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Counterfeiters Now Control 10% Phone Market Share in Nigeria

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Fake phone manufacturers and importers seem to be having upper hand in the current battle with such products’ regulators in Nigeria, Nigeria CommunicationsWeek can report.

According to an impeccable source in the phone manufacturing business, counterfeiters might have taken over more than ten per cent (10%) of the market share, and glaringly displaying the products at different areas like Computer Village- Ikeja and other hinterlands.

“It is affecting a whole lot of things in this market. We hear of people complain about Poor Quality of Network Service (QoS), the activities of these phone fakers contribute a lot to that. So, users of such phones are losers, government is losing revenue, we are losing the market too as original equipment manufacturers and spells doom for the market.

“These guys used to occupy about five per cent of the market, but I can authoritatively tell you that they have gone beyond ten per cent of the market share,” the source who prefers anonymity told Nigeria CommunicationsWeek.

ATCON Had Alerted Constituted Authorities
Nigeria CommunicationsWeek had in October 1, 2016 exclusively reported the discovery by the Association of Telecommunications Operators of Nigeria (ATCON), which called for urgent measures to curb the increasing rate of dumping fake mobile phones in the country.

Mr. Olusola Teniola, ATCON said that that investigations revealed more than twenty (20) mobile phone brands in the country are not NCC type-approved and contribute significantly to the persistent poor quality of service‎ (QoS).

Although, names of the phone brands are yet to be made public, however, Teniola said that the unregistered/unapproved brands have over one hundred and fifty (150) mobile phone models circulating in Nigeria.

He said that the Association believes more stringent measures should be taken to curb the counterfeiting of mobile phones in the country.

Meanwhile, fresh facts emerged recently, showing that the fakers copy 100% of top phone brands in the market, selling same to end-users as the original.

Standard Organisation of Nigeria (SON) Arrest Alleged Fakers
It could be recalled that in January 2017, the Standards Organisation of Nigeria (SON), working with other law enforcement agencies arrested two Chinese nationals over increasing complaints about fake and substandard phones imported into Nigeria.

The Chinese, according to Osita Aboloma, director general of SON, imported fake and substandard mobile phones into the country.

Aboloma, who was represented by Bede Obayi, director Compliance of SON, during a recent enforcement exercise in Lagos by SON, said the Agency has continued to receive numerous complaints about KZG phones from unsuspecting consumers in the country.

Aboloma said “We have information on the activities of these Chinese people who are operating this KZG mobile here in Ikeja Lagos that people are complaining about the quality of their products and SON has to ensure that the quality of products sold in Nigeria is in compliance with the Nigeria industrial standards.

“Their attitude show that they know what they are doing here and they are not ready to talk, they are not ready to give us information about what they are doing here and their major warehouses. Based on the information we have gathered and what we found on ground in the office and the documentation of importation indicates that he is one of the leading suppliers of sub-standard phones in Nigeria,” Obayi said.‎

Fakers Attack Original OEMs
But, our Source at Computer Village, Ikeja, revealed how SON’s clamp down on fakers attracted their (fakers’) wraths on original OEMs. “In fact, when SON concluded the raid here in Computer Village, the fake phone manufacturers were furious and went ahead to invade shops and offices of some the original OEMs whom they believed were the whistleblowers. Staff of the original OEMs were quite traumatized by the incident.

Speaking to Nigeria CommunicationsWeek on the worrying situation, Mr. Teniola said, “We plead with ‎Government to put in place anti-counterfeiting measures such as the facilitation of integrated Web portal based IMEI-IMSI collection to stem the menace of substandard or unregistered mobile phones circulating in Nigeria with obvious consequences of poor quality of service, loss of revenue to the government, loss of business by OEMs‎ and loss of jobs as well as in revenue to the Nigeria mobile market.

“For instance, we have more than twenty mobile phone brands that do not have NCC type approved certificate to operate in Nigeria. This unregistered/unapproved brands have over one hundred and fifty mobile phone models circulating in Nigeria”.

He added that the Association observed 10% of fake mobile phones products of some of the popular mobile phone brands circulating in Nigeria.

According to Mr. Austin Eze, a phone technician, “an average phone user in the market requires education to distinguish original from fake phones. “Yes. For the fact there are fake phones in the market implies there are originals too. What the manufacturers should be focusing on is educating the customers”.

CAPDAN Confirms The Situation
Mr Ahmed Ojikutu, president of Computer and Allied Product Dealers Association of Nigeria (CAPDAN) while reacting to the situation told Nigeria CommunicationsWeek confirmed that the activities of the fakers are threats to OEMs.

Mr Ojikutu, however, said that his administration is completely against the illegalities, while pleading with relevant authorities to partner them in tackling the unsavory situation.

He said that, as part of CAPDAN’s commitment to tacking fake and substandard devices, they are launching a toll-free line that will be available to those patronizing the market. 

The CAPDAN President spoke to Nigeria CommunicationsWeek, “Our administration is absolutely 150% against substandard and counterfeit products. We are trying to make sure that anybody that has complaint relating to buying counterfeit product or not exactly what you paid for, we will make sure that such is addressed at our own level. We will make sure the seller in questions provides what the buyer paid for at the point of the transaction. Be that at it may, if the complaint didn’t get to us, we wouldn’t know how to resolve the issue. In a case where the seller refuses to yield to our calls, we hand him over to the police; that is what we have been doing.

“We are also going to launch a campaign with a free-toll line. We are going to display it anywhere for people to call-in and lodge complaints. As they call in possibly during the working hours, we give them reference number to follow up on them. This is for every buyer at Computer Village (CV) to be assured of buying genuine products.

“Already, we have set up an arbitration and disciplinary committee that headed by reputable people in the market. Most of the time, we refer issues to the Committee”.

Involvement of Original Equipment Manufacturers (OEMs)
He further sought more commitment of OEMs in the fight against the unwholesome products in the market. Mr. Ojikutu said, “The Original Equipment Manufacturers (OEMs) are supposed to work closely with us, because most times, we are the people on ground. Though we are not law enforcement, but the owners, the direct beneficiaries of these interventions, ought to work closer with us. With the joint efforts, the people counterfeiting their products will be apprehended and handed over to the police; that is the way forward, because when the counterfeiters are caught who is going to pay the legal charges? If they really sit with us we will get results”.   

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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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.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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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.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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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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