The Nation Newspaper

Tag: telecoms

  • Telecoms workers threaten strike

    Telecoms workers threaten strike

    Telecommunication workers have issued a seven-day indefinite strike notice, effective Sept. 9 over what they describe as prevalent precarious working conditions.

    The workers under the aegis of Private Telecommunications and Communications Senior Staff Association (PTECSSAN) gave the notice in a statement signed by its General Secretary, Mr Okonu Abdullahi, on Tuesday.

    Other companies, it issued notice to, are Tylium Nigeria Ltd; Specific Tool and Techniques; Safari Group Ltd. among others.

    Abdullahi said that the strike had become necessary following alleged anti-labour practices including the refusal of the employers to recognise and respect the workers’ constitutional rights to freely associate with the union.

    He alleged also that three members of the union were unjustly sacked.

    Read Also: ‘Telecom industry slipping into inefficiency’

     “We shall not be suspending the planned indefinite strike action until our demands, which are as follows, are met:

     “Immediate reinstatement of the three unjustly sacked workers: Sotola Sunday Kolawole, Ulu Ikechukwu Christopher and Alex Franklin C.

     “Immediate recognition of the fundamental right of the employees to freely associate with the union, “ he said.

    According to the general secretary, other demands include immediate recognition of the union as the negotiating body for the employees on workers welfare.

    He said also that the union was demanding the immediate remittance of membership dues into its account as earlier provided among others.

     “We hope that these companies will utilise the seven-day window of this notice to meet our demands and avert the indefinite strike action,” Abdullahi said

  • Telecoms vandals beware

    Telecoms vandals beware

    • It is now a serious crime to vandalise these facilities

    Twenty-three years after the telecoms revolution in Nigeria, telecoms operators can now heave a sigh of relief as the Federal Government has, at last, heeded calls to criminalise vandalisation of telecoms cables. Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, disclosed the good news in a thank-you message to President Bola Ahmed Tinubu over the release of the official gazette: ’’Designation and Protection of Critical National Information Infrastructure Order, 2024’’.

    The new law criminalises vandalisation of telecoms facilities like towers and base stations, switch stations, transmission equipment, submarine and fibre optic cables, data centres, satellite infrastructure, e-government platforms and databases, etc.

    These facilities are now regarded as part of our Critical National Infrastructure (CNII) because of the important role they play in our lives, from security to information technology, communication and other essential services.

    “The security and protection of these Critical National Information Infrastructure (CNII) is a priority for this administration and will help improve the quality of telecoms services, which has very often been affected by disruption and intentional damage”, the minister said.

    This is good news not only for the telecoms operators but all other stakeholders in the industry.

     Vandalism in the telecoms sector, like pipeline and electrical cable vandalism, etc. has become a common phenomenon in the country. Criminals descend on these facilities without bothering about the consequences.

     In the last five years alone, over 50,000 cases of major damage to telecom infrastructure and facilities had been reported across the country. 

    Indeed, a worried Nigerian Communications Commission (NCC) recently decried the willful damage to these facilities and the effect on service delivery. “The impact of vandalism of infrastructure is felt by all in the quality of services rendered as it results in increasing drop calls, data and internet connectivity disruptions, aborted and undelivered short messaging services (SMS), as well as countless failed calls,” the NCC executive vice chairman/chief executive officer, Dr. Aminu Maida, lamented.

    We join the telecoms firms and other stakeholders in commending the Tinubu administration for making the new law. Of course, it is not that telecoms cable vandals are not being punished under the existing laws, it is just that the law as is is not stringent enough to deter criminals that have made such vandalism a pastime. For instance, some years back, a Federal High Court sentenced some criminals to three years imprisonment for vandalising the cables of the (now) defunct Nigerian Telecommunications Ltd (NITEL) or pay a fine of N7,000.

    This cannot deter anyone from carrying on with such a crime.

    Although we do not know yet what the new law provides as punishment for the vandals because the minister said the official copy of the gazette has not been released, there is no doubt that it would have taken into consideration the developments in the sector, especially since the advent of the global system for mobile communication (GSM) in the country in 2001.

    A fine of N7,000 in the criminal code is not enough punishment for such crimes these days. The money cannot even buy a small telephone!

    Read Also: ‘Telecoms may suffer disruptions without sustainable investments’

    But law is not enough to protect the facilities. They must be enforced. There should also be regular enlightenment programmes to let the people know not just the consequences of the crime but also its impact on service delivery.

