Features
AfricaCom 2012: Handshake With Operators, Internet Companies and Content Providers
Published
12 years agoon
One thing that kept resounding in all the power-packed sessions that took place in different halls and meeting rooms at the just concluded AfricaCom 2012 Conference and Exhibitions which held at the Cape Town Convention Centre from November 12-15 2012 was that African telecommunications operators should begin to have a handshake with internet companies and content providers if they really want to share in the growing data and applications market revenues that is unfolding.
Already, the number of mobile subscriptions in Africa will reach 761 million at end-2012 and will rise to 1.13 billion at end-2017. Nigeria, which crossed the 100 million mobile subscriptions threshold in the second quarter of 2012, will continue to be Africa’s biggest mobile market and is forecasted to have 168.99 million subscriptions at end-2017, followed by Egypt with 129.4 million subscriptions at end-2017.
Mr. Mark Newman, Chief Research officer, at Informa Telecom & Media, organisers of the yearly AfricaCom with that large telecom market, African operators should need to start thinking of internet companies as partners and customers. He says operator have tried and failed to make innovation beyond consumer connectivity. “Operators believe internet players are getting free ride on their networks, they blame the over the top (OTT) players for massive loss of data revenues.”
Newman notes that Apple and Google should be seen as more dangerous threats than Facebook and Amazon. He says operators should develop digital strategies differently to compete in the OTT and cloud for machine to machine (M2). He says mobile operators will make two per cent digital revenues in 2012 rising to 2.4 per cent in 2013, adding that third parties will capture more than 80 per cent of digital revenues.
2nd largest Global Market
Africa has the world’s second-biggest mobile market region by subscription count, behind Asia-Pacific but ahead of Latin America, Western Europe, Eastern Europe, North America and the Middle East. Africa’s mobile-subscription count overtook that of both Western Europe and Latin America during 2011. Nigeria, which crossed the 100 million mobile subscriptions threshold in the second quarter of 2012, will continue to be Africa’s biggest mobile market and is forecasted to have 168.99 million subscriptions at end-2017, followed by Egypt with 129.4 million subscriptions at end-2017.
“Africa’s mobile market continues to grow robustly, driven by competition among mobile operators, , the availability of new data services and strong economic growth on the continent,” said Matthew Reed, principal analyst for Africa and the Middle East at Informa Telecoms & Media. Africa has the highest rate of growth in mobile subscriptions among major world regions, with the number of mobile subscriptions in Africa forecasted to grow by 17.5 per cent over the year to end-2012, a higher rate than in any other major world region and above the world average of 10.75 per cent over the same period.
Customer Service
The key to succeeding in Nigeria’s competitive ICT sector is a strong focus on customer experience, Omatsola Barrow, Executive for Sales and Distribution, MTN Nigeria told delegate. Barrow said MTN Nigeria’s innovative distribution model has been integral to the company’s success in the country. “It has given us a huge competitive advantage by raising the barrier to entry by the competition,” said Barrow. MTN Nigeria’s distribution channels offer a comprehensive experience to the customer. The channels provide availability and visibility of the MTN brand, products and services.
The take-up of mobile data services is growing strongly in Africa, as a result of the roll-out of 3G networks, the increasing affordability of data-enabled devices and huge improvements in international connectivity following the deployment of new submarine cables connecting the continent to the rest of the world.
LTE
Remarkably, operators in five African countries (Angola, Mauritius, Namibia, South Africa and Tanzania) have launched LTE (long Term Evolution) services in recent months, ahead of some ostensibly more-developed European markets. However, LTE subscription numbers in Africa are very low at present, at an estimated 5,000, and take-up of LTE services is likely to be limited to niche markets of more-affluent business and consumer customers for the coming few years.
MTN South Africa’s Chief Technical Officer, Kanagaratnam lambotharan says arrival of LTE comes with promises of simplified network architecture, low cost of service per megabit, higher throughput and lower latency as well as higher spectral efficiency. He explained that one of the major challenges that operators face when rolling LTE service was availability of the right spectrum. He says that the 2.6GHz and 800MHz bands were most suitable for deploying LTE services.
