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ISPs Decry Poor Service, High Rentals by Tower Owners

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Internet Service Providers (ISPs) in the country have expressed their reservations over poor services delivered by telecommunications tower operators as well as high cost of renting towers that houses their base stations.

Satis Kumar, chief operating officer, Direct On Data, said ISPs are saddled with harsh business condition, which include high base station rentage, inefficiency of tower management that have forced them into deploying batteries at their base stations to ensure improved service quality among other challenges.

“Most times our base stations go down apparently because the attendant is not around to put on the generator when public power supply goes off, sometimes there are diesel issues. Some of our clients are providing critical services that don’t need their internet to go down even for a second. How do you explain this situation?”

Kumar said that ISPs are charged between N3.6million to N4million per tower for a year. This cost depends on the type of the equipment being hang on the tower as some equipment consume more power than others and some take space more than others.

David Venn, chief executive officer, Spectranet, a 4G LTE internet service provider, said that before now, their biggest cost outlay was cost of national and international bandwidth, “but today the cost of bandwidth is coming down which leaves cost of tower rental our biggest cost of operation. Though the cost of tower rental in Nigeria is high compared to other countries I have worked, considering operational cost in this environment in terms of maintenance of the towers, it is reasonable. But in Zambia where there is also power challenge, there is no need for operators to provide security at towers as security challenge is not serious,” he said.

Sunday Folayan, president, Internet Service Providers Association of Nigeria (ISPAN) said that tower rental cost in the country will not be cheap as it is determined by some factors which include number of users on the tower as well as power and security provided at the towers.

“I’m not surprise that tower rental cost is high because the cost of powering base stations with generators is high. If we fix power problem in this country every other thing will take shape,” he added.

Lanre Ajayi, immediate past president, Association of Telecommunications Companies of Nigeria (ATCON), identified two factors as responsible for high cost of tower rental in the country, which are competition and service cost.

According to him, ‘competition in the co-location business is not deep enough to bring about reduced cost and efficient management. Presently, there are few companies providing co-location facilities in the country’.

He added that high cost of tower rental is also occasioned by service cost provided at the base stations such as power and security. “Most base stations are powered by generators and the cost of gas is high, they provide security at the towers. These are outside the control of co-location operators,” he said.

He however, urged government to set up an intervention fund to support the growth of ICT in the country just as she did in the entertainment industry, from where small operators could borrow to expand their network.

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Telecom

TCP: NCC Says Consumer Satisfaction, Robust Sector Top Priorities

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By Ugo Onwuaso

Nigerian Communications Commission (NCC) is determined to carry out its regulatory functions to ensure that the companies operating in the industry were healthy.

Prof. Umar Danbatta, the executive vice chairman of the Commission, made the remark during the 81st edition of the Telecoms Consumer Parliament (TCP) held in Lagos.

He added that “it has taken steps to ensure that the telecommunications sector remains vibrant”.

Mr. Sunday Dare, the executive commission, Stakeholders Management, NCC, who represented the Executive Vice Chairman, said that “the commission would carry out its regulatory functions to ensure that the companies operating in the industry were healthy”.

The Chairman said that the regulatory body had made interventions to prevent disruptions in the consumer’s experience.

According to him, “NCC has commenced aggressive enforcement of the Code of Corporate Governance to ensure that licensees in the industry continue to operate as viable businesses.

“The consumer deserves all the credits for the past and indeed the future successes of this industry.

“The Nigerian telecommunications consumers are at the centre stage of our regulation.

“We at the NCC, being consumer centric regulatory organisation have decided to celebrate consumers of the Nigerian telecommunications industry consistent with the eight point agenda that I set out when I assumed office in 2015.

The number two and six items of the agenda are the core drivers of the NCC year of telecommunications consumer initiative.

“While the number two item of the agenda addresses improved quality of service.

And item six is concerned with protection and empowerment of the telecommunications consumers,” he said.

He also stated that all NCC’s initiatives such as SIM card registration, Mobile Number Portability, Broadband policy implementation, development of 2442 and 622 short codes as well as various consumer awareness campaigns were to ensure consumer satisfaction and protection.

Danbatta added that the commission would continue to look out for and protect the interest of the consumer without compromising the interests of other stakeholders in the industry.

Mr Abdullahi Maikano, director, Consumer Affairs Bureau (CAB) of NCC, said that over the years, TCP had proven to be an innovative way of bringing all stakeholders together to discuss and proffer solutions to industry issues.

