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MTN Loses Market Share in Key Markets

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Telecoms operator MTN has lost market share in several key markets over the past five years, including Nigeria and South Africa.

This is according to the group’s five-year review document published as part of its integrated report for the year ended 31 December 2017.

In Nigeria, MTN’s biggest market, its market share was as high as 49% in 2013 and 2014 but by 2017 had fallen to 42%. In another key market, Iran, the group’s market share has been relatively stable, fluctuating marginally between 46% and 47% between 2013 and 2017. Cameroon, Ivory Coast and Syria have also seen declines over the five-year period.

In South Africa, MTN’s market share has dropped by a compound annual growth rate (CAGR) of 3% between 2013 and 2017.

In 2013, MTN had 35% market share; this dropped slightly to 34% in 2014 and 2015, and then grew to 36% in 2016 before dropping down to 31% in 2017.

However, some markets are gaining market share, including Ghana, which grew from 50% market share in 2013 to 55% by the end of 2017. Uganda gained ground from 54% in 2013 to 56% in 2017 and Sudan also ticked up from 34% in 2013 to 35% five years later.

MTN says it has the largest market share in 14 out of the 22 countries it operates in; down slightly from being number one in 15 countries between 2013 and 2016.

The five-year review reveals headline earnings for the group have been falling by a CAGR of 40% over the past five years.

In 2013, MTN’s headline earnings were almost R25.9 billion; this amount rose to R28.2 billion in 2014, then down to R13.6 billion in 2015. A year later, the group saw a headline loss of R1.4 billion before swinging back to a profit of close to R3.3 billion in 2017.

The headline loss in 2016 was significantly impacted by the group’s regulatory fine in Nigeria. In June 2016, MTN agreed to a settlement amount of 330 billion naira ($1.671 billion at the time) to be paid to the Nigerian government in six instalments over three years. This after it failed to meet a deadline to disconnect 5.1 million unregistered SIM cards on its Nigerian network in 2015.

A decline in MTN’s share price on the Johannesburg Stock Exchange has seen the group’s market capitalisation plummet from R409.5 billion at the end of 2014 to R253.4 billion at the end of 2017.

Subscriber swings

Overall subscriber numbers have fluctuated over the five-year period as well. In 2013, MTN had 207.8 million group subscribers and this grew steadily over the next three years to 240.4 million in 2016.

However, the number dropped by over 23 million in 2017 to 217.2 million due to a new initiative to modernise its subscriber definitions implemented last year.

In 2017, Nigeria’s subscriber numbers of 52 million made up 24.1% of MTN’s overall group subscribers while South Africa’s 30 million subscribers were 13.6% of the total. The rest of the countries were broken down on a regional basis. The biggest was the Middle East and North Africa region, which made up 31.1% of total subscribers; Southern and East Africa and Ghana accounted for 17.8% of subscribers and West and Central Africa for 13.4%.


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Telecom

Secure Identity Alliance: OSIA Becomes Official ITU Standard

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Secure Identity Alliance (SIA) has announced that its OSIA specification, has been recognized as international standard by the International Telecommunication Union’s Telecommunication Standardization Sector (ITU-T).

Secure Identity Alliance: OSIA Becomes Official ITU Standard

This milestone establishes OSIA as official ITU standard (ITU-T Recommendation) for the global infrastructure of information and communication technologies (ICT).

The specification that is now an ITU-T Recommendation is: ITU-T X.1281 – APIs for interoperability of identity management systems.

ITU-T is the standardization arm of ITU, the United Nations specialized agency for ICT.

The Secure Identity Alliance specifications were approved as official ITU-T Recommendations by ITU members including 193 countries and the world’s front-running ICT companies on 1st March 2024.

The new ITU-T Recommendation is under the responsibility of ITU’s standardization expert group for security, ITU-T Study Group 17.

“We are very proud that the OSIA specification is recognized as an international standard by ITU-T. This milestone demonstrates the maturity of OSIA and its potential to foster interoperability and promote fairness in the identity management systems market,” said Debora Comparin, chair of the OSIA Initiative.

Prof. Heung Youl Youm, chairman of ITU-T Study Group 17, said, “The recognition of the OSIA specification as an official ITU-T Recommendation underscores its critical contribution to the advancement of global ICT infrastructure. We are thrilled about the ongoing collaboration between ITU-T SG17 and the SIA, aimed at developing standards for secure identity management.”

“As Editor of the OSIA standard in the ITU-T Study Group 17 Q10, I am pleased to have contributed to this successful recommendation by the ITU,” said Abbie Barbir, rapporteur for ITU-T’s working group on ‘Identity management and telebiometrics architecture and mechanisms’ (Q10/17).

“The collaboration with the SIA continues on OSIA and other structuring initiatives and standards development.”

Engr Abisoye Coker-Odusote, CEO, National Identity Management Commission (NIMC), Nigeria and chair of the OSIA Advisory Committee, said, “As the Chair of the OSIA Advisory Committee, comprised exclusively of government representatives, we take great pride in our five years of collaboration guiding the working group in the development of the OSIA specification. OSIA establishes equal marketplace conditions, fosters collaboration, and ensures product compatibility post-mergers and acquisitions.

The OSIA standardized interfaces drive innovation, enabling new local market models and reducing fraud within multiple ID systems.

Additionally, OSIA addresses integrator/vendor lock-in, allowing governments to maintain control over their identity systems and pursue national development agendas seamlessly.”

 

 

 

 


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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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