Val Amadi, Head, Turnkey Rollout, Etisalat Nigeria called on African governments to have service ducts when constructing roads in Africa, need for the civil infrastructure build for transmission being owned or financed by government for all the Telcos as other utilities such as water and power and for Telcos to rent from them. He also called for a tax-free regime in rural Africa for traffic generated there rather than provision of scarce funds under the current Universal Service Provision as well as need for telcos to invest in partnership with public sector agencies to provide otherwise government services as telco applications and products.
Sub-Saharan Africa Investments
From 2007 to 2012, the investment profile in various telecommunications network expansion capacities in Nigeria, Ghana and three other countries in the sub-Saharan Africa have hit $16.5 billion. The other three countries are Tanzania, South Africa and Kenya. These five countries were said to have invested $2.8 billion in 2011 to increase the number of their Base Tranceiver Stations, which was said to have increased by 250 per cent.
These figures were released by the Global System for Mobile Telecommunications Association (GSMA) at AfricaCom 2012. GSMA, which represents the interest of mobile operators worldwide, said sub-Saharan Africa was the fastest-growing mobile market in the world, with a prodigious average yearly growth rate of 44 per cent since 2000.
Presenting the figures, the Chief Government and Regulatory Affairs Officer, GSMA, Tom Phillips, canvassed for necessary spectrum allocations and transparent regulation, saying the mobile industry could fuel the growth of 14.9 million new jobs in sub-Saharan Africa between 2015 and 2020. Philips said the mobile technology has already revolutionised African society and yet demand still continues to grow by almost 50 per cent per year. “To create an environment that supports and encourages this immense growth, it is imperative that governments work in partnership with mobile operators to enable the industry to thrive throughout the region, ultimately providing affordable options to connect its citizens”, Philips said.
According to him, the region has some of the highest levels of mobile internet usage globally. He disclosed that in Zimbabwe and Nigeria, mobile accounts for over half of all web traffic at 58.1 per cent and 57.9 per cent respectively, compared to a 10 per cent global average, adding that 3G penetration levels are forecast to grow by 46 per cent through 2016 as the use of mobile-specific services develops.
GSMA Director of Spectrum Policy, Africa and Middle East, Peter Lyons, speaking with SiliconNigeria Magazine says the rapid pace of mobile adoption has delivered huge economic benefits for the region, directly contributing $32 billion to the sub-Saharan African economy, or 4.4 per cent of GDP, noted that Nigeria and other sub-Saharan Africa economies faces a looming ‘capacity and coverage crunch’ in terms of available mobile spectrum.
Need for Spectrum Allocation
Lyon said the current amount of spectrum allocated to mobile services in sub-Saharan Africa was amongst the lowest worldwide. According to him, some countries apportion as little as 80MHz, compared to developed markets where allocation for mobile exceeds 500MHz. With mobile Internet traffic forecast to grow 25-fold over the next four years, he disclosed that there will be a considerable increase in network congestion unless governments across the region take urgent steps to release new spectrum in line with the recommendations of the International Telecommunications Union’s World Radiocommunication Conference (WRC).
According to him, these includes capacity in the Digital Dividend (700-800 MHz) band and the 2.6 GHz band, and also liberalising existing licence agreements to allow the deployment of high-speed UMTS and LTE networks in the 900 and 1800MHz bands. The GSMA Director of Spectrum Policy for Africa and Middle East noted that the combined aggregated effect of the spectrum release of the Digital Dividend, 2.6GHz and the refarming of 1800MHz would have a positive impact on job creation: “an additional 14.9 million jobs could be created between 2015 and 2020 in the key six markets in the region. Mobile industry growth could also generate a GDP increase of $40 billion, representing 0.54 per cent of total GDP, in the region by 2016. “Meanwhile, failure to harmonise spectrum allocations in the region could add up to $9.30 in handset costs for African consumers,” he warned.
Etisalat and Nigerian Engineers at AfricaCom Awards
At the AfricaCom Awards which celebrate and reward excellence in the African Telecommunications Market, two Nigerian software engineers Olaseni Odebiyi and Oyehmi Begho both of SignLimits Limited and Future Software Resources Nigeria Limited companies emerged winners of the inaugural Etisalat Prize for Innovation. The competition which witnessed over 100 contestants had two categories with the first prize of $25, 000 for the most innovative product or service launched in the last 12 months and a second prize of $10,000 for the most innovative idea.
