Telecom
Our Plans for Starcomms by Capcom
Capcom , the special purpose vehicle solely created to make an equity investment into Starcomms has revealed an ambitious turnaround strategy for the troubled telecom operator including a significant cash and asset investment.
Backed by some of the best brains in the telecoms industry, Capcom also plans to establish Starcomms as Nigeria’s leading 4G Broadband data provider- a plan hinged on the enhanced spectrum from the post transaction.
Demola Elesho, new company’s chief executive officer said that Capcom’s interest in Starcommsis primarily driven by the exciting opportunities the proposed spectrum combination brings.
Capcom was established in 2012 with money raised from investment and hedge funds, family offices and industry partners with years of commercial experience in emerging markets, especially Africa.
The company consists of MBC -a private trust with a focus on investing in emerging markets; OldonyoLaroEstate -a private family office based in Kenya with over 40 years’ experience of investing in Africa across numerous industries; Helios Investment Partners -an Africa-focused private investment firm which manages funds in excess of $1.7billion; and AMCON -the Asset Management Corporation of Nigeria.
According Elesho, Capcom will fund the transaction through a mixture of equity, debt and asset sales.
As part of the transaction Capcom will raise $50million of equity from a limited number of key investors and the equity is expected to be fully raised and deposited into escrow pre annual general meeting.
The company also said that additional funds will be provided through a $62 million loan from Afreximbank while part of the the transaction funding will be raised from the sale of Multi-links’ fibre assets to Suburban FiberCo.
With the huge financial war-chest, Capcom said the new management would work to aAttract more highly profitable data subscribers in the short term.
Ultimately, it plans to launch high speed 4G mobile broadband services in the next 12-18 months.
It is hoping that the cash injection will provide the financial security needed for Starcommsto embark on this strategic realignment.
With the money available, Capcom also hope to fund the technical integration process, new capex and continuing short term operating losses.
The expectation is that following a successful integration and stabilisation period, the planned roll-out of 4G services will open up significant opportunities for the new Starcomms
Capcom’s current business plan anticipates that the combined business will generate over $100 million of annual EBITDA within five years.
Telecom
FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions
Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.
Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.
While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.
The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.
“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.
New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”
The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.
The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.
Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.
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 on 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 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.
A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.
“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”
Telecom
Telegram Eyes 1Bn Users amidst Political Pressures
Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.
Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.
With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.
Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.
Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.
In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.
Telecom
NITDA, NIMC Announce Collaboration To Strengthen Digital Economy
To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.
During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.
This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.
To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks
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