The Nation Newspaper

Category: Infotech

  • Government seeks way out of multiple taxation

    Government seeks way out of multiple taxation

    The Federal Government, is contemplating a way out of multiple taxation.

    In conjunction with Broadband Council (BC), it is  promoting a ‘’smart state” initiative geared towards engaging governors and others at the federal and state levels to address the issue of multiple taxation. The government and BC  believe that multiple taxation, is impeding the acceleration of the roll out of critical infrastructure across the country.

    Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Eugene Juwah, who spoke in Lagos, said the effort is aimed at creating the enabling environment for the deployment of communications infrastructure across the nation, adding that the initiative is already yielding result.

    “The states considered for the smart state initiative by the Broadband Council are Bayelsa, Gombe, Katsina, Ondo, Anambra, Lagos. They are responding positively to be part of the league of states in this initiative. The initiative will   lead to accelerated roll out of critical ICT infrastructure across the state necessary for development. “The initiative will also lead to a reduction in the cost of network deployment and an increase in the rollout of such networks to commercial centres, underserved and rural areas by communications operators.

    “With this, an  enabling environment will be created that will  increase broadband penetration -both fixed and mobile and increase access to such services at affordable prices for customers, creating digitally enabled urban areas called ‘smart cities’.

    “Those states that provide such an enabling environment, according to the ministry, will be labeled ‘Model States’ and afforded the utmost support in achieving these objectives. In exchange, participating states can expect to see growth in economic activity and productivity and subsequently the positive development of the state,” he said.

    The initiative, according to Juwah, will cover areas such as standardised fees for site building and approvals within the state, reduction in fees and possibility of waiver for Right of Way (RoW) in deserving instances, implementation of a Dig-Once Policy, promotion of co-location between operators in the state and connectivity to state institutions within one kilometre of the given RoW.

    The NCC, he said, has the responsibility of ensuring that there are guidelines and regulations governing all aspects of telecommunications service provision, including the installation of masts / towers and radio frequency exposure limits.

  • The growing fear of digital disasters

    The growing fear of digital disasters

    From Internet of Things (IoT), the world is graduating to Internet of Everything (IoE). The world has become a global village, with people reaching any part at the click of a button. But these benefits pale into insignificance because of the risk of digital disasters, LUCAS AJANAKU reports.

    The world has become a global village courtesy of the internet, which has bridged the gulf that existed in the past. Aside sending electronic mails (e-mails), it is now possible to make video calls on Facebook while Skype is also available for people to make internet calls.

    To underscore the boom in the industry, there are now the Internet of Things (IoT) and the Internet of Everything (IoE).

    A free online knowledge platform, Wikipaedia, defines IoT as “the interconnection of uniquely identifiable embedded computing devices within the existing Internet infrastructure. Typically, IoT is expected to offer advanced connectivity of devices, systems, and services that go beyond machine-to-machine communications (M2M) and covers a variety of protocols, domains, and applications. The interconnection of these embedded devices (including smart objects), is expected to usher in automation in nearly all fields, while also enabling advanced applications like a Smart Grid.

    “Things, in the IoT, can refer to a wide variety of devices such as heart monitoring implants, biochip transponders on farm animals, automobiles with built-in sensors, or field operation devices that assist fire-fighters in search and rescue. Current market examples include smart thermostat systems and washer/dryers that utilise WiFi for remote monitoring.”

    According to Gartner, there will be nearly 26 billion devices on the IoT by 2020 while ABI Research estimates that more than 30 billion devices will be wirelessly connected to the IoT by 2020. A recent survey  done by Pew Research Internet Project, a large majority of the technology experts and engaged Internet users who responded—83 per cent—agreed with the notion that the Internet/Cloud of Things, embedded and wearable computing (and the corresponding dynamic systems  will have widespread and beneficial effects by 2025. Thus, it is clear that the IoT will consist of a very large number of devices being connected to the internet.

    Integration with the Internet implies that devices will utilise an internet protocol (IP) address as a unique identifier. However, due to the limited address space of IPv4 (which allows for 4.3 billion unique addresses), objects in the IoT will have to use IPv6 to accommodate the extremely large address space required.

    According to United States (U.S) technology giant, Cisco Systems Incorporated, the IoE is the “bringing together of people, process, data, and things to make network connections more relevant and valuable than ever before-turning information into actions that create new capabilities, richer experiences, and unprecedented economic opportunity for businesses, individuals, and countries.”

    Cisco said in nearly all industries, including retail, an accelerating innovation curve is reshaping the business landscape. It argued that in this environment, barriers to market entry are falling, customers are demanding new ways of interacting, and margins are compressing.

    Cisco economic analysis and research indicated that this value would be driven by the IoE — the networked connection of people, process, data, and things. Cisco predicted that $14.4 trillion of value (net profits) would be at stake globally for private-sector companies over the next decade, based on their ability to harness IoE

    However, what will determine how the country benefits from these enormous benefits IoT and IoE bring to the individuals and corporate bodies is how far the authorities are able to secure the internet. Director, Public Affairs at the Nigerian Communications Commission (NCC), Tony Ojobo said the internet remained an unregulated public platform.

