Connect with us

Telecom

Zoom Mobile, Starcomms, Others Were Programmed to Fail

Published

on

Eugene Juwah, EVC, NCC
Kindly share this post

Nigeria mobile code-division multiple application (CDMA) mobile sectors is going through tough times and there appears no end in sight soon since government is not forthcoming with either a bail-out plan nor working out any mergers/acquisition scheme for the ailing firms.

Collins Onuegbu, a systems analysts and managing director of Signal Alliance Ltd, a full IT services company in Lagos told Nigeria CommunicationsWeek that the CDMA sector was programmed to fail when the Nigerian Communications Commission (NCC) initially adopted regional licensing for the CDMA operators; while opening up the market of universal licensing for the GSM mobile operators.

“The CDMAs are failing because their business model was flawed from the beginning. From the very beginning when the NCC decided to give them regional licences and the GSM operators were offered universal licence, it was evident the CDMAs will fail.”

“Nigerians are very mobile people and the very essence of the mobile phone is for you to connect wherever you go and there is no way you’d buy a phone that guarantees you connection only in Lagos and whenever you’ re out of town, you needed another system. So why not buy the one that connects you continually and leave the other one out of budget? So you see, the CDMAs cannot compete with that model of business in an environment like ours,” said Onuegbu.

He stated that elsewhere where copper (cables) are used to connected fixed lines, the model for regional licensing could work, but not in Nigeria where all the cables have either been dug up through road constructions or stolen by vandals.

Onuigbo noted that since the GSM operators had a heads-start, it opened windows of financing for them too which the CDMAs were shut out from.

“The CDMAs because of their regional operating licence couldn’t access bank financing or further investment for expansion and the resultant effect is that they’re dying one after the other.”

Starcomms PLC, the only telecom operator on the floor of the Nigeria Stock Exchange (NSE), is also not spared the meltdown as they struggle to remain afloat.

A recent attempt to merge with three other operators to form a medium size CDMA operator appear also to have hit a brick wall.

“I think Starcomms went to the stock market rather too early. They hadn’t spent enough time in the market to authenticate their real value. They needed to have been tested and trusted by investors. So that affected their market value and capitalization drive,” Onuegbu enthused.

Signal Alliance also has strategic affiliation with Microsoft, SAP, Cisco, CA Technologies and was recently rated the 27th fastest growing (non-listed) company in Nigeria by Michael Porter’s All World Network Nigeria Fast Growth 50 list.


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

Vitel Wireless Partners Fintechs to Expand Access to Services

Published

on

Kindly share this post

Vitel Wireless has entered into partnership with OPay Limited and Moniepoint Limited, to expand access to airtime and data services, particularly in Nigeria’s underserved and rural communities.

Vitel Wireless Partners Fintechs to Expand Access to Services

The collaboration enables millions of customers on both fintech platforms to seamlessly purchase Vitel Wireless airtime and data directly from their bank accounts and digital wallets, a move designed to simplify access and improve connectivity nationwide.

Chudi Nwabueze, chief operating officer, Vitel Wireless, said the initiative highlighted the growing convergence between financial services and telecommunications in Nigeria.

He noted that by leveraging the expansive reach and infrastructure of fintech platforms, the company is removing long-standing barriers to mobile access.

Nwabueze added that the move builds on Vitel’s existing partnerships with traditional financial institutions such as Fidelity Bank and Zenith Bank, extending its footprint into the rapidly growing fintech ecosystem.

“This integration allows users to conveniently top up airtime and purchase data bundles through familiar banking and wallet platforms, improving accessibility and overall user experience,” he said.

Also speaking,  Odera Ben-Chiobi, product marketing manager, Vitel Wireless, said the partnership aligns with the company’s mission to democratize access to mobile connectivity across Nigeria.

According to her, the collaboration will bring telecom services closer to millions of Nigerians, especially in areas where access has historically been limited.

She added that combining telecom services with digital financial platforms will also support broader financial inclusion efforts.

Vitel Wireless currently operates nationwide through a network-sharing agreement with MTN Nigeria, leveraging MTN’s infrastructure to deliver its services across the country.

The company noted that the partnership reflects a shared commitment to inclusive growth, with the potential to accelerate both financial inclusion and digital connectivity across Nigeria.

