Telecom

Nigeria Needs Telecom Infrastructure Funding Bank – Nnamani

Published

5 years ago

March 11, 2019

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Engr. Ikechukwu Nnamani, is managing director of Medallion Communications, a data centre operator in the country. He spoke to chike onwuegbuchi on issues around data centre operations in the country.

Building Private and Public sectors confidence in hosting their servers in the country

We are seeing great improvement in terms of adoption; we are seeing a lot of people appreciating the need for it as well as improvement of uptake of local data centre services compared to what it was in the past. From our own data centre in terms of the uptake year in year out I can say for certain over the last one year we have to increase our data centre capacity significantly just to take in more customers, that for me is an indication that a lot of people are beginning to see the need.

Certifications in the ecosystem and service availability

The Tier certification is being managed by uptime institute and really it is a benchmark where they want to create minimum requirement for availability in terms of support from the data centre most of it is towards power availability, so remember in other environments where data centre have been existing for a long time, the understanding is that they have steady power supply from public sources to private sources power is very steady.

You have cases where for many years they have not experienced a blink in their power supply. They want a situation where you don’t have to depend on public power to run your data centre, those were markets where you have natural disaster like earthquake, tsunami among others that may disrupt public power supply so without these natural disasters you hardly have a disruption all things being equal.

So, the Uptime Institute is assuming for instant if you have data centre in California unfortunately you have the California fire issue that took place last year and your data centre had to be cut off from the public power supply within the data centre do you have availability of power? That will last for 72 hours which is Tier 111 certification, you should be self- sustaining in power for 72 hours if there no public power supply.

That means if you are operating a data centre in California with Tier 111 certification, you have to show outside of the traditional power supply that you have built redundancy, if it goes off you can self-sustain yourself either on battery back- ups, generators or some other means that will ensure that your data centre should be operational for 72 hours in case of Tier 111 certification.

It becomes interesting when you bring such requirement into our climate, where you usually operate your data centre almost on private power supply, like our data centre we operate seven days straight on self -generating power, because the public power supply from PHCN is not available.

So, how much Tier will you put such a data centre? From power perspective it becomes interesting when you look at markets like ours. There was a particular case we were on our self –generating power for more than five weeks running.

Although there are areas that uptime institute looks at but the key point is power. They also look at redundancy; for instance, you should maintain dual power feed equipment to data centre.

My take is that Tier certification is important because it gives a guide to minimum service level you should attain as a data centre. It is worth doing or attaining.

Where I have a problem is when people start using it as a marketing tool as if it is a big deal then I have a problem with that because by default every data centre should operate at that standard.

Why would organisations host their servers with you?

We have been able to offer our customers efficient service at right service levels we are able to create a market place they interface with others. We are able to provide a carrier neutral infrastructure where they are not afraid they are dealing with a competitor with them.

Any service our customers are offering from our data centre we at Medallion don’t go and start competing with them to offer such service. That gives them the confident that truly they are at carrier neutral place.

We also enable every one of our customers to be treated equally in terms of size, whether you are big like MTN or small operator, we give every of them equal opportunity to do their business in efficient and cost effective way. Availability and the minimum standard I enumerated earlier we make sure we don’t fall below them.

I think these are the reasons they are with us, of course pricing is important, I don’t think we are the most expensive in the market. You have to ensure that your client can afford the cost of the services you are offering them. Clearly, Medallion data centre is the most connected presently.

Potential of Data centre business in Nigeria

There have been new data centres in the market since last year I said the country requires 72 data centre with the two new ones we have not even started. Interestingly, the two announcements are still in Lagos where the major existing operators are located. This means that people have not fully understood the situation at stake and what needs to be done to address the problems of geographical spread of the infrastructure.

We have to look at it from the strategic point to ensure that people making investment in data centre make the right one with location in mind.

