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Equipment Vandalism, Others Hobble QoS-Anudu

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Charles Anudu, managing director, Swift Networks Limited is a versatile entrepreneur.
Anudu with a wealth of national and international experience, has worked; traveled; and consulted widely in Africa, Europe and North America.
Today, he seats on the driver’s seat of the leading broadband telecommunications services provider for converged voice, video and data access services to business and consumer subscribers.
He spoke to peter ugwu on industry issues.

Significance of Swift Networks Study on Broadband Subscription
The study hinted on the usage pattern of certain customers. What that survey shows is that 80% of the customers essentially do light load work like email and basic web surfing, wherein only 20% are the real heavy duty users.
They are the people who download a lot of videos, stream content and that shows either their life style or how their business is structured.
The results are consistent with what is obtainable in other markets. It is usually the trend, where you find few people using most of the network resources.

The Determinant Factors of the Rates
What that study has helped us to resolve is that a lot of customers would want a flat rate plan; that is rate-fixed-for-all.
But that is wrong because if we go by that way 80% of the customers will be subsidizing for the rest 20%; that is the heavy users.
So, we thought that it will be an injustice. The consequence is why we are doing meter and pricing.
Because for some people they will just pay N4,000 for the month and it will be enough for them, while for others N4,000 is enough even for a week.
But by adopting metering and pricing we are fair enough and equitable in charging our customers.

The Study and Impact of Services on Recently Acquired 4G Business of DoPC
Not directly, because the statistics is the same no matter the size of network. What we have seen with the acquisition is that we have become a bigger company.
As a result we are building a bigger and more resilient network; will be faster and be able to have more people and serve them more.

Can Any Network in Nigeria Boast of Fast and Efficient Internet Services?
Today, there are about 13 companies in Nigeria that can render internet services. I want to point out that this is in an industry still in its early stages.
The truth is that the supply is still chasing demand, because the demand is there.
Again, to supply the market is really a problem, because we are having a lot of challenges.
When the internet is slow it is a combination of so many factors. It is either the back-haul fiber has been cut.
For instance, a customer situated in Iyana Ipaja clicks to browse, within few seconds that packet has to come to our centre situated in Victoria lsland.
In moving from Iyana Ipaja to VI there may have been a fiber cut. Usually what we do is to have a redundant hoard.
So, instead of that packet, request or query going through Iyana Ipaja to Ikeja, Surulere to VI it will be routed through Ikeja-Ikorodu-Epe_Ajah, before connecting VI.
Remember a back-haul would have been designed to carry a fraction of the total traffic now carries everything.
Other way to visualize it is to imagine the third mainland bridge is closed; people will still move but they will move quite slower.
Or there is a heavy rainfall and Western Avenue is flooded, most of the routes there will witness a lot of traffic gridlock.
So, we are still battling with a lot of things. Sometimes we have community issues; situation were ‘Area-Boys’ (touts) go to drain the diesel at the base stations.
Of course, when it goes down, the modem tries to run to the nearest base station. In the process, they congest the base station that is standing.
Sometimes, the fiber linking the base station is vandalized. In other words, there are burdensome reasons why internet may be slow, not just that the company prefers to suffer the subscribers. Although, I would not totally absolve the operators from every blames, some of us deliberately congest the network.
The major concern is that there are a lot of challenges the industry is facing all along the way to render that service.
Do we have plans to solve them? Yes, we do. That is why we are building bigger, resilient networks.
We are deploying both fiber and micro-wave at the same time, so that when the fiber falls there will be something to rely on.
Everywhere you go there is digging going on in Lagos. People are digging, sinking pipes to draw water to his residence.
They dig across the fiber and it takes a while to identify and repair. The issue is that the customer does not know what is going on there; he/she wants to get connected on a click of buttons/keys. If it is a microwave and somebody goes there to drain the diesel in the generator or steal the generator; because experiences have shown that in some cases, these boys to the site with a crane to steal the generators.
If that happens, the microwave is paralyzed until you bring in another one. Or naturally where the generator through wear and tear breaks down; these are some of the issues we are battling. People should be assured that the industry is really doing a lot.

