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TSSF 2.0: Expert Highlight Ways MVNOs Can be Successful in Nigeria

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As Nigeria continue to gear towards the licensing of Mobile Virtual Network Operation, a Mobile Network Infrastructure Provider expert, Mr Satya Mekala has disclosed ways and techniques that can be adopted for a successful operation of the virtual network in the country.

While applauding the Nigerian Communications Commission (NCC) for announcing the licensing of MVNOs in the country, the Managing Director, Wireless Technology Labs, Satya Mekala said the definition of business aims, focus, analysis, planning and commitment from management to
make the MVNO work are fundamental.

Mekala made this disclosure at the Business Remarks Telecom Sector Sustainability Forum (TSSF) held in Lagos with the theme “Creating Awareness and Ensuring Sustainability of Mobile Virtual Network Operators (MVNOs) in Nigeria’s 5G Ecosystem”.

As per the report by Fortune Business Insights, He said the global MVNO Market Size is projected to reach USD 67.54 billion in 2020 and USD 123.40 billion in 2028, at a CAGR of 7.9% during the forecast period, 2021-2028.

Speaking under the sub-topic, “How to build a successful MVNO business in Nigeria”, Mekala posited that the success of an MVNO is heavily dependent on choosing the right strategy to acquire sufficient subscribers.

To choose the right market segment to acquire a lot of subscribers quickly, the acquisition strategy must be well designed as this is one of the highest costs for an MVNO. Mekala also stated that it is about the means available to access the service offering as MVNOs offering data services only may want to subsidize smartphones. This can create huge debt in the beginning, he highlighted.

While advising potential operators on choosing the right offerings wisely, he emphasized the need for operators to differentiate their offerings so that customers can see the benefits to take your service. According to him, MVNO is a volume business. More subscribers mean more revenue.

“Initially customers will come to you to get better pricing. The transparent and easy-to-understand pricing structure is important.”

Sharing more insights, he said the barrier to starting an MVNO is very low, and many fail to establish a sustainable business model. Worldwide, only 20% of the conceived MVNOs survive. However, Mekala noted that effective voice and data bundles are key to customer acquisition. Bundling VAS services can help MVNOs to acquire a particular group of customers (mobile banking, online gaming etc). Also, Specialized MVNO who sells only IOT SIMS on 4G / 5G networks is very interesting.

According to him, it is important to assure that the economics of telecom are well understood and that the business plan is built up accordingly. What is the end game of an MVNO? What is the exit strategy?

Speaking further, he said forging a win-win agreement with a Mobile Network Operator (MNO) will play a key part in any MVNO’s success.

“The secret is having solid partnerships with the host operator and other partners. Having an experienced technical partner as well as a vendor is crucial. A good contract with a network operator that is easy to renegotiate if it becomes necessary to switch network hosts is essential. Ensure that the final contract is adaptable enough to meet new requirements, such as the need to accommodate data IoT offerings, and future opportunities with upcoming 5G networks” he said.

Furthermore, Mekala advised MVNOs to include a rural connectivity strategy in their plan. While highlighting that over 45 million Nigerians are without connectivity, building rural networks MVNO can acquire a captive customer base that will make the company stable and achieve a faster return on Investment (ROI).

On her part in her welcome address, the Convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remarks said the increasing number of mobile subscribers, technological advancements, and demand for connectivity has played an important role in creating a significant opportunity for MVNOs to thrive in the sector.

“By 2020, some estimates put the total number of MVNO subscribers on the continent at upwards of 110 million – not far off four times the total number in the USA.

“The introduction of Mobile Virtual Network Operators (MVNOs) is believed to add value for both operators and customers; for the operators by using their available excess capacity and for the customers by offering innovative and several niche value-added services that were not offered by Mobile Network Operators (MNOs).

“From the consumer side, MVNOs can provide more competitive offerings, which means lower costs without compromising on service. Utilizing network capacity without having to own it frees up costs that are then passed down to the consumer.” She said.