    For instance, in September 2012, Nigeria CommunicationsWeek and the Association of Licensed Telecom Operators of Nigeria (ALTON), hosted a public workshop to sensitise the public, government and security agencies on the need to accord telecom infrastructure as CNII. This was sequel to increased cases of vandalisation of equipment and killing of workers in the sector.

    We need more of such workshops and enlightenment.

    The problem with many Nigerians is that they do not want to say something when they see something, especially if what is involved is public property. This is not good because it is not only the telecoms firms that suffer the consequences of cable vandalisation; telecoms subscribers too do because, ultimately, the cost of fixing the vandalised equipment would be passed on to them.

  • Telecoms: Balancing growth with affordability

    Telecoms: Balancing growth with affordability

    Sir: Nigeria’s telecommunication industry stands at a crossroads. It is facing pressure on a thousand different fronts. On the inside, it is battling with the challenges of sustainable operations and shareholders demands and on the outside, raising costs and regulatory constraints.

    The telecom industry has immense potential. The recently launched GSMA digital economy report made this point. It projects a rise of 15 million new internet users by 2028. It equally highlights the industry’s significant contribution to the nation’s GDP.

    Industry players, in the light of existing reality, have determined that a tariff increase will provide some succour and allow it to breathe. The Association of Licensed Telecom Operators of Nigeria (ALTON), an umbrella organisation for telecom and allied services providers, is at the forefront of the push for tariff increase.

    ALTON argues that current tariffs, unchanged for over a decade, are insufficient to maintain operations and may indeed hinder vital investments in network infrastructure and possibly impact service quality. This assertion gains traction against a backdrop of foreign exchange losses, declining profits, and the increasingly challenging economic environmentWithin the same decade, electricity tariff was raised, at least, three times; the price of fuel has gone up by over 300 per cent and inflation has effectively climbed to over 33 per cent. Yet, operators’ demand for telecom tariff increases has sparked a contentious debate among industry stakeholders. For many, the crux of the matter is that the economy is already hard, so telcos should not compound things by increasing tariffs at this time. Economists will take a dim view of this argument.

    Read Also: Telecoms sector records $1.57b FDIs in three years

    The telcos’ reason for pushing for tariff increases hinges on three main points. One, rising costs. Inflation, currency devaluation, increase in the pump price of fuel, electricity tariff increases and a general economic downturn have significantly increased operational expenses. The cost of maintaining and upgrading infrastructure, alongside acquiring foreign equipment, has outpaced current price structures.

    The second is the investment challenges. Without a price adjustment reflecting economic realities, investors become hesitant. This stagnation in investment will limit the industry’s ability to expand networks, adopt new technologies like 5/6G and ultimately serve a growing population. The bulk of investment in the sector is dollar-denominated.

    Then thirdly, unsustainable business environment. The industry contends with a multitude of charges and levies (the perennial multiple taxation). ALTON reveals that there are over 45. This burden, coupled with a perceived lack of regulatory independence, creates an unfavourable business climate.

    The government, however, has firmly rejected the proposal for a tariff hike. The NCC has refused to approve it. Bosun Tijani, Minister of Communications, Innovation and Digital Economy, emphasizes the need for a comprehensive solution. He argues that higher prices would disproportionately affect affordability and hinder inclusion, particularly for low-income Nigerians. This outcome will no doubt widen the digital disparity in the country.

    In my mind, to move forward, we must be able to strike a balance between the financial viability of telecom companies and ensuring service affordability for consumers. This path likely involves a multi-pronged approach.

    We can start by reviewing the levy landscape.  Reducing the number of charges levied on telecom operators could free up resources for investment. This can potentially create a more attractive business environment. Secondly, regulation must be streamlined in line with global best practices. Experts concede that enhancing regulatory clarity and promoting an environment that encourages responsible risk-taking by investors would be crucial.

    Moreover, operators have the option of exploring alternative revenue streams. This means that telecom companies can explore value-added services or targeted data packages to generate additional revenue without burdening core services.

    The government is not left out. It must consider incentives. The federal government should, as a matter of urgency, consider targeted incentives that encourage network expansion and technological advancements. This will encourage operators to seek growth without solely relying on price hikes. The NCC must step up to the plate here.

