Telecom
We are Taking Steps to Resolve the N165 billion Interconnect Debt – Danbatta
Prof. Umar Danbatta, Executive Vice Chairman, Nigerian Communications Commission (NCC) on Thursday said the commission was taking pragmatic steps to resolve the N165 billion interconnect debt owed by some telecom operators.
Danbatta disclosed this when Olusola Teniola, President of the Association of Telecommunications Companies of Nigeria (ATCON), led his team to visit the NCC headquarters in Abuja.
Interconnect debt results when an operator fails to settle the cost of termination of service rendered to it by another operator in the industry.
Interconnection is important in the telecoms industry because it enables the subscriber to experience the smoothness of a connected or one network.
Thus, with interconnection, a subscriber does not care and does not need to know whether the person at the other end of the network subscribes to another network operator.
He said that because of the realisation of the implication of the debt burden on the industry, NCC arranged a very important meeting of all the telecommunication companies recently.
“We mediated on what the actions and powers of what the commission can do in terms of crisis like this because there is a debt crisis in the industry.
“But it is being managed very well. We all agreed yesterday that pragmatic ways must be found to settle the debts and a deadline had been given as mid-July for the payment plan.
“That is pragmatic, it is being worked out in order to ensure that those who owe will start paying and those who are being owed start receiving what is being owed to them,’’ he said.
The EVC also said the commission made a presentation to the National Economic Council (NEC) where the members of the Governors Forum were in attendance on the challenges that face deployment of broadband infrastructure in the country.
He said NCC complained about lack of adherence to the provision of NEC document.
“A document that specifies a tax of about a N145 per meter length of fibre but unfortunately, states in the country are charging in excess of the amount between N7,000 to N8,000 per meter length of fibre.
“At that meeting, one of the resolutions was that the provision of the NEC report should be respected; it is still an extant provision and therefore all states of the federation should ensure compliance to N145 per meter,’’ he said.
Earlier, Teniola said his team was in NCC to introduce the newly elected National Executive Council of the association to the EVC and to discuss other challenges facing the association.
He said ATCON was passionate about making sure that broadband penetration in Nigeria became high.
He said part of the strategy the association had earmarked to achieve this feat was the introduction of ATCON Broadband and Technology Investment Forum in all states of the Federation.
“The plan is to work majorly with the NCC and all state governors and commissioners of ICT in the country to organise this forum in all the states and in 2018, we plan to stage this forum in three states – Kano Akwa-Ibom and Osun.
“The strategic objective of this initiative is to promote greater awareness about the state’s technology and broadband investments potential, identify viable technology investment projects for both private and public sectors.
“Increased government and private investments and spending in broadband infrastructure. Part of the essence of the forum is to also generate jobs for the people of the state,” he said.
Teniola sought the assistance of NCC on the issue of “multiple taxations’’, adding that the telecom companies at the moment were facing 38 different taxations.
“And this does not come from the telecom regulator as it comes especially from the ministry of finance and the ministry needs to harmonise the taxes faced by the industry as it serves as a disincentive to roll out broadband services.
“Without our ability to attract investment to be actually roll-out broadband infrastructure, then we have consumers who are not benefiting from the digital benefit that exist in the cities.
“We need the taxes to be removed to encourage investment,’’ he said.
MTN Group has moved a step closer to taking full ownership of telecommunications tower operator IHS Towers, after shareholders of the infrastructure company approved the proposed acquisition at an extraordinary general meeting (EGM).
The telecommunications group announced that IHS shareholders voted in favour of the transaction by the required two-thirds majority at the EGM held on 4 August, satisfying one of the key conditions precedent to the deal.
MTN first announced in February that it had entered into an agreement to acquire the remaining shares in IHS, a move that would give the mobile operator full ownership of one of Africa’s largest independent tower companies.
The acquisition forms part of MTN’s Ambition 2030 strategy, which aims to strengthen the group’s digital infrastructure capabilities and diversify revenue streams as demand for connectivity, cloud services and artificial intelligence (AI) continues to grow across the continent.
“The approval by IHS shareholders is an important step toward completion of the transaction,” says Ralph Mupita, MTN Group president and CEO.
“Within our Ambition 2030, the three-platform strategy, towers are a critical value-creation driver that will strengthen MTN’s strategic and financial position for the future, in a world where digital infrastructure and AI are becoming increasingly essential to Africa’s growth and development.”
Tower infrastructure has become increasingly strategic for mobile network operators as demand for high-speed mobile broadband, cloud computing and AI-powered services drives the need for expanded and more efficient network capacity.
The proposed acquisition is expected to strengthen MTN’s position as it continues expanding its digital ecosystem across Africa, where it serves more than 300 million subscribers.