Olaseni Odebiyi carted home the first prize of $25, 000 for his Mobile Maths Practice solution which allows students to solve mathematical questions using mobile phones. Begho of FutureSoft Limited winner of second prize of $10,000 developed a solution called iConnect Project which supplies mobile broadband internet connection vehicles to schools in a variety of geo-locations. The vehicles are refurbished shipping containers connected to a truck head and are fully mobile and are therefore scheduled into a school’s timetable which enables sharing and full connectivity.
Two other finalists who were present at the announcement at the AfricaCom 2012 Awards were Lekan Ayorinde of TV Plus and Ololade Babalola of Softsmith. Speaking on the success of the competition which witnessed an impressive array of entries for the two award categories, Chief Executive Officer, Etisalat Nigeria, Steven Evans, explained that the competition was instituted to provide the opportunity for innovative and relevant mobile broadband products/services and ideas.
Speaking on the success of the competition which witnessed an impressive array of entries for the two award categories, Chief Executive Officer, Etisalat Nigeria, Steven Evans, explained that the competition was instituted to provide the opportunity for innovative and relevant mobile broadband products/services and ideas. He said, “We are delighted at the creativity shown by all the entries and this is a clear indication of the importance of broadband in Africa. Innovative broadband projects, products and services have improved the way we live and work and so we launched this award because we realise the importance of broadband in the industry. Innovation is core to our business strategy at Etisalat Nigeria and we see ourselves as a young and innovative business setting the pace for others in the Nigerian telecommunications industry.” The judges for the competition were drawn from representatives of McKinsey, Qualcomm, Google, Chocolate City and Huawei.Technologies.
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The Nigerian telecom industry has witnessed milestones in more ways than one, including the rapid growth in technology, which is redefining service delivery, and creating wide and high expectations from all stakeholders. To keep up to date with developments in the industry, the Nigerian Communications Commission (NCC) has equally taken measures to improve regulations to accommodate the rapid and continuous development.
Among these measures is the institution of first `Talk-To-The Regulator ` Forum (TTTR) aimed at reaching out to the stakeholders of telecommunications services for two-way feedback which held on June 1-2, 2023 in the South-South, Yenagoa, Bayelsa State.
In keeping with its mandate, NCC creates opportunities to interact with its licensees on industry issues and new trends via stakeholder fora, with a view to gathering relevant information that would further advance the development of the industry, while improving regulations and service delivery to telecom consumers.
The executive vice chairman/CEO, NCC, Prof Umar Garba Danbatta, at the Forum, on Thursday in Bayelsa state, averred that the gathering is an opportunity for the Commission to interact with its licensees on industry issues and new trends, with a view to gathering relevant information that would further advance the development of the industry.
Speaking on the milestones recorded in the telecom industry, Danbatta revealed that the sector has witnessed milestones in more ways than one, including the rapid growth in technology, which is redefining service delivery, and creating wide and high expectations from all stakeholders.
To keep up to date with developments in the industry, the Commission has equally taken measures to improve regulations to accommodate the rapid and continuous development, the vice chairman disclosed.
Prof. Danbatta listed some of the interventions and responses of the Commission to include the facilitation of the Roll-Out of 5G service provision; introduction of Mobile Virtual Network Operator (MVNO) Licence to bridge the gap between unserved and underserved areas and the current review of the scope and structure of its existing licenses to make them more robust.
In line with the Nigeria National Broadband Plan (NNBP 2020 – 2025), Danbatta disclosed that NCC is providing industry leadership to facilitate the achievement of 90 per cent Broadband penetration by year 2025, and well above 50 per cent at the end of 2023, adding that currently I50 million Nigerians have access to internet, while over 80 million can access high speed internet.
He averred that the TTTR Forum is a common platform for non-discriminatory interaction on a one-on-one basis, between the Licensees and the Regulator on several industry issues, pertinent to the Licensees and of national interest, even as he appealed to stakeholders to provide feedback and proffer possible solutions that would address the concerns that might be raised during the interactive sessions.