    Chief Executive Officer, Disc Communication Limited, Bayo Banjo said cases of banks’ security being breached are just a tip of the iceberg. According to him, what is happening now that is being termed cyber crimes are not cyber crimes, but “cyber-assisted crimes” because when the real cyber crimes come, the effects will be disastrous to the nation. Banjo, who is the President, Nigeria Internet Group (NIG), urged the government to take urgent steps to address the situation. He said hackers are not old men, but young boys who are adventurous and willing to explore.

    Chief Executive Officer, Teledon Group, Dr Emmanuel Ekuwem, agreed no less with Banjo. According to him, the threats on the cyber space are real. He said banks, telcos, cards are increasingly coming under attacks. He said the air traffic controller at the nation’s airport could also be breached, warning that such a development will unleash colossal damage on the nation.

    President, Association of Telecoms Companies of Nigeria (ALTON), Lanre Ajayi, said wherever and whenever there are economic and social activities, threats are bound to be lurking in the corner. He said the cyberspace has opened up a huge vista of business opportunities while social websites such as Facebook, WhatsApp and others have strengthened social bonds among people without borders. He identified cybercrimes to include but not limited to cyber espionage, cyber terrorism, child online abuse and cyber exploitation.

    This year’s Zurich Cyber Risk Report, created in collaboration with the international think-tank, Atlantic Council, warned that ‘cyber-risk management professionals need to look beyond their internal information technology safeguards to interconnected risks, which can build up relating to counterparties, outsourced suppliers, supply chains, disruptive technologies, upstream infrastructure and external shocks.

    It added that a ‘build-up in these risks could create a failure on a similar scale to the 2008 financial crisis. Such interconnected risks are compounded when a company outsources the management of its servers, information technology and cyber security to focus on its core activities. Little information may be known about the third party’s information security or business continuity safeguards and it may also in turn outsource activities to other companies.’

    Group Chief Risk Officer & Regional Chairman Europe, Zurich Insurance Group, Axel Lehmann, wrote: “The internet is the most complex system humanity has ever devised. Although it has been incredibly resilient for the past few decades, the risk is that the complexity, which has made cyberspace relatively risk-free can – and likely will – backfire.

    “Organisations are unknowingly exposed to risks outside their organisations, having outsourced, interconnected or exposed themselves to an increasingly complex and unknowable web of networks.

    “Few people truly understand their own computers or the internet, or the cloud to which they connect, just as few truly understood the financial system as a whole or the parts to which they are most directly exposed.”

     

    Interconnectedness, recipe for disaster

     

    Zurich noted in its report that the internet is the most complex system humanity has ever devised – “and our track record of successfully managing complex systems is far from perfect.

    “The internet is highly interconnected and tightly coupled with society, meaning that (as in other such systems) a small failure or series of them in one place can cascade, producing an outsized impact elsewhere,” the report noted.

    Movement of data into the cloud is now the vogue with data centres springing up everywhere. While some have servers in the country, others have offshore. Should a major cloud service crash or be compromised, the effects of such a failure would cascade to all systems and businesses dependent on it everywhere.

    Though these threats are mostly targeted at businesses and governments, these days, even the most mundane of tasks get coupled and linked to the internet. Thus, the growing complexity of the networks puts the entire system at greater risk of attack.

    Zurich said: “On the internet, it has been easier to attack than defend for decades. The original architecture of the internet was founded on trust, not security – software is still poorly written and secured, and the system is so complex that it is difficult to defend. Systems in which one set or participants have asymmetric advantages, year after year and decade after decade, must hit a tipping point when there are more predators than prey.”

    Ajayi identified that phishing (identity theft), spamming, denial of services (DoS) and viral attacks are now real. Huge mails are now sent to people’s servers the weight of which disallows useful mails to get to its destination, leading to DoS.

    The report noted that in time past, cyber attacks and incidents online have only really broken “things made of silicon” and impacted networks in a digital sense. However, this will not always be the case.

    “As the internet connects increasingly with real life, in places like the smart grid interconnection with the electrical power infrastructure… cyber incidents will break things made not of silicon, but of concrete and steel.”

     

    Way forward

     

    Analysts say the passage into law of the cyber security bills pending in the National Assembly is one way to wriggle out of the quagmire. Former Director-General, National Information Technology Development Agency (NITDA) Prof Cleopas Angaye, said the quick passage of the cyber security bills pending before the National Assembly into law and training of lawyers and judges about the new crime may help the situation.

    Executive Vice Chairman, NCC, Dr Eugene Juwah says the war against cyber crooks cannot be fought on a stand-alone basis since internet is a borderless enabler. He urged global collaboration, especially in the area of cross border harmonisation of laws and regulations.

    Another general consensus among stakeholders is the need to create awareness about the inherent dangers lurking in the internet. Then registration of all information technology (IT) professionals in the country will assist. Other recommendations included embedding security in the software to reduce the rate of vulnerability; insurance should also be considered.