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Barred Phone Lines:  Lagos Lawyer Demands N10Bn Damages from Telcos, NCC

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Mr. Olukoya Ogungbeje, Lagos-based activist and lawyer, has dragged telecommunication companies operating in Nigeria as well as the Nigerian Communications Commission (NCC) to a Lagos Federal High Court, challenging the recent barring of phone lines of citizens.

Barred Phone Lines:  Lagos Lawyer Demands N10Bn Damages from Telcos, NCC

Ogungbeje joined Dr. Aminu Maida, chief executive officer of NCC, and MTN Nigeria Communications Plc, Airtel Networks Nigeria Ltd. and Emerging Markets Telecommunication Services Ltd. (EMTS 9 Mobile).

The lawyer, aside from seeking the order for award of N10 billion as general damages is also seeking the following reliefs: “A declaration that the act and action of further barring, restricting and deactivating of the applicant’s phone lines/SIM cards and the phone lines/SIM cards of Nigerian citizens by the 2nd, 3rd, 4th, 5th, and 6th respondents, upon the directive of the 1st and 2nd respondents from 28th of February 2024 till date, despite a valid and subsisting order of court granted against the respondents is wrongful, illegal, unlawful, undemocratic, unconstitutional and thus prejudicial against applicant’s and other affected Nigerian citizens fundamental rights to fair hearing as enshrined under Section 36 of the 1399 constitution of the Federal Republic of Nigeria.

“A declaration that the respondents being creations and creatures of law are subject to the court of law and the judicial powers of the courts of law and under a legal duty and constitutional obligation to obey valid and subsisting order of court as enshrined under Section 6 (6) (b) of the constitution of the Federal Republic of Nigeria, 1999 (as amended).

“An order setting aside the entire directive and all its consequential effects in connection with the subject matter of this suit issued by the 1st and 2nd respondents to the 2nd, 3rd, 4th, 5th and 6th respondents having been made in gross violation of a valid and subsisting order of court.

“An order compelling the respondents to jointly and severally to immediately activate, debar, unlock, unblock and unrestrict the applicant’s phone lines/SIM cards and the phone lines/SIM cards of the affected Nigerian citizens forthwith.

“An order compelling the respondents to jointly and severally tender a public apology to the applicant and other affected Nigerian citizens and to pay the sum of N10 billion only as general and exemplary damages for the prejudicial, wrongful and unconstitutional action of the respondents and the inconvenience, damages and injury caused the applicant and other affected Nigerian citizens in flagrant violation of a valid and subsisting order of court.

“An order of perpetual injunction restraining the respondents jointly and severally, whether by themselves, their agents, officers, officials, members, servants, ministries, organs, agencies or privies or anybody deriving authority from them by whatever name called from barring, restricting and of deactivating the applicant’s and other affected Nigerian citizens, phones lines/ SIM cards or taking any step, action, further step or action or untoward action or proceedings against the applicant and other affected Nigerian citizens on any fact connected with or related to the facts of this case.”

The motion which is supported with 33 paragraphs affidavit, according to the lawyer, is pursuant to Sections 36 and 46 of the 1999 constitution of the Federal Republic Of Nigeria; Order II Rule 1 of the Fundamental Rights Enforcement Procedure Rules 2009 and under the court’s inherent jurisdiction imbued by Section 6 (6)(B) of constitution of the Federal Republic Of Nigeria, 1999 as amended.

He also listed the following grounds upon which the reliefs were sought: “That there has been grave constitutional infraction perpetrated by the respondents against the applicant and other law abiding Nigerian citizens.

“That on the 22nd of February 2024, the court of law granted an order restraining the respondents from barring, deactivating and or restricting any phone lines/SIM cards of the applicant and Nigerian citizens.

“That the respondents have took the law into their hands by barring, deactivating and restricting the phone lines/SIM cards property of the applicant and other Nigerian citizens upon directive by the 1st and 2nd respondents despite a valid and subsisting order of court granted against the respondents on the 28th of February 2024.

“That the applicant has a constitutional right to fair nearing and right to own property guaranteed by the constitution.

