Telecom
ANALYSIS: SIMs/NINs Directive: Time to Rescue Telecoms Industry
By Vanguard Newspaper
The directive last week by the Ministry of Communications and Digital Economy that the National Identity Number, NIN, has become mandatory for a subscriber to carry a mobile phone is not only a slap on the faces of Nigerians already going through very troubled times but a plain manifestation that arbitrariness is being elevated to the dizzy heights of national policy.
Operators have been given only two weeks to comply and ensure that over 190m subscribers on their networks are properly registered. Or your operating license withdrawn.
We view this as a death sentence for the telecommunications industry, and some experts cautioned last week that a reversal of industry fortunes has been set afoot by an obnoxious official proclamation.
One operator moaned that the regulator wants to wipe out at least more than half of the subscriber base of the industry.
We agree that times are desperate in Nigeria, very desperate. Whole mass of students are spirited away from school and they reappear after a whole week in the den of criminals. Road travel has become a nightmare for the ordinary and the mighty ones. Bandits have taken over the roads and the farms.
Quite unfortunately even for the rich, air travel is beyond the reach of those who used to fly except the hedonists who steal the people’s money for plain pleasure.
According to figures from the National Population Commission, NPC, very bizarre decisions are being taken to rubbish the collective intelligence of a nation and expose the citizenry to ridicule before the international community.
So, using failure in security as pressure point, the ministry under the grip of Dr. Isa Pantami has given a directive capable of destroying the entire communications industry except common sense prevails.
The December 15, 2020, statement signed by Public Affairs Director, Dr. Ikechuckwu Adinde, which affirmed earlier directive for operators to totally suspend registration of new SIMs, stated among others: “Operators to require all their subscribers to provide valid National Identification Number, NIN, to update SIM registration records; The submission of NIN by subscribers to take place within two weeks (from today, December 16, 2020 and end by December 30, 2020).
After the deadline, all SIMs without NINs are to be blocked from the networks.” While conceding the pervasive security challenges, there has been outrage across the land; understandably, by subscribers who feel that apart from the suffering that has worsened more because of COVID-19, a major inconvenience is being added to their burden.
Recall that the country’s economy has gone into recession again and is not expected to recover until late 2021, a development that is forcing more Nigerians to fall into the poverty pit.
Vanguard immediately reached out to a powerful industry source to ask if the directive could be executed in two weeks. The answer was an emphatic NO. We also reached out to a source in the regulatory institution. Is this what should have been done? The answer again was NO. Let’s try to unwrap the intricacies of the unfolding story.
The SIM Card registration regime started in 2011. The exercise was carried out simultaneously by licensed agents of the NCC and the mobile operators. NCC was to warehouse the data. An understanding at the time was that, because of the sensitive nature of personal data, all data will be handed over to the National Identity Management Commission, NIMC, whose responsibility it is to manage the National Identity Database.
Till date the progress recorded in that area opens windows to speculations and recriminations. It is interesting to point out here that NIMC was established in 2007. In all the years of existence, the organisation has succeeded in registering only 43.6m! So what magic wand will it wave to accomplish the act in two weeks?
According to figures gleaned from the NCC website, there were 207,954,737 subscribers on the four mobile networks of MTN, Airtel, GLO and 9Mobile by October 2020. An industry source told Vanguard last week that of this figure, about 120m are unique subscribers, discounting double registration of mobile numbers, while the rest could be used in personal internet modems, sectors like banking, vehicle tracking and other sectors where mobile communications have become very handy. There has to be a way to capture these numbers and this cannot be enforced overnight.
Matching the 120m subscriber figure with their NINs is a nightmare which will rubbish the two-week window. For the journey to start at all, all the companies being licensed by NIMC, one expert explained, will have to source for their equipment and get them certified by NIMC before procurement and purchases can take place. To make any meaningful impact immediately, the industry may need at least 250,000 of those machines which are not manufactured here.
Moreover, the NIMC machines are not what are easily sourced in the open market. They are called the 442 machines because they can take four fingers at a go and take the remaining two fingers once. They are more robust than the SIM Card registration machines which can take only two fingers at a time.
The source told Vanguard that this is a logistics nightmare that can hardly be afforded by some of the companies being recruited by NIMC at the moment.
Industry observers are of the opinion that the President Muhammadu Buhari and the National Assembly should put a leash on the minister before he totally destroys the telecommunications industry.
In attendance at the meeting that had to do purely with the regulation of the industry were the CEOs of NCC, the National Information Development Agency, NITDA, and NIMC.
At least one operator told Vanguard they were never at the meeting; instead the minister is taking all the decisions which he is shoving down their throat, thus increasing the fear that the regulator is increasingly losing direction and hold on the industry.
Strains of helplessness are already showing. “We don’t know why the Executive Vice Chairman, EVC, is unable to call some meetings. We are not able to sit down to negotiate on anything,” the source lamented.
