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Many Troubles of CDMA Business in Nigeria

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These are not the best of times for code division multiple application (CDMA) operators in Nigeria; they are going through tough times as a number of factors have conspired to ring them into obscurity.

To say that the CDMA sector is trouble is stating it mildly; financial institutions repulsed by the companies’ stinking financial records have turned their backs, preferring to fund global system for mobile communications (GSM) operators with proven corporate practice.

It appears the CDMA