IHS is one of the world’s largest tower companies, with nearly 29 000 towers in Africa serving various mobile network operators in five key MTN markets.
According to the mobile operator, the proposed transaction, which follows discussions noted in February, marks an important step to unlock compelling value for MTN, and strengthen and reintegrate its ownership of critical digital infrastructure across Africa.
For IHS shareholders, MTN notes, it provides an attractive opportunity to crystalise value.
The funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of $2.2 billion (R35 billion), will be through cash of approximately $1.1 billion on IHS’s balance sheet, along with available liquidity and debt from MTN.
MTN has approximately 24.7% shareholding in IHS, and as part of the transaction, it intends to take the company private through the acquisition of all outstanding shares it does not own, pursuant to a cash merger.
By reintegrating the tower assets, MTN says it will be able to internalise the margin currently paid to IHS, benefit from current and future incremental third-party revenues, improve cost predictability and unlock significant long-term value embedded in its existing investment.
The transaction remains subject to the receipt of the necessary regulatory approvals, which MTN says are still in progress. No timeline has been provided for the completion of the acquisition.
Telecommunications services provider Airtel Nigeria has further extended its national retail footprint with the rollout of 350 out of a planned 500 premium experience centres, which are designed to bring faster, more convenient service closer to millions of Nigerians.
The new retail shops, officially unveiled at a symbolic launch at City Mall, Onikan, Lagos, mark the latest phase in Airtel Nigeria’s grand retail strategy. They significantly expand the company’s extensive network of over 9,000 exclusive shops across every local government area, more than 350 premium experience centres, and over 73,000 retailers in all top towns and cities nationwide.
Built as compact, high-efficiency touchpoints, the newly launched shops are designed to enable subscribers complete all transactions such as Home Broadband, Fiber and Outdoor Units Subscription, Postpaid Plan Subscription, Enterprise Applications Enquiry and Subscription, as well as Prepaid Product services such as SIM registration and Data Plan purchase, other enquiries and comprehensive account support.
Simultaneously, several shops commenced operations at Purple Mall, Lekki; Marina, Lagos Island; Magodo, Lagos; Oke-Ilewo, Abeokuta; Trend Setter Mall, Benin; Abakaliki, Ebonyi State; Kano City Mall, Kano; Carpenters Mall, Gwarinpa, Abuja; and other parts of the country.
The rollout emphasises the company’s continued investment in customer experience and responds directly to feedback from customers seeking quicker access to everyday services without the longer waiting times that may be associated with larger retail centres.
Speaking on the company retail objectives, Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, explained that quality retail experience ultimately drives customer satisfaction. “Our goal is to demonstrate our dedication to exceptional quality of service, and these new shops, by their design, location, and equipment fit right within our goal to deliver superior service to every one of our customers,” he said.
He added that the expansion reflects Airtel Nigeria’s belief that excellent customer experience goes beyond technology to ensuring customers can receive support whenever and wherever they need it.
“Our business at Airtel is to ensure that we bring our services closer to our customers, and everything we do is centred on putting the customer first. These experience centres are open to help customers carry out their transactions faster and with greater ease. Whether you want to replace a SIM, purchase one of our routers, recharge airtime or data, or resolve any service issue, you can now do so more conveniently and closer to where you are,” he said.
He explained that the initiative represents a significant update to Airtel’s retail strategy, placing greater emphasis on accessibility, speed, and convenience.
“These express shops are designed to reduce traffic at our larger shops while giving customers faster access to the services they need. More importantly, they reinforce our vision of building the most accessible customer service network in Nigeria. As the telecom operator with the country’s largest retail footprint, we will continue expanding into more neighbourhoods, making it easier for customers to connect with Airtel wherever they are,” Sengupta noted.
In her remarks at the launch, Lynda Amechi, Head, Shops and Retail Postpaid Business, revealed that the new retail model was born from listening to customers and reimagining how Airtel delivers its services.
She said, “At Airtel, some of our best ideas come directly from our customers. One of the recurring concerns we received was the time customers sometimes spent waiting at our larger experience centres, even when they only needed simple transactions completed. We listened carefully and realised that many of these requests could be resolved within minutes if we brought our services closer to the communities where customers live and work.”
These new shops are also integrated into Airtel Nigeria’s broader customer experience agenda, which have seen the company continue to invest in digital self-service platforms, AI-powered customer support, nationwide customer forums, and significant network expansion across the country.
With this phase of shop launches, Airtel Nigeria has expanded customer access across the country while integrating digital innovation into physical touchpoints.
Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
This followed the successful subscription of the corporate bond.
Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).
This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.
The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.
The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.
The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.
Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.
Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.
As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.
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