Those who fear the directive may become a dangerous super spreader of the COVID-19 pandemic may have been proven right when, last week, somewhere in Abuja, an eye witness told Vanguard that some youths who had gathered for two days at one registration spot, suddenly started demonstrating on noticing the near futility of the exercise and how some advantaged personalities were bending all the rules to favour a few.
The desperation to register will obviously rubbish the PTF recommendation on social distancing in a season of pandemic. Meanwhile, more trouble looms for the industry.
A knowledgeable industry source told Vanguard that, if not properly managed, the directive could destroy half the base of the industry, stymie revenue and investment, and lead to massive job losses.
But all these could pale into insignificance if the minister ever executes his growing threats that “violations of this directive will be met by stiff sanctions, including the possibility of withdrawal of operating license.”
This is hardly the way to speak to organisations that have invested heavily in your economy.
Telecom
Layer3 Achieves Recertification for ISO/IEC 27001:2022, ISO/IEC 27017:2015, PCI-DSS and Nigeria Data Protection Compliance
Layer3, a provider of cloud and AI-driven network solutions in Nigeria, today announced the successful recertification for four internationally recognized security standards: ISO/IEC 27001:2022 for information security management, ISO/IEC 27017:2015 for cloud security, PCI-DSS for protecting cardholder data.
The independent audits were conducted by AfriAssure Digital Service, a reputable certification body. Furthermore, Layer3 has also achieved its Nigeria Data Protection Regulation (NDPR) compliance for the current year.
These recertifications reinforce Layer3’s unwavering commitment to data security and privacy for its clients, across its cloud and other services. By adhering to these rigorous standards, Layer3 demonstrates its ability to manage information security risks, protect sensitive data in the cloud, ensure the confidentiality of cardholder information, and comply with Nigeria’s data protection regulations.
“We are thrilled to achieve recertification for these important security standards,” said Augustine Ani, Layer3’s Cybersecurity Manager. “This accomplishment underscores our dedication to providing a secure and compliant environment for our clients. Maintaining these certifications is an ongoing process, and it requires a company-wide commitment to data security best practices.”
ISO/IEC 27001:2022 is an internationally recognized standard for information security management systems, ensuring that organizations implement robust controls and practices to mitigate risks and protect valuable assets. ISO/IEC 27017:2015 provides guidelines for information security controls applicable to cloud services, addressing specific concerns and considerations in cloud computing environments.
Additionally, compliance with the Payment Card Industry Data Security Standard (PCI-DSS) demonstrates Layer3’s adherence to stringent security protocols for handling payment card data, promoting secure transactions and data protection.
Layer3 remains steadfast in its pursuit of excellence, continuously enhancing its security posture to adapt to evolving threats and industry best practices. The recertification of ISO/IEC 27001:2022, ISO/IEC 27017:2015, and PCI-DSS standards reflects Layer3’s ongoing commitment to delivering exceptional cloud and network solutions its valued clients.
South Africa’s ecommerce sector is expected to exceed USD21 billion by 2025, with more than one billion transactions per year. This is largely due to the proliferation of smart devices and the expansion of internet connectivity which has created a viable environment for e-commerce to thrive in the country.
Additionally, the increasing integration of e-commerce platforms with various advanced technologies such as cloud computing, artificial intelligence and predictive analytics is also significantly driving the growth of the South African e-commerce market. As a result, the country is becoming a significant player in the global e-commerce industry.
Indeed, the rise of e-commerce in South Africa holds immense opportunities for businesses looking to enter the market. Further, the development presents useful learning points for other countries, such as Nigeria and Kenya, among others, all of which this SeerBit whitepaper exhaustively explores.
Factors Driving E-commerce Growth in South Africa
E-commerce growth in South Africa has been driven by several factors, including increased internet access, improved payment options and the convenience and efficiency of online shopping.
- Increased internet access: Mobile penetration among South African consumers is higher than ever, as indicated by research results from a Geopoll survey conducted in 2020 showing that 45 percent of the South African population browsed the internet on their smartphones for more than four hours a day. The study also revealed that South Africa is one of the biggest adopters of mobile technology in sub-Saharan Africa, with higher rates of smartphone adoption than in most other countries in the region. In terms of total numbers, there are 46.9 million smartphone subscriptions in South Africa, which accounts for users who have multiple phones. As of January 2024, there were 45.34 million active internet users in South Africa.
- Convenience and efficiency of online shopping: For South African consumers, convenience is key when it comes to choosing which online platforms to purchase from. This reduced need to visit a physical store was also identified in a research paper published by Deloitte. The research found that 26 percent of consumers in South Africa said they prefer to shop online because it is more convenient.
