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Building Capacity to Sustain Telecom Growth

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The telecom sector is presently undergoing speedy transformation on account of explosive growth and rapid infrastructure development. The liberalization of telecom sector along with increased competition among players have brought substantial benefits to consumers in terms of lower subscription rates and enhanced choice.
In line with the escalating education and business in the country, the demand for Internet services will soar as businesses need new mediums to get exposure on the global map. Supported by forward-looking government programs, the country is all set to become one of the leading Internet markets in Africa in terms of users, international bandwidth and services offered.
As the country prepares for this explosion in telecom development, the importance of capacity building needs to be stressed. While technology and infrastructure always seems to be at the forefront, it is what you do with access that matters. What is the essence of technology? How important is human growth? Developing a knowledge driven economy means people must come first. Progress today is propelled by a combination of knowledge, technology, and most importantly people. Are people using ICT to create wealth? Is ICT being deployed by individuals and organizations to conserve foreign exchange and reduce foreign dependency?  Where is infrastructure taking the people to? Technology on its own can do nothing. It is people that will determine the growth and impact technology will have. It is people that will determine how ICT is used in the economy and in society. Answers to these questions will determine the direction the sector wants to go in future, either to continue with the growth pattern or development of the sector.
The question is do we want real development or we are satisfied with masquerades posing as solutions? Are we to remain spectators or active participants? Then human resource development must be high on the agenda. It must be top priority. It is people who will create, operate, run, support and manage the technologies to improve their lives and the environment. Where are we on the human capital scale? Can a nation be a knowledge society giant simply by investing in infrastructure? People are the focus of development. There are pockets of access and things may have improved. But to assess quality, we must know what proportion of the populace utilizes knowledge of the benefits and opportunities offered by ICT. Access means availability. But how deep is the penetration and can there be value without participation?
The great improvement in access to telecoms in the country has had a positive impact on virtually all facets of life in the country, political, social as well as economic. Government’s interface with the citizens is now faster, people now contact their folks in most parts of the country from anywhere instantly whenever they wish and clients now easily reach their various service providers such as mechanics and tailors, all thanks to the telecommunications revolution.
Ownership of phones now cuts across the various social classes, opening good opportunities for the e-health, e-education, e-security, e-commerce and e-banking in the country.
The outstanding growth in the telecommunications sector has correspondingly created a significant number of new jobs in the economy. Also, other sectors such as advertising, real estate and finance have gained tremendously from the ripple effect of the growth in this sector. Today the telecom sector is a key contributor to the nation’s Gross Domestic Products (GDP).
Skilled manpower issues
Aside building of infrastructural facilities required to deliver telecom services, building skilled manpower is also necessary for development in the sector. Presently, in spite of establishment of Digital Bridge institute and other related institutes in the country offering core telecommunications courses, the sector is largely dominated by foreign expertise especially in the technical areas. Indigenous manpower in these areas are attempted by good working conditions outside the shores of this country and thereby consistently creating vacuum that has been difficulty to fill in the industry.
However, there has been growth in the number of skilled manpower in the telecom industry over the last eight years. The NCC took certain timely initiatives to ensure that the dearth of skilled Nigerians to run the fast expanding telecom industry in the country was remedied.
A milestone was achieved on May 20, 2004 when Mr. President commissioned the ultra modern Digital Bridge Institute (DBI) in Utako, Abuja, established by the NCC as an international centre for advanced telecommunication studies.
Apart from training technical manpower, the DBI trains personnel in other specialist areas such as economic analysis, financial planning, law, arbitration, mediation, interconnection, e-commerce, business management, human resources and consultancy services.
The Nitel Training Schools in Kano and Oshodi have been transferred to the Commission by the Federal Government and have been resuscitated to become campuses of the DBI. The expanded DBI have started providing multifarious ICT training programs for over 2000 graduates annually to service both local and international markets.
Improving Quality of Service
Though tremendous progress has been witnessed in the telecommunications sector, there remain numerous challenges. One of such challenges is the poor quality of service being experienced in the network. This situation has also being blamed on lack of adequate capacity to transmit calls as well as other socio-economic factors.
However, the Commission is working assiduously to ensure that the quality of service improves significantly within the shortest possible time. The Commission is now working with operators to achieve network optimization and speed up the rate of deployment of new base Stations, switches and transmission infrastructure.
The major contributor to the current QoS challenges is network capacity constraints. The operating companies have not been able to expand their networks fast enough to meet the ever growing demand by subscribers. This was further aggravated by a few factors such vandalization of telecom infrastructure, theft among others which are adversely affecting efforts made by service providers to ensure better quality of service delivery.
Other issues such as major deterioration in the public power supply situation in the country; security challenges; delay in securing approval for siting of new base stations; among others, have also contributed in various degrees to the problem.
With the current rapid expansion programs being implemented by all the service providers, and other measures the Commission has put in place, the QoS situation has started to record improvements. The recent intervention of the Ministers of Information/Communications and the FCT in the case of Abuja will also translate to major improvement in QoS in the Federal Capital Territory.
To ensure that this situation remains the focus of the industry stakeholders always, the Commission has constituted an industry working group on Quality of Service. Also, Guidelines on Infrastructure sharing which was published few years ago should be strictly enforced to encourage infrastructure sharing at all levels.
Future outlook
As the market gets matured stakeholders in the industry which include Nigerian Communications Commission, operators, infrastructure providers among others should emphasis on building both human and infrastructure capacity required for the next frontier of growth and development in the sector. A lot of emphasis is also being placed on growing Nigeria’s data capability by promoting large scale broadband internet and optic fiber rollout across the country.
The commission having concluded work on modalities of introducing Number Portability is expected to announce time for its introduction this year. To this end operators should start putting in place the necessary things for its effective launch which include capacity building in various areas of their operations.
Just last week Kenya’s telecoms regulator announced that the country’s four mobile networks will be required to start supporting Mobile Number Portability from this July. The regulator has been planning to offer MNP in the country for several years, but kept deferring the plans.
The plans, originally announced in 2004 were put on hold in 2007 after the regulator cited the high costs of implementing the system. They were then resurrected in late 2008 for launch between March and September 2009. It now seems likely that the launch will finally occur in the middle of this year.
Subscribers will be charged an administrative fee for each time they port their number to a new operator, although the fee is still to be worked out with the operators.
Typically in most countries where MNP has been introduced, the smaller players tend to see a short-term jump in subscriber numbers at the expense of a dominant player – in this case, Safaricom.

 

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Telecom

Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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