“That the actions of the respondents have overreached the order of court and thus prejudicial against the applicant’s right to fair hearing.

Hence, it is not in accordance with due process of law. “That the act and action of the respondents is clearly wrongful, illegal, unconstitutional and prejudicial against the applicant’s right to fair hearing.

“That the respondents are creations and creatures of law and thus must act within the limit of the law.

“The respondents have no right to take the law into their own hands and that the constitutional safeguards to persons alleged to have committed any offence are sacrosanct and must be jealously guarded by the court.

“That the applicant has his fundamental rights protected and guaranteed under the 1999 constitution of the Federal Republic of Nigeria (as amended).

“That the applicant has the right under Section 46 of the 1999 constitution to approach the court for redress for the breach of his rights. And that the applicant is entitled to the reliefs sought in this case.”

The lawyer in his affidavit stated that his fundamental right to fair hearing and the rights of millions of Nigerian citizens guaranteed under Sections 36 of the constitution have been and is being violated by the respondents.

“That based on the above, he has filed this suit for himself and in public interest pursuant to the Fundamental Rights (Enforcement procedure) Rules 2009.

“That he is the telephone subscriber of the respondents with phone numbers/lines (09139128873) and (08027208563), 08055382155, 08090220200, respectively. And that sometimes in January 2024, the respondents threatened in barring, deactivating and restricting the phone lines of Nigerian citizens whose phones lines are not linked with the National Identity Number (NIN).

“That he immediately challenged the action of the respondents culminating to the valid and subsisting court order granted on the 22nd of February 2024, restraining the respondents from barring, deactivating and restricting my phone lines and the phone lines of Nigerian citizens.

“That surprisingly, while daring the court, the first and second respondents threatened to go ahead with the act and action of barring, deactivating and restricting of phones despite a valid and subsisting court order restraining the respondents.

And that to his utmost shock, on the 28th of February 2024, he woke up only to discover that his phone lines have been barred, deactivated and restricted by the second to sixth respondents, based on the mere directive of the first and second respondents despite a subsisting order of court.

“That act and action of the second to sixth respondents in barring, deactivating and restricting his phone lines and that of Nigerian citizens upon a mere directive by the first respondent without any order of court and despite a valid and subsisting court order have caused me great loss of business opportunities, embarrassment, untold hardship, discomfort and inconvenience and hampered my business as a legal practitioner and businessman.

“That he immediately contacted his solicitors, who wrote letters to the respondents demanding a prompt reversal of their illegal act and action having been carried out without recourse to due process of law.

But the respondents have failed and refused to reply or respond to his solicitors letters till date.

“That the act and action of the respondents of restricting, barring, deactivating the phone lines of millions of Nigerian citizens is a clear brazen act of undermining the court of law and its judicial powers and thus prejudicial against their rights to fair hearing.

And that the act and action of barring, blocking deactivating and restricting my phone lines by the respondents despite a valid and subsisting court order is clearly wrongful and prejudicial against my rights and the rights of Nigerian citizens to fair hearing and right to own property.” However, no date has been fixed for the hearing of the suit.

 

 

 


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UK’s New Tech Entrepreneurs Funding to Boost Livelihoods in the World’s Developing Countries

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New UK funding for innovative mobile phone technology will help change lives in developing countries around the world, Development Minister Andrew Mitchell has announced.

Harnessing AI technology to provide real-time agricultural advice to farmers in Nigeria and pay-as-you-go solar powered fridges are just some of the ways UK-funded mobile technology is improving livelihoods globally.

At a speech at Mobile World Congress last week, Minister Mitchell announced the UK is providing £37.3 million of new support for the Mobile for Development Programme, to help more people access mobile and digital technologies to find new opportunities and boost their livelihoods.

The programme, which the UK funds in partnership with UK-based mobile industry association GSMA and the private sector, has already benefitted more than 94 million people and focuses on women and girls, climate change mitigation, adaptation and resilience and scaling up innovative solutions.

