Telecom
Why We Arranged $100m Deal for MainOne- Standard Chartered
Standard Chartered Bank Nigeria’s quest for strong business growth and its believe to ensure a turning point for domestic growth and development of the local economy, was behind its lead arrangement for the $100 million facility for MainOne Cable Limited.
Bola Adesola, managing director/chief executive officer of the wholly owned subsidiary of Standard Chartered Bank Plc, United Kingdom,, said that the financial institution was proud to invest in MainOne Cable as the company was one of the largest telecommunications operations in West Africa.
The deal is targeted at refinancing MainOne Cable’s existing debt and financing its ongoing capital expenditure for the company’s network expansion and ancillary services.
“We believe this is a turning point for domestic growth and development in our local economy. Our established footprint in Asia, Africa, and the Middle East, along with our long history of supporting trade flows to and from these regions, position us well to provide vital funding to growing companies in growing economies,” Adesola said.
Also, Remi Oni, head of Client Coverage at Standard Chartered Nigeria, said: “Standard Chartered is very pleased about the opportunity to arrange this financing in conjunction with other banks.
“MainOone has built a strong brand ubiquitous with reliable, high quality and professional service. The financing is a testament of our commitment to be here for good.”
For the bank, this is a landmark transaction, marking its first submarine cable financing in the country.
However, Funke Opeke, chief executive officer of MainOne Cable explained that the implementation of the agreement with bank and others, will enable MainOne expand its services across Nigeria and West Africa.
She stated that key to MainOne’s growth strategy and vision is to ensure that it continues to deploy infrastructure required to make its services available and affordable to institutional customers across its markets.
Specifically, the company is currently building a tier-three data centre and deploying an extensive fibre-optic network around Lagos.
According to her, “access to affordable broadband services will enable Nigeria and other countries in West Africa continue to grow their economies at a faster pace.”
The financial institution is listed on both London and Hong Kong stock exchanges, ranks among the top 25 companies in the FTSE-100 by market capitalisation, while its Group derives more than 90 per cent of its operating income and profits from Asia, Africa and the Middle East, through wholesale and consumer banking businesses.
Telecom
FCCPC Insists Telcos’s Tariff Hike must Translate to Improved Services
Federal Competition and Consumer Protection Commission (FCCPC) said on Wednesday that it has accepted the decision of the Nigerian Communications Commission (NCC) to approve a 50 per cent hike in telecommunications tariffs, down from the 100 per cent hike proposed by telecom operators.
FCCPC acknowledged the intense pressure faced by the NCC over the years to approve tariff increases due to the rising operational costs experienced by telecom operators, which became more pronounced in recent times.
It commended the NCC for adopting a deliberate and measured approach by rationalising the tariff adjustment and linking it to commensurate improvements in service quality, while implementing other measures to mitigate the impact on consumers.
However, the commission strongly insisted that the tariff hike must translate to significant quality and improved services, stressing that it will resist a situation where Nigerians are charged for poorly delivered services, particularly in areas like voice calls, data, and other services with the tariff hike.
FCCPC, in a statement on Wednesday by Ondaje Ijagwu, director of Corporate Affairs, asked telecom operators to disclose all key details upfront, including the cost, validity period, and specific inclusions of a plan.
It added: “Consumers can also expect a mandatory disclosure table from the service providers to enable them to make informed decisions without worrying about unexpected charges or surprises.”
The commission further noted that consumers have consistently expressed a desire for measurable improvements in service quality before any tariff increases are implemented. “Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns. It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers.”
FCCPC asked that telecom operators prioritise visible and measurable improvements in network reliability, speed, accessibility, and customer service as part of any tariff adjustment, insisting that the rationale for the increase must be reflected in better services for consumers who, apparently, rely on telecommunications for both personal and business purposes.
The commission suggested that operators allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements, stressing that clear mechanisms must be established to monitor how the funds are utilised, ensuring that consumers directly benefit from the adjustments.
“Operators must also clearly communicate the rationale for the tariff adjustments to consumers, ensuring that consumers are fully informed about the nature of the changes, the benefits, and how it aligns with efforts to improve service delivery and infrastructure,” it added.
The commission referenced its recent Memorandum of Understanding (MoU) with NCC, which, it said, provided a unified framework to oversee the implementation of the tariff adjustment in a manner that meets the needs of consumers.
It said the partnership ensures that the increase does not become a justification for exploitative practices, but an opportunity to foster fairness, transparency, and accountability in the telecommunications sector.