    To ensure that the telecom sector achieves its potential, we can’t play the ostrich anymore. Constructive dialogue and collaboration between government, industry stakeholders, and regulatory bodies are indispensable at this point. Adjustments must be made, if the sector is to maintain its contribution to Nigeria’s GDP, currently eight per cent, and thus continue to boost the broader ICT ecosystem growth.

    • Elvis Eromosele,elviseroms@gmail.com

  • Telecoms tariff hike likely

    Telecoms tariff hike likely

    • Opex takes tollson telcos

    Telecom subscribers in the country must brace for end user tariff hike this year, an industry source confided at the weekend, citing micro and macro-economic fundamentals to justify the hike.

    According to the source who craved anonymity, while the operating cost has continued to go up, profitability has kept shrinking, adding that economic realities have shrunk the average revenue per user (ARPU) of the average telecom consumers across the country.

    “I can assure you that if nothing is done to review upwards tariffs in the telecom space, some operators will close shops. Cost of energy, transportation, security of infrastructure and others have continued to go up. The only sector that has not increased the cost of its final product is the telecoms sector.

    “Other sectors, including aviation, transportation, food and automobiles have gone upwards. So, to run the business sustainably, remember some us have shareholders and boards which we report to, the Nigerian Communications Commission (NCC) would need to accede to the demand of the industry for upward tariff review,” the source said.

    The Nigerian telecom market has been adjudged to be one with the lowest and affordable mobile market across the world, a development that has helped the industry grow a huge subscriber base which has stopped translating into huge financial gains, no thanks to emerging economic realities.

    The telecom industry’s return on investment (RoI) remains low with the former Executive Vice Chairman of the NCC, Prof Umar Danbatta, declaring last year that for the first time, the mobile network operators (MNOs) posted losses in their balance sheets.

    With aggressive investments in acquiring the fifth generation (5G) spectrum licence and network deployments with no real monetisation in sight, operators are looking towards increasing mobile data tariffs. From the sale of 5G spectrum licence to MTN Nigeria, Mafab Communications Limited and Airtel Nigeria, the NCC has generated over $847.8 million for the Federal Government. The cost of deploying the technology too is not cheap.

    It would be recalled the MNOs, acting under the aegis of Association of Licensed Telecoms Operators of Nigeria (ALTON), had via a letter dated April 25, 2022, addressed to the CEO of the NCC entitled: “Impact of the Economic and Security Issues on the Telecommunications Sector,” sought  a 40 per cent hike in voice call, data and short message services (SMS).

    The letter containing about a dozen other requests was written when the world had the aftershocks of COVID-19 and the outbreak of the Ukraine/Russian war. It was written before the eventual removal of fuel subsidy which had seen the pump price kissing the skies.

    Co-signed by Gbenga Adebayo and Gbolahan Awonuga, chairman and Head, Operations, the letter read in part: “The telecommunications industry has been heavily financially impacted following Nigeria’s economic recession in 2020 and the effect of the ongoing Ukraine/Russia crisis. This has resulted in an increase in energy cost (which constitutes an appreciable 35 per cent of ALTON members’ operating expenses). Consequently, the cost of diesel required to power our towers, base stations and offices rose by a staggering 233 per cent from N225 per litre in January to 2022 to over N780 per litre in March 2022.

    “As the Commission may be aware, the power sector under the supervision of the Nigerian Electricity Regulatory Commission (NERC) of the power sector in November 2020 undertook a review of electricity tariffs to cater for the economic headwinds.

    Read Also: Globacom is homegrown telecoms market leader, says AbdulRasaq

    “In view of the foregoing, ALTON considers it expedient for the telecoms sector to undergo periodic cost adjustments through the Commission’s intervention in order to minimise the impact of the challenges economic issues faced by our members.”

    The MNOs made nine demands, which included an upward review of the price determination of voice, data and SMS.

    “Given the state of the economy and circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the Mobile (Voice) Termination Rate  (MTR) for voice, administrative data floor price and cost of SMS as reflected in the instruments. With respect to voice and SMS cot, ALTON respectfully requests the Commission to consider a mark-up approach to address the upward price adjustments desirable for the industry. For data services, we wish to request that the Commission implement the recommendations in the August 2020 KPMG Report on the Determination of Cost Based Pricing for Wholesale and Retail Broadband Services in Nigeria. In implementing the said recommendations, however, we recommend that the 40 per cent increase in cost of doing business be factored in to arrive at a cost price per GB (gigabyte) in view of the economic situation,” ALTON added.

