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Tag: telcos

  • Telcos: Between expensive tariff and poor service

    Telcos: Between expensive tariff and poor service

    With an obscurantist regime of data pricing in Nigeria, approval for hike in end-user services tariff in the telecom industry may be counter-productive as it may further deepen the digital divide. Assistant Editor, Lucas Ajanaku reports

    For Kokumo Goodie, an information communication technology (ICT) reporter, data is central to the effective discharge of his duties. He needs data to research on the issues he wants to write about. He needs data to stay connected and be on top of his game. And in the era of remote work, he needs data to interface with the office from anywhere but the cost of data seems to have hit the roof tops.

    Goodie recalled buying data of N2,500 through his bank account only for the data to get depleted in less than 24 hours of purchase. “It is worrisome the rate at which data burns out. I don’t know what the Nigerian Communications Commission (NCC) is doing about it. The Mobile Network Operators (MNOs) are just taking Nigerians for a ride, yet they tell us Nigeria is one of the countries with the lowest data cost,” he lamented, adding that over the last two years or so, his cost for staying connected has skyrocketed.

    “When these things started, I was spending N1,000 on data every month. Now I spend N20,000 a month because without data, I cannot function effectively. The impact of punitive data pricing is that it increases the number of digitally excluded,” he said.

    Mercy Oluwanifemi, 17, who has just completed her secondary school education and wrote the last Unified Tertiary Matriculation Examination (UTME) recalled her bitter experience during the online tutorials she enrolled for ahead the examination, especially in data cost, connection speed and high depletion rate. 

    “I was spending an average of N2,000 for every online lecture. My parents were almost frustrated but they kept financing it because they knew I was not using the data for something else. Imagine if there was trust deficit between us, they would have abandoned the project midway because it was not easy for them because they are low income earners,” she said.

    Goodie and Nifemi are just a few of the total internet subscribers 164,368,292 in the country. They are part of the 163,895,185 mobile internet subscribers and part of 219,304,281total subscribers, according to a February stat by the NCC.

    Smartphones are used widely in Nigeria for internet connectivity. And on the continent smartphones are the major tool for connectivity, with 64 per cent of Sub-Saharan Africans owning one in late 2021, a figure expected to grow to 75 per cent by 2025, according to GSMA, an umbrella organisation representing mobile operators globally.

    According to the Worldwide Mobile Data Pricing 2021 report by World Economic Forum (WEF), Sub-Saharan Africa has the world’s most expensive mobile data prices inevitably widening the “digital divide” between the world’s internet haves and have-nots. The World Bank warned that lack of digital access of the poorer households is likely to exacerbate income inequality over the next generation. Access to affordable internet is therefore necessary to avert this.

    At the peak of the disagreement between deposit money banks (DMBs) and the telecom operators over the huge debt that arose out of the use of the Unstructured Supplementary Service Data (USSD), Group CEO, GTCo, Segun Agbaje, had said the cost of data was too high in the country and called for a downward review to accelerate digital banking.

    He faulted the USSD technology which he said was old. Instead of USSD, he said data prices should go down so that people could do internet banking.

    He added that the company’s USSD value dipped by 22 per cent. The reason for this poor performance, according to him, is that “the N6.98 charge is a punitive cost and most people do not want to pay that just to use the USSD. That’s why it has stopped growing”.

    Also Paga, Africa’s payments and financial services provider with vision to make it simple for one billion people to access and use money, said data cost has to go down in the country to encourage more people to embrace digital technology.

    Its founder and CEO, Tayo Oviosu, who spoke in Lagos at the weekend to mark the 15th anniversary of the organifation said the current data cost being charged by the MNOs was too high. He urged them to lower the cost and tap into the opportunities that would flow from the lower access cost to consumers.

    But the Minister of Communication, Innovation and Digital Economy, Dr Bosun Tijani, doesn’t agree with Agbaje and Oviosu. Neither do the MNOs. 

    “People talk about data being expensive but it is still one of the cheapest in the world. Of course, we know how important it is to our people. And we need to continue to look for ways to improve the quality but we want to also ensure that broadband penetration in Nigeria is in the critical parts of the country,” Tijani said during a television  interview.

    President, Association ofTelecoms Companies of Nigeria (ATCON), Tony Izuagbe said the cost per gigabyte of data in Nigeria is about N250, arguing that when the cost of operation and others are factored into it, the cost would have petered out to nothing, leaving the MNOs without a profit margin.

    “The cost per gigabyte of data in Nigeria is about N250. By the time you look at the expenses incurred in maintaining a base station, you will discover that revenue will not be enough to cover them.

    “We all know the challenges of inflation, which is affecting operators. Let’s take a typical diesel price, for example, which is sold at N1500 per litre or even N1300. On average, a typical base station would use about 2000–3000 litres in a month.

    Analysing further, he said: “The cost per gigabyte of data in Nigeria is about N250. By the time you look at the expenses incurred in maintaining a base station, you will discover that revenue will not be enough to cover them.