- Improved payment options: The integration of wallets, bank apps and shopping apps has made browsing through virtual shopping aisles easier than ever before. Digital wallets have become an entry point for consumers to engage with financial services, thereby creating new opportunities to target the under-served banking population. Also, as South Africans become more comfortable with the concept of online shopping, their appetite for e-commerce solutions continues to increase.
Overcoming Challenges Faced by E-commerce Businesses in South Africa
Despite South Africa’s strong e-commerce growth, the WEF has noted that e commerce entrepreneurs are challenged by issues such as low consumer trust and e-skills, low internet penetration and affordability, uncompetitive delivery infrastructure, fragmented markets and barriers to cross-border e-payments.
- Low Trust of Online Platforms
Many South Africans still do not trust online stores with their personal payment details. This stems from lack of knowledge about online payment systems and advanced security measures. To overcome this mistrust, merchants should use a PCI DSS certified payment service provider (PSP) that meets high security standards and keeps customer information safe. If customers understand how online fraud is prevented and the techniques that are used to prevent security breaches or fraud attempts, they are more likely to trust an e-commerce website with their payment information
- High Cost of Data and Internet Penetration
South Africans pay up to USD5.29 per gigabyte (GB) of data, a cost equivalent to nearly four hours work for people earning the minimum wage. That compares with about USD1.53 per gigabyte in North Africa and USD2.47 in Western Europe, according to research by the Ichikowitz Family Foundation charity that highlights, among other topics, sub-Saharan Africa’s sky-high data costs. The region has the world’s most expensive mobile data prices, according to the Worldwide Mobile Data Pricing 2021 report.
- Issues with delivery infrastructure
Logistics is already a vital part of any retailer’s business plan, but its importance will continue to grow as the use of e-commerce for transactions increases. For stores to be efficient, they must be able to respond quickly and accurately to be able to deliver the correct products to customers on time. Now more than ever an efficient supply chain is needed that gives a high level of service across all channels.
The Role of Technology in Shaping South Africa’s E-commerce Landscape
Technology has become an integral part of every aspect of life, and the retail industry in South Africa is no exception. As consumer expectations continue to evolve, retailers are embracing innovative technologies to enhance the shopping experience and stay ahead of the competition.
Emerging technologies including contactless payments, virtual and augmented reality experiences, AI and mobile payments are all having a profound impact on e-commerce in the country.
Conclusion
The growth of South Africa’s ecommerce industry will likely surpass projections, thanks to the country’s growing appetite for online shopping. The penetration of smartphones, access to data, increased number of platforms and products as well as evolving regulation supporting the industry are significant factors contributing positively to the growth of the industry. There has never been a better time for businesses to enter the ecommerce market in South Africa.
This SeerBit whitepaper casts a deeper look at the trends, factors, future prospects and leading players transforming South Africa into the continent’s biggest e-commerce market.
Click HERE to access the full whitepaper.
Konga’s latest addition to its family of technology products, Starlink Satellite Internet Kits, has been met with overwhelming customer demand. The company is Starlink’s only authorised Shop-In-Shop eCommerce partner in Nigeria and provides immediate warranties on all Starlink kits bought from Konga.
Since the e-commerce giant broke the news of the price slash at 9pm on Tuesday night, shoppers in need of reliable, fast, low-latency internet services have trooped to konga.com to grab their share of the unbeatable deal on offer for the Space X engineered satellite kit. Until March of this year, the internet kits had been selling for N800,000 due to the devaluation of the Naira, and now go for N440,000 with the local currency regaining its strength.
As the clock races and limited stock runs out, our investigation confirms that those who purchased Starlink on Konga have begun to receive same-day delivery shipping for their orders in Lagos, Abuja, Kano and Rivers State.
On its e-commerce website, the unprecedented surge in demand for the product saw web traffic triple in 4 hours as customers took advantage of the great pricing and seamless order process available via the authentic official Starlink store in Nigeria on Konga.
Konga is yet to reveal how many units of the product it will be releasing to the market at the current discounted price; however, insider reports indicate that there is limited stock available for a short time at this amount. For this reason, customers are encouraged to place their orders immediately.
According to the Head of Business for Konga’s commercial unit, Emmanuel Ekwedike, the online shopping platform always delivers deals that make sense. With the Starlink kits, while customers can buy online and have the orders shipped to their homes and offices nationwide, they can also visit any Konga retail outlet around the country to make an instant purchase.
In February, Konga announced the launch of Starlink kits on its platform with an initial selling price of N378,000 to great reviews. As the month advances, the excitement is still running high as users get high-end quality experiences from purchasing genuine kits and other products with global warranty at its retail outlets and online via the e-commerce portal.
Konga.com is Nigeria’s largest customer centric omnichannel online mall. It launched operations in July 2012 and is on a mission to become the engine of commerce and trade in Africa.
Starlink kits provide high-speed internet services to users around the world through advanced low-latency satellite technology, as a solution to internet disruptions caused by fibre cuts.
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