Maikano said that the TCP had continued to occupy a pride of place in the commission’s activities.

He said that NCC would continue to provide significant resources to ensure that the parliament is held regularly for the benefit of consumers and the industry.

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Banks’ Working for Early Sale of 9Mobile — Fidelity Bank Boss

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Mr. Nnamdi Okonkwo, managing director of Fidelity Bank Plc, has said that all the banks whose money is trapped are working together for smooth sale of the telecoms on or before the end of the year.

This is as the 180 days’ window handed down to the receiver managers of 9Mobile draw nearer.

Explaining industry issues in a recent interactive session with select editors and publishers in Lagos, he said “As you are aware, the creditor banks came together to appoint a new Board and Management for the company, with the Deputy Governor of the CBN as chairman of the Board”.

“The company has good fundamentals with about 22 million subscribers, and it is also very strong in data. Our interest is to ensure the company remains a going concern so that it can attract interested buyers. The banks are working collectively on this,” Fidelity bank chief executive revealed.

It would recalled that at the heat of the $1.2bn syndicated loan default crisis which nearly grounded the former Etisalat, both the telecoms regulator and Central Bank of Nigeria (CBN), considered the volume of subscribers and intervened.

Part of the intervention was the appointment of Dr. Joseph Nnanna, former Deputy Governor of the CBN to head the chair the board and prepare it for potential investors between 90 to 180 days.

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Vodacom Urges Telcos to Adopt IoT for Increased ARPU

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L-R: Mr. Olusola Teniola, President, Association of Telecommunications Companies of Nigeria; Mr. Lanre Kolade, Managing Director, Vodacom Business Nigeria; Dr. Fidelis Onah, Director, Technical Standards and Network Integrity, Nigerian Communications Commission; and Mr. Chris Read, Conference Manager NigeriaCom 2017, at the just concluded NigeriaCom 2017 conference in Lagos

Lanre Kolade, Managing Director for Vodacom Business Nigeria, has urged telecommuncations operators in the country invest in Internet of Things services provision in order to increase their Average Revenue Per User (ARPU).

He stated this in a keynote speech at NigeriaCom 2017 organized by Informa Telecoms Group.

According to him ‘today, telecommunications operators are facing a period of flat growth for core services and significant decline in Average Revenue Per User (ARPU). This drastic change threatens the survival of the telecoms industry, as substantial declines in user spending on voice and text services have caused a decline in telcos revenue. IoT has delivered a big growth opportunity for the industry due to the volume of connections expected and experts have projected the market will reach $14.6 trillion global market size by 2020.’

“It is therefore essential to seize the vast opportunities that this growth presents in transforming businesses,” he said.

Across all industries, IoT solutions have been adopted to provide a host of different benefits, from increased Return on Investment (ROI) to developing stronger relationships with customers’, with far reaching benefits projected for the future.

Lanre Kolade in his presentation calls on telecom operators to adapt to the changing times and source other revenue streams to replace what is being lost in the continuing revolution of communications.

“The Internet of Things offers significant growth potential and the opportunity to take a role in new vertical markets, such as automotive, healthcare and smart cities. As these sectors seek to adopt more IoT services, the opportunities that exist are vast. Whether you are a hardware manufacturer or connectivity reseller, adding IoT solutions to your portfolio will open up new revenue streams from selling hardware, software and connectivity services, to a broad range of value-added services, such as consulting, integration and support.  Telcos will have to look at the Internet of Things as a potential revenue generator to offset the declining revenues from core services” he said.

By 2020, more than seven billion people and businesses, and over 30 billion devices, will be connected to the internet.

The question is no longer about the adoption of IoT but rather its application to drive business success.
Vodacom’s IoT solutions support wireless payment devices and e-readers, energy usage and smart metering, chilling cabinets, remote asset monitoring systems and community health management solutions.

Vodacom recently partnered with Kaduna State Government to launch a mobile technology-based healthcare program, SMS for Life 2.0, in the state which aims to increase the availability of essential medication by monitoring drug stock levels and improving the delivery of healthcare for citizens who access public health services.

Vodacom is the technology partner for the initiative, which is a public-private partnership with Novartis and the Kaduna State Ministry of Health.

Vodacom has concluded the training and deployment of SMS for Life 2.0 in Kaduna, with over 250 facilities using the platform to date. This initiative is planned to be implemented in all thirty six states.

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