We need to be able to extend connectivity, service delivery and content across various part of the country so that it is less dependent on the transmission links. I always say, Imagine a call taking place in Sokoto between an MTN subscriber and Glo subscriber and that call comes all the way to Lagos in order to be exchanged before going back to Sokoto. It doesn’t make sense just from the basic principle of it.

Some of these things have to change, if we are to attain the right quality of service and better pricing for services.

Data centres are concentrated in Lagos. Is there no demand for the service outside of Lagos?

The need is there, it is a case of business model and understanding in terms of potential revenue generation. Some believe that the market is in Lagos. If they build a data centre in Lagos they will be able to get return on investment faster in Lagos.

I defer from that line of thinking. I believe there is demand in every state capital in Nigeria that needs to be address, it is a matter of somebody taking the step to go there and set up and then you see the business, that is the way to go, it may take some time but ultimately over time people will find out it is the way to go.

Lagos is still an important market it is not yet saturated even for data centre business but I can assure you that there are some cities today that need it more than Lagos, everybody knows what they are looking for in the business we won’t tell where to locate their business. Some of them are more successful than we are so, we won’t advise them.

In the next few years it will become obvious especially to those who do not see now that it is necessary to build that infrastructure outside of Lagos.

Is Medallion Thinking of Expanding outside of Lagos?

Yes. As we are speaking now we are working out a plan to building a new data centre in Enugu, Kano, Ibadan, Port Harcourt, Asaba and possibly Kaduna in addition to Lagos and Abuja where already have data centres that is our plan for this year 2019.

This is capital intensive project how are going about funding this expansion projects?

It is a tricky one because there is high cost of fund in Nigeria. You have to look outside to see if you can cheaper fund which initially may appear cheaper but when you look at challenges such as exchange rate fluctuations then it becomes a problem even if initially you get it at a cheaper interest rate.

Image you took up a debt finance at dollar exchange rate of 363 suddenly it drops N1,000 that means you need more revenue just to be able to service your debt than you need today, who are you going to pass that across to? That was the reason a lot of companies went under when the exchange rate went from N120 to N350 especially those trading in the oil and gas sector even those in telecoms that is highly dependent on foreign currency in terms of investment building of infrastructure.

One of the things we are pushing through as an association, ATCON is that government needs to intervene in the area of funding the same way it intervene in the manufacturing sector, with the stuff Bank of Industry is doing for the manufacturing sector. Even in the banking sector when there was crisis in that sector they came in with AMCON and others to give some bailout among others.

There is need for government to intervene, some of us have advocated for the setting up of telecom infrastructure fund bank to provider long term low interest rate financing for telecom infrastructure projects over a long time say between 5 to 10 years and you are given moratorium to build that infrastructure.

You go to a bank and they ask for a collateral which you may not have but the infrastructure you are building should be a collateral, for banks here they don’t see it that way, they say oh we can’t use your equipment as collateral, they rather want you go and get landed property which some time the cost of getting the collateral is more than the fund you are accessing. Those are the challenges we are facing it is not a Medallion issue it an industry issue which at ATCON we want to address this year among other industry issues.

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Telecom

AMN Activates Starlink Cellular Backhaul Connectivity in Nigeria

Published

5 hours ago

April 20, 2024

Comms Week

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Africa Mobile Networks Group (AMN) has said that its first of its base stations in Nigeria to connect to SpaceX’s Starlink constellation is now live and using the LEO satellite network for backhaul connectivity.

It’s the first AMN base station to connect to Starlink since AMN and SpaceX signed a commercial deal in July 2023 to use Starlink for remote base station backhaul connectivity across Africa.

AMN said in a statement that Starlink’s low-latency connectivity enables its multi-carrier RANs to sustainably provide 2G, 3G and 4G services in remote, rural areas of Nigeria. AMN also said it also paves the way for the launch of 5G services, which AMN plans to do before the end of this year.

AMN, which builds, owns, operates and maintains mobile network infrastructure for African mobile network operators, currently operates 1,600 base stations across Nigeria.