    “This excludes colocation and infrastructure services. By the time they mark up their charges, the operators will also be suffering.”

    The average cost for one gigabyte (GB) of mobile data in Nigeria is $2.221. While this is relatively expensive within the region, it’s important to consider the context and factors affecting pricing. On the other end of the spectrum, Malawi boasts the lowest average price for one GB of mobile data in Africa, at just $0.382. In North Africa, the price for mobile data is significantly lower, averaging $0.86 per GB while several African countries fall within the range of $0.61 to $0.93 per GB, including Libya, Ghana, Somalia, Morocco, Tanzania, Sudan, Kenya, and Egypt.

    Read Also: Telcos vow to deactivate SIM cards not linked to NIN

    High data pricing may be a function of high taxation, limited infrastructure limiting accessibility and affordability, coverage gap with areas without mobile broadband coverage, gender and urban-rural divide as mobile internet adoption is not equitable, favoring men and urban areas.

    According to statista, Zimbabwe had the most expensive mobile internet in Africa as of 2023. One gigabyte cost on average $43.75 the highest globally. Overall, the cost of mobile data varied significantly across the continent. South Sudan and The Central African Republic also recorded elevated prices for mobile data, positioning among the 10 countries with the highest prices for data globally.

    According to a World Bank assessment, Nigeria is capturing only a fraction of its digital economic potential and will need to make strategic investments to develop a dynamic, transformative digital economy.

    The Nigeria Digital Economy Diagnostic said with improvements in digital connectivity, digital skills, digital financial services and other core areas of digital development, Nigeria can fully unleash new economic opportunities, create jobs and transform people’s lives.

    World Bank Senior Digital Development Specialist, Isabel Neto, said: “As the biggest economy in Africa with one of the largest populations of young people in the world, Nigeria is well-positioned to develop a strong digital economy, which would have a transformational impact on the country. Through innovations and investments, the Nigerian economy can harness digital data and new technologies, generate new content, link individuals with markets and government services, and roll out new, sustainable business models.”

    The MNOs acting under the aegis of Association of Licensed Telecom Companies of Nigeria (ALTON) and ATCON in a joint statement had urged the Federal Government to give it the imprimatur to implement a cost-reflective tariff for their services.

    “ALTON and ATCON reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades. Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints. For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence. ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the operators said.

    On infrastructure deficits, ALTON and ATCON said their members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

    The groups sought the protection of assets and network infrastructure and urged the Federal Government for legislation that designates telecommunications infrastructure as Critical National Infrastructure (CNI).

    “Both Associations expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria. Telecommunications infrastructure undoubtedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats. Attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.

    “The associations urge the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively,” they said.

    On regulatory independence, ALTON and ATCON advocate the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission (NCC)’s domain, which will inspire trust in the telecommunications sector and encourage investment.

    “Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions.

    “We reaffirm our commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria. By fostering a conducive regulatory environment, prioritising infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development,” the statement said.

  • Telcos vow to deactivate SIM cards not linked to NIN

    Telcos vow to deactivate SIM cards not linked to NIN

    • As deadline expires

    Telecom operators are proceeding to bar calls from phone numbers that are yet to be linked to their National Identity Numbers (NIN) as at Friday, 29 March,The Nation learnt yesterday.

    The operators say although they are not unmindful of the financial losses the exercise might bring to them they have to comply with the directive of the  Nigerian Communications Commission (NCC)  on the matter.

    The  Federal Government had said the linkage was to aid its quest   for credible data for national security.

    The operators, acting under the aegis of the Association of Licensed Telecoms Companies of Nigeria (ALTON), said the Federal Government has given enough timeline for subscribers to link their National Identity Numbers (NINs) with their Subscriber Identity Modules (SIMs), adding that the timeline had to end someday.

    Chairman of the group, Gbenga Adebayo, in a telephone interview yesterday said the final instruction to disconnect defaulting  subscribers has been on since 2022.

    He said the fact that the matter lingered this long  implied that the operators had about two years to address the matter. He said it would  not be right to say the commission has not done enough.

    “It wouldn’t be right that we didn’t seek the extension of time,” he said.

    “We can’t continue that in perpetuity. We can’t continue to seek for an extension. So what has happened is that efforts have been made in 2022.”

    Adebayo  could not say the number of SIM cards that would be barred.

    According to him, such information would start coming in this week.

    Read Also: ‘Why telcos barred 40m telephone lines’

    “So many subscribers have sent their details and are awaiting confirmation. So it is still a lot of work on the zero hours of 29th of March. So we can start looking at the numbers from Monday to see how many people are affected. So we are still having a lot of attempts to verify the NIN to submit even as we speak,” Adebayo said.

    Barring calls implies that subscribers whose SIM cards have not been linked to their NINs will not be allowed to make calls until the linkage is done.

    The  NCC insisted that the directive for disconnection is being rolled out in stages, with the second phase set for 29 March as earlier announced.

    It  said the initial phase took place at the end of February.