    Zurich, however, recommended that risk managers, regulators, and organisations with system-wide responsibility need to focus more on resilience and agility rather than simply prevention.

    “In an increasingly interconnected world, risks can strike quickly and from any direction – so, too, is it equally critical that those affected are able to respond quickly to ride out the shocks,” the group said.

  • Cloudy horizon for telcos, regulator, subscribers

    Cloudy horizon for telcos, regulator, subscribers

    Amid the monetary policy and dwindling oil revenue, things may be tough for the telecommunications sector in 2015, reports LUCAS AJANAKU.

    These are certainly not the best of times for the country. The prices of crude oil in the international market, Nigeria’s economic mainstay, have witnessed an unprecedented dip of more than 40 per cent in so short a time. There appears to be no end in sight to the woes of the economy as the oil cartel to which the country belongs, the Organisation of Petroleum Exporting Countries (OPEC), has refused to bow to pressure to cut supply to ease the pressure on demand.

    Nigeria’s national currency, the naira, has been on a free fall after the Central Bank of Nigeria (CBN) had frittered away the national foreign exchange (forex) reserves in a most unsustainable attempt at defending it. At his wit’s end, the CBN Governor, Godwin Emefiele announced the devaluation of the naira by eight per cent.

    The apex bank also directed that all importations involving electronics, finished products, information technology (IT), generators, telecommunication equipment, and invisible transactions would henceforth be funded from the interbank foreign exchange market only, a development telcos say will hurt efforts at expanding capacity by unwittingly increasing cost.

    Its Director, Trade & Exchange Department, O.I. Gbadamosi, via a circular to all authorised dealers, said the policy was to maintain the existing stability in foreign exchange market and strengthen the various policy measures, already initiated by the CBN.

    He said: “The importation of electronics, finished products, information technology, generators, telecommunication equipment, and invisible transactions importations shall henceforth be limited to the interbank market only.”

    The telecoms industry thrives on importation of most of its inputs. The naira devaluation will inevitably put more pressure on the ability of the operators to expand capacity and upgrade existing infrastructure.

    Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Eugene Juwah, said to get a seamless, hitch-free service delivery in the country, between 70,000 and 80,000 base transmission stations (BTS) would be required. Currently, there are about 29,000 BTS serving both the licencees of the four global system for mobile communication (GSM) and one code division multiple access (CDMA) operator.

    With this scenario, quality of service (QoS) is expected to dominate the telecoms space once again this year. This is because the operators will not be able to grow their network while the quest for subscriber acquisition will continue.

    Country Manager, Ericsson Nigeria, Kamar Abass said it will be a dangerous precedent for any regulator to attempt to bar any operator from taking more customers onto its network. NCC agrees no less as it has insisted that at the core of its mandate is telecoms access provision to all.

    Customers Service Executive at MTN Nigeria, Akinwale Goodluck said the directive of the CBN will only worsen the woes of the industry. For one, about 80 per cent of the cell sites across the country run on generators as major source of power while power from the national grid is stand by. Generators, IT equipment and telecoms equipment are among the list of items the CBN has prohibited from direct importation except via interbank foreign exchange market only. Goodluck argues that going through the interbank forex market will add between six and seven per cent to cost. The government’s policies are bound to impact negatively on service delivery and put the regulator once again on the spotlight as it will be helpless.

    Chief Executive Officer, MainOne Cable Company Nigeria Limited, Ms. Funke Opeke said both the telcos and the consumers are unwittingly under pressure arising from the currency devaluation.

    Opeke who was former Chief Technical Officer (CTO) of MTN Nigeria spoke on the sideline at a telecoms forum in Lagos, said: “Well the declining value of the naira is definitely putting pressure on margins for telecoms operators. As you know, a lot of the technology inputs into the sector are imported, so they are dollar-denominated and most operators have long term supply service contracts.”

    According to her, with these supply service contracts entered into on a long term basis and the “value of your naira receivables against the dollar not at par puts a lot of pressure”.

    She said consumers will also feel the pinch of the inflationary trends as they would not have so much disposable income to spend on telecoms.

    “So, it is a two-sided equation. I think we are all hoping that there will be additional stimuli instituted by the government to try to advance the economy a little bit faster to stimulate spending in all the sectors aside from oil so that the economy can quickly recover,” she said.

    On whether a sustained unease on the economy could ultimately dovetail to an increase in telephone end user tariff, she said it was too early for any operator to contemplate that as all the telcos would strive to avoid that.

    She said: “I think its early days. Given where the industry is, everyone will like to avoid that (tariff increase) because in an environment where consumers are also under pressure, they can least afford those increases. But perhaps for us as Nigerians, it is also an opportunity to look at other areas where we can grow our economy and add value and provide services out of Nigeria on a global basis and to earn revenue andforeign exchange. There are other economies in the world that have done that successfully and we really need to be more aggressive in trying to push for new frontiers in our economy.”

