The Nation Newspaper

Category: e-Business

  • SIM boxing threatens telecoms industry

    An information communication technology (ICT) expert has warned about the dangers of subscriber identity module (SIM) boxing in the telecoms industry, saying a decisive action needed to be taken to halt its spread.

    An independent ICT consultant, Derrick Sebbaale, said in 2016, it was estimated that Uganda telcos lost about $60million due to illegal redirection of international calls traffic.

    The amount, in part, led to revenue from voice services remaining flat or growing sluggishly between 2015 and 2017, according to telecom revenue analysis in those three years. The illegal redirection is known technically as SIM boxing.

    But the Nigerian Communications Commission (NCC) said it was addressing the menace with the deployment of superior technology.

    According to Sebaale, SIM boxing is a practice in telecoms, whereby a person or group of people, set-up a device that can take up several SIM cards (a SIM box) and use it to complete international calls received from the internet as voice over IP (VoIP) and in turn serve them to the in-country mobile network subscribers as local traffic. The SIM boxer thus bypasses the international rates and often undercuts the prices charged by local mobile operators.

    Read also: NCC resumes Do Not Disturb directive

    Explaining how it works, he said, if a call is being made from the United Kingdom to Uganda, the subscriber will call via their operator (provider A – i.e. Vodafone) that has an International Gateway (e.g. BICS, TATA, etc.) and has termination agreements with operators in Uganda, including network X (could be MTN or Airtel). They send the call via their connections to Network X that looks for its subscriber and terminates the call.

    In this scenario, all operators – A, BICS, X and the government – receive their fees as per set agreements and taxation laws.

    This is the legal mode of operations and guarantees revenue for parties involved.  However, some unscrupulous elements have found a way around this. The issue, he said, became rampant when the One Area Network (OAN) was launched in 2015, and that it became the transit route for calls  from other countries.

    If someone made a call from the UK to Uganda on your phone, it would be displayed as a call from Kenya because it would have been diverted by some unscrupulous individuals.

    The SIM Box has several SIM cards of operators and could also take advantage of any on-net (same network) voice bundles and thus ends up paying very little or nothing for the termination of the said call disguised as a local call.

    In this scenario, the interconnect operator C undercuts the market interconnect rates and offers cheap rates by spoofing quality. The GSM operator in Uganda (Network X) is cheated of charging the call at premium international rates, but rather gets local rates or even earns nothing (if already purchased voice bundles are utilised). The government is also cheated of the $9 charged on international calls per minute. This route is also referred to as the “Gray Route”.

    So, the telecom firms witness increased calls due to bundled offers but then this doesn’t translate into increased revenue. That means, someone is rigging the system.

    As stated, the telecoms were estimated to be losing about $60million yearly as a result of the gray routing. A loss to the telecoms means that they will also be unable to remit the excise duty charge on calls to the government. With the excise duty charge at about 36 per cent, that means government revenue loss is about $21.5million yearly. These are amounts that can help the government continue to provide services for Ugandans.

    As the telecom operators and the government are counting their losses, the unscrupulous individuals that have only spent a meagre amount to acquire a SIM box machine are smiling to the bank.

    These SIM boxers can break even in less than one month and continue to rake in profits. There is no deliberate under-declaration of telecom revenue because of the investment made to be compliant with the tax authorities, the expert added.

  • NITDA: IT adoption rate by govt institutions dismal

    The Director-General, National Information Technology Development Agency (NITDA), Dr Ibrahim Pantami, has decried the low adoption of Information Technology (IT) platforms by government institutions to deliver services to the end users.

    According to Pantami, only 4.7 per cent of Federal Government institutions out of 106 ministries, departments and agencies (MDAs) adopt IT to deliver services despite that ICT contributes 13.63 per cent to the nation’s Gross Domestic Product (GDP).

    The NITDA chief spoke during the presentation of the draft Nigerian Government Enterprise Architecture (NGEA) to stakeholders in Abuja.

    Represented by Dr Vincent Olatunji, a Director in NITDA, Pantami said the NGEA is a framework for long-term IT strategy and plan as well as a roadmap for achieving Whole of Government and Government Digital Transformation for the development of the economy.

    “An enterprise architecture provides for an integrated and long-term view of the election strategic goals, structure, people, finance, data/information, business processes and services and their relationship with information technology and the external environment with the aim of deriving maximum benefits from the use and adoption of IT,” he said.

    Pantami said despite the low-level adoption of IT by government institutions, the country has made significant progress in ICT adoption which are evident in the Treasury Single Account (TSA), Integrated Personal Payroll Information System (IPPIS), Government Information Financial Management Information System (GIFMIS), Bank Verification Number (BVN), e-Taxation, e-passport, e-Wallet for farmers, business registration, among others.