    According to a document prepared by the Subscriber/Network Data   Annual Report  prepared by the Policy Competition and Economic Analysis Department of the NCC, capital expenditure (capex) reported was N 785,771,028,960.36 as at December 2022 while operating cost (opex) reported was N 2,092,815,085,166.00 as at December, 2022.

    Revenue recorded during the period under review was N 3,856,026,156,380.29.

    Opex was N1,720,547,371,856.01 as at December 2021 while CAPEX stood at ¦ 1,128,557,869,498.36.

    According to the National Bureau of Statistics (NBS), the average retail price of Automotive Gas Oil (AGO) or diesel which is the major fuel of the MNOs rose by 37.76per cent in one year.

    Its document entitled: “Automotive Gas Oil (Diesel Price Watch (December 2023),” said the price soared from N817.86/litre in December 2022 to N1126.69/litre in December 2023.

    It was N780 per litre in March 2022 when the MNOs pushed for tariff hike.

    NBS said: “The average retail price of Automotive Gas Oil (Diesel) paid by consumers increased by 37.76per cent on a year-on-year basis from a lower cost of N817.86 per litre recorded in the corresponding month of last year to a higher cost of N1126.69 per litre in December 2023.”

    The document further noted that on a month-on-month basis, an increase of 6.74per cent was recorded from N1055.57 in the preceding month of November 2023 to an average of N1126.69 in December 2023.

    In the period under review, said NBS, looking at the variations in the State prices, the top three States with the highest average price of the product, include Sokoto State (N1300.00), Kebbi/Yobe State (N1250.00) and Jigawa State (N1229.09).

    NBS added that the top three lowest prices were recorded in the following States namely, Rivers State (N897.89), Bayelsa State (N935.00) and Bauchi State (N985.00).

    The data explained that the Zonal representation of the average price of Automotive Gas Oil (Diesel) shows that the North West Zone has the highest price of N1227.31 while the South South Zone has the lowest price of N1039.90 when compared with other Zones.

    In its “Premium Motor Spirit (Petrol Price Watch) December 2023,” NBS said the average retail price paid by consumers for Premium Motor Spirit (petrol) for December 2023 was N671.86, indicating a 225.85per cent increase when compared to the value recorded in December 2022 (N206.19).

    It noted that likewise, comparing the average price value with the previous month (.i.e. November 2023), the average retail price increased by 3.53per cent from N648.93.

    On state by state analysis, Ogun State had the highest average retail price for petrol at N776.54, Taraba and Adamawa states were next, with N760.00 and N745.71 respectively.

    On the other side, Kano, Lagos and Borno states had the lowest average retail prices for petrol at N602.78, N612.72 and N622.71 respectively.

    On Zonal analysis, the Northeast had the highest average retail price of N699.82, while the Northcentral had the lowest price of N657.69.

     Globally, the average price of mobile data and voice continues to fall, with high consumption of data and voices estimated to cost about $25. However, the report confirmed that broadband services can still be too expensive for the poorest consumers.

    Nigeria has been ranked 48 out of 233 nations whose cost per gigabit (GB) was determined, making it one of the least expensive places to purchase mobile data. The nation is ranked sixth in Africa, below Algeria, Libya, Ghana, Somalia, and Morocco.

    According to the ranking and evaluation by Cable.co.uk, the average cost of a GB of data in Nigeria is less than $0.71, which is approximately ¦ 632.30 going by current exchange rate figures.

    Despite the increasing cost of doing business in the country, the country still ranks cheaper than most countries like Egypt and South Africa.

  • Court restrains telecoms giants over citing of base stations

    Court restrains telecoms giants over citing of base stations

    In a victory for environmental activists, the Federal High Court in Lagos has restrained telecommunications giant, MTN Nigeria Communications Plc and its associate, ATC Nigeria Wireless Infrastructure Ltd, from overcrowding the environment with base stations.

    ATC is a fully-owned subsidiary of the U.S.-based American Tower.

    The order is to subsist pending the determination of the motion on notice for interlocutory injunction.

    Justice Y. Bogoro initially issued the order on November 21 and reaffirmed it on December 7 when the case numbered FHC/L/CS/2359/2023 came up for hearing.