“As Nigeria embraces rapid technological advancements and increasing reliance on digital connectivity, it is imperative that the benefits of a thriving telecommunications ecosystem extend to all stakeholders, particularly consumers,” it added.
The FCCPC assured Nigerians that, together with the NCC, it will continue to pursue measures that uphold these objectives. “We are committed to closely monitoring the impact of the tariff adjustments to ensure compliance with established regulatory standards.”
It also reminded telecom operators that the FCCPC is actively working with NCC to address concerns raised by consumers during the transition period and beyond, and encouraged consumers to freely report any unfair practices or concerns through its official channels to ensure effective resolution.
Telecom
Sub-Saharan Africa Lost $1.56Bn to Internet Shutdown in 2024 – Report
Sub-Saharan African countries lost $1.56 billion to government-induced shutdowns in 2024, according to a new report by Top10vpn, an international VPN review website.
This is 19 per cent of the total $7.69 billion that was lost to Internet shutdowns worldwide and a 10 per cent decline from $1.74 billion reported in 2023.
According to the report, there were a total of 28 Internet shutdowns across 28 countries. Thirteen of these were African countries — Sudan, Ethiopia, Kenya, Algeria, Guinea, Mauritania, Senegal, Mozambique, Chad, Mauritius, Tanzania, Papua New Guinea, and Equatorial Guinea.
It revealed that Nigeria stood out as one of the few sub-Saharan African countries to avoid internet shutdowns in 2024.
Experts said the absence of an internet shutdown suggests that people in that country have continuous and unrestricted access to the internet, allowing them to communicate, access information, and participate in online activities without disruption imposed by the government.
Sudan is the African country that lost the most — $1.12 billion — to Internet shutdowns. Total Internet shutdowns in the country lasted for more than 12,707 hours or over 529 days.
The Internet shutdown in Sudan is mainly due to a prolonged conflict in the country, which has claimed 13,000 and displaced more than 10 million people.
Other African countries like Kenya and Ethiopia shut down the Internet because of protests.
Both countries lost $75 million and $211 million to Internet shutdowns, respectively.
Major platforms such as X, TikTok, Signal, Facebook, Instagram, and WhatsApp were restricted, affecting approximately 111.2 million internet users in the country.
“In late February 2024, authorities in Myanmar once again started blocking access to X. As this was a new restriction. This is also the second year we have included blocks of newer social media platforms, such as TikTok and Telegram,” it said.
Globally, Asia led in terms of internet shutdowns in 2024, losing $4.64 billion over 48,807 hours of disruptions affecting 331.3 million people. Sub-Saharan Africa followed with $1.5 billion in losses spread over 32,938 hours and impacting 111.2 million internet users.
While the global economic impact of internet shutdowns decreased by 16 percent compared to 2024, the duration of shutdowns increased by 12 per cent in the same period.
The report emphasised the damaging effects of internet shutdowns, both in terms of economic and human costs, and highlighted concerns about citizens resorting to unsafe VPNs to circumvent imposed restrictions.
Telecom
USSD Dispute: FG May Blacklist 18 Banks Allegedly Owing Telcos N250Bn
Indications have emerged that federal government may this week list names of 18 banks owing almost N250 billion naira to Nigerian telecom operators on Unstructured Supplementary Service Data (USSD), and have remained adamant towards settling it for several years.
Nigerian Communications Commission (NCC) has reportedly been given the nod to publish the names and approve that telcos withdraw services to them if after two weeks they fail to settle the debts, according to Vangaurd.
Recall that the issue of banks’ multi billionnaira USSD debt to telcos has lingered since 2020, rising from below N40 billion to N57 billion by the end of 2021 and N80 billion in 2022.
But now, the telcos claim the debt has risen above N250 billion and accused the banks of not complying with the repayment plan.
The recent development, cannot be unconnected with a December joint meeting between the two regulators, NCC and the Central Bank of Nigeria (CBN) which resolved that the banks pay part of the money by December 31, last year and defray the remaining gradually.
However, Vanguard gathered authoritatively that only four banks complied with the directive, while 18 others are still adamant.
Similarly, when the matter brewed heavily a few years ago, the National Assembly, Central Bank of Nigeria, CBN, and the Nigerian Communications Commission, waded in and also generated such a gentleman’s agreement, which gave the banks leverage to defray the debts gradually.
However, that did not also happen as the banks allegedly reneged.
A few weeks ago Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), accused the banks of deliberately frustrating any move to resolve the issue and threatened that the only option, since the banks have consistently failed to honour the agreements, would be to withdraw the support that gives the USSD platform life.