    He said it had, therefore, become necessary for public institutions to “form a big and critical enterprise that must be managed efficiently to ensure its resources, including IT are maximised to create value for stakeholders given the prevailing political, legal and managerial/administrative context.

    “This document provides a platform where government services can be accessed from one source that is to have one whole government where everything you need from government can be gotten from one source according to global standards.

    “The advantage of it is that it cuts down wastage, duplication of duties and gives value for money, quality and effective services delivery. Therefore, ICT is everybody’s business. This Enterprise Architecture will provide and strengthen ICT to drive government business.”

  • Tech confab to explore how to grow economy

    Accelerating Nigeria’s economic growth through innovation will form the focus of this year’s edition of Nigeria Innovation Summit scheduled for Lagos.

    The summit, which will hold from August 20-21, at Lagos Sheraton Hotels, Ikeja,  is a yearly event that promotes the need for businesses, organisations, entrepreneurs and government to become more innovative and use innovation to drive sustainable economic development. It helps embrace innovation and move in the direction of digital transformation through the use of emerging technologies and trends, research, development, commercialisation, entrepreneurship and investments.

    Each year, the summit provides a platform that fosters collaborations among government agencies, businesses,international organisations, innovators, researchers, academic community and startups.

    Announcing the summit, Emerging Medi  Chief Executive Officer (CEO), Kenneth Omeruo, said: “This is the time for Nigeria with her youthful population, to leverage new technologies like Artificial Intelligence, Virtual Reality, Blockchain, Internet of Things, Robotics, Data sciences etc and apply them in sectors like Health, Agriculture, Financial services, Education, Renewable Energy and Clean-techs to solve problems around us. These opportunities are already creating new businesses who are becoming a major source of foreign investments into Nigeria and that is a major way of accelerating economic growth. This is our motivation each year to host this summit.”

    REad also: Three aspects of economy that should get atttention

    He said small businesses and startups hold the key to a sustainable economic growth for the country as in 2018 according to Partech Africa report, Nigerian startups attracted $ 306 million in funding over 26 deals, and encourages the government to provide more support and create the enabling environment for businesses and innovations to thrive.

    Summit Programme Coordinator  Tony Ajah said:  “Each year, we bring in experts from around the world in several innovation ecosystems to Nigeria to share these global opportunities and network with participants are the summit.

    “This year’s summit will feature keynote presentations, panel discussions, workshops, exhibitions focusing on healthtech,agritech, renewable energy and cleanTech.”

  • Huawei Y7 Prime 2019 unveiled

    Huawei Consumer Business Group (BG) has launched  its latest Y7 Prime 2019 device.

    Created to empower Nigerians to realise their potential, the Huawei Y Series combines quality technology and stylish design for great value.  It features the premium 6.26-inch Huawei Dewdrop display, 13MP AI Camera with f/1.8 wide aperture lens, two-day battery and an octa-core Qualcomm SoC Snapdragon 450.

    The Huawei Y7 Prime 2019 is a  compelling product, especially in the video-centric social media landscape.

    Huawei Y7 Prime 2019 is made for Nigerians who are engaged with the social media culture.  Given the rise of video-centric platforms, the Huawei Dewdrop Display—first  made its debut with the flagship Huawei Mate 20 Series in October,lends itself to great viewing experiences thanks to its top class screen-to-body ratio of 86.7 per cent. The pearl-shaped notch that houses the 16MP front camera is Huawei’s smallest notch to date;  it is situated on the vertical axis of the device, and does not disrupt the harmonious symmetry of the near-full screen design.

    Read also: Huawei to boost Nigeria’s ICT market

    With a vertically aligned camera system, Huawei Y7 Prime 2019 share a resemblance with a compact digital camera.This is a design choice: Huawei Y7 Prime 2019 was designed to offer the best smartphone photography experience amongst devices of its class.

    At the back, enclosed in a durable ceramic-like back cover and metallic chassis is a 13+2MP AI Camera. The primary 13MP camera has a wide aperture of f/1.8 with 16 virtual f-stops (supporting f/1.8-6) to provide granular controls over depth of field effects.

    Whether the user wants to take a portrait with clear separation between the primary object and background, or a landscape photo where every object in its field of view is clean and crisp, the HUAWEI Y7 Prime 2019 delivers with great efficacy. It also supports Master AI, which in HUAWEI Y7 Prime 2019, it recognises 22 categories of objects and scenes.

  • Smart devices boost camera market, says Canon

    The emergence of high end mobile devices with high definition camera has not affected the market segment for photography cameras, leaders in imaging solutions, Canon, said in Lagos at the weekend.