    HEDA Resource Centre is a civil society group active in promoting sustainable development and protection of the environment.

    In what it termed a public interest case, it had sought an injunction to stop MTN and ATC from citing new base stations where there are already existing ones in close proximity. 

    It cited health and environmental concerns.

    Justice Bogoro upheld the prayers of the plaintiff/applicant, the Incorporated Trustees of the HEDA Resource Centre.

    He ordered ATC and MTN (fourth and fifth) defendants, together with their “servants, agents, privies and/or assigns from commencing, continuing or completing the construction or erection or installation of any base trans-receiver stations/towers/masts (BTS) within close proximity to IHS’ existing BTS or operating any BTS within close proximity to IHS’ existing BTS pending the determination of the motion on notice for interlocutory injunction.”

    The judge also ordered the “fifth defendant (MTN) whether by its servants, agents, privies and/or assigns from moving, relocating, transferring any of its telecommunication equipment to any BTS site being or that has been constructed, erected or built by the fourth defendant (ATC), which is in close proximity to the IHS’ existing BTS pending the determination of the motion on notice for interlocutory injunction.”

    The order effectively puts on hold the implementation of the relocation of 2,500 towers project from IHS to ATC announced by MTN until the court further hears from the parties on February 14.

    In the later proceedings on December 7, the counsel to MTN Nigeria, Prof Fabian Ajogwu (SAN), moved a motion to set aside the ex-parte order.

    Read Also: Telecoms sector records $2.51b capital importation

    He filed a further affidavit and reply to HEDA’s counter-affidavit.

    Counsel for ATC, Nicholas Okafor of Udo Udoma & Belo-Osagie, sought to move his preliminary objection which he filed the previous day.

    However, the court did not hear it as there was no proof that the motion was served on the plaintiff/applicant or any other party.

    HEDA’s counsel, Mr Kunle Adegoke (SAN), urged the court to direct all parties to maintain status quo ante pending rulings.

    Justice Bogoro directed counsel to all the other parties to prevail on their clients on the need to maintain the status quo.

    Ajogwu argued that he is law-abiding but HEDA’s counsel responded that the concern is not with counsel but their clients – MTN and ATC – who the NGO suspects are going on with work despite the injunctive order.

    The hearing was subsequently adjourned till February 14.

    According to Adegoke, the ruling is in favour of people’s health and environmental sustainability.

    He noted that these are the major reasons the Nigerian Communications Commission (NCC) and the National Environmental Standards and Regulations Enforcement Agency (NESREA) established a set of guidelines for the location of base stations.

    He explained that going by the ruling, the ex-parte injunctions subsist, at least, till February 14 when the court is expected to rule on the pending motions. 

  • Telecoms sector records $2.51b capital importation

    Telecoms sector records $2.51b capital importation

    Capital inflow by way of foreign direct investment (FDI) into the telecom sector over the last four years stood at $2,513,295,423 with that of last year being the lowest, it was gathered at the weekend.

    According to stats from the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN), FDI into the telecoms industry in 2020 was approximately $417,481,615.30 against $942, 863,833.96 recorded in 2019.

    According to documents entitled: “Subscriber/Network Data Annual Report” by the Policy Competition and Economic Analysis Department of the NCC, this translated to a decline of 55.7per cent in capital importation year-on-year. The   decline in capital imports was largely attributed by the operators to the outbreak of the COVID-19 pandemic that distorted global businesses and   impacted businesses negatively. 

    In 2021, it was $753,044,446.35 against $417,481,615.30 as at 2020 while the following year, it was $399,905,531.38.

    In terms of the sector’s contribution to the nation’s gross domestic product (GDP), it increased from 10.60 per cent in the fourth quarter (Q4) 2019 to 12.45 per cent in Q4 of 2020.

    Telecoms industry contribution to the GDP increased from 12.45 per cent in Q4 2020 to 12.61per cent in Q4 of 2021. It increased from 12.61per cent in Q4 2021 to 13.55per cent in the Q4 of 2022.

    In the analysis of Subscriber Voice Data & Teledensity (All Segments), as at last December, total active voice subscriptions for the entire market segments was 222,571,568 as against 195,463,898 recorded as at December of the previous year. This indicates an increase of 13.86 per cent in 2022.

