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We Are Providing Most Advanced Mobile Network

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Any regulatory issues with NCC?
The report of an issue is completely inaccurate. We have been working with the Nigerian Communications Commission (NCC) to achieve all of the regulatory approvals that we need and that work continues. But as far as being in the position to launch services to Nigerians as specified in our licences, we have every single clearance that we need.
It is our desire to lead commercially where our customers wish us to lead. We need to do things we perceive that our customers are looking for and we have seen working well in other jurisdictions. The objective of the NCC is to work with operators to facilitate those things and to make sure that they protect the interest of customers.
And so, we are constantly inviting the NCC to push the boundaries in the way they do things, the way they draw certain lines and that dialogue will always continue but I wouldn’t say that there are issues.  There is good dialogue and that dialogue is healthy and is the right one. I have worked with regulators in multiple jurisdictions and I find the engagements we have with the NCC to be among the best that I have ever experienced anywhere in the world.
I am quite happy with our relationship, happy with the quality of the dialogue and let me be completely say we are quite happy with the authorisations and licencing that we have today which will enable us launch our network. There are absolutely no impediments.

Ntel’s Cutting Edge
I think if people understand what it is that we are going to do and what we are doing, there will be no doubts absolutely. Today, we are seeing the very beginnings of a shift from a voice oriented communications market in Nigeria to one that will be dominated by data, by mobile broad band. Today, you have not more than 35 million broadband mobile customers in Nigeria.
In spite of there being more than 154 million mobile active customers, a mere 20-23 per cent of those are mobile broadband customers. Forecasts show that by the year 2020, less than five years from now, there is going to be 229 million active SIMs in this market. Now I don’t mean West Africa, I don’t mean most of Africa, I mean in Nigeria. That is a 50 per cent growth of the total market. But what is more important that less than 30million of those would be on 2G.
In other words, 200 million of the active mobile subscribers in Nigeria will be on mobile broadband. Today just over 30 million, in five years from now it would be 200 million. There is nothing worrying about our ability to sell mobile broadband in a market that is doing seven times over the next five years. It doesn’t have me shaking in my bed, this is for sure.

 Difference between LTE-A and other LTE technologies?
Our network is already offering LTE-A today. Two things, there are the whole series of additions you can add to LTE to make it LTE Advanced. What we have is that we have used carrier aggregation technology to bond together with spectrum and allow the spectrum to operate more uniformly and more efficiently. It allows you basically to add five and 15 so you got 20 instead of five plus 15 and that significantly in engineering terms allows you to give better coverage in both your 900MHz and 1800MHz.
The second thing we are doing is we are using multi antenna technology (MIMO) four by four that means that four antennas sending and four antennas receiving and it basically doubles the performance of your two by two antennas and the ability to have your radio system process four by four and carrier aggregation is what LTE-A is about. There are other features, and as they become available we will add them into our network for sure.

Looking at your capital expenditure on infrastructure and all that, what are your projections going forward?
Our forecast is that we will take a total investment of more than  $1billion to complete the mission as far as we are concerned, and that is over the next four or so years.  Today, we have lain nearly 200km of fibre in metro areas in Lagos, in Abuja and in Port Harcourt. We have acquired a 4G LTE-A core network, the so called evolved packet core. We have also socket switch core elements to facilitate interworking between our own 4G network and 3G and 2G networks.
We have acquired a total of nearly 1,000 cell sites which are in the process of being refarmed, they will enjoy advanced technology features such as carrier aggregation to combine 900MHz and 1800MHz spectrum, plus multi antennae technology (MIMO) that allows us to boost coverage, triple our network and boost customer experience. We are doing a great deal already to make sure that from a technology stand point, we are the most advanced network in Nigeria.

Number of base stations and other logistics
We have got a total of 600 base stations currently in place to roll out. Certainly people will expect a full voice service, HD voice, crystal clear, super fast call connect times and excellent battery life available from the 4G LTE Advanced network. Over time, we will expand that. We will not stop building our network for the next three to four years so you can expect that to grow.
We see 5G (fifth generation) making an appearance in Nigeria in the future, which of course, we will bring into our network. Through our vendors, we are building a network that is upgradable to 5G. We want to be among the first operator in Africa if possible to provide 5G services. The reason we are doing that is because new technologies always give us the ability to give better services and to use spectrum resources, power resources and so on, more efficiently and these are things that are germane to our commercial survival, so we will embrace them.
We have got agreements with channel partners that are experienced and present today in the market. They do an enormous amount of business for the existing players and we have agreements for them to work with us. We have done all of the commercials with them and frankly now, we are putting finishing touches to the branding work on our stores, vehicles, merchandizing materials, SIM , SIM packaging, point of sale devices, etc.  We are working with them very vigorously to make sure we are prepared and we expect to be prepared in good order.

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Technology

WATRA Advocates E-Governance and Technology to Boost Jobs for Youths In Nigeria, W/Africa

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, SiliconNigeria

WEST Africa Telecommunications Regulators Assembly (WATRA) has advocated greater adoption of e-Governance and concerted effort to expand the digital economy in Nigeria and other countries of West Africa. 