The company said it will continue to install new sites throughout 2024 in Nigeria, as well as Democratic Republic of the Congo, Cameroon, Madagascar, Cote d’Ivoire, Benin and Rwanda. AMN also has operations in Bissau, Ghana, Guinea, Liberia, Sudan, and Zambia.

Starlink has been commercially available to consumers and enterprise customers since January 2023. Last week, according to a report from Nairametrics, Starlink slashed the price of its internet router by 45%, although its monthly subscription rate remains unchanged. No reason was given, but the report suggests the move may be related to the naira’s recent appreciation against the US dollar and other foreign currencies.

According to figures from the Nigerian Communications Commission (NCC), Starlink had over 11,200 subscribers in the country as of the third quarter of 2023 – which also makes it one of the top ISPs in Nigeria, the report said.

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Telecom

Nigeria’s Telecoms Sector Threatened by Economic Challenges – Ikemesit Effiong

Published

9 hours ago

April 20, 2024

Ugo Onwuaso

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Ikemesit Effiong, Chairman of the Technology Committee of the Nigerian Bar Association Section on Business Law, has raised concerns about the sustainability of Nigeria’s telecoms sector amid ongoing economic challenges.

In an insightful article titled “The Imperative of Upholding Nigeria’s Telecoms Lifeline,” Ikemesit delves into the sector, emphasizing its pivotal role as both an economic engine and societal enabler. With approximately 15,000 direct employees and a significant 16% contribution to Nigeria’s GDP, the sector’s health is crucial for the nation’s well-being.

Ikemesit highlights various obstacles facing the telecoms industry, including frequent fibre optic cable cuts due to road construction and vandalism, multiple taxations, and challenges in acquiring rights-of-way. These issues, compounded by exploitative rent-seeking practices, have persisted despite efforts to resolve them.

“Central to the sustenance of any industry is a conducive economic environment that allows for sustainable growth and innovation,” writes Ikemesit. However, regulatory constraints that limit tariff adjustments hinder the sector’s ability to adapt to market dynamics unlike other industries.

Recent data from the National Bureau of Statistics (NBS) indicates a rise in inflation to 33.20% in March 2024, up from 31.7% in February 2024. This poses significant challenges for businesses striving to manage staff welfare and make necessary investments amid economic strains.

The inflationary pressures have led to price increases across various sectors, including agriculture, beverages, and services. Companies such as Nigerian Breweries Plc and Netflix have adjusted prices multiple times this year to cope with rising costs.

Recently, the quality of service has become a significant concern for subscribers across the country. Available data indicate that this issue may persist for the foreseeable future. The 70% broadband penetration target set by Bosun Tijani, Nigeria’s Minister of Communication, Innovation, and Digital Economy, was severely impacted in 2023, experiencing a decline of 14.2% from a peak of 48.28% in March to 41.87% in November.

With operators reporting financial losses in 2023 and a challenging outlook for 2024, it is evident that funding will pose a significant challenge for the necessary investments needed to transform the sector.

Describing the challenges of the sector in 2023, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said, “ALTON’s members currently pay at least 49 different taxes and levies. Additionally, our members continue to bear the brunt of multiple taxation and coerced compliance with tax and levy demands that have no legal basis by sub-nationals. This threatens investment, sustainability, and industry growth.

“Instances include – exorbitant Right of Way fees, increases under the Finance Act 2023 (such as an upward review of Tertiary Education Trust Fund Tax from 2.5% to 3%, imposition of Value Added Tax on cell towers (Base Stations), imposition of import levy on goods, removal of capital allowance on telecommunications goods and services under Section 32 of the amended Companies Income Tax Act), amongst others.”

In the past 10 years, telcos have maintained the same charges for calls and data, despite inflation rising from 8.05% in 2014 to 33.20% in 2024, and the dollar increasing from 185 naira in 2014 to about 1,000 naira in 2024.