    Teledensity was 116.60 per cent in 2022 as against 102.40 per cent recorded in 2021, which indicates an increase of 13.86 per cent in Teledensity in last December.

    The increase in operators’ subscriber base was attributed majorly to the effect of the directive from NCC in April 2021 to GSM operators lifting the ban on the sale and registration of new SIMs, SIM swaps and porting, following the conclusion of the Commissions nationwide audit of Subscriber Registration Database.

    Read Also: Why Lagos Free Zone attracts American investors – US Consul General

    The objective of the audit was to verify and ensure compliance by Mobile Network Operators with the set quality standards and requirements of SIM Card Registration as issued by the Federal Ministry of Communications and Digital Economy and the Commission.

    The document said in analysing the yearly active voice subscription for Mobile (GSM) segment, total active voice subscriptions increased from 195,128,265 subscriptions as at December 2021 to 222,225,300 subscriptions as at last December. This, it said, indicates a 13.88 per cent gain in GSM active voice Subscriptions year-on-year.

    On the Market Share of Active Voice Subscriptions (Mobile GSM Segment 2022), NCC said the market share of mobile operators were analyzed through the breakdown of each operator‘s subscription; MTN; Glo; Airtel and Emerging Market Telecoms Services (EMTS) trading as 9mobile each recorded 89,016,678; 60,290,012; 60,065,904 and 12,852,706 Subscribers respectively.

     In that order MTN; Glo; Airtel and 9mobile had 40.06per cent; 27.13per cent; 27.03per cent and 5.78per cent share of the mobile GSM market of the mobile GSM market segment.

  • Cyber crooks’ attacks on telecoms sector rising

    Cyber crooks’ attacks on telecoms sector rising

    Cyber crooks have remained unrelenting in launching attacks on the telecoms sector, it was gathered at the weekend.

    Specifically, Distributed denial of service (DDOS) attacks are getting bigger, with changing trends in terms of targets, attack models and attacker groups.

    In Nigeria and South Africa where the market is going through a rapid digital transformation, the telecoms industry was hit most.

    Senior Solutions Engineer at Cloudflare,Nupoor Chavan, who addressed a webinar on the state of DDOS attacks stated this.

    According to Chavan, Nigeria fell under the onslaught of network time protocol (NTP) amplification attacks reaching over 69 per cent, followed by DNS amplification at over 16 per cent.

    NTP amplification is a type of DDoS attack in which the attacker exploits publically-accessible NTP servers to overwhelm the targeted with User Datagram Protocol (UDP) traffic.

     In South Africa, SYNflood attacks accounted for almost 38per cent of attacks and DNS amplification accounted for over 33per cent of attacks while in Kenya, DNS amplification attacks accounted for over 64per cent of attacks, followed by UDP fragment flood attacks, at over 41per cent.

    Chavan said: “DDOS attacks bombard the victim server with so many requests that it cannot process requests – much like a traffic jam. Visitors experience slower page load times or cannot connect to the target server at all. This can cause victims a lot of pain, leading to service unavailability, which can have a direct impact on revenue.

    Read Also: Solar firm unveils Simba Talegent in Nigeria

    “It affects brand reputation and can also affect internal employees if they depend on services and applications that are unavailable. To get the service up and running again can involve a lot of costs.”

    She said DDOS attacks get bigger every year.

    “This year, we saw a record 71 million requests per second attack.

    “This year, we saw a lot of activity from hacktivist groups Killnet, REvil and Anonymous Sudan collaborating as the ‘Darknet Parliament’. Since this campaign kickstarted, we saw as many as 10 000 DDOS attacks from Darknet Parliament.”

    Initially, the hacktivists said their main target would be banking and financial systems, but we see the most attacked industries have been computer software, gaming and gambling, followed by telecommunications and media, “ she said.

     Outlining other changing trends, Chavan said: “Most of the common attack vectors (32.5per cent) in recent months were DNS-based. Among these were DNS laundering attacks, in which bad and malicious traffic is laundered through reputable DNS servers to appear legitimate. “These usually try to query randomised sub-domains of the victim and crash the DNS server. It can be difficult for administrators to block these attacks because they can’t block the source or the domain – because these are legitimate.