    “We issued a publication that you can refer to. We specified certain deadlines and stipulated that subscribers who do not comply with the directive would be barred. And that has not changed.

    “29th of February was when those that have not submitted their NIN to be linked to the SIM to be barred and those that have been barred.

    “We published another deadline for those who have submitted their NIN but it failed because it has not been verified, that is the one that is due for disconnection today. While another set is the ones with ghost verification, these are for those who have more than five numbers.”

    The Commission’s objective is  to clean the country’s SIM ownership database and enhance homeland security, it was gathered.

    “The commission is committed to ensuring that criminals do not take advantage of having multiple unlinked SIMs to carry out their nefarious activities,” an industry expert said.

    MTN Nigeria, the largest operator,  reported that over 4.2 million lines were disconnected from its network after the February 28 deadline.

    The  Max-4 rule announced by the Federal Government in April 2021 provided that telecom subscribers cannot have more than four lines per mobile network operator.

    The NCC had also provided Mobile Network Operators (MNOs) an extension till 31 July, to verify all NINs submitted by subscribers with four or fewer SIMs, as well as bar those which NINs fail verification with NIMC.

    The compulsory linkage began in 2020 when the government directed telecommunication companies to block calls from unregistered and unlinked lines.

    The policy was expected to help the authorities in fighting bandits and terrorists who kidnap and kill innocent people daily. Despite the extension of deadlines, many phone lines are yet to be linked.

    Last week, the National Identity Management Commission (NIMC) and the NCC issued a joint statement unveiling a strategic partnership aimed at simplifying the NIN-SIM linkage procedures for telecommunications subscribers nationwide.

    Both agencies reaffirmed their dedication to enhancing the processes involved and improving efficiency regarding the NIN and SIM card linkage initiative.

    They acknowledged the importance of this initiative in bolstering security measures and enhancing service delivery

  • ‘Why telcos barred 40m telephone lines’

    ‘Why telcos barred 40m telephone lines’

    No fewer than 40 million telephone subscribers have been barred from receiving or making calls.

    Yesterday, the The Nigerian Communications Commission (NCC) and Mobile Network Operators (MNOs) explained why they were barred.

    According to them, some of the lines might be restored immediately after physical verification by their users at the offices of the service providers and the National Identity Management Commission (NIMC).

    NIMC is the  Federal Government agency that issues the National Identity Numbers(NIN) to Nigerians while NCC regulates the telecommunications industry.  

    NCC gave the telcos till February 28, to block all SIMs not linked to   NINs. It said in a circular dated December 15, 2023, that the aim was to stem the use of mobile phones by criminal elements.

    Before the February 28 deadline, some subscribers who had issues with their  lines said they linked their SIMs to their NINs.

    But the Telcos and NCC said all subscribers with disparities in information contained in their SIMs and NINs had been programmed for discontinuation of service.

    Director of Public Affairs of the commission, Reuben Muoka, said: “People who probably didn’t get a cleared or verified NIN have been barred because the earlier ones they submitted were not good.

    “There are still some subscribers whose NINs are yet to be verified by NIMC and those have to also be corrected.” 

    He explained that such subscribers would have to visit the outlets of their service providers to validate their NINs and resolve other matters.

    Muoka, who spoke on national television, restated the NIN-SIM linkage has an objective, which is to make Nigerians have digital identity to tackle security matters.

     He said: “The whole essence is actually to achieve the convenience that digital services and products will offer. By the time you have your identity together, you will be able to attend to a number of things.

    “Even the banks are now asking their customers to link their NINs to their Bank Verification Numbers (BVNs). It is actually to make a holistic package of all your digital services.” 

    Muoka added: “For now, it requires those physical visits to the stations to get it verified and validated, but in the future, we hope that this will be done virtually.

    Read Also: Oronsaye report: Labour cautions Fed Govt against job loss

    “Take it that everybody who has not submitted his NIN to the service providers has been barred. Actually, the service providers are starting to bar people many days before the deadline.”

     Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON),   said those complaining should blame themselves for the glitches.

    He said: “Those complaining of previously linking their SIMs with their NINs and getting barred had issues with information supplied in their primary identity and secondary identity.

    “If for instance, a subscriber had given his first name as last name in his primary data (SIM registration) and had gone ahead to make his last name as first name in secondary data (NIN),  NIMC  which would verify the data will ask questions as to why the disparity existed.

    “Similarly, if a subscriber had identified himself as a driver while registering for a SIM card and identified himself as an architect while registering for NIN, of course, you expect NIMC to ask questions.”

  • Subscribers call for approval telcos’ infrastructure expansion

    Subscribers call for approval telcos’ infrastructure expansion

    A subscriber group, the Association of Telephone, Cable Tv and Internet Subscribers of Nigeria (ATCIS-Nigeria), has appealed to President Bola Tinubu to prevail on the various agencies of the government charged with  granting approval to build infrastructure to expedite action on approvals for telecoms companies to enhance the end-user experience of telecom subscribers across the country.

    The group believes there is a relationship between service quality and availability of resilient telecom infrastructure, arguing that the two are not mutually exclusive.