National Assembly Legislation on the Protection of the Telecom Infrastructure
Again, for us it is not as bad as with some others in the industry in the sense that most of our sites now are on lease basis.
We own just a fraction of sites. So, the companies with larger sites witness the challenges more. The industry has also taken the message to the media, jingles on radio stations to educate the people.
Because any base station that is down impacts on both the community and the operator. To the people, a child may be sick and needs urgent attention, when there is not connectivity that raises a lot of emergency issues.
To us, when the site is down we lose resources. It is when a subscriber is connected or makes use of the data or voice that you can say you are in business.

What Are Your Roll Plans via DOPC Infrastructure?
Very soon we will roll-out; hopefully, it will not exceed the last quarter in 2013. Presently, works are on-going to cross the Ts and dot the Is.
We are optimistic that all needed to be sorted out before that time would have been taken care of. First and foremost, we are a company that likes to take on a particular thing and do perfect on it. Presently we are concentrating on giving our current customers a better experience, by pumping more capacity into the current Lagos market.
After that we will be stepping out of Lagos to replicate the same good job we have done in Lagos. The idea is to make sure whatever market we are entering we provide quality service.

Assessment Nigeria’s Telecom Industry in the Last 2 Years
Given the environment, it is not easy to do business here. I am sure the Minister since the creation of the Ministry of Communication Technology, has been quite generous to acknowledge problems of the industry.
Currently, as we read in the press, there are over 1, 000 applications for base stations that are been delayed by states and local governments.
That is the political structure of Nigeria; separation of powers. And you find out that different States have different levels of bureaucracy and unfriendliness to the industry.
Some see the industry as the only way they could make money to run the administration.
A lot of the youths see it also as one way they could make money without looking at how telecommunications service pave way to develop their communities.

Would You Say That Operators’ Interest Have Been Protected Overtime?
Not enough, because we need some sorts of legislations to protect interests of the operators. The infrastructures are critical and depict national infrastructure.
Ideally, if you have a problem at home you should be able to call for help. And not been able to make that call could lead to a matter of life and death.
Let not talk about the economic consequences-social, psychological, problems that could come from the problems of the networks not working seamlessly.
Meanwhile, Nigeria has moved from a state of nothing to something amazing. If we could recall the time NITEL had only 400, 000 fixed lines, but today, everybody-the plumber, the wheel barrow pusher, the pepper-seller and even the house-help has a phone.
That is a very big improvement in the first instance. I must say that the GSM and CDMA operators have done fantastic jobs.
And within such a short time, they have deployed infrastructure of international standards. Not minding that before you could secure a land-negotiate with the community or the family, buy the land, secure Certificate of Occupancy (C of O), get all sorts of permit, then you could design and build. The industry has really done a lot and should be acknowledged.
It has not been easy. Look at the teledensity, you can see the industry has done a lot. Yes, there are still more work to do, especially in the areas of quality of service (QoS), cost, but the cost of rendering the service today has also been very high.
The issue of quality could come in two ways: sometimes we the operators get greedy and overload the base station.
However, very importantly, there is a lot of vandalism going on that affect the QoS. And I must tell you, it is more on the side of vandalism.
On the cost, every base station is run on generator, because there virtually no public power supply. These are the factors affecting the QoS and the cost.

How Then Can the Industry Achieve Maturity, Curb Death of Companies?
Well, companies die for several reasons. Like I said earlier, we operate in a very hostile environment.
Telecomm business is like a real estate business in terms of the operational cost. Nobody can do this business with his own money.
So, as a smaller company that borrows at 20% interest rate per annum, to build the network, what will be your fate? First it is difficult to borrow. Secondly, most of the fund would go to the providers of the finance.
Then the question:  why not put in equity and provide shares? That one is not just easy, because you have not really proven yourself.
Otherwise, a lot of people will have apartheid for it. The smaller ones also find it difficult to attract competent workers. I am sure that most of the high caliber candidates would want to work for the big names than the smaller ones when the offer comes.
Unless you are ready to pay more the big names, forget it. There is a problem with the operators themselves; some of them have very lousy management.
And even if you have all the money and the people, but the management is wrong, then the business is bound to fail.
Nonetheless, it is natural in every industry; it is not peculiar to the telecoms. I am certain that if you look at your street there are a lot of tailors coming up and shutting down, a lot of supermarkets coming up and shutting down. It is a normal trend in business; it is part of life and common in a capitalist economy. 