 

 


Kindly share this post
Continue Reading

Telecom

Reps Claim NCC’s Weak Regulatory Oversight Responsible for Poor Telecom Services

Published

on

Kindly share this post

House of Representatives on Wednesday claimed that Nigerian Communications Commission’s (NCC)  weak regulatory oversight, was responsible for the country’s ongoing poor telecom service quality.

Reps Claim NCC’s Weak Regulatory Oversight  Resposible for  Poor Telecom Services

The lawmakers accused the NCC of failing to enforce standards that would compel operators to provide reliable connectivity.

They warned that persistent issues like dropped calls, slow data speeds, and network failures pose serious risks to lives and property, particularly during emergencies.

The resolution followed the adoption of a motion of urgent public importance moved by Ahmadu Jaha, representing Chibok/Damboa/Gwoza Federal Constituency in Borno State.

Speaking on the motion, Jaha emphasised the critical role of telecommunications in Nigeria’s economy and daily life, while lamenting the widening gap between subscriber expectations and actual service delivery.

“Telecommunication has become a vital part of everyday life in Nigeria. It connects families, supports businesses, enhances education, and drives economic growth. However, despite its importance, the quality of service provided by many telecom companies remains unsatisfactory,” he said.

Jaha highlighted recurring problems such as dropped calls, poor internet speeds, and failed message deliveries as signs of deeper systemic failures in the sector.“The House is concerned that poor network connectivity is a major issue.

Subscribers frequently experience dropped calls, slow internet speeds, and difficulty sending messages. This affects both personal communication and business operations, leading to frustration and financial losses,” he added.

Lawmakers also expressed dissatisfaction with the high cost of services relative to the quality received.

Jaha noted that Nigerians pay substantial amounts for data bundles that are quickly depleted due to unstable connections and frequent interruptions.

He further pointed to inadequate customer service, where complaints often go unresolved for long periods, hindering emergency communications during fire outbreaks, medical emergencies, or accidents.

The lawmaker attributed part of the problem to insufficient infrastructure expansion, especially in growing urban centres and underserved rural areas.

“Network congestion during peak hours and in densely populated areas shows that infrastructure development has not kept pace with the growing number of users,” he said.

Supporting the motion, George Ozodinobi, deputy minority whip, accused telecom operators of prioritising profits over service quality while faulting the NCC for regulatory complacency.

“It is like these companies have made enough profits in billions, and so, they don’t care about improving the network anymore. The NCC, the regulator, has become complacent,” Ozodinobi stated.

Despite the sector’s rapid growth from under one million lines in the early 2000s to over 200 million active subscriptions today challenges such as insufficient base stations, unreliable power supply, multiple taxation, and infrastructure vandalism continue to hamper service quality.

In its resolution, the House urged telecom companies to invest in modern infrastructure, expand coverage especially in rural communities, improve customer service, and adopt fairer pricing that reflects actual service quality.

The lawmakers also directed the NCC to enforce stricter quality-of-service standards and hold operators accountable.

They further resolved to set up an ad-hoc committee to investigate the root causes of poor service delivery and recommend appropriate legislative measures.

 

 


Kindly share this post
Continue Reading

Telecom

GSMA Africa Policy Group Chair Calls for Urgent Tax Reforms to Accelerate Digital Inclusion

Published

on

Kindly share this post

Mr. Daddy Mukadi, the Chief Regulatory Officer of Airtel Africa and Chair of GSMA Africa’s Policy Group, has called on African governments to recognise telecommunications as a core economic pillar and to implement two specific tax reforms that could dramatically accelerate digital inclusion across the continent.

Speaking at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC – an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended by H.E. President Félix Tshisekedi – Mukadi, who’s also a member of the GSMA Global Policy Group, urged government and industry stakeholders to rethink the role of telecommunications in national development.

He argued that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector,” Mukadi said. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to the continent’s economy in 2024. This is equivalent to 7.7% of GDP and is projected to reach US$270 billion by 2030.

Yet despite mobile networks now covering 95% of Africa’s population, nearly 75% of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mr. Mukadi, therefore, called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services.

He asserted that the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150 to help bridge the usage gap. He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

According to him, “these measures would help deliver inclusive and sustainable digital technology for economic and social progress,” Mukadi said. “They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy.”

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


Kindly share this post
Continue Reading

Trending