    Speaking on the sideline of the unveiling of three new products – the EOS R System, PIXMA TS9540 and the ZOEMINI, in Lagos, Senior Manager, Sales & Marketing – B2C, Canon Central & North Africa, Mr. Amine Djouahra, said the evolution of camera devices has been a blessing to the camera segment as it has boosted its sale.

    He said: “In the past, we used to say mobile phones are impacting the business of camera. For me, it is not true. It is better and better. Before mobile phones, how many people use to go and buy camera to take pictures? Not many. Today, the mobile phones, especially the high end mobile phones which have high level cameras just excite people to go and click pictures. Out of all this population of people clicking, there are some people that will be interested in having fantastic pictures that will move them into photography and the moment they decide to move into photography, they will realise that the smartphone cannot fulfill their  needs, so that is creating for us, more segment and more demand. If you look at the optics of the camera and look at the sensor of these devices, they cannot be the same, it’s impossible. So these devices are preparing some people to enter the camera segment.

    “In 2015, the market size of cameras in Nigeria was 46,000 while the mobile phone penetration was 88 per cent. That means 88 per cent of the 194million are having mobile phones and if we do simple calculation and take one per cent of this population, about 1.4million people have been converted to camera use. So for us, it is a blessing. Our products are far more better than the smartphone in terms of performance.”

    He said the new range of printers and the camera are poised to expand Canon’s imagery range in the country and help customers manage productivity.

    The EOS R System is redefining the frontiers of photography and filmmaking. Over 30 years on from the original, era-defining EOS launch, the bold, new EOS R System once again expands photographic possibilities in countless ways. The new RF lens mount has been engineered with the perfect blend of optical, mechanical and electronic design to capture unique moments previously seen as very challenging.

    “We are very proud to have officially launched and announced the availability of our EOS R System in Lagos. This market plays a significant role in our growth plans and we hope that today’s local launch event will further cement our position as innovators in imaging technology. Canon is globally committed to investing in the unrivalled EOS world with cameras, lenses and accessories that set new heights in image quality, optical excellence and performance, building on Canon’s lens heritage, these high-performance lenses will push forward the frontiers of creative storytelling and satisfying the ever-evolving needs and demands of our customers.”

  • Foundation, GE, Belgium partner to boost tech start-ups

    International not-for-profit organisation, Youth for Technology Foundation (YTF), through its 3D Africa programme, in partnership with GE Lagos Garage  and Belgian government have partnered to boost youth-led tech start-ups in the country.

    To achieve this, the organisations  hosted a pitch and networking session in Lagos for local youth-led tech start-ups and entrepreneurs.

    The event, titled: Building a viable hardware ecosystem in Nigeria, was held at the GE Lagos Garage. Pitches from youth-led technology start-ups and scale-ups were presented to the Belgian Minister of Digital Agenda, Philippe De Backer, and his Silicon Lagoon Mission delegation and guests comprised local and international entrepreneurs, investors, representatives from private-sector companies, and non-profits.

    The event also featured a presentation from the prestigious Solvay Business School of Belgium about entrepreneurial projects related to student trade missions and internships.

    De Backer, who was accompanied by a delegation of Belgian start-ups, entrepreneurs, non-profits, and journalists, said he was around with the mission to connect with the country’s vibrant technology start-up community, explore partnership potential, and raise awareness about digital for development opportunities in Africa’s most prominent tech hub.

    Apart from the pitch presentations, participants also had the opportunity to network with players in youth-led startups and scale-ups in the technology space, entrepreneurs, investors, private sector companies and academics amongst others.

    Youth for Technology Foundation/3D Africa CEO, Njideka Harry, said the session was a continuation of the organisation’s objective of equipping the next gen with the skills necessary to excel in the world of work.

    “It is about empowering the next generation of leaders to enter the workforce with the skills they need to access employment or create their entrepreneurial opportunities in the fourth industrial revolution. Our programmes utilise technology to inspire youth and women in developing nations to create innovative solutions to the challenges they encounter, and we are pleased to have been able to collaborate with GE Garage for this initiative,” she said.

  • ‘Sophos Intercept X best in endpoint protection’

    Sophos, a global leader in network and endpoint security, has said its next endpoint solution, Sophos Intercept X, has been recognised for having the highest security effectiveness.

    It is also the most efficient total cost of ownership (TCO) of the 19 endpoint security products tested in the Advanced Endpoint Protection (AEP) Group Test published by NSS Labs.