How Has Swift Network Been Able to Withstand the Tide, And Plans To Reach Other Cities?
Definitely, we hope to roll-over to the whole Nigeria. Nevertheless, we have to be very realistic. Swift is a company that is realistic.
Moving to other parts of the country is something we should have done yesterday; we would have liked to embark on that.
Meanwhile, the question is do we have the people to go all over the country. This is a very young telecom industry where young engineers that understand modern telecom mechanisms are very young as well. A lot of them left school in the last 5-7 years ago.
Before now telecom industry resided with NITEL and that technology is obsolete today. It is also because if we were to do this business in another country the towers would have been there, but here the tower companies are also struggling to find land to build. So, it is not easy, overtime these things will improve.
And for us to go out there, build the towers by own selves, doing everything these are the things that eat-up working capital, as a result, instead of moving to five cities you are forced by circumstances to stay in a city.

Swift Network’s Market Share and Promotion of Local Content
Talking about market share, the trust also is that we do not know. The reason is that NCC is not yet measuring broadband internet connection as it does for voice.
Maybe when that information is available it becomes easier to know. Talking about money spent we do not discuss that, because money spent do not really indicate efficiency.
That you bought a jacket for N20,000 does not mean I cannot buy it for N5,000. It depends on our ability to negotiate and place of purchase.
On the local content, we are providing the platform for the local content to thrive. Because without the connectivity whatever content you have will remain with you or you cannot reach others.
Particularly the YouTube users or maybe you want to access other local videos that would not be achieved without the platform.
What we are doing essentially is to provide last mile infrastructure to enable people access local content wherever they maybe domicile.
On our own, we are also looking at encouraging local content delivery to the customer base.

Guiding Factor in Choosing Internet Service
What we have seen is that 60% of what customers by in Nigeria when it comes to internet subscription are by word-of-mouth.
People are likely to go the way to buy what a friend, family members or colleagues are using. Most times, they could not take into consideration whether it works well. That has driven the choices.
And because the operators are pushing capacity out, tying to overcome the travails, more people tend to follow suit by way of embracing what they are told.

Swift Customers in the Nearest Future
Swift Networks as a fibre and wireless based Telecommunication Company, we are in the business of telecommunication to render services to enterprise and consumer clients to empower them to do and achieve more.
We want to bring to them telecommunication as a way of enhancing their life style or business. Simply put, to add value to whatever the enterprises and consumer clients are doing, that is our core business. So, they should expect Swift to get swifter.
It will get more resilient and reliable.
We appreciate the way the market has embraced us. We assure the market that we will not let it down.
And that is why we acquired our competitor in order to combine our assets in order to really give true broadband in and efficient manner.


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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? 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 the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON)


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.NG Domain is Nigeria’s Pride Online – Akinsanya

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The .ng domain name, Nigeria’s country code top-level domain (ccTLD), is the nation’s critical resource in the digital space, says Adesola Akinsanya, the president of the Nigeria Internet Registration Association (NiRA).

Akintola Owolabi, Professor of Cost and Management Accounting at Lagos Business School (front – third from left; Adesola Akinsanya, the president of the Nigeria Internet Registration Association (NiRA) (Front – fourth from right), flanked by members of EBOD and Management Team of NiRA during a training programme at LBS.

The .ng domain extension is unique to Nigeria, and it can give businesses a strong local identity.

This can help establish trust with customers, which is especially important for businesses that rely on local customers.

Mr. Akinsanya made the comments at NiRA Executive Board of Directors (EBOD) and Management Training held at the Lagos Business School (LBS).

The NiRA Executive Board and Management Training at LBS spanned a series of intensive interactive sessions designed to address critical challenges and opportunities in the digital domain.

The training program emphasized the importance of strategic vision, ethical decision-making, and resilience in the face of digital disruptions.

Participants gained insights into global best practices in digital governance, risk management, and leveraging digital technologies for business growth and societal impact.