Considering that this sector supports Nigeria’s 221.7 million active voice subscriptions and 160.2 million data subscriptions, with immense consequential economic and social value, leaving it to resolve its challenges independently or risk collapse poses significant threats to Nigeria’s socio-economic stability. Stakeholders in the sector are urging the government to either invest in the sector as needed or adopt a cost-reflective tariff to facilitate necessary investments.

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Telecom

6 Ways Gemini can support your job Search in the Nigerian job Market

Published

9 hours ago

April 20, 2024

Ugo Onwuaso

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The Nigerian job market is a competitive jungle, rich with potential and brimming with energy. From bustling tech hubs to burgeoning green energy sectors, there’s an incredible opportunity out there waiting for you. But navigating this dynamic landscape can feel overwhelming. How do you cut through the noise, showcase your unique strengths, and land your dream job?

That’s where Gemini, Google’s collaborative AI-powered tool, comes in as your ultimate career companion, guiding you every step of the way. Imagine having a seasoned career coach, research assistant, and skills advisor right at your fingertips!

Here are 5 ways Gemini can be your ultimate career ally:

Crafting a Standout Resume

Your resume is your first impression, and Gemini ensures it’s a dazzling one. Need help translating your customer service experience into impressive problem-solving skills? Gemini can rephrase it for you! Wondering how to highlight your leadership experience powerfully? Ask Gemini to suggest strong action verbs that showcase your skills. Before submitting your resume, ensure it’s error-free by asking, “Can you review my resume for grammatical errors and suggest ways to improve clarity?”. You can even ask Gemini to help draft a compelling cover letter based on a job description!

Interview Confidence Boost

Interviews can be nerve-wracking, but Gemini helps you walk in feeling prepared and confident. Get a quick rundown of a company’s latest projects and overall mission by asking, “Summarise [Company Name]’s latest developments and approach to employee well-being.” Not sure how to answer those tricky behavioural interview questions? Gemini can guide you with practice questions like, “Give examples of common behavioural interview questions for a marketing position in South Africa.” To impress your interviewers, have insightful questions ready: “Help me formulate questions to ask about the company’s future direction.”

Keeping Skills Sharp

In today’s fast-evolving job market, continuous learning is key! Let Gemini help you stay ahead of the curve. Identify those in-demand skills that employers are looking for by asking, “What are the top 3 tech skills companies in Kenya are seeking in software developers?” If you’re looking to switch fields, Gemini can help you find accessible learning resources: “Find free online courses in data analysis for beginners interested in a career transition into finance.” Even if you’re a visual learner, Gemini’s got you covered. Simply ask, “Recommend YouTube channels that teach the fundamentals of graphic design software.”

Networking Made Effortless

Building a strong professional network unlocks incredible opportunities. Gemini simplifies the process by helping you optimise your online presence and target relevant events. Craft an impactful LinkedIn bio that attracts the right recruiters with a request like, “Help me write a compelling LinkedIn bio that showcases my skills and experience in project management.” Seeking out opportunities to connect with like-minded professionals? Ask Gemini, “What tips will you give for connecting with the vibrant Artificial Intelligence community at tech conferences?”. Even if you’re unsure how to approach networking, Gemini offers support with queries like, “How can I make a good first impression when reaching out to recruiters on LinkedIn?”

Remote Work Made Simple

Remote work is revolutionising the African job market, offering incredible flexibility and the potential to work with global companies. If you’re eager to explore remote roles that match your skills and aspirations, Gemini can help streamline your search. Start by asking, “Show me reputable websites specialising in remote job listings for African candidates.” Want to know more about a company’s remote culture before applying? Ask Gemini, “How can I get a feel for a company’s remote culture?” To ace those remote interviews, get tips with a query like, “Help me prepare for a remote interview – what are some essential points to remember?”

Embrace the Journey with Gemini by Your Side

Let Gemini be your secret weapon – equipping you with the insights, skills, and confidence to stand out from the crowd and achieve your career aspirations. So, fire up gemini.google.com and discover the power of Gemini!

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