    The  AEP 3.0 Group Test tested 21 products from market-leading vendors, of which 19 comparable products were presented in the Security Value Map (SVM).The products were examined for security effectiveness and total cost of ownership (TCO).

    “Measuring cybersecurity product effectiveness is unimaginably complex. With threats and attack techniques increasing and evolving at an ever-accelerating rate, testing houses need to make extraordinary investments in their laboratories if they are to produce meaningful and rigorous measurements of cyber-security product effectiveness.

    Chief Technology Officer Joe Levy said: “But just like all cybersecurity products are not equal, not all testing houses are equal and this remains somewhat opaque to the consumers of their reports, particularly when there is insufficient transparency around methodologies or execution details.

    “Competent independent testing labs provide a great service to vendors and buyers, and are critical to the cybersecurity ecosystem to drive higher standards of protection for all.”

  • Telcos: tariff hike inevitable…if

    Telecoms firms have warned of the inevitability of end-user tariff hike across their services should there be hike in Value Added Tax (VAT) as being proposed by the Federal Government.

    Acting under the aegis of Association of Licensed Telecoms Companies of Nigeria (ALTON) and Association of Telecoms Companies of Nigeria (ATCON), the carriers are unanimous on the inevitability of hike in tariff to reflect the new VAT rate that will be charged by the government.

    ATCON President Olushola Teniola said at five per cent, Nigeria has one of the lowest rates of VAT in the world and a budget deficit that cannot be continually sustained by government relying only on increasing its borrowing to fund the shortfall.

    He said without any measurable improvement in the diversification of the revenue base of the economy and the income resulting from the sale of oil (via oil receipts), it appears that the increase in recurring expenses in the form of public sector minimum wage bill has forced the government to push the burden of this increase back on the public that consume VAT-itemised products and services.

    “This means in the short term that prices where VAT applies will increase and impact consumer consumption of such items, with a tapering off in the medium term, and in the long-term wage bills across board will need to increase to take in the impact of further wage demands by other sectors that will readjust wage bills upwards to reflect the increase in living costs and standard of living (since a majority of VAT goods are related to imported products and services).

    “VAT applied to all voice and data communication-related services that are VATable will be subjected to an increase to reflect the new VAT charges imposed by government,” Teniola said in an email response to questions.

    His counterpart in ALTON, Gbenga Adebayo, agreed no less with Teniola, saying any like VAT rate would inevitably increase the cost of doing business across board.

    Read also: Mayor, business leaders to meet on tariff hike

    He said: “This will increase the overall cost of doing business and sadly consumers of telecommunications services, like all other sectors, will pay more to reflect the increase in the VAT rates. This development, however, won’t lead to increase in the base rates, but will result in increase in the end-user rates to reflect the upward review of VAT collection.

    “As you are aware, VATs are collected and remitted to the Federal Government; it is not part of colony income; it’s a collection on behalf of the Federal Government for goods and services, and that’s why it’s called VAT.’’

    Couldn’t the government have looked elsewhere to source for funds to pick the minimum wage bills? The telcos think so. According to them, the government should think about reducing the cost of governance rather than robbing Peter to pay Paul.

    Adebayo said: “Certainly yes, it’s like the old saying of robbing Peter to Pay Paul: it’s unfair to tax the consumers, some of who are not direct beneficiaries of minimum wage, and using it to pay government minimum wage. Private companies which are expected to comply with the national minimum wage will have an increase in their wage bills and they can’t fund it from other taxation. They have to lower their costs or have to increase their product/goods/services prices to accommodate the minimum wage.

    “In my view, the entire economy will suffer any increase in VAT.  And this should be handled very carefully. Mere conversation around it is causing jitters in the economy and I advise all stakeholders to discuss and handle these issues very carefully. Most importantly, government should reduce its own cost of governance to accommodate any wage increase.”

    Teniola said it is a delicate balance of spreading the burden across board. “This is a delicate balance of applying the burden across board or deliberately targeting a specific segment of the population/society. In my opinion it is common for government to take the least course of resistance and in this case other alternatives, such as cost savings and efficiencies within federal, state and local government level to pay for this increase would not have the political support, simply due to the number of public sector workers that will have to be laid off to afford this minimum wage increase,” he said.

  • ‘Enterprises in fear of post-digitilisaton’

    Business enterprises are entering a new ‘post-digital’ era, where success will be based on an organisation’s ability to master a set of new technologies that can deliver personalised realities and experiences for customers, employees and business partners, according to Accenture Technology Vision 2019, a new report from Accenture has shown.

    Titled: The Post-Digital Era is Upon Us – Are You Ready for What’s Next?, enterprise is at a turning point. Digital technologies enable firms to understand customers with a new depth of granularity; give them more channels with which to reach those consumers; and enable them to expand ecosystems with new potential partners. But digital is no longer a differentiating advantage – it’s now the price of admission, the report said.