Mr. Akinsanya, highlighted the significance of the collaboration with LBS, stating, “The NiRA EBOD/Management Training at LBS underscores our commitment to fostering a robust digital ecosystem in Nigeria. It equips leaders with the expertise to address complex digital challenges especially in accounting and financial management while harnessing the immense opportunities of the digital age.”

The program featured distinguished speakers, industry practitioners, and faculty members from LBS, providing a holistic learning experience enriched with real-world case studies and practical insights.

Participants commended the program for its relevance, depth of content, and interactive learning approach, noting its immediate applicability to their roles and responsibilities.

The NiRA EBOD Training at LBS represents a milestone in advancing digital leadership and governance in Nigeria.

“By equipping leaders with cutting-edge knowledge and strategic insights, the program contributes to building a resilient and innovative digital ecosystem that drives sustainable growth and societal development, especially from NiRA perspective. We must fashion out ways of increasing .NG domain name adoption which is our national pride in the digital space”.

Speaking further on why Nigerians and businesses should adopt the .NG domain name, the NiRA president said, “.NG domain name gives your brand special recognition both on and offline.

“Using a .ng domain name can help your business stand out in the Nigerian and global market. It is a great way to differentiate your brand from competitors and establish a unique identity. A .ng domain name is easier to remember, which can make it more likely that customers will return to your website in the future”, he said.

“It instantly communicates to internet users that your business is located in Nigeria. This can be especially helpful if you operate in a niche or industry where location is important to customers”, the NiRA boss added.

He added that Google and other search engines prioritize local content in search results, hence using a .ng domain name can help improve your website’s search engine ranking for local searches.


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Climate Action Africa Opens Applications for CAAF24 Deal Room

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Climate Action Africa (CAA), a leading advocate for climate resilience and sustainable development, has announced the opening of applications for the Deal Room at the 2024 Climate Action Africa Forum (CAAF24). The Deal Room is a groundbreaking platform that aims to connect high-impact climate innovators in Africa with potential investors seeking to accelerate sustainable solutions.

The CAAF Deal Room is a strategic initiative that aims to create opportunities for innovators in the climate-tech domain focusing on emission reduction, energy, agriculture, transportation, circular economy, and building and construction.

The goal of the Deal Room is to select finalists who will have the opportunity to pitch their innovative ideas and solutions at the upcoming 2024 Climate Action Africa Forum, which will be held on June 19th in Lagos, Nigeria.

The Deal Room aims to boost investments in Africa’s green economy by galvanising a community of innovators, entrepreneurs, and investors to create applicable solutions that can mitigate the challenges of climate change on the African continent.

The Deal Room session will facilitate financing for solutions contributing to the growth and sustainability of Africa’s green economy. These deals may encompass prize money, equity plans, debt financing, mergers and acquisitions, and other investment options.

“Through the CAAF24 Deal Room, we aim to bridge the critical gap between promising climate ventures and the essential resources they need to thrive,” says Grace Oluchi Mbah, Co-founder and Executive Director of Climate Action Africa (CAA). “By facilitating connections between passionate entrepreneurs and dedicated investors, we can collectively unlock the immense potential of climate solutions in Africa.”

The eligibility criteria for applying include:

●     The company must be African-owned and operate in any of the 54 African countries.

●     It must be a for-profit company, between 1-5 years post-incorporation, post-MVP (minimum viable product), and post-GTM (go-to-market).

●     The company should leverage digital technology to deliver its business model.

●     Female ownership is an added advantage.

 Those eligible to apply include venture capitalists, impact investors, climate tech startups, Green SMEs (small and medium-sized enterprises), philanthropic organisations, and government representatives.

Following the CAAF24 deal-room will be a post-event accelerator in partnership with the Silicon Valley-based Founder Institute and IDEA Africa. This Africa-wide initiative is specifically designed to further accelerate and enhance support for promising Climate Tech startups and founders who participated in the Deal Room.

The official unveiling of this accelerator will take place at the Climate Action Africa Forum 2024 (CAAF24), marking a significant step forward in driving Climate Tech innovations throughout Africa.

Applications for the CAAF24 Deal Room are open from April 22nd until May 17th. Interested applicants can register at https://deal.caaf.africa/register.


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