    One other issue that may take front burner this year is the propriety or otherwise of compelling the four major carriers-MTN, Airtel, Globacom and Etisalat, to list on the Nigeria Stock Exchange (NSE) to allow for their broader ownership by the citizens and share in their annual huge profits, most of which are repatriated to South Africa. Nigeria remains the cash-cow of MTN while the country contributes immensely to the African operations of Bharti Airtel.

    All the four except Globacom are listed in Johannesburg Stock Exchange, The Stock Exchange, Mumbai (BSE), Delhi Stock Exchange (DSE) and the National Stock Exchange (NSE) all in India and Abu Dhabi Securities Exchange in the United Arab Emirates (UAE) respectively. In spite of these, there is no law barring them from cross-listing their shares in Nigeria.

    Coordinating Minister for the  Economy and Minister of Finance, Dr. (Mrs.) Ngozi Okonjo-Iweala, last year said  government,  the Securities and Exchange Commission (SEC) and the NSE had set-up a working group that is in discussion with big firms such as telecommunications, consumer goods, as well as oil and gas to list on the bourse.

    She said: “We are already talking with the Minister of Communication Technology, with the DG SEC and the CEO of NSE. We actually have a working group that is talking to big companies-MTN, and other telecommunications, consumer goods, industry and others. Even the power sector, oil and gas, we are trying to persuade them to list because this is the way we can deepen our capital market.”

    She said although the government was exploring the option of incentivising the telcos to encourage them to list on the local bourse, the government would resort to other measures to get the companies listed if  the persuasive measures failed to take them to the floor of the NSE.

    The Chief Executive Officer, NSE, Oscar Onyema said the bourse is making progress in its bid to get the carriers listed in the country.

    Onyema told Bloomberg that discussions “have moved from them (the telcos) not wanting to list, to them looking at how to deal with the issues that would make it unattractive to list.”

    He said the NSE is “gaining traction,” in trying to entice more firms to place initial public offerings (IPOs) to reflect the health of the economy. He spoke on the sidelines of the World Federation of Exchanges (WFE) in Seoul, Korea.

    Minister of Communications Technology, Dr. (Mrs) Omobola Johnson said the telecoms sector now contributes about 9.5 per cent to the nation’s gross domestic product (GDP). According to the rebasing of Nigeria’s economy, the telecoms sector is a major contributor to the GDP.

    Onyema said though none of the operators have come with proposal to list its stock, the carriers did raise “structural issues” topping them from IPOs, adding that the bourse is working with the Federal Government to address any shortcomings.

    “Some don’t need to raise capital, but some do. If any one of the four carriers wanted to raise capital on the NSE, I don’t see that not being successful,” the SEC CEO said.

    Stakeholders in the industry have urged the National Assembly to enact a law that would make blue chip firms such as the telcos and oil majors to cross-list on the Nigerian bourse.

    CEO, Teledon Group, Dr. Emmanuel Ekuwem said if the telcos list on the local bourse, it will be in their best interest. According to him, opening up the space for individual and corporate Nigerians to be part-owners of the companies will not only engender liquidity, it will also give Nigerians a sense of belonging.

    He said the spate of wilful vandalism of telecoms equipment would be a thing of the past as the would-be-vandals would start to see themselves as co-owners of the assets.

    The embrace of Business Process Outsourcing (BPO) by the telcos too has raised fears about job security in the sector. At the twilight of last year, some of the telcos offloaded the yoke of tower management by selling them off. All the four carriers, except Globacom, have sold their towers in the country.

    Regional tower management specialist IHS Holding, bought 2,136 towers from Etisalat, it also bought more than 9,000 from MTN.

    Mobile operators are exploring ways to reduce the heavy investment needed in maintaining and improving their networks at a time when customers are expecting faster speeds over 3G and 4G services. The deal is part of a plan by Etisalat to improve the quality of its network performance and accelerate roll out of 2G and 3G coverage across the country.

    Its CEO, Mathew Wilsher said the partnership with IHS is designed to promote network sharing, ensure higher quality, sustain reliable mobile services, lower overall costs and also promote a cleaner environment through reduced diesel usage and increased investments in alternative energy solutions.

    IHS has installed a large number of alternative energy sites across the country in addition to the construction of a state-of-the-art Network Operations Centre (NOC) with 99 per cent on its own sites.

    IHS has further committed to investing $100m in the towers acquired, on advanced generators, efficient batteries and alternative energy solutions to reduce diesel consumption and improve efficiency of grid use.

    IHS will also own and manage over 6,540 towers in the country and market services on the towers promoting tower sharing and co-location to help drive network improvements, better service to subscribers and economic growth.

    For Airtel, it will sell 4,800 towers and then lease them back from American Tower for 10 years, the two companies said in a joint statement.

    American Tower in a filing to the Securities and Exchange Commission in the U.S. had said the total consideration for the deal is expected to be $1.05 billion.

    “The agreement will allow Airtel to focus on its core business and customers, enable it to deleverage through debt reduction and will significantly reduce its on going capital expenditures on passive infrastructure in Nigeria,” Bharti said in a statement released to a stock exchange in Mumbai.