    Accenture Technology’s Managing Director, Niyi Tayo, said: “A post-digital world doesn’t mean that digital is over. On the contrary – we’re posing a new question: As all organisations develop their digital competency, what will set you apart?  In this era, simply doing digital isn’t enough. Our technology vision highlights the ways in which organisations must use powerful new technologies to innovate in their business models and personalise experiences for their customers. At the same time, leaders must recognise that human values, such as trust and responsibility, are not just buzzwords but critical enablers of their success.”

    The vision identified five emerging technology trends that firms must address to succeed in today’s rapidly evolving landscape.

    According to the report, first is understanding the DNA of DARQ. The technologies of distributed ledgers, artificial intelligence (AI), extended reality and quantum computing (DARQ) are catalysts for change, offering extraordinary new capabilities and enabling businesses to reimagine entire industries. “When asked to rank which of these will have the greatest impact on their organisation over the next three years, 41 per cent of executives ranked AI number one – more than twice the number of any other DARQ technology,” said the report.

    The second is to unlock unique consumers and unique opportunities. Technology-driven interactions are creating an expanding technology identity for every consumer. This  knowledge will be key to understanding the next generation of consumers and for delivering rich, individualised, experience based relationships. More than four in five executives (83 per cent) said digital demographics give their organisations a new way to identify market opportunities for unmet customer needs.

    It said as workforces become “human+” – with each individual worker empowered by skillsets and knowledge plus a new, growing set of capabilities made possible through technology – companies must support a new way of working in the post-digital age. More than two-thirds (71 per cent) of execs believe  employees are more digitally mature than organisation, resulting in a workforce “waiting” for the organisation to catch up.

    According to the report, enterprises are not victims, they’re vectors. While ecosystem-driven business depends on interconnectedness, those connections increase companies’ exposures to risks. “Leading businesses recognise that security must play a key role in their efforts as they collaborate with entire ecosystems to deliver best-in-class products, services and experiences. Only 29 per cent of executives said they know their ecosystem partners are working diligently to be compliant and resilient with regard to security,” it added.

    Technology, it said, is creating a world of intensely customised and on-demand experiences, and companies must reinvent their organisations to find and capture those opportunities. That means viewing each opportunity as if it’s an individual market-a momentary market.

    Six in seven executives (85 per cent) said the integration of customisation and real-time delivery is the next big wave of competitive advantage.

    According to the report, innovation for organisations in the post-digital era involves figuring out how to shape the world around people and pick the right time to offer their products and services. “They’re taking their first steps in a world that tailors itself to fit every moment – where products, services and even people’s surroundings are customised and where businesses cater to the individual in every aspect of their lives and jobs, shaping their realities,” it said.

    The report said one company taking individualisation and customisation to a new level is Zozotown, Japan’s biggest e-commerce company. Its skintight spandex Zozosuits pair with the Zozotown app to take customers’ exact measurements; custom-tailored pieces from the company’s in-house clothing line arrive in as few as 10 days. And it’s not just in the fashion industry where technology is enabling customisation previously not possible. United States retailer Sam’s Club developed an app that uses machine learning and data about customers’ past purchases to auto-fill their shopping lists; the company plans to add a navigation feature to show optimised routes through the store to each item on that list.

  • 9mobile offers free WhatsApp service to customers

    Fourth national carrier, 9mobile, is offering Nigerians the opportunity to use WhatsApp chat free of charge on its network.

    With this offer, upon purchase of  data bundles using *200*3*1#, customers will be able to use their data plans for other purposes while enjoying WhatsApp chat free of charge.

    The offer is the first-of-its-kind in the market and it is available to 9mobile subscribers on both pre-paid and post-paid/hybrid packages. With the free WhatsApp offer, customers can connect more with family and friends; businesses are also not left out as business customers can also benefit from the offer to connect with colleagues and clients. 9mobile’s free WhatsApp offer includes text, images, video and other multimedia content sharing, but excludes voice calls, video calls and status updates.

    Read also: Three face charges over MTN, Airtel, 9Mobile lines

    Speaking on the offer, Vice President, Marketing, 9mobile, Adebisi Idowu, said the offer affirms the telco’s commitment to rewarding customers for their loyalty and providing greater access to platforms that help foster closer relationships with loved ones.

    He said: “You will recall that in our 2018 end-of-year message, our Acting Managing Director, Stephane Beuvelet, made some promises to our customers including the deployment of an array of innovative brand loyalty reward programmes this year.”