In his own address, the Executive Commissioner, Stakeholder Management Nigerian Communications Commission, Adeleke Adewolu Esq., Adewolu opined that the exponential growth of the telecommunications sector in Nigeria is largely attributable to effective policies, legal and regulatory framework implemented by the Federal Government the Nigerian Communications Commission (NCC).
“This Forum is thus an opportunity for Critical Stakeholders to share their respective challenges, experiences and also suggest viable solutions to the Regulator. Constant engagement with the Regulator is the path towards regulatory efficiency as it preserves the integrity of the regulatory instruments issued by the Regulator whilst securing the buy-in of all Stakeholders.
“Recently, the Commission issued a regulatory framework for the licensing of Mobile Virtual Network Operators (MVNOs) in Nigeria as well as the requisite licence for such services and this has witnessed significant interest from prospective investors. New Market Entrants in this category can leverage on the growth and infrastructure in the telecommunications industry and it is particularly attractive to investors due to its low cost of entry in terms of capital expenditure.
“This forum is therefore an opportunity for Stakeholders to seek clarifications from the Regulator especially as it relates to understanding regulatory obligations, obligations to the consumer and their collective responsibility to the sustainability of the industry. I encourage you to garner as much as you can from this forum,” he added.
The Executive Commissioner, Stakeholder Management of NCC said the Nigerian Communications Sector has proven to be pivotal to the growth and development of the national economy. The sector has continually ensured that the digital economy agenda of the Federal Government is established on solid foundations. It has also proven to be the catalyst for entrenching the activities of both the public and private sector in the digital space, seamlessly.
The Nigerian Communications Sector is indeed the pace-setter sector as far as the expansion of the frontiers for national development is concerned. This was further underscored by the recent deployment of the Fifth Generation Technology (5G) services in the Country which we believe will ensure that Nigeria maximises the benefit of the 4th Industrial Revolution whilst being sufficiently prepared for any attendant risk that may occur.
“A market study has shown that the deployment of 5G Technology Services will result in $13.2 trillion in global economic value by 2035, generating 22.3 million jobs in the 5G global value chain alone. Thus, the Commission has played an effective role in placing the nation at a vantage position in order to reap these benefits,” Adewolu stated.
The Director, Licencing and Authorization, NCC, Engr. Mohammed Babajika buttressing the above assertions, said that the Commission recognizes that technological advancements, in the industry such as Artificial Intelligence (AI), Big Data, Network as a Service (NaaS) and Internet of Things (IoT) are redefining service-delivery and therefore in line with global trends, it is currently reviewing its license categories.
He said the Commission has also finalized the framework for Mobile Virtual Network Operators (MVNOs) and is currently in the process of licensing MVNOs. The licensing of MVNO will improve the telecommunication output of the country, enable the expansion and availability of quality mobile coverage and close the gap to the unserved and underserved population in Nigeria.
Digital Economy
Online Media Key To NCC’s Digital Economy Agenda- Danbatta
Published
4 years agoon
August 14, 2020
Professor Umar Garba Danbatta, the Executive-Vice Chairman, Nigerian Communications Commission has stated that the Nigerian online media is critical to the success of the Commission’s digital economy agenda.
He stated this during an online virtual meeting with the crop of online media practitioners to keep them abreast of the developments and programmes of the Commission in the Nigerian Information and Communications Technology (ICT) industry.
Prof. Danbatta was represented at the virtual meeting by Dr. Ike Adinde, Director, Public Affairs, NCC, said, “We see you as a major part of our success and will like to appreciate your contributions, timely and accurate dissemination of news and information regarding our regulatory activities as a telecoms industry regulator.
“There is no doubt that journalism and the way we report and disseminate news have changed in fundamental ways by virtue of technology. The Covid 19 pandemic has also drastically changed the way we communicate and interact with digital platforms becoming the norm for carrying out official and personal activities.
“This virtual meeting today is a testament to this new normal. The digital media environment has brought about new opportunities and challenges for online journalists. One of the many benefits of what you do as an online journalist is the real-time dissemination of information and the immediacy it involves.