    American Tower Cor is an independent telecommunications and broadcast real-estate company which owns, operates and develops about 70,000 towers for cellphone companies and television stations. This deal will mark American Tower’s first foray into Nigeria. It already has operations in Ghana, South Africa and Uganda. Bharti and American Tower expect to close the deal during the first half of this year, subject to regulatory approvals, the company’s joint statement said.

  • E-PPAN urges security consciousness

    The E-payment Providers Association of Nigeria (E-PPAN) has urged Nigerians to be security conscious especially at this festive season where a lot of transactions take place with the use of various payment instruments.

    Its Media and Strategy Development Manager, Mrs Ntia Nnene Sylvia who spoke in Lagos, said people must be careful as they use their cards during shopping at merchant outlets using the point of sale (PoS) terminal or use mobile banking/payment; online transactions or even at the automated teller machine (ATM) point

    She said: “Typically, fraudsters also use this festive season to launch their nefarious activities to unsuspecting bank customers. The onus is therefore on the individual first, to consider safety in all transactions, and these will take some extra and conscious effort by the individual.

    “It is very safe to use any of the payment instruments but to minimise the chances of becoming a victim of electronic fraud, we advise consumers to follow some safety tips such as looking after your cards and card details at all times; trying not to let your card out of your sight when making a transaction; not leaving your cards unattended to in public places. We emphasise that card users should never share their PIN with anyone and ensure you are the only person that knows your PIN. Your bank will never ask you to disclose it; anyone who asks you for your PIN is a fraudster. Keep it secret, keep it safe – protect your PIN.

    For those who will use the ATM at any point, we always advise that, never use an ATM at any isolated location especially at night and weekends. ATM’s are generally very safe; however they do sometimes attract criminal attention, so you still need to follow common sense precautions when withdrawing cash. At the ATM when entering your PIN, stand close to the ATM , use your free hand and your body to shield the number in case someone is watching you over your shoulder. “Once you have completed a transaction put your money and card away before leaving the ATM.  If the ATM does not return your card, report it immediately to your service provider. Destroy or preferably shred your ATM receipts, mini-statements or balance enquiries when you dispose of them.  If you think someone has seen your PIN you can change it at the next ATM or by contacting your bank.  To minimise the chances of having your card or card details stolen at an ATM,  we say that if you spot anything unusual about the ATM, or there are signs of tampering, do not use it. report it to the relevant authorities immediately”

    According to her, for those traveling overseas, the advice is that “you call your financial service providers and inform them on your location of travel. Only take cards that you intend to use; leave others in a secure place at home. When you are overseas don’t let your card out of your sight, especially in restaurants and bars; when you get back check your card statements carefully for unfamiliar transactions. If there are any, report them to your financial service provider as soon as possible.”

    For those doing online transactions, she said: “Our advice to those category of people is that they should only shop on secure sites. Before entering card details ensure that the locked padlock or unbroken key symbol is showing in your browser. Additionally, the beginning of the online retailer’s internet address will change from ‘http’ to ‘https’ to indicate the connection is secure. Never send your PIN over the internet. Always log out properly after shopping online – if the website you have used has a ‘sign out’ or ‘log off’ button, click it when you have finished, especially if you have been using a shared or public computer. As additional preventative measures when banking online, you should ensure your browser is set to the highest level of security notification and monitoring. Be particularly security-conscious if you are using a public computer or public Wi-Fi internet connection.

    “If everyone follows the safety security tips that we have highlighted they would have protected themselves from being victims of fraud.”

     

  • ‘Collaborative effort needed to develop VAS’

    Companies offering value added services (VAS) on mobile network have urged all stakeholders in the mobile telecoms industry to join hands together in order to fully develop the wireless application sub-sector for the country’s social and economic growth.

    The body, under its trade body, Wireless Applications Service Providers Ltd GTE (WASPAN) said in a statement that the current scenario whereby mobile networks, wireless application service providers (WASPs) hold divergent opinions on several critical industry issues would not augur well for the sector’s development and the country’s growth.

    Its National Coordinating Consultant, Mr. Simon Aderinola, said the wireless application sub-sector is one that has emerged globally in recent years and not part of the traditional telecoms services. He noted that based on this reality, there is some degree of uncertainty about how to regulate the activities of WASPs application providers and how to help develop the sub-sector.

    Aderinola said the problem was not peculiar to Nigeria, noting that in many countries, after the initial problems, collaboration between network operators, application service providers, the industry regulator and other stakeholders had led to the development of the industry for greater economic benefits.

    He said: “We need to learn from the success of the models adopted in the United Kingdom, South Africa, Kenya and Ghana. These are countries where the wireless application services industry is doing well. These countries collaborated to develop a framework that is now successfully benefitting stakeholders.”

    It will be recalled that following unending controversies, especially between mobile networks and wireless application services providers, WASPAN in 2012 invited experts from South Africa to help in sharing their experiences on the matter.

    The consultant that helped South Africa set up the country’s joint industry regulatory framework, Dr. Leon Pellman, led a delegation to the country and had useful discussions with several stakeholders on how to develop application service sub-sector.

    Aderinola said collaboration was needed so that the potential of the sector could be realised. The industry regulator, the Nigerian Communications Commission (NCC) said the volume of business activities in mobile VAS segment of the Nigeria’s telecoms industry currently worth $200 million year-on-year.

    The revenue, according to the NCC, is expected to more than double to reach $500 million in the next few years if proper regulatory framework is put in place.

    A major issue of disagreement between WASPAN and mobile networks is the current revenue sharing formula that gives close to 80 per cent to the networks. Another is the gradual encroachment by mobile network operators into the wireless applications sub-sector and the stifling of growth of small companies.

    It will be recalled that NCC had called a stakeholders’ meeting earlier in the month to discuss several issues bedeviling wireless application services. A fallout of the meeting was the announcement by the Executive Vice-Chairman of NCC, Dr. Eugene Juwah that a plan to develop an industry-driven regulatory framework to strengthen the mobile VAS market would soon be unveiled.

  • Subscribers at operators’ mercy

    Subscribers at operators’ mercy

    Christmas is here and with it, mobile telephone subscribers experience on virtually all the networks is bad. Subscribers are complaining that it appears the networks have collapsed, LUCAS AJANAKU reports.

    He dialled his wife’s number and his service provider told him: “The number you have dialled is incorrect, please check the number and dial again.” Unsatisfied, he cross-checked and tried again and he got the same response. At the third attempt, he shouted: “These people have gone mad again. How can they tell me the number I bought for my wife at the cost of N12,000  about 11 years ago is no longer correct. This country is a complete fraud and you say there is government in place,” a secondary school teacher at Prudent Comprehensive College at Abule Odu, near Idimu, a Lagos suburb, lamented.

    Another subscriber, Iya Ibeji who wanted to speak to her daughter, an undergraduate of the University of Ado Ekiti got a shock as her service provider quipped “This number is not assigned to any customer.” Frustrated, she tried her alternate number to see if a net call could do the magic for her but she was told: “The number you have dialled is not available at the moment, please try again.”

    It has become popular even among the uneducated to hear phrases such as “network palaver”, “network wahala” and such bitter comments when they make fruitless efforts to make calls.

    The quality of service (QoS) has remained a pain in the neck of subscribers. Minister of Communications Technology, Mrs  Omobola Johnson and the Nigerian Communications Commission (NCC) appear not to be on the same page on the matter. NCC Executive Vice Chairman/CEO Dr. Eugene Juwah said of all sectors, only telecoms has offered seamless service 24/7 to Nigerians. According to him, telecoms services can neither be compared with that of power nor banking sector.

     

    Futile attempts

     

    Attempts at ensuring quality service made NCC and operators to agree on key performance indicators (KPIs) on which the operators were measured. These were Call Set-up Success Rate (CSSR), Call Completion Rate (CCR), Stand-alone Dedicated Controlled Channel Congestion (SDCCC), Hand-over Success Rate (HSR) and Traffic Channel Congestion (TCC).

    Breach of these KPIs led NCC to impose fines on the operators. But sector analysts say the impact of the fines is hardly felt by the operators whose financial war chests are huge. But Juwah disagrees. He said: “Don’t think that they pay fines so easily. The last time we sanctioned them, they paid about $2.5 million each and they are forced to publish it in their annual reports. For some of them that are listed in stock exchanges like Johannesburg; it affects them more seriously than people think.”

    Two years ago, the regulator imposed a fine of N360 million each on MTN and Etisalat on the one hand while. Airtel was required to pay N270 million and Globacom was fined N180 million on the other, all failing to meet the KPIs set by the regulatory agency. CSSR denotes the fraction of the attempts to make a call which result in a connection to the called number. For a number of reasons, all call attempts do not always result in a connection. CSSR therefore measures the success rate against the attempts.

    CCR denotes the total number of successfully completed inbound or outbound calls versus the total number of calls that were placed or received. On this parametre, NCC set a minimum of 96 per cent.

    CDR refers to the fraction of the calls which were cut off before any of the speaking parties terminated the call. On this, NCC set a maximum of two per cent. Of course, the lower the percentage of dropped calls, the better.

    Juwah had said after the fine, operators had prevailed upon the regulator to lower the KPIs which it did, adding that while the operators have been passing the test conducted on the network, end-user experience has been nothing to write home about. He argued that the operators’ business model was not helping matters

    He said: “Some of them may have decided that because of their own plan, they will continue to increase their subscriber base. By this they are ready to pay fine that they incur from quality of service infraction. They will also be making investment until the investment will catch up with the needed capacity.”

    As a way of enthroning good QoS, Juwah had promised that both the operator and regulator will revert to the status quo ante on KPIs. “Come January we will tighten the KPIs that we have now according to the agreement we have with them. Any one that has decided to continue loading their network without minding the quality of service will continue to pay heavy penalties. Those that have decided to restrict their subscriber base to their capacity will not pay. It is a business decision that rest squarely on operators.”

    Mrs Johnson regretted that despite the fact that her ministry had been working hard to provide an enabling environment for the deployment of ICT infrastructure poor quality of service had remained a recurring decimal in the industry.

    She said: “We are concerned that the poor quality issues still abound.I have been inundated with complaints about quality of service and the seemingly uncaring attitude of our telecoms operators to resolve these issues on a regular basis. We will continue, through the industry regulator, to apply sanctions when operators fail to meet the required standards in terms of service quality breaches.

    “However, consumers cannot continue to bear the burden of poor service delivery. Though we are mindful that the operators are facing issues in deploying or maintaining infrastructure, we believe that the operators can do better in delivering acceptable quality of service, which they are clearly not doing now.”

    Johnson also emphasised the efforts being made by government and its agencies to address the challenges of operators should result in better quality of service.

     

    Operators’ position

     

    President, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbnega Adebayo said since the operators do not operate in a vacuum and since they do not operate in isolation, the fundamental environmental challenges affecting the country have to be addressed by the government. He said he had to stop and caution a contractor working who ignorantly vandalised OFC, adding that there must be synergy to stop such incidence in the future.

    Such challenges are the bureaucracy around the grant of right of way (RoW), multiple taxation/regulation, premeditated vandalism of OFC and BTS, theft of fuel at BTS and crushing cost of running the networks on fuel. Others resort to shutting down of BTS by officials of government ministries, department and agencies (MDAs) and lack of incentives to drive service penetration to the remote and rural areas.

    From operators’ perspective, poor quality of service impedes the capacity to make money. According to them, environmental challenges often beyond their control affect the services they offer.

    The challenges include inadequate grid power, multiple regulation and taxation; illegal access denials and site shut-outs; lack of incentives to drive service penetration to remote and rural areas; rent seeking charges for permits and approvals necessary for deployment; and insecurity.

    These challenges notwithstanding, it is time for operators to step up work with industry regulator to bring about the kind of services subscribers pray and pay.

  • Glo urges peace, reconciliation at Yuletide

    Glo urges peace, reconciliation at Yuletide

    National Telecoms provider, Globacom,  has wished all Christians in Nigeria a very joyous Christmas celebration and called on Nigerians to live in  peace with one another in line with the teachings of Jesus  Christ who is the reason for the season.

    The company  urged the Christian faithful in the country to use the  season of the celebration of the birth of Jesus Christ to  spread the joy of the  season and pray for the progress of Nigeria.

    In a goodwill message issued in Lagos, Globacom wished Christians a season full of love, unlimited happiness and  celebration.

    The  telecoms operator urged all Nigerians to use the occasion of the  Yuletide to make peace and reconcile all differences.  “On all fronts, we  need to encourage cordiality and peaceful co-existence; between friends,  families, political opponents , tribes, ethnic groups  and religions,” Globacom said in the  statement.

    “Nigeria can only thrive in an atmosphere of peace and unity. Therefore, Nigerians should imbibe the spirit of tolerance, forgiveness  and forbearance as exhibited by our Lord Jesus Christ. Ethnic, religious and political differences should therefore be transformed into the plank for enduring unity, and not be pushed to extremities”, the statement counseled.

  • Internet skills vital to MSMEs’ growth, says group

    Internet skills vital to MSMEs’ growth, says group

    Computer Warehouse Group (CWG) has said the shift in traditional business to online commerce has made the acquisition of online skill an indispensable tool for Micro, Small and Medium Enterprises (MSMEs).

    Its Head, Marketing Communications, Success Nmerife, who spoke during the maiden edition of a special workshop for MSMEs in Lagos, said the workshop was designed to introduce them to solutions and methods they could employ to maximise the benefits that the internet affords in growing their business.

    According to her, the paradigm shift in the global focus from traditional business model to online commerce has made the utilisation of the electronic platfrom in business promotion and sales an indispensable tool for merchants.

    The free online technology workshop had Learn How to Set-up, Operate and Advertise Your Own Store Online aimed at equipping business owners with the skills they require to take their business to the online community by operating an online store and selling to people other than those in their immediate physical community.

    Speaking at the event, Business Manager, Openshopen, Adriana De la Cruz Duffo, said Openshopen has been uniquely designed to respond to the challenges of online trading encountered by MSMEs in the Nigerian business environment.

    She said: “Openshopen is easy to use, cheap and profitable. It addresses the fears of payment gateway security. It also takes care of the logistics of delivery. It is a platform you as merchants can adopt, if you want your business to grow.”

    During the workshop, merchants were taken through three training sessions. In the first session, Head, Innovation, CWG, Mr. Tayo Oduwole, introduced the Openshopen online platform to the participants. He said: “CWG’s partnership with Openshopen to introduce the eCommerce platform is in line with our vision to enable Nigerian merchants acquire business enabling technology without incurring business killing own-infrastructure costs”.

    He said Openshopen differs from other online shopping platforms in that it allows merchants sell directly to buyers and have the privilege of promoting their brands. Unlike other platforms that require merchants to submit their wares for sale. “With Openshopen, you can sell your brand alongside your products, such that people can look for you if they want your products again,” he added.