Minister for Development and Africa, Andrew Mitchell said: “Mobile technology has the potential to revolutionise the lives of the poor by helping tackle the effects of climate change, creating jobs and boosting opportunities for women.

“The Mobile for Development programme has already benefitted more than 100 million people, and the UK’s new announcement aims to up the ambition, reaching 110 million additional people, including 60 million women.

“Together the worlds of development and mobile tech giants can be a powerful force to unlock opportunities and prosperity, and meet the UN Global Goals.”

UK funding has previously helped scale up a digital hub in Pakistan, BaKhabar Kissan (BKK), which provides accurate weather forecasting data to farmers to help them make critical farming decisions such as the timing of seed sowing, irrigation, and fertilisation. With the help of this programme, BKK has almost doubled users from 6.6 million to 12.4 million.

Another innovative business, Ensibuuko, is providing digital skills training to help community saving groups in rural Uganda keep up with the latest digital products and services where previously they relied on paper record-keeping.

Since gaining funding, Ensibuuko has benefited over 236,000 members of rural savings groups, 60% of whom are women, providing them with digital skills training.

John Giusti, President of the GSMA Mobile for Development Foundation, said: “For more than a decade, the FCDO and the GSMA Mobile for Development Foundation have worked closely in partnership to drive socio-economic and climate impact for the most underserved populations through digital innovation, and to date our partnership has improved the lives of more than 127 million people.

“Today’s renewal of our partnership will further amplify our joint impact by leveraging the power of digital and emerging technologies to support innovation, improve access to opportunities for women, and tackle the effects of climate change for the most vulnerable.”

With the increase in climate crises around the world, the need for new solutions to help vulnerable countries adapt is growing and mobile technology can make a big difference to people’s lives.

At Mobile World Congress, GSMA also announced the grantees for its Climate Resilience and Adaptation Fund which is funded by the UK’s Foreign, Commonwealth and Development Office. This fund is designed to test and scale up new technology to combat the effects of climate change in countries throughout Africa and Asia.

Some of the projects being funded include one using AI-powered satellite imagery to help smallholder farmers increase their yields and another to reduce food waste via an online grocery platform.

 


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PIN Announces Ajegunle Legacy Project Award and Scholarship winners

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The future of four brilliant students shines brighter after they secured scholarship opportunities under Paradigm Initiative’s (PIN’s) Ajegunle Legacy Project to further their studies. The winners were unveiled following a careful screening process undertaken by the organisation over a period of four months.

They were recognised and celebrated at Paradigm Initiative’s headquarters in Lagos, Nigeria during a ceremony also attended by their loved ones, the selection team and PIN Board member, Dr Oluseyi Adebayo Olubi.

The male awardee for the Taiwo Bankole Award is Anthony Maduamaka Ihejiamatu, a Chemical Engineering student at the University of Lagos in Nigeria. In the female category is Adeniran Esther, a student of Project Management Technology at The Federal University of Technology Akure in Nigeria.

For the advanced software training scholarship (Ajegunle Legacy Scholarship), the candidates selected by the panel are Ogar Gideon Robert in the male category and Idowu Sarah Sylvester in the female category.

In April 2023, the organisation launched the Ajegunle Legacy Scholarship as a way of giving back to the community and recognising notable individuals who played an important role in PIN’s early beginning in Ajegunle. The scholarship was named after the area to support resident youth/students in securing university education.

The Project has two arms. The prize arm and the scholarship arm. The prize arm supports two young persons (one male and one female) from low-income families resident in Ajegunle to acquire university education in Science, Technology, Engineering, and Mathematics (STEM) or Law annually. The prize is named after the late Taiwo Bankole Ogunyemi, one of the foremost volunteers at PIN’s digital inclusion program (now known as the LIFE Legacy Program). This award is aimed at immortalising the late Ogunyemi’s name for his role in improving the lives of young people across Nigeria, especially in Ajegunle.

The scholarship arm on the other hand supports two young persons (one male and one female) from low-income families residing in Ajegunle to get advanced software development training annually.


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