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15 Telecom Operators Face Collapse as Subscribers Shrink

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The massive growth recorded in the Nigerian telecommunications space since the liberalisation of the industry which started with the return to democratic rule has started to slow down as the fate of about 15 telecommunication operating companies hang in the balance as collapse and stunted growth threaten their survival, according to The Leadership newspaper.

The latest figures released by the Nigerian Communications Commission (NCC) on its website has shown that smaller telecommunication operators are gradually dying off as stiff competitive environment, inability to access sufficient funds, technology obsolesce, and poor management is wiping out the small players in the industry.

According to an NCC industry study which computed the 2013 subscriber base of all licensed telecom operators including the Global System for Mobile communications (GSM) players, fixed and mobile Code Division Multiple Access (CDMA) operators, Fixed Wireless Access (FWA) and data operators on Time Division Multiple Access (TDMA) operators and fourth generation long term evolution (4G LTE) service providers, many of the small players are on the brink of collapse.

The Leadership reported that apart from MTN, Globacom, Airtel, Etisalat and Visafone which added subscribers to their networks in 2013, most of the other telecom service providers did not grow their subscribers in all the four quarters of 2013. Out of four CDMA mobile operators, Starcomms and Reliance Telecoms (ZoomMobile) have ceased to operate their networks thereby contributing nothing to the overall subscriber base in 2013, while Multi-Links renders skeletal services.

On voice subscription, Visafone moved from 2,138,154 in the first quarter 2013 to 2,094,785 in the second quarter and from 2,438,590 in the third quarter and ended the fourth quarter with 2,063,330. Multi-Links also saw its voice subscriber base nosedive from 207,872 in the first quarter to 151,688 and 85,050 and 50,135 in the third and fourth quarters respectively.

The fixed/fixed wireless telecom operators who did not add a single subscriber to their network throughout 2013 include Starcomms Limited, Multilinks Telkom, Reliance Telecoms (Zoom),Intercellular Nigeria Limited, VGC Communications which is owned by MTN, MTS 1st Communications, Disc Communications, WiTEL and O’Net (Odua Telecom).

Others are Rainbownet Limited, Monarch Communications, XS Broadband (also owned by MTN), Webcom, IPNX and NITEL. Globacom fixed wireless network recorded      6,810   6,933 in the third and fourth quarter 2013 respectively. The fixed/fixed wireless operators saw their subscriber base move from 405,625, 382,678, 362,392 and 360,537 in each of the quarters of 2014. They started with a teledensity of 5.66 per cent and ended with 0.51 per cent.

According to the NCC, only 57,840,299 out of the 121,888,014 million active subscribers on the GSM networks used Internet data. The Internet subscriber data released by the NCC shows that 64,047,715 subscribers have yet to use data on the Internet as at end of 2013.

MTN Nigeria retained its lead in the telecoms market with more than eight million active lines, more than the combined subscribers of its two rivals—Globacom and Airtel Nigeria.

A key highlight of the NCC market information is that Globacom recorded 25,019,862 active connections as against 21,591,904 posted by Airtel Nigeria, indicating that the former was able to rake over 3.4 million active lines to outstrip its competitor by the middle of last year. MTN Nigeria still remains the market leader with 55,238,430 active lines.

MTN also left no doubt as to the success of its market ramp up campaign, as it recorded an impressive 7.69 per cent growth within the quarter, though dropping from nine per cent in the preceding quarter of mid-year 2013.


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Telecom

Zipline Achieves One Millionth Delivery Milestone

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Zipline, the leading force in drone logistics delivery, has reached a monumental achievement with its one-millionth delivery to customers, signifying a significant leap forward in the logistics delivery sector. This historic milestone was marked by the delivery of two bags of IV fluid from a Zipline distribution center in Ghana to a local health facility.

Renowned for its innovative approach to designing, building, and operating autonomous delivery drones, Zipline’s zero-emission technology has garnered acclaim, covering over 70 million commercial miles across four continents.

Backed by investments surpassing several millions of dollars from notable supporters like Sequoia Capital, a16z, and Google Ventures, Zipline has firmly established itself as a disruptive leader in the industry. CEO Keller Rinaudo emphasizes the company’s commitment to key markets such as healthcare, quick commerce, and food delivery, envisioning a future where Zipline achieves 1 million deliveries per day.

“The three areas where the incentive really makes the most sense today are health care, quick commerce, and food,” underscoring Zipline’s commitment to partnering with top brands and institutions to transform the future of logistics using autonomous drones –  Keller Rinaudo Cliffton.

In Africa, Zipline has made a profound impact, forging significant partnerships across the continent. In Ghana alone, which accounts for about 54% of the one-millionth delivery milestone, Zipline’s collaboration with the government and health ministry has been pivotal. Since its inception, Zipline has completed over 540,000 drone delivery flights across Ghana, encompassing the delivery of crucial supplies, including 3,566,500 units of vaccines, 2,825,210 units of medical products, 14,807 units of blood products, and 18,289 units of animal health products. These deliveries have directly impacted the lives of over 17 million Ghanaians across 13 regions, saving 6,014 lives through emergency deliveries, including blood products and snake antivenom since 2019.

Beyond mere statistics, the company has facilitated the delivery of 12.2 million vaccine doses, including 2.8 million Covid-19 vaccines, leading to a 21% increase in vaccination coverage and a 44% reduction in missed opportunities to vaccinate in Ghana. These efforts have potentially saved 727 lives due to increased vaccination coverage. Additionally, Zipline’s infrastructure expansion in Ghana, with six distribution centers strategically located across the country, has enabled swift and efficient on-demand drone delivery services.

Not only this, the technology has facilitated the vaccination of 104,000 cattle against Anthrax in northern Ghana, safeguarding both human and animal lives. Such interventions have also extended to the agricultural sector, where 10.4 million doses of poultry vaccines have been delivered to poultry farmers nationwide, combating diseases such as Newcastle disease, Fowl pox, and Gumboro.

But Zipline’s impact in Africa extends far beyond Ghana’s borders. Operating in Rwanda, Kenya, Côte D’Ivoire, and Nigeria, the company has become a beacon of hope for healthcare accessibility and disease prevention. In Rwanda, Zipline serves as a lifeline, delivering 75% of the country’s blood supply outside of Kigali, drastically reducing maternal mortality rates due to postpartum hemorrhage by 88%. Additionally, the company’s deliveries of agricultural products have elevated farmers’ fertility rates by 10% compared to the national average.

In Kenya, Zipline’s collaborations with the Elton John AIDS Foundation have facilitated the delivery of HIV/AIDS prevention and treatment products, empowering individuals to manage their health effectively. Similarly, in Nigeria, Zipline’s expansive coverage encompasses over 500 health facilities in Kaduna, more than 350 in Cross River State, and 200 in Bayelsa. Teaming up with Gavi, the Vaccine Alliance, Zipline focuses on reaching children in remote regions, ensuring equitable access to life-saving immunizations.

Zipline’s adaptive approach and tailored delivery services reflect its commitment to meeting the diverse needs of populations and sectors. The achievement of the one millionth delivery milestone underscores its dedication to enhancing healthcare outcomes and addressing societal needs across Africa. As Zipline continues to innovate and expand its reach, it is poised to shape the future of healthcare delivery on the continent and beyond.

 

 

 


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show.

On Feb. 28, a cut in its network in three different locations by a road construction firm, an oil serving company, and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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