    “Another global trend is the evolution of the botnet DNA: we are seeing more VM-based botnets, with a move away from IOT devices. The VM botnets have up to 5 000 times more capacity, which means they can generate higher volume attacks with a smaller fleet size. “

  • Telecoms investment grew from $38bn to $77bn by Q2 2023 – NCC

    Telecoms investment grew from $38bn to $77bn by Q2 2023 – NCC

    Prof. Umar Danbatta, the Executive Vice-Chairman, Nigeria Communications Commission (NCC), says telecoms investment inflow grew from $38 billion to $77 billion by the second quarter of 2023.

    Danbatta, who spoke in Kano on Saturday at a media parley, revealed that the sector had contributed 16 per cent to the nation’s Gross Domestic Product (GDP) within the period under review.

    He said that the statistics by the NCC was based on the computation by the Nigeria Bureau of Statistics (NBS).

    He said: “From about eight per cent contribution to GDP in 2015, when I came on board as the EVC of NCC, quarterly GDP has increased significantly to reach its current threshold of 16 per cent.

    “And this has continued to positively impact all aspects of the economy.”

    Danbatta, however, attributed the success to “thorough sustained regulatory excellence and operational efficiency by the Commission”, adding that the industry has grown in leaps and bounds over the past two decades.

    Read Also: NCC urges traders to avoid being defrauded

    “We have witnessed explosive growth, improved regulatory standard, digital innovation that have generated global recognition,” he said.

    He said that telephone users in Nigeria had hit 218.9 million, internet subscribers 159.5 million, while broadband users in the country now are 88.7 million within the period under review.

    Danbatta listed issue of Right of Way (RoW), fibre cuts, high capital requirement for deployment, multiple taxations and regulations, among other frustrations, constituting barriers to broadband deployment in the country.

    The EVC, however, assured that the NCC would “navigate regulatory complexities, digital divide and literacy to tackle the challenges”.

    He said that the commission would establish an emergency communication centre in each of the 36 states of the federation and the Federal Capital Territory, Abuja.

    Danbatta said establishing the centres was necessary, so as to bridge the gap between distressed and emergency response agencies in the country.

    He explained that the commission had increased the amount of research grants being given to universities from N20 million to N30 million.

    He said that three universities had benefitted from the new grant, so far.

    “NCC as a regulator is mindful of the fact that telecom is an enabler and catalyst for economic advancement of the country.

    “It has consistently made available, affordable and accessible telecoms service to check certain telecoms barriers,” he said.

    Danbatta added that the task of the commission as a regulatory agency in the development of the telecommunications sector was to ensure best practices.

    He said that this was in view of the fact that NCC was one of the sectors that had contributed to the enhanced growth of the Nigerian economy.

    The vice-chairman pointed out that other major challenges confronting the commission included wilful destruction of its facilities and the number of taxes imposed on telecommunication companies.

    “The challenges being faced by the commission include 41 categories of taxes imposed on telecommunications companies and wilful destruction of our facilities,” he said.

    He said that the commission would continue to engage stakeholders in the media industry in order to keep members of the public abreast of its activities.

    (NAN) 

  • Telecoms attracts $70b investments

    • Don says $30b needed to bridge access gaps

    Total investments into the telecoms sector currently stands at $70billion, the Nigerian Communications Commission (NCC) said yesterday in Lagos.

    Speaking at the maiden edition of Nigerian Telecom Leadership Summit at Eko Hotel, its Executive Vice Chairman/CEO, Prof Garba Dambatta, said aside this massive investment, the sector contributed 9.85 per cent to the Gross Domestic Product (GDP) in Q4 of last year while in cash terms, it contributed N1.9trilion during the period under review.

    Nigeria, he said, has more than 63million subscription on broadband while in the voice segment, there’s173million lines as at March this year which translates to 91 per cent teledensity.

    Meanwhile, another $30 billion fresh investment is urgently needed to bridge the current gaps and others that exist in the telecoms sector to take telephony services to the unserved areas. The new investment is also expected to drive the country’s readiness for the Fourth Industrial Revolution and improve service quality, Associate Professor, Lagos Business School, Dr. Doyin Salami, said during his presentation at the forum

    Speaking on: Implication of Multiple Taxation on Investment in the Nigerian Telecom Industry,  he said the challenge of multiple taxation is affecting virtually all the sectors of the economy, adding that the telecom sector is hugely impacted negatively.

    Salami said the sector was doing well, becoming the fourth largest sector of the economy last year.

    The LBS Associate Professor said the country must solve the issue of multiple taxation as fast as possible if investors must come into the sector.

