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2Africa Consortium Plans Submarine Cable Landing Points in Southeast Nigeria, Three African Countries

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The 2Africa consortium which is building the largest subsea cable project in the world, is set to extend four new branches to South East of Nigeria, Seychelles, the Comoros Islands, and Angola.

The 2Africa consortium, comprised of China Mobile International, Facebook, MTN GlobalConnect, Orange, STC, Telecom Egypt, Vodafone and WIOCC said the new branches join the recently announced extension to the Canary Islands.

2Africa subsea cable will deliver faster, more reliable internet service to each country where it lands. Communities that rely on the internet for services from education to healthcare, and business will experience the economic and social benefits that come from this increased connectivity.

Alcatel Submarine Networks (ASN) has been selected to deploy the new branches, which will increase the number of 2Africa landings to 35 in 26 countries, further improving connectivity into and around Africa.

As with other 2Africa cable landings, capacity will be available to service providers at carrier-neutral data centres or open-access cable landing stations on a fair and equitable basis, encouraging and supporting the development of a healthy internet ecosystem.

Since launching the 2Africa cable in May 2020, the 2Africa consortium has made considerable progress in planning and preparing for the deployment of the cable, which is expected to ‘go live’ late 2023. Most of the subsea route survey activity is now complete. ASN has started manufacturing the cable and building repeater units in its factories in Calais and Greenwich to deploy the first segments in 2022.

One of 2Africa’s key segments, the Egypt terrestrial crossing that interconnects landing sites on the Red and the Mediterranean Seas via two completely diverse terrestrial routes, has been completed ahead of schedule. A third diverse marine path will complement this segment via the Red Sea.

Meanwhile, Broadband network and digital services offered in Seychelles will soon get a boost from a new cable system that will be leased by Seychelles-based telecommunications provider Intelvision Limited with support from IFC.

IFC’s support to Intelvision, which provides data, Internet, and Internet-based voice services as well as pay-TV, includes an up to $10 million loan from its own account and an additional loan of $10 million mobilized from partners under the Managed Co-Lending Portfolio Program (MCPP).

The funding will enable Intelvision to lease a new cable being built by Vodafone Carrier Services as a branch of the 2Africa cable network, one of the largest subsea projects in the world, spanning over 37,000 kilometers and connecting 26 countries around the world.

The new cable will complement the existing Seychelles East Africa System and is expected to lower the cost of connectivity for telecom operators on the islands and increase competition for fixed broadband and mobile data services.
“I think it will revolutionize the way we experience the internet here in Seychelles. We are pleased to work together with Vodafone and IFC amidst the challenges of the pandemic. Our aim is to enhance the telecommunication infrastructure of Seychelles and strengthen our digital offering to the people of Seychelles,” said Mukesh Valabhji, Chairman, Intelvision. “Our innovative products and services will continue to add value to the ever-growing demands for Internet connectivity. We have been at the forefront of offering affordable connectivity solutions to the Seychellois Nation and we intend to continue on the same path.”

The new cable system will deliver over 600Gbps of international bandwidth to Intelvision and will represent a significant step-up with respect to connectivity speeds for households and business customers. The cable will also increase the speed and capacity of Intelvision’s existing Fibre Optic & Hybrid Fibre Coaxial Networks.

“Better connectivity is tremendously important for powering economic and societal growth. Vodafone is committed to improving the availability, resilience and speed of Internet connections around the world, and this project to link the Seychelles with the ambitious 2Africa subsea cable will underpin future growth for the country and its citizens,” said Nick Gliddon, Director of Vodafone Carrier Services.   

Through the 15-year lease agreement with Vodafone, Intelvision plans to launch mobile telephony services in Seychelles, a country where most consumers access the Internet through a mobile phone. The new cable system will also allow Intelvision to eventually expand its terrestrial network by providing 4G and 5G mobile networks to the whole of Mahé and the inner islands.

“By working with Intelvision to expand Seychelles’ digital offering, we can help the country meet growing demand for Internet connectivity while helping to lower prices to build a strong foundation for the country’s digital economic development,” said Marcelle Ayo, IFC’s Country Manager for Seychelles.

