Connect with us

Telecom

Debts Mount as Telcos Shun Clearing Houses

Published

on

Kindly share this post

Telecommunications operators in the country have reverted to the old system of passing traffic directly without going through clearing houses, a development that has led to the current high incidences of interconnection indebtedness, Nigeria CommunicationWeek has learnt.

At the moment over 90 percent of traffic exchanged by operators in the industry are routed among operators directly without the use of any clearing house.

And without the use of a clearing house, operators are always at loggerheads over the volume of traffic routed among them.

Clearing Houses including Integrated Wireless Technologies Nigeria Ltd, Medallion, Interconnect Clearinghouse, were established in 2005 to address problems of indebtedness arising from improper documentation of traffic routed among operators.

When they began operation and most operators connected to them the problem of indebtedness was reduce  as they were keeping record of traffic routed to different operators thereby making bill reconciliation easier.

Nigeria CommunicationsWeek investigations revealed some operators have opted out of the clearing house system preferring to deal directly with each other on individual basis.

This has however come with some problems including rising debts as well as disputes over the volume of traffic routed among them.

Uche Onwudiwe, chief operating officer, Interconnect Clearinghouse Nigeria, one of the Nigerian Communications Commission (NCC) licensed clearing house, said that the reappearance of high indebtedness in the telecom sector in spite of establishment of Clearing Houses is as a result of decision of most operators to route their traffic among themselves.

Onwudiwe, said that such operators are claiming that making use of clearing house in routing their traffic is additional cost compared to direct routing of traffic.

A clearinghouse is a company or association that transfers billing records and/or performs financial clearing functions between carriers that allow their customers to use each other’s networks.

The clearinghouse receives, validates and accounts for telephone bills for several telephone service providers.

Clearinghouses are particularly important for international billing because they convert different data record formats that may be used by some service providers and convert for the currency exchange rate.

Clearinghouses provide a variety of services, including processing proprietary records (e.g. switch records) into formats understandable by the member carriers’ billing systems, validating charges from carriers with intersystem agreements, and extracting unauthorized or un-billable billing records.


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Continue Reading
Advertisement
Comments

Telecom

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Published

on

Kindly share this post

Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

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 on 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 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


Kindly share this post
Continue Reading

Telecom

Telegram Eyes 1Bn Users amidst Political Pressures

Published

on

Kindly share this post

Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


Kindly share this post
Continue Reading

Telecom

NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

Published

on

Kindly share this post

To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


Kindly share this post
Continue Reading

Trending