“The availability of online news 24/7 and its accessibility and availability to consumers make your work very important, you are therefore constantly faced with the challenge of not only reporting events real-time, sometimes, but balancing that need for speed with the accuracy and integrity demanded by your profession.
“There has been a considerable increase in the number of people accessing the news via online platforms, especially among younger audiences, it’s our vision therefore to make NCC the leading public sector brand in the use of online media for organizational communication and stakeholder engagement,” he said.
Danbatta noted that the communications sector and telecoms, in particular, is indeed the most vibrant and dynamic sector of the economy and requires excellent leadership and stewardship, no wonder President Muhammadu Buhari recently approved the reappointment of Prof. Umar Danbatta as the EVC/CEO of the NCC for another term of five years which has since been confirmed by the Senate.
He said “The fate of Nigeria’s telecommunications industry has yet again been entrusted to a tested and trusted hand and you have a role to play to ensure factual reportage of the Commissions activities and initiatives.”
The EVC said, NCC on its on part, will continue to work with the online media to accomplish the goals and objectives which define their shared interests in building the ICT sector and telecom in particular for the greater good of Nigerians.
Danbatta further stated that the National Digital Economy Policy and Strategy (NDEPS), the New National Broadband Plan (2020-2025), the NCC Strategic Management Plan (2020-2024), creation of the Digital Economy Department all underscore the policy directions of the federal government which the NCC is expected to drive working with our supervising ministry and other relevant industry stakeholders to extend the frontiers of the digital economy for Nigerians.
He used the opportunity to solicit the online media’s continuous support in the area of enlightening the general public on the various consumer-centric regulatory initiatives of the Commission. “As our online media partners, I urge you to constantly visit the NCC’s official website (www.ncc.gov.ng) which is a repository of information and necessary latest statistics on the performance of the telecommunications industry.
“We also urge you to always contact the Commission for necessary clarifications to ensure accurate and adequate reporting of the industry, as the NCC runs an Open House to our media stakeholders. We call on your support and continued collaboration in reporting our activities and initiatives for the good of every Nigerian and for the growth of the telecom industry, your role is indeed very critical,” he said.
The EVC reiterated the NCC’s resolve in ensuring that Nigerians are enlightened and carried along on the Commission’s journey to advance the digital economy agenda of President Muhammadu Buhari, and reminded them that as members of the fourth estate of the realm, the online media are indeed critical stakeholders on this journey.
Last week Thursday, Professor Umar Garba Danbatta, the Executive Vice Chairman, Nigerian Communications Commission (NCC) disclosed that the Commission is in the process of reviewing the agreement establishing Broadband Infrastructure Companies (InfraCos).
Danbatta made this known in a presentation he made at the sectoral virtual forum organised by the Association of Telecommunications Companies of Nigeria (ATCON). The meeting focused on the need of Telecom and ICT Consumers in the Era of Covid-19 and Post Covid-19 Pandemic cum Digital Economy Era with a view to meeting the New Broadband Target of 70 per cent.
Its theme was: Meeting the Interests of Government, Consumers and Telecom and ICT Companies in the Era of Covid-19 and Post Covid-19 Pandemic for Digital Economy Development.
The sectoral forum converged regulators’ interests, to ensure a competitive telecom market and fast track development of the telecom and ICT industry; operator’s interests, to enable an environment for businesses and protection of investment in the sector; and consumer’s interests, a satisfaction in terms of quality of services, affordability access and connectivity; for digital economy development.
According to the EVC, the Commission is reviewing the InfraCo Framework as mandated by the new National Broadband Plan 2020-2025. He also disclosed that six InfraCos agreement processes are currently ongoing.
Open Access Model
The Danbatta-led NCC has been pursuing deepening broadband penetration to several unserved and underserved areas through its Open Access Model (OAM) project aimed extending access to digital services across the 774 local government councils through licensing of InfraCos.
In 2015, the Commission licenced two companies as Infracos. One for Lagos (Main One Cable Company) and the other for North Central (HIS Ltd) but the second company returned its licence. In 2018, NCC licenced additional five companies as InfraCos covering other geo-political zones to drive the deployment of broadband infrastructure.