Seychelles’ economy relies heavily on tourism, accounting for 30 percent of GDP, which has suffered due to COVID-19-related travel disruption. Seychelles’ government is focused on strengthening the digital economy to support recovery and the next phase of the country’s economic growth.

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TechEconomy Publisher, Peter Oluka Joins NiRA Board

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Peter Oluka (@peterolukai), the Editor of TechEconomy has joined the Nigeria Internet Registration Association (NiRA) Executive Board of Directors (EBoD).

Peter, a multi-award winner practicing ICT Journalist was elected at the 15th Annual General Meeting (AGM) cum election held in Lagos on Friday at The Zone, Lagos where Mr. Adesola Akinsanya and Mr. Murtala Abdullahi emerged the new President and the Vice President respectively.

They took over from Mr. Mohammed Rudman and Mr. Toba Obaniyi in that order. Other members elected into NIRA Executive Board of Directors (EBoD) at the meeting are; Mr. Ebenezer Dare of Hostlag Limited, and Seun Kehinde of QServers Networks Limited.

Meanwhile, five members have been elected to the Board of Trustees of NiRA. They are; Mrs Ibukun Odusote; Publisher of ITRealms, Mr. Remmy Nweke; former Financial Secretary of NiRA, Mr. Biyi Oladipo; former NIRA president, Mrs. Mary Uduma and Executive Director Centre for Information Technology and Development (CITAD) Mr. Yunusa Zakari Ya’u.

Peter Oluka has been a .ng Domain Name Brand Ambassador since 2015). He actually started his mainstream journalism in 2010 working with the Nigerian NewsDirect Newspaper. His penchant for newsworthy events and stunts registered NewsDirect’s presence in the league of Property & Environment and Labour pious media outfits.

He also Co-founded GrassRoots.ng, a news platform rooted in Speaking for the Global Citizen. He also Co-founded Njalo.ng; an online marketplace for ‘Easy sell & Easy Buy’ or new and used products. 

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Nigerian Active Phones Tops 209m

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The Executive Vice Chairman of the Nigerian Communications Commission, Professor Umar Danbatta disclosed this while delivering the Keynote Address at the dinner hosted by the Board of Trustees of the Nigeria Media Merit Award, NMMA, to flag-off the commemoration of the 30th Anniversary of NMMA as Africa’s foremost media excellence recognition institution, at the Lagos Sheraton Hotel on Tuesday night.

“This represents a teledensity of 109.47%. Besides, basic Internet subscriptions have also grown from zero in the pre-liberalisation era to over 152 million. It is also gratifying that the broadband subscriptions now stand at 85 million, representing a 44.49% penetration,” Danbatta said.

Dwelling on the topic, “The NCC New Strategic Vision (Implementation) Plan (SVP) 2021-2025: A Transformation Agenda”,which signposts thedirection of the Nigerian telecom industry in the next five years,Danbatta recalled the trajectory of the evolution of telecoms in Nigeria.

Represented by the Director, Public Affairs of the NCC, Mr. Reuben Muoka, the CEO of NCC, he recalled the nation’s showing of a paltry 18,724 telephone lines at independence in 1960 to serve a population of 40 million people, translating to a teledensity of 0.5 at that time.

Today, “the Information and Communication Technology (ICT) sector contributed 18.44 per cent to the nation’s Gross Domestic Product (GDP) in the second quarter of 2022. From this figure, telecommunications sector alone contributed 15 per cent,” Danbatta said to place on record the unprecedented contribution of the telecom and ICT industry to GDP.

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N200 Billion ICT Bank and other Strategies to Rescue the Nigerian Telecom Sector 

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By Elvis Eromosele

The Nigerian telecommunications sector must have nine lives. No, it is not a cat. It is however almost always in a near constant mortal struggle with the forces that be – read, government and its agents. The fact that it’s still here means that it has somehow managed to survive, remained sustainable and even dared to thrive. It is a phenomenon that ought to be studied. 

Every indicator shows that the telecom sector remains the bright spot in the nation’s weak economy. It drives socio-economic development, boosts productivity and contributes to improving the lives of citizens like no other sector. 