    ATCIS-Nigeria President, Sina Bilesanmi, during a press conference in Lagos, as part of activities to mark the end-of-the-year, specifically decried a situation where telcos have been denied approval to build infrastructure in the Federal Capital Territory (FCT) and  the Presidency for about a decade.

    He said: “We represent 223 million telephone users, 30 million household cable television and 159 million internet subscribers in Nigeria and our membership cuts across the six geo-political zones of the country and every strata of the social ladder.

    “On telecom subscription, while subscriber figures have gone up, service quality has continued to be an issue.The quality has sunk during the Yuletide. Drop calls, network congestion, call diversion and so many others blighted the experience of our members according to reports we collated.

    “We urge the operators to up their games just as we appeal to the various approving agencies to give expedited approval to telcos to expand infrastructure across the country. Particularly, we appeal to President Bola Tinubu to prevail upon the authorities of the Federal Capital Territory (FCT) to grant approval to telcos to build a more resilient network.

    “We heard that for almost a decade, successive administrations at the FCT have refused to grant approval to telcos to build infrastructure.

    “We appeal to the FCT Minister Nyesom Wike to please look at this critical issue and address it with dispatch as he is reputed for doing.”

    Read Also: NIN-SIM: Telcos give disconnection notice

     According to him, the group is not unaware of the harsh operating environment and the challenges faced by the operators, adding however that while the operators push for a more conducive business environment, they should endeavour to offer service quality that is commensurate with cash spent by ATCIS-Nigeria members.

    Speaking on the pay TV services sub-sector of the broadcast industry which has consistently attracted hikes in tariffs, he urged President Tinubu to come to the rescue of Nigerians.

    Bilesanmi said: “Multichoice, being the near-monopolist in the sub-sector of the broadcast industry, has continued to hike its subscription fees unapologetically in Nigeria. The National Broadcasting Commission (NBC) should borrow a leaf from the Nigerian Communications Commission (NCC) which has a consumer affairs department and has made the protection of consumers its priority.

    “It’s unclear if the NBC’s sphere of supervision extends to that of the pay TV industry because if it does, the South African operator will not be taking everyone for a ride hiding under the excuse of an increase in content costs. We had sought the introduction of the GSM payment model but they said they lacked the technology to do so. Since the company said it cannot implement it, just like the two South African companies, MTN and Econet Wireless, said per second billing was a mirage until Globacom came to the scene, we urge passionately appeal to President Tinubu to look critically into how to break this monopoly. The government should create a level playing field. An operator must not be allowed to become too powerful. The Federal Government should set up a committee to examine why attempts by indigenous operators to go into the pay TV industry are always frustrated. We demand for genuine liberalisation of the sector. We demand that the Federal Competition and Consumer Protection Commission (FCCPC) should beam its search light on the pay TV sector.

    “For instance, telecom subscribers should be able to roll over their subscriptions. Remember there was also a time in the history of GSM telephony in Nigeria when subscription was tied to a limited number of days. Whatever cash by way of airtime a subscriber had on his or her mobile phone was tied to a specific validity period. Because of the economic hardships occasioned by bold decisions, we pay TV subscribers demand a regime of roll over of our subscription. If any of our members subscribes and is unable to use it, such a member should be able to use it any time he or she is available.”

  • NIN-SIM: Telcos give disconnection notice

    NIN-SIM: Telcos give disconnection notice

    Telecom operators yesterday gave a fresh deadline to telecom subscribers that have not linked their National Identity Numbers (NINs) with their Subscriber Identity Module (SIM) to do so or get barred.

    The telcos, acting under the aegis of Association of Licensed Telecom Operators of Nigeria (ALTON), warned that Mobile Station International Subscriber Directory Numbers (MSISDNs) for which the subscribers have not submitted their NINs, are to be barred on or before February 28, 2024.

    They warned that where five or more MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before 29 March 2024; adding that where less than five MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before April 15, 2024.

    The operator added that where five or more MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before March 29, 2024.

    An MSISDN is a number that uniquely identifies a subscription in a GSM or a UMTS mobile network. An MSISDN is the phone number associated with a single SIM card and is the number to which you call or send an SMS message.

    In a statement, Gbenga Adebayo and Gbolahan Awonuga, ALTON’s chairman and Executive Secretary, said they were acting on a directive  by the Nigerian Communications Commission (NCC).

    “We, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) refers to the Nigerian Communications Commission (NCC’s) directive dated 15 December 2023 communicated to our members to implement full network barring on all MSISDNs for which the subscribers have not submitted their national identity numbers (NINs) and those without verified NINs.

    Read Also: Telcos to banks: no forgiveness of N200 billion USSD debt

    “The NCC has directed our members that all MSISDNs for which the subscribers have not submitted their NINs, are to be barred on or before 28 February 2024.

    “That where five or more MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before 29 March 2024; where less than five MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before 15 April 2024.

    “All affected subscribers must be verified (biometrics and bio-data) before their lines are unbarred,” the carriers said.