The licencees include Raeana Nigeria Limited for the South-South Zone; O’dua Infraco Resources Limited for South-West Zone; Fleek Networks Limited for North-West Zone; Brinks Integrated Solutions for North-East Zone; MainOne Limited for Lagos Zone and Zinox Technologies Limited for the South-East Zone.
The remaining licence for North Central Zone is being processed, according to the Commission.
As a stimulus to encourage investors of InfraCo to roll out, NCC made provisions in the 2017 and 2018 budgets for subsidies to the InfraCo licensees and it is now working with the federal government, through the Ministry of Communications and Digital Economy, to ensure disbursement of the counterpart funding to the licensed InfraCos upon attainment deployment milestones.
Under Prof Danbatta’s guidance, Nigeria’s broadband penetration rose from a mere 6.0 percent in 2015 to 40.14 per cent in May, 2020. Active Internet subscriptions also increased from 93 million to over 141 million currently during the period.
The number of active telephone subscribers also rose from 150 million in 2015 to 192.32 million in May 2020 with teledensity currently standing at 100.72 percent, following the rebasing the teledensity to 91 percent in March, 2019.
Broadband As Bedrock of Digital Economy
Meanwhile, speaking at the virtual forum The President, Association of Telecommunications Companies of Nigeria (ATCON), Olusola Teniola stated that with Nigeria’s telecom sector is witnessing several important developments from President Muhammadu Buhari’s renaming of the ministry which supervises the telecoms and ICT sector to the Federal Ministry of Communication and Digital Economy back in October 23rd, 2019.
He said this is further expanding its mandate to capture the goals of digitalisation of the Nigerian economy in line with the Economic Growth and Recovery Plan (EGRP), to the recently launched National Broadband Plan 2020 to 2025, the unveiling of a National Digital Economy Policy and Strategy (NDEPS), to the constitution of Implementation and Steering Committee for the plan, all these would empower Nigerians (consumers) to take advantage of the Nigerian digital economy.
He emphasised that interdependence and collaboration among the government, telecom and ICT companies and Nigerians are clearly necessary but each of separate stakeholder has limitations and potentials.
Effective Delivery of ICT Services
Teniola added that to attract further investment into the sector through consumerism and enactment of friendly policies and regulation by the government, the need for the forum couldn’t be overemphasised as the platform would provide for governments, consumers (corporate and personal) and telecommunications and ICT companies on how consumers can be better off in terms of effective delivery of telecoms and ICT services and products in Nigeria.
Chief executive officer, MainOne Cable Company, Funke Opeke, said, “In this digital age where broadband connectivity is the bedrock of a thriving digital and national economy, we need to focus on increasing access to broadband penetration beyond Lagos and Abuja for our shared economic prosperity, job creation and digital security.
“We will need to take advantage of the opportunities the digital economy provides if we are to create jobs for Nigerian youth in the not-too distant future,” Opeke, said while presenting a keynote speech at the Startup South Conference held in Uyo, Akwa Ibom recently with the theme “Unlocking the Next 60 Million: Making Broadband Accessible and Affordable.”
She said for Nigeria to make appreciable progress in job creation, the country needs to ensure that broadband penetrates all the villages, towns and cities in all the 744 local government areas of the nation.
In the opinion of Mr. Ayotunde Coker, chief executive officer, Rack Centre Limited, leading datacentre operator, “Right of Way (RoW) permit is still a big issue in Nigeria. There is a standardised RoW rate but it is not being implemented by some state governments. I would rather advise state governors to give incentives to telecom companies to come to their states to lay fibre because penetration of fibre brings reliable telecoms services to the people wherever they are. It brings in industries, the state’s gross domestic product (GDP) will increase significantly because fibre is there.
“RoW should be encouraged and telecom companies should be encouraged to invest in infrastructure. If you get infrastructure right then every other thing will work. You cannot have technology hubs such as Co-creation Hub and tech villages without the underlining factor of infrastructure. And they wouldn’t be feasible if the infrastructure was not in place at the right price,” Coker said.
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