    According to him, fresh investments are needed to upgrade the current 2G and 3G infrastructure, stressing that “the future of telecoms is about co-creation.”

    The former Minister of Communications Technology, Dr Omobola Johnson,  took a swipe at the NCC, saying the era of telecoms regulation has gone with the evolution of digitalisation.

    In her keynote address titled: Best Fit Infrastructure Investment Choice for an Emerging Market she said there’s need for a change in the role of the regulator in line with emerging digitisation era.

    According to her, the era of licensing and providing level playing field has gone because the regulator no longer regulates only telecoms.

    Dr Johnson said there’s need for a regulator that’s ahead of the industry and innovative.

    She lamented that the issue of multiple taxation predated her appointment as minister, adding that about five years after exiting government, the issue continued to haunt the industry. According to her, the issue can be resolved with an executive order.

    Salami said though the country is “afraid of private capital”, it remains  the sure way of getting the fresh $30 billion, saying: “We should not encourage debt capital where equity capital is ready to play.”

    Also speaking, Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said telecoms operators are confronted with 39 different taxes and levies inhibiting the expansion of infratsructure across the country.

     

    ward and the Role of the Regulator,” also charged NCC to become more aggressive in tackling the sector’s increasing challenges.

    Johnson said NCC must create framework that will attract blended investment, stressing that the role of regulator must change going forward.

    Earlier in his address as the Special Guest of Honour, Vice President, Prof. Yemi Osinbajo, assured that the next level agenda would focus on making the business environment more friendly.

    Represented by the Special Adviser on Political Affairs, Babajide Ojudu, the VP said President Buhari is keen on bridging the digital divide in the country with new policy direction.

    According to the Executive Vice Chairman, NCC, Prof. Umaru Danbatta, the Commission will do everything possible to move the sector forward.

    On the issue of multiple taxation, Danbatta recall that NCC has met with the Governor Forum about four times to educate them on the dangers of multiple taxation.

    “We are not repenting, we shall do more and engage them constructively,” he stated.

    Danbatta revealed that as at last quarter of 2018, telecoms sector contribution to the country’s GDP stood at ¦ 1.9 Trillion.

     

  • Telecoms operators warn NCAA on demolition of 7,000 masts

    The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has warned the Nigerian Civil Aviation Authority (NCAA) over its threat to demolish over 7,000 telecommunications mast in the country.

    The Chairman of ALTON, Gbenga Adebayo, gave the warning on Wednesday in Lagos, on the sideline of the ”Vanguard Economy Forum on Telecoms.”

    Adebayo said that any site brought down illegally and without due consultation would not be rebuilt and the consequences would be felt by all.

    He described the move as another way to impose unwarranted taxes on the sector, which was already overburdened with multiple taxation.

    ”Our association went to see the DG of NCAA about three months ago and that was to discuss the issue of Aviation Height Clearance (AHC) and we concluded on a committee to look into it.

    ”It sounds very strange, but also very interesting, because it speaks to the fact that our sector has become the subject of attack from agencies.

    ”So, to the NCAA and the public, I will say if they are going to dismantle those sites, goodluck to them.

    ”As an industry, we are not going to rebuild any of these sites. So what the NCAA is doing is to throw the nation into telecom blackout.

    ”And against that I will say there will be criminal prosecution and there will certainly be security crisis,” Adebayo said.

    According to him, telecommunications remaines ”infrastructure of infrastructure” because other sectors including aviation, banking, health, transport rely on information and communication technology (ICT) to drive their operations.

    Read also: NCAA threatens to demolish over 7,000 telecoms masts

    He said that when attacked, the economy and the people would feel the impact negatively, as blackout would become imminent.

    The News Agency of Nigeria (NAN) reports that NCAA has on Tuesday threatened to demolish over 7,000 telecommunications masts erected by Global System for Mobile Communications (GSM) providers across the country.

    Mr Sam Adurogboye, NCAA Spokesman, said in a statement in Lagos that the authority was compelled to recourse to this line of action due to the failure of the telecommunications providers to obtain the statutory AHC.

    He said the NCAA had, therefore, issued a 30-day ultimatum to Glo and other defaulters to obtain the AHC, otherwise their masts and towers would be demolished.

    According to him, without Aviation Height Clearance, all these masts and towers constitute danger to safety of air navigation. (NAN)