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Microsoft set on reviving Nokia Mobile device business

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Microsoft sells feature-phone business for $350M as Nokia returns to mobile devices

Microsoft said it will sell its feature-phone business to a Foxconn subsidiary in a $350 million deal that will also see Nokia return to the mobile-devices business it once dominated.

Microsoft is selling “substantially all of its feature phone assets” to FIH Mobile Ltd., which is owned by the Taiwan-based electronics giant Foxconn, and to a HMD Global Oy, a newly founded Finnish corporation. Roughly 4,500 Microsoft employees will have the opportunity to transfer to FIH, and the agreement includes Microsoft’s manufacturing plant in Vietnam.

The Redmond, Wash.-based software giant said it will continue to develop Windows 10 Mobile and support the Lumia line and Windows Phone devices from its manufacturing partners.

Perhaps the most intriguing aspect of the deal, though, is Nokia’s exclusive global branding and licensing deal with HMD, which includes phones and tablets.

“HMD has been founded to provide a focused, independent home for a full range of Nokia-branded feature phones, smartphones and tablets,” Nokia said in a press release. “To complete its portfolio of Nokia branding rights, HMD announced today that is has conditionally agreed to acquire from Microsoft the rights to use the Nokia brand on feature phones, and certain related design rights.”

HMD’s device portfolio will be based on Android, Nokia said.

The move allows Nokia to return to the hardware segment without having to endure the razor-thin margins that most device manufacturers tolerate in an increasingly competitive worldwide smartphone market. And it could enable Nokia to tap emerging markets where its brand is still respected but where cheap Android phones dominate.

“We will be completely focused on creating a unified range of Nokia-branded mobile phones and tablets, which we know will resonate with consumers,”

said Arto Nummela, CEO-designate of HMD, in a press release. “Branding has become a critical differentiator in mobile phones, which is why our business model is centered on the unique asset of the Nokia brand and our extensive experience in sales and marketing. We will work with world-class providers in manufacturing and distribution to move quickly and deliver what our customers want.”
Nummela is a former Nokia executive and is currently head of Microsoft’s Mobile Devices business for Greater Asia, the Middle East and Africa, as well as Microsoft’s feature phones business. He will lead HMD once the deal closes, which is expected to occur in the second half of 2016.

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NCC’s Strident Push To Improve Telecom Regulations

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, SiliconNigeria

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.

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Online Media Key To NCC’s Digital Economy Agenda- Danbatta

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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.

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NCC and the Ongoing Review of InfraCo Framework

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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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