The executive secretary of WATRA, Aliyu Yusuf Aboki stated that this will boost investment and create quality jobs for young people in Nigeria and West Africa. He stated that despite the comparatively low rate of literacy in West Africa, there is a very wide scope for digitizing government services. 

He said he sees the enormous opportunity for e-governance as he travels across the 15 ECOWAS states. He explained that governments at all levels could increase their taxes dramatically by digitizing the identities of taxpayers and tax collection processes. He also emphasized that there is a great opportunity to expand access to education and healthcare through digital tools. 

 WATRA is a regional organisation that has the mandate to promote the adoption and harmonization of regulations that stimulate investment in telecommunications and increase affordable access for citizens.

 The WATRA boss cited the example of India where over 1 billion citizens, including the poorest citizens, could easily receive or make payments using their telephones through a government-supported platform, the Unified Payments Interface (UPI).

 Other government-backed digital schemes in the country enable municipal governments to manage healthcare online and citizens to store and readily access government documents such as tax returns on their phones. 

Aliyu pointed out that the digitalization of government services has transformed the lives of the 273 million Indians who are classified as living in poverty. While noting progress in the adoption of ICT to deliver and manage government services in West Africa, the WATRA boss emphasized the need to scale up existing schemes in the sub-region. 

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Africa Region

Africa’s Smartphone Market Declines 3.4% In Q1

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Africa’s smartphone market declined 3.4 per cent quarter on quarter (QoQ) in Q1 2023 to total 17 million units, the lowest level of shipments since the start of the COVID-19 pandemic in Q1 2020.  That’s according to the latest figures announced by International Data Corporation (IDC), with the firm’s newly released Worldwide Quarterly Mobile Phone Tracker showing that rising inflation and local currency depreciations against the U.S. dollar have negatively impacted demand for smartphones across the continent.

Shipments of feature phones across Africa also declined in Q1 2023, although not to the same extent as smartphones. Feature phones remain relatively affordable and are still the preferred secondary device option for many consumers.

“Africa’s smartphone declined throughout 2022 amid weak consumer demand, and this has been exacerbated by rising inflation and higher device prices,” says George Mbuthia, a senior research analyst at IDC. “The average selling price (ASP) for smartphones grew QoQ due to high import costs and the fact that many vendors’ flagship devices are now equipped with 5G and have therefore moved up in price to the premium segment.”

Africa’s top 3 smartphone markets recorded a mixed performance in Q1 2023. South Africa and Nigeria both saw shipments decline QoQ, while the Egyptian market registered growth. South Africa was impacted by seasonality issues and weak demand, meaning vendors were unable to bring in new units while they continued to clear the channel. Egypt remains below its potential, but local assembly is picking up in the country and the government has now dropped its “letters of credit” requirement for vendors, both of which have helped the market to recover from its low base.

Transsion (Tecno, Itel, and Infinix) accounted for the largest share for smartphone shipments across Africa in Q1 2023, despite experiencing a decline in units. Samsung placed second, while Xiaomi came in third.

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Africa Region

M-KOPA raises $250m to scale high-impact consumer fintech across Africa

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M-KOPA, a leading fintech platform, today announced it successfully closed over $250m in new debt and equity funding to expand its financial services offering to underbanked consumers across Sub-Saharan Africa. This marks one of the largest combined debt and equity raises in the African tech sector, enabling M-KOPA to continue its rapid growth.

Over $200m in sustainability-linked debt financing was led and arranged by Standard Bank Group, Africa’s largest bank and long-term strategic partner to M-KOPA. Other participating lenders include The International Finance Corporation (IFC), funds managed by Lion’s Head Global Partners, FMO: Dutch Entrepreneurial Development Bank, British International Investment, Mirova SunFunder and Nithio. A further $55m in equity investment was backed by existing strategic investor Sumitomo Corporation, which is contributing $36.5m to the total raise and will engage closely with M-KOPA on new growth markets and products. Blue Haven Initiative, Lightrock, Broadscale Group and Latitude, the sister fund to Local Globe, also participated in the transaction.

M-KOPA’s fintech platform combines the power of digital micropayments with the Internet-of-Things (IoT) to provide customers with access to productive assets. In markets where individuals have limited pre-existing financial identities and conventional collateral, M-KOPA’s flexible credit model allows individuals to pay a small deposit and get instant access to everyday essentials, including smartphones, electric motorcycles and solar power systems, and then graduate to digital financial services such as loans and health insurance. M-KOPA’s solution embeds credit into the product through a smart digital connection, giving customers ownership instantly, which they can pay off through micro-instalments over time. The company has sold over 3 million of these products through a unique direct sales model that includes more than 10,000 agents. M-KOPA’s operations started in East Africa and successfully expanded to Nigeria in 2021 and, more recently, Ghana. From 2020 to 2022, M-KOPA recorded a compound annual growth rate of 85% in new customer acquisition, and was recently recognised as one of Africa’s Fastest-Growing Top 100 companies by the Financial Times for two consecutive years, in 2022 and 2023.

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