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What Stakeholders Expect as Telecom policy is Under Review

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For any transformation or development to take place in any sector of an economy be it in developed or developing countries such as Nigeria, a legal framework is required to guide such transformation. It is the legal framework if adhered to that will provide the direction such transformation or reform should go.
It also provide fundamental guideline on the activities of players in the industry, such as what operators as the case may be are expected to do in their operational activities as well as government intervention that will provide level playing ground to ensure that operators are given equal opportunity to compete.
This was the case in the country’s telecommunications sector in 2000 when the federal government under Chief Olusegun Obasanjo decided to liberalize the telecommunications sector. Government then put together a legal framework, the National Telecommunications Policy, which was designed to herald the expected liberalization of the sector. It is also the policy that guides Nigerian Communications Commission (NCC) in its regulatory framework as well as gave opportunity for inflow of both foreign and local investment in the sector.
The September 2000 National Telecommunications Policy assisted in moving the country from 400,000 active telephone lines in 2001 to the present 75 million lines among other achievements.
It is against this backdrop and the need to foster development in the sector as well as address other challenges in the sector, that the federal government through Alhaji Ikra Biblis, Minister of State for Information and Communications, few weeks ago inaugurated a 25-man committee in Abuja to undertake the task of reviewing the current National Telecommunications Policy. He said the policy was being reviewed due to new trends in the industry, which have made the current document outdated.
He said the review is crucial to government’s efforts at developing the telecommunications sector to meet short, medium and long-term goals, initiative measurement of national growth indicators. The committee, chaired by Mr. Isaiah Mohammed, the former executive director, Nigerian Telecommunications (Nitel), has three months to submit its recommendations.
The minister said the previous document had helped Nigeria to surpass the ITU’ teledensity figure of one line to 100 people in three years.
Biblis said: “In less than 10 years, we have more than 75 million active lines in the various networks, and the teledensity figures have gone beyond 50 per cent mark as against the 10 per cent envisaged by the policy in 2000”.
The minister said the review of the blueprint should have been done at least once before now because of the rapid growth in the sector. “Some of the areas the document focused on in September 2000 may have been eroded with time” he said.
The committee comprising experts in the industry, government officials and journalists was asked to examine issues arising from the rapid global telecommunications growth, the evolution of new media and the challenge of information security for the new policy regime.
Mohammed expressed the readiness of members of the committee to meet the expectations of the government.
“In the light of development of the sector and to stay ahead of international recommendations, the committee will ensure that telecommunications is delivered to every part of Nigeria. We have to deliver and we shall deliver,” he sad.

Stakeholders’ expectations
Ernest Ndukwe, executive Vice Chairman, Nigerian Communications Commission, said that he expects the committee to produce an update policy that would transform the industry.
He said: “Telecommunication is a highly fast-changing industry and therefore, we need to keep pace with global trend. The review is a good initiative that will give investors a roadmap for investment in the future.”
Ndukwe listed areas the committee should address as Internet and need to look at a case where the entire country is covered by transmission infrastructure and its broadband infrastructure is expanded”.
Lanre Ajayi, chairman, Nigeria Internet Group (NIG), said that the current policy lead emphasizes on telephone which it has been achieved going by the growth in teledensity. He said what the country need now is broadband infrastructure, stating that the new policy should reflect that, which will therefore bring issues such as online applications, cyber security and evidence act. “How we intend to go about these should be addressed by the new policy,” he said.
He added that the implementation of the existing policy was successful in that the telephone penetration target it set out to achieve was surpassed. He expressed optimism that the new policy expected to address other areas of telecommunications as well as lay foundation for development in the sector will be met when it is final reviewed and release for implementation.
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (Alton) said the current National Telecommunications policy had a five year action plan and have met and surpassed the expectations of government and stakeholders in the industry. He noted that as at 2000 when the policy was promulgated it was not envisage that the industry will record 75 million active subscriber lines which is an indication of tremendous growth in the sector.
Adebayo who is also member of the review committee added that a review is necessary as technology is dynamic as well as challenges of the industry which is a product of growth in the sector.
He said that there is need to fashion the policy in order to address those industry challenges. According to him, due to rapid changes in technology, there is need for the policy to preempt technology and accommodate foreseen as well as unforeseen developments. It should also protect infrastructure and service providers, as well as address the issue of convergence where technology has brought broadcasting and communications together.
He added that the new National Telecommunications Policy must be prepared to accommodate such convergence. He however pledge the committee readiness to carry out the task of bringing out a draft that will address issues in the industry required for development of the sector and the country in general.
Achievements of the current policy
Nigeria is one of the biggest and fastest growing telecom markets in Africa, attracting huge amounts of foreign investment, and is yet standing at relatively low levels of market penetration. Far reaching liberalisation has led to hundreds of companies providing virtually all kinds of telecom and value-added services in an independently regulated market. The mobile sector, which has seen triple digit growth rates five years in a row since competition was introduced, has been joined by a number of additional players under a new unified licensing regime which is expected to also boost the country’s underdeveloped Internet and broadband sector. Third generation mobile and WiMAX wireless broadband services are being rolled out at a rapid pace.
Nigeria has overtaken South Africa to become the continent’s largest mobile market with now over 74 million subscribers, and yet market penetration stands at less than 50% in early 2010. The network operators are investing billions of US$ to expand their networks and improve the quality of service in order to avoid sanctions by the industry regulator, NCC. 3G services have been launched, and increased competition comes from an array of additional players who have entered the lucrative mobile market. Declining ARPU levels are forcing the operators to introduce new services and transform themselves into converged broadband service providers.
Nigeria, today records a strong standing in the world information society due to the quantum growth telecom has ushered in the last decade.
In the past eight years of telecommunications sector liberalisation, NCC sources say subscriptions to telephone services have risen to the current level of over 74 Million active connected lines. This growth and advancement in telecommunications within the last decade has improved the nation’s ICT ranking in the world and has positively impacted all sectors of the nation’s economy. Nigeria has also become Africa’s largest telecom market.
The achievements in the industry so far can be attributed largely to the foresight by government in implementing a successful sector reform and providing the enabling and conducive environment with respect to policies and regulatory regime. The federal government has proven its commitment to promoting a regulatory environment that is independent, fair, transparent and predictable".
Before the licensing of the Digital Mobile Operators in 2001, private investment in the telecommunications sector in Nigeria stood at about $US50 million. Between 2001 and now, the sector has attracted about $US18 billion in direct local and foreign investment. These high investment levels have been attained because Nigeria has become one of the most desired investment destinations for ICT in Africa not just due to the potential of the market but also due to the stable policy and regulatory regime.
The role of the policy maker must of necessity be separate from that of the regulator. The situation where the policy maker tries regulating the industry when there is a regulatory body in place would run contrary to International best practice, and creates regulatory uncertainty which investors do not like.
Maintaining a stable and predictable operating environment is essential for attracting investment and avoiding actions that can constitute a disincentive for investment or challenge the sustainability of returns on investment capital. The telecoms sector is very capital intensive and therefore, to continue network expansion, improve quality of service and increase coverage in Nigeria, emphasis must be on ensuring an attractive operating environment.
Stakeholders are optimistic that the committee with their practical experience in the industry will produce an ensuring National Telecommunications Policy that will usher in the next frontier in the growth and development of the sector.

 

 

 


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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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