The COVID-19 pandemic impacted negatively on the global economy by precipitating lockdown and economic disruptions with transport, tourism and aviation sectors tumbling. The telecom sector however continued to “buga”. It saw an increase in voice service and massive growth of digital channels for daily routine activities ranging from telecommuting to entertainment and social engagements. The sector witnessed the growth and saw huge profits as financial reports from major operators show. 

The Nigeria Telecom sector is a gift that keeps on giving. It has witnessed strong growth in recent years and is expected to have continued growth over the foreseeable future. The growth in the sector, according to industry watchers, has been driven by the increasing population, growing demand for communication services, and rising adoption of smartphone services. Some experts have pointed to strong support by the regulatory authorities which in recent times has led to the licensing of the 5G network in the country – a feat some have called the first in Africa. 

Investors in telecom operations are smiling at the bank. It is not surprising therefore that everyone wants a piece of the action, even the government. 

It must be stated that the government collects the value-added tax, annual operating levies, licensing fees and duties among others. This is in addition to all the other statutory taxes including PAYE and withholding tax. 

Now, there are reports that the Finance Minister, Zainab Shamsuna Ahmed, is actively pushing for another tax, a five per cent excise duty on telecoms services. Most right-thinking Nigerians, including, interestingly, the Minister of Communications and Digital Economy, Prof Isa Ali Ibrahim Pantami, have kicked against it. If a recent news report is to be believed, the finance minister is not backing down. 

If the government is keen on milking the telecom sector, it should at least step up on its behalf and help tackle some of the long-standing issues that have held the sector back. 

The challenges are not new. Many of them have plagued the sector since the liberalization of the industry. Industry experts are quick to point out the fact that these challenges are also opportunities when viewed through the right lenses. 

Here are seven of the most pressing challenges, with what I hope are feasible solutions. The government should give it a look-in if doesn’t want to kill the goose that lays the golden egg. 

Difficulty in accessing long-term funds for the industry – The government must hasten to establish an ICT Bank. While it should be in the mould of the Agricultural Bank, it should operate like a venture capital entity. So, after due diligence, the ICT Bank will invest in tech starting with a clearly stated exit /pull-out date. I propose an initial take-off grant of N200 billion naira only. 

Right of way – The goal of the right of way policies should not be revenue generation but to facilitate the speedy deployment of telecom infrastructure. In the short term, states can take a leaf from Ekiti State which reduced telecom’s right of way charges by 97 per cent. For the long term, states should install road ducts on a build-and-lease basis. The federal government can set an example here by installing ducts on all new federal roads and leasing to operators based on an agreed realistic billing scheduled for usage. 

Multiple taxations – Again, governments at all levels, need to stop seeing telcos as only cash cows. Efforts must be towards proper harmonization of taxes and levies and so make it uniform across every state and locality. This will undoubtedly aid the planning and deployment of services by operators. 

Energy challenge – Yes, the telcos knew that Nigeria had a power problem when they paid for licenses in 2001. But who could have imagined that the issue will persist unresolved, for this long? Currently, the logistics of ensuring round-the-clock availability of power is a nightmare that keeps whole teams awake many a night. A straightforward solution is the establishment of energy parks to serve critical infrastructure. QED! 

Local content – Some progress has been made here, especially through the National Office for Technology Acquisition and Promotion (NOTAP). To move forward the government and other corporations need to host local content locally. As a corollary, Nigeria must urgently adopt the doctrine of data sovereignty.

Multiple regulations – This is another problem that is almost as old as the industry itself. The NCC has done a lot of work here. Nigeria must explore a converged regulatory regime as the way out. 

Capacity building – Human resources have always been an issue but the recent increase if the rate of migration has made it a mini-crisis. The Nigerian Universities Commission (NUC) and the NCC have their work cut out for them – bridge the gap between academia and industry via curriculum reform involving the industry and internships.

I’ll be the first to admit that these problems and solutions are not exhaustive. The NCC may want to consider calling a stakeholder forum to deliberate on the problems and proffer solutions. The white paper produced can now be the basis of engagement with the government and its relevant agencies. 

For the government, the focus should not be only on sharing the existing telecom cake, but also on helping the industry bake a bigger cake. 

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

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