    It will be recalled that the Federal Government commenced implementing the SIM/NIN harmonization program in December 2020 through the NCC. This program required all telecoms subscribers to link their NINs to SIM registration records to avoid service restrictions.

    The linking involves validating the NIN with the National Identity Management Commission (NIMC) and matching the subscriber’s NIN records with the SIM registration information (verification) to ensure proper subscriber identification.

    “Following the directive of the NCC, which took effect on 4 April 2022, all MSISDNs for which the subscribers failed to submit their NINs were placed on outgoing call restriction only, and the affected subscribers were advised to verify their NINs before being reactivated.

    “Despite the limited service restriction, millions of subscribers have yet to submit their NINs for verification. Consequently, the NCC issued this directive dated 15 December 2023 for telecommunications operators to commence full network barring of the affected MSISDNs on the effective dates,” the operators said.

    The importance of the NIN cannot be overemphasized. It is crucial for a reliable and sustainable National Identity Management System in Nigeria. It enables economic inclusion and access to government services and helps address security concerns. Supporting the NIN initiative is necessary for a thriving digital economy and building a safer society. Therefore, our members are committed to implementing the directive as law-abiding corporate citizens who are highly supportive of the government’s objective to build a digital economy.

    “We, therefore, wish to appeal to esteemed subscribers to kindly enroll for NINs or submit their NINs through the appropriate channel advertised by members to avoid full suspension of services by the set deadlines,” the carriers said.

  • Telcos spend N165.2b on capital expenditure

    Telcos spend N165.2b on capital expenditure

    Nigeria’s telecom operators have spent  N165.2 billion as domestic investment or capital expenditure (capex) in the country over the last four years.

    Documents obtained from the Nigerian Communications Commission (NCC) showed that total investment profile stood at N165.198 billion during the period under review.

    According to the NCC, the capex figure of N161.769 billion was recorded in 2019, this fell to N2.734 billion as at end of 2020 while N171. 472 million was recorded at end of 2021.

    The cash was spent on infrastructure deployment. Thus, as at December 2020, the total Long Distance cable deployed by operators in this category was 4,772.40km. Interconnect Clearing House Limited recorded 3,526km; Layers3 Limited recorded 697.3 and Backbone Connectivity Network Nigeria Limited recorded 549.1km in the country. 

    As at December 2020, the total Fibre Optic Network deployed (leased and owned) by other operators was 14,661.32km while in 2019 the same set of operators deployed 29,053.22km) of fibre.

    Similarly, the total number of E1 in use by operators as at the end of 2020 stood atm2,860 as against 2,045 trunks in use in 2019.

    The NCC documents showed that the total number of gateways in use as at year 2020, was 125 with Cedarview Communications Limited accounting for the significant number of the Gateways based on 2020 Submissions reporting 70 Gateways; Kirusa Nigeria Limited reported  20; Interconnect Clearing House Nigeria Limited (19) while operators such as Mpedigree Network Nigeria Limited; Upstream Mobile Services Limited; Medallion Communications Limited; Solid Interconnectivity Services Limited; Txtlight Power Solutions limited, Text Nigeria Limited, Avyra Systems Limited and Intercellular Nigeria Limited having the least significant number of the Gateway based on 2020 submission.

    Read Also: Nigeria’s data appetite boosts telcos’ revenue

    As at December, 2021 the total on land fiber deployment was 47,128.7km as against 43,898.8km in 2020. The on land fiber deployment was reported as follows;- MTN –14,612km; GLO – 13,233km; AIRTEL – 14,454km; EMTS – 4,650km and NTEL – 180km.

    During the same period, the total submarine fiber deployment in kilometers was 27,818.3km as against 25,128.3km in 2020. This is an increase of 10.7per cent within the year under consideration. The fiber deployment by four Mobile Operators are MTN -17,934km; GLO – 9,800km; AIRTEL -14km and NTEL – 70km.

    A further analysis of the fibre optics deployed showed that of the total 74,947Km of fibre (nn-land and submarine) deployed as at December, 2021; 47,128.7km was on-land while 27,818.3km was submarine. MTN had the largest on-land and submarine deployment of 14,612Km and 17,934Km respectively as at December, 2021.

    All the four major operators had a total number of 59,048 Trunks (E1) in use as at December, 2021 indicating a decline from 114,702 Trunks (E1) reported as at December 2020. Most operators have implemented and evolved IP Capacities to carry volumes of data traffic hence the perceived reduction in E1 which was experienced in the previous year. Thus, the reduction was due to changes in technology.

    As at December last year, the total long distance cable deployed by operators in this category was 6,776.2km. A summary of this breakdown showed  Interconnect Clearing House Limited recorded 3,526km, Telko Managed Services Limited recorded 1,185km, WIOCC Nigeria Limited recorded 713km, Layer3 Limited recorded 702.1km, Backbone Connectivity Network (Nigeria) Limited recorded 549.1km and O’odua Infraco Resource Limited recorded 100km.

