OAPI.

These step-by-step descriptions of per-country filing requirements empower inventors to interact effectively with IP professionals such as an IP attorney and their respective IP offices.

“I am thrilled with the overwhelming response to the Africa Innovation Platform this year,” said Alex Rogers, President, QTL & Global Affairs, Qualcomm Incorporated.

“The quality and diversity of the applications received reflect the immense talent and potential within Africa’s technology ecosystem.

“We are excited to work with the shortlisted startups and provide them with the necessary resources and support to drive innovation and create a positive impact in their communities.”

“We applaud Qualcomm for launching the second year of its Innovate in Africa Platform, which not only equips the upcoming generation of African entrepreneurs with expertise in pivotal areas like AI/ML, healthcare, agri-tech, smart cities, and communications but also empowers them to safeguard their intellectual property through the complimentary L2ProAfrica program.”, said John Omo, secretary general, African Telecommunications Union (ATU).

Mr. Omo also emphasized that the ATU remains steadfast in its commitment to fostering innovation and entrepreneurship across the continent. “Our youth innovation program, among other initiatives, plays a crucial role in cultivating the talents and aspirations of Africa’s young visionaries,” he affirmed. “We are ready to collaborate with additional partners to realize this objective.”


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Mastercard and CEBIH join forces to bolster cybersecurity in Nigeria

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Mastercard, in collaboration with the Committee of E-Banking Industry Heads for Nigeria (CeBIH), recently hosted the second edition of its annual Fraud Forum in Lagos, Nigeria. Building on the success of the inaugural edition in 2023, this year’s forum convened key industry players ranging from financial institutions, payment service banks, and fintech companies, to discuss critical issues such as threats and vulnerability, intel-sharing, and best practices in combating industry risks.

The cybersecurity event, attended by key public and private sector actors, also covered the regional threat landscape based on Mastercard’s strategic threat intelligence data. This timely intervention is crucial in a region where cyberattacks remain prevalent, especially amidst Nigeria’s rapid economic expansion and widespread adoption of digital financial services.

Recent data from the Financial Institutions Training Centre (FITC) revealed a staggering 276% increase in fraud-related losses within Nigeria’s deposit banks, underscoring the need for continuous vigilance and proactive cybersecurity strategies within the financial sector. In response to the escalating threats amid Nigeria’s bourgeoning financial landscape, key government bodies have called for enhanced collaboration within the payment systems’ ecosystem to curtail the rise in E-Fraud in the country.

“We are excited to continue the Fraud Forum in Nigeria,” said Kari Tukur, Vice President, Customer and Solutions Center, West & East Africa, Mastercard. “With cyberattacks posing serious challenges within the Nigerian financial ecosystem, we take pride in establishing a platform where key stakeholders can convene, network, and exchange best practices to safeguard against potential vulnerabilities. Mastercard remains committed to creating unique and essential solutions to help business owners protect themselves and their customers against vulnerabilities, and this platform provides us with an opportunity to drive knowledge regarding these solutions as we aim to elevate cybersecurity standards and ensure the resilience of the Nigerian financial ecosystem.”

The forum delved into various aspects of cybersecurity, including common attack methods used by cyber criminals, their motivations, the assets they target, and the best practices to safeguard against attacks. Attendees gained valuable insights into the regional cyber threat landscape, with a focus on the financial services sector, which has become a prime target for cybercriminals in recent years. It also presented an avenue for Mastercard to showcase its latest fraud prevention techniques and tools, including the Mastercard Decision Intelligence, a real-time authorization decisioning solution that empowers issuers to approve more genuine transactions while effectively managing risk.

“We are delighted to partner with Mastercard on another edition of the Mastercard Fraud Forum in Nigeria. This event continues to serve as a pivotal platform for industry leaders, stakeholders, and experts to convene and address the evolving landscape of fraud and cybersecurity challenges, especially in a period marked by increased sophistication. With this year’s edition, we continue to deepen our commitment to fostering collaboration and implementing effective strategies to combat fraud and safeguard the integrity of the financial ecosystem.” Temitope Onibaniyi, Secretary, Emerging Payments of CeBIH, representing Celestina Appeal, the CeBIH Chairman, added.

The forum aligns with Mastercard’s goal of providing clarity to the complex cybersecurity landscape, in a bid to foster an ecosystem where digital transactions are built on trust. As part of its commitment to combating fraud, Mastercard also announced that it will be sponsoring the CeBIH Quarterly Sessions for the second consecutive year, bringing together industry experts to discuss the latest trends in fraud prevention and share best practices for protecting customers.

 

 


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