    Mr. Oduwole took participants through step by step procedure of opening a store online with the privilege of creating their own store, each having their unique web address, corporate logo and products for display. Partcipants were taught the basics of promoting their business using various social media platforms.

    Chief Technology Officer, CWG, Mr. James Agada, who presented certificates to participants at the workshop, said the workshop served as one of CWG’s ways of contributing towards the growth of SMEs in the country, creating employment and contributing to the growth of the nation’s economy. He urged the participants to utilise the knowledge they have acquired from the workshop.

    The participants expressed their gratitude to CWG for the privilege of the workshop. Most of the attendees indicated that the workshop has been of immense benefit to them. Commenting on the workshop, Mr. and Mrs. Yemi Adeyemo, Directors at House of Treasures, observed “In fact, the workshop was worth the while, the lectures were extensive and the speakers were very good. We have learnt a lot that we will like to put them into use as soon as we get back home.”

  • Shopping dash excites Etisalat’s customers

    Shopping dash excites Etisalat’s customers

    Etisalat Nigeria has honoured 10 of its Business Customers in Abuja with a special reward scheme tagged “the Etisalat December Shopping Dash.” The event held at the Shoprite, Apo, Abuja, was a special event dedicated to reward 10 lucky customers for their loyalty and commitment to the Etisalat Network.

    The 10 customers who got a chance to partake of the Abuja edition of the Etisalat December Shopping Dash were overjoyed about their prizes and expressly thanked Etisalat for the generosity and innovative prowess in ensuring that all its customers get the very best from the network.

    Excited corporate customer, Ibrahim Magaji of the Nigerian National Petroleum Corporation, (NNPC)  described his experience, thus: “I am very glad to participate in the Etisalat Shopping Dash and I am simply short of words at how generous Etisalat is. I can say boldly say that Etisalat Nigeria is a fantastic network that cares deeply about its customers.”

    Another lucky customer, Safiya Runsewe, said “the Shopping dash was both exciting and engaging. I haven’t had this much fun in a long time and it is all thanks to Etisalat Nigeria.”

    Its Director, Business Segment, Lucas Dada said: “Since inception, Etisalat has remained committed to providing its customers with the very best customer service in Nigeria. It is to this end that the December Shopping Dash was berthed. The 10 selected customers have a maximum of three minutes to select any item within the store that they desire, courtesy of Etisalat. Whatever they can carry, they can keep. It is our simple, yet innovative way of giving back to our customers and showing them that we truly care.

    “Etisalat has a lot more surprises in store next year and we urge all our esteemed customers to remain loyal because we will continue to deliver the very best to them.”

  • Hazards of phone use worries Fed Govt

    The Federal Government has expressed worries over the likely health hazards of the use of mobile phones. It has asked experts to examine the issue and fashion inputs that will assist regulators in West Africa to tackle the issue.

    Minister of Communications Technology Mrs Omobola Johnson, who spoke in Lagos at the second West African Conference on Electromagnetic Fields (EMF) Exposure and Health, said it was also vital the people’s health is taken care of in the booming telecoms business.

    She said:  “Even as we celebrate the gains of this revolution, it is important that we are mindful also of the health of our people, both in the short and in the long term. Mindful of the concerns, which have been expressed both locally and internationally, on whether exposure to electromagnetic fields (EMF) poses any health hazards to humans; and determined to ensure that the people of West Africa are well advised as to the facts regarding the issue, the Federal Government of Nigeria decided to take the initiative to bring about this conference, which is a follow up to the first one held in 2012, also here in Lagos, Nigeria.

    “As you may be aware, Mobile or cellular phones are now an integral part of our lives. In many countries, over half the population use mobile phones and the market is growing rapidly. Already, here in Nigeria as at September 2014 there are over 135 million active subscribers of both mobile and Fixed Wired/Wireless lines; and this number will increase. The growth has been equally phenomenal in the other countries in West Africa and in many instances mobile phones are the most reliable or the only phones available.

    “Given the large number of mobile phone users, it is important therefore to investigate, understand and monitor any potential public health impact. Mobile phones communicate by transmitting radio waves through a network of fixed antennas called base stations. Signals in the mobile telephony bands of the radio spectrum are non-ionizing radiation such as X-rays or gamma rays, can neither break chemical bonds nor cause ionization in the human body.”

    According the minister, the big question is whether there are any health effects from the use of mobile phones. She said a large number of studies have been performed over the last two decades to assess whether mobile phones pose a potential health risk, adding that to date, no adverse health effects have been established as being caused by mobile phone use.

    “But the agitations and concerns continue to surface time and time again. It is, therefore, for us to get the true situation on this topic, as it is currently, and from some of the most informed experts. The Federal Government is very concerned about the welfare and the health of her people; I believe this is the same of our sister countries in West Africa,” she said, adding that the forum would help the governments to get a position that they can use to either reassure the people that they have nothing to worry about. She however said if the conference finds at the end of the day that there is something to worry about, then, it becomes the duty of the various governments to do that which must be done – “to ensure safety of our people and the environment while using mobile communications.”