    During the same period, a total Fibre Optic Network deployed (leased and owned) by other operators was 7,816.50km. A breakdown of Fibre Optic deployment showed that Global Independent Connect Limited recorded 5,734km, Bitflux Communications Limited – 120km, Breeze Micro Limited – 55km, Interconnect Clearing House Limited – 42.5km, Nationwaves Telecom Nigeria Limited 20km, Backbone Connectivity Network (Nigeria) Limited recorded 549.1km, Layer3 Limited recorded 300km, O’odua Infraco Resource Limited recorded 100km,  and Aldreda Fields Limited recorded 73km. Others are Telko Managed Services Limited-34.7km, Solid Interconnectivity Services Limited -25km and Analytiq Telecom Solutions Limited 762.2km.

    During the same period, NCC said the total number of E1 in use by operators 6,229.5 as reported by operators.

    The total number of Gateways in use based on submissions by service providers in this category was 53 with Interconnect Clearing House Nigeria Limited reporting 21; Bitflux Communications Limited reporting three; Analytiq Telecom Solutions Limited – two, Upland Consulting Nigeria Limited – two; Amics Technologies Limited – two; Routelink Integrated Systems Limited – 16;. Solid Interconnectivity Services Limited – two; Telko Managed Services Limited – one; Realife Telecommunications Limited – one; Layer3 Limited – two, and Telnia Limited –one.

  • Telcos renew push for tariff hike, others

    Telcos renew push for tariff hike, others

    Mobile network operators (MNOs) have renewed the push to hike the end-user tariff of telecom services in the country, citing high cost of doing business.

      They urged President Bola Tinubu to  cancel the recently suspended 7.5 per cent Value Added Tax (VAT) imposed on automotive gas oil (AGO), which is the major fuel for powering the telecom sector in the absence of reliable energy from the national grid.

    The MNOs, acting under the aegis of Association of Licensed Telecoms Companies of Nigeria (ALTON), in a submission to the House Committee on Communication in Abuja, said while other sectors have increased charges, telecom has not.

    Chairman of the group, Gbenga Adebayo, said the cost of doing business had risen sharply in the preceding months due to several factors  impacting businesses, including macroeconomic headwinds such as inflation, currency devaluation; sustained difficulty in accessing foreign exchange (forex) at an affordable rate; rising energy costs; the rising cost of securing telecoms facilities and field personnel in the face of worsening insecurity and many others.

    “Notwithstanding the foregoing, the pricing regulatory framework has not been reviewed to account for changes in macroeconomic conditions and reflect current cost profile of operators.

    “As such, ALTON’s members are unable to price services at a sustainable rate.

    “Consumer prices in other sectors have seen a steep rise over the last six years as they adjust to reflect macro-economic realities. However, telco prices have remained flat and even declined. Contrary to the price trends in other sectors, telcos have had to adjust for the macroeconomic headwinds by an increasing erosion of margins; other highly regulated sectors such as power and insurance have implemented price increases over the last year.

    “Insurance prices have risen 200 per cent with power raising prices by over 40 per cent. Telecommunications is the only sector that has not experienced a pricing regulatory framework review raising prices notwithstanding local and global macroeconomic realities,” he said.

    According to Adebayo, not only has this impaired investor confidence and depleted available investible funds necessary to optimize infrastructure for improved service delivery, it also threatens the very sustainability of the sector’s operations.

    He urged the Committee to drive the partnership with key stakeholders such as the Office of National Security Adviser (ONSA) to secure executive and legislative action on the declaration of telecoms infrastructure as Critical National Infrastructure (CNI) and criminalization of malicious site sealing, access denials, and willful/negligent destruction of telecommunications infrastructure.

    This, he argued, could be done either by an Executive Order or relevant amendment of the Cybercrimes Act. He recalled that an attempt was made by the immediate past National Security Adviser (NSA) to secure Presidential approval for an Executive Order (EO), and requested the Committee to ‘respectfully liaise with the current NSA to bring to fruition the EO on CNI’.

    He sought sensitisation and advocacy for state governments’ adoption of the harmonized RoW charge of N145/Linear Meter approved by the National Economic Council in 2019; collaborate with the Presidential Committee on Fiscal Policy and Tax Reforms to definitively address the perennial incidence of multiple taxation in the Nigerian telecommunications sector including the elimination of the currently suspended excise duty on telecoms services.

    Speaking on the punitive diesel cost and its impact on operations cost, he said ALTON is pleased and commends the recent Federal Government’s announcement of the suspension of the 7.5per cent VAT on diesel price for the next six months.

    “This is a welcome development coming from the fact that in August 2023, we were paying, on average, N854.32 per liter, compared to the lower cost of N786.88 per liter recorded in the same month of the previous year. The 7.5per cent VAT on diesel has pushed pump prices to N900 at least and N950 at the maximum across Nigeria as at today.

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    “The impact of this increase is dire for telecommunications operations, particularly for our members in the colocation segment. The 300per cent increase in diesel cost which was implemented at the beginning of the year, humongous indebtedness in the industry, lack of access to and increased rate of foreign exchange to service their operations, dire levels of insecurity across the country with increased theft and damage to our members sites, have all prevented our members from running their business efficiently and profitably.

    “This new challenge of the introduction of the 7.5per cent VAT will not only further impact our members operating capital, but it will also erode their profit margins, discourage investments, stifle growth, result in loss of employment and ultimately dovetail in a progressively reduced GDP,” Adebayo told the lawmakers.

    While commending President Tinubu for granting the six month grace, he said it will be better to make it permanent by directing an indefinite suspension of the 7.5per cent VAT beyond the six months already granted. “The impact on the industry and the economy will be positively felt by all,” he said.

    He also highlighted the refusal of the Federal Capital Development Authority (FCDA) to Grant Build Permit for Infrastructure roll-out as a major concern of the industry.

    “The provision of telecoms service in the Federal Capital Territory (FCT) Abuja has been hampered by the refusal of the Federal Capital Development Authority (FCDA) and Abuja Metropolitan Management Council (AMMC), to grant permits to our members to build sites.  Despite concerted engagement, FCDA has maintained that due to the need to maintain the Abuja Master Plan, it will not grant approval to our members to build new sites in the Federal Capital Territory, Abuja. Telecom services depend on terrestrial infrastructure and without these infrastructure in place, the quality of services cannot be guaranteed.

    In view of the huge investment towards deployment of telecoms infrastructure in the FCT, our members are indeed concerned about this development, given its significant impact on their ability to meet regulatory obligations and consumer expectations in the FCT. Given its position as the seat of government and host to several key functionalities of Government, with an ever-increasing population, our members have been unable to match infrastructure deployment with the growth patterns and on-ground requirements of the FCT.  This is evidenced by unsatisfactory service reception within locations in the FCT, resulting in dropped calls and complaints of unsatisfactory service experience the Telecommunication infrastructure Service Providers (TSPs) as well as Mobile Network Operators (MNOs) have been putting in concerted efforts to bridge the gaps in Quality of Service (QoS).

    “Despite concerted efforts of our members to address the coverage requirement gaps through optimization and other short-term measures, these coverage gaps exist of the view that FCDA and AMMC’s current position will not in the long-term enable us to provide the desired  Quality of Service (QoS) levels  in the FCT.

    “While we understand that AMMC may have justifiable basis for its decision to put the granting of permits and approvals on hold as stated in its circular, we also believe that there should be a possibility of working out a solution that will enable our deployment of required telecommunication infrastructure within the FCT- without prejudice to the masterplan,” he said.

    He said ALTON respectfully states that without adequate infrastructure deployment, the provision of required levels of telecommunications services within the FCT cannot be guaranteed. We therefore respectfully invite you to use your good office to liaise with the FCDA to agree and authorize suitable locations for new sites built by our members.

    “The House Committee on Communications should as a matter of urgency intervene so that permits can be issued to our members to deploy infrastructure to cater for the communication needs of the FCT and its environs.”

  • NCC: MTN’s listing’ll spur other telcos

    The Nigerian Communications Commission (NCC) yesterday said the listing of South African Telecom giant MTN on the Nigerian Stock Exchange (NSE) would open doors for other  big telcos   to be listed on the NSE.

    It said this will lead to rapid increase in Foreign Direct Investments (FDI ) and infrastructural development for the industry.

    Speaking reporters at the Headquarters of the NCC in Abuja, its Executive Commissioner, Stakeholders Management, Mr Sunday Dare, said NCC was involved in the procedures and processes that led to the listing of the telecoms giant.

    He added that notwithstanding the on-going investigations, the Commission played its regulatory and supervisory roles regarding the matter without any form of misgivings.

    Mr Dare who spoke on a wide range of issues, said Nigeria is ready for the deployment of 5G technology in the industry, saying all the legal frameworks and other technical issues regarding its deployment have been considered by all stakeholders.

    He however regretted that the biggest challenge to the telecom industry is electricity supply and fibre cuts, stating that over 24,000 base stations (BTS) across the country are being powered by generators for an average of between 18 and 22 hours per day.

    Mr Dare also said in line with global best practices, Nigeria would soon migrate from data capturing of five fingers to 10 fingers to make the process of subscriber identity module (SIM) cards registration more credible. He added that this would improve security and accelerate growth and development of the country.

    Mr Dare said: “A few months ago, we had a forum on 5G readiness where all critical stakeholders comprehensively examined the legal, regulatory and technology issues and we are developing a roadmap.  So to say NCC is not getting the industry ready, is again, a mark of either ignorance or mischief.

    “In addition to 5G, we have opened up consultations on spectrum for drones, etc. We are proactively leading discussions on the deployment of new technologies and other infrastructures. ”

    The Executive Commissioner further said the NCC has licensed six infrastructural companies (Infracos) with roll out status to provide fibre optics for all the 774 local government councils in the country, saying this development would lead to improved quality of services and coverage of 200 remote villages across the country.

    “The fact is that about two years ago, NCC proactively identified about 200 remote communities which do not have coverage and began working with operators through the USPF to fill these gaps. What we are doing is trying to get these communities to leapfrog 2G networks and see how we can start them on broadband networks where economically feasible.

    “At that time, we said that the population of the communities is up to 35 million. The issue is that it is not as if these people have not seen phones, it is that they do not have regular coverage. And between now and then a lot of grounds have been covered, ” Mr Dare said.

  • Banks, telcos, others discuss innovation at Simba, Avaya conference

    Commercial banks, telecom operators and other leading players in the economy were at the a digital conference organised by Simba Infrastructure Limited, in partnership with Avaya in Lagos.

    The Avaya Innovation Day forum was designed to exclusively enhance customer experience and fulfillment. The event provided insight to the needs of businesses in Nigeria in building connected experiences required for effective Digital Transformation. The event which took place at the prestigious Victoria Crown Plaza Hotel, Victoria Island, Lagos was well attended by industry experts and IT professionals.

    Avaya and Simba showcased a variety of new products including its flagship cloud based Social Media product called Avaya Ava. It is a cloud-based messaging- agnostic solution that offers AI capabilities for social messaging integration. Other products include the enhanced Avaya Equinox Softphone, Avaya Vantage Video Phones, Chatbot and several other solutions for work collaboration and secure video conferencing.

    Speaking at the event, Sanjay Vaswani, the Executive Director of Simba Infrastructure, assured Simba Customers and other participants of the organization’s full commitment to providing unique IT Services across the lifecycle of business operations. He stated, “As an Avaya exclusive partner in West Africa, Simba Infrastructure has achieved the competency to provide matchless IT services around the Avaya solution portfolio. We deliver customized communication infrastructure solution to our valued customers and provide strategic partnership to Avaya in the Digital Transformation journey”.

    Also speaking at the event were top executives from Avaya including Omar Fahnbulleh, Elie Turquieh and Puthanpura, Vinod Kumar who spoke extensively on the several impacts of Digital Transformation on business re-engineering. They emphasized that Digital Transformation was a key factor in accelerating experiences and business growth through the adoption of mobile digital services, enabling next generation interactions and driving change in customer experience.

    In attendance at the event were key executives from several top tier financial institutions including Stanbic IBTC Bank, United Bank for Africa, Guaranty Trust Bank, Keystone Bank and other sectors like telecoms, Oil Gas, Health and Pension organisations.

    Simba Infrastructure, a member of the Simba Group is a Diamond partner of Avaya in Nigeria. Headquartered in Lagos with offices in Abuja, Simba has received several awards and recognitions as a leading conglomerate in several key sectors of the Nigerian economy.

  • NCC to telcos: comply with regulations or face sanctions

    The Nigerian Communications Commission, (NCC) yesterday warned all telecom companies in the country to embrace full and uncompromising compliance with all regulatory instruments, especially in the areas of quality of service, consumer protection and fair competition in the market.

    Its Executive Commissioner, Stakeholders Management, Mr Sunday Dare who  spoke during the Meet The Regulator Forum  at NCC Headquarters, Abuja, said the advice has become imperative to avoid sanctions and create a healthy relationship between the operator and the regulator.

    He said NCC is working on streamlining its processes to address concerns of operators on turnaround speed and other critical issues, but insisted that the regulator remained resolute on sound internal governance and strict adherence to the code of corporate governance in the industry.

    He said developments in the industry have placed more responsibility on the regulatory body to be up and doing in its assignments, noting that industrial players are expected to key into regulatory frameworks that would help move the industry forward.

    Dare said: “We are looking at the pervasive use of ICT in education, health and social services; the increasing digitalisation of manufacturing and other processes; the widespread use of Internet of Things (IoT) and other technologies, as well as the early rollout of 5G networks to drive these game-changers.

    “More importantly, the industry landscape is changing. Traditional models of delivering voice, data and infrastructure services are being threatened. Technology enables competing service models which work outside the scope of regulators and organisations are being challenged to “innovate or die”.

    “The point I wish to make is that the NCC is very clear that its role is to facilitate the successful operations of our licensees. We are also clear that the operator-regulator relationship is a symbiotic one which requires us to enable our licensees to succeed.

    “We are prepared to facilitate the speedier and more efficient availability of regulatory resources like spectrum, numbering, approvals, etc. We are working on streamlining our processes to address your concerns about turnaround speed. We shall also continue to impartially perform the responsibilities imposed on us by our role as independent regulator of the telecoms industry.

    “However, NCC prides itself as a fair, firm and forthright regulator. We are always here to listen to you and forge win-win solutions. But as we empower you to face future challenges we must insist on full and uncompromising compliance with all applicable regulatory instruments, particularly in the areas of quality of service, consumer protection, and fair competition in all relevant communications markets.

    “We will also insist on sound internal governance along the lines detailed in the Code of Corporate Governance for the industry. These are our minimum expectation, and I trust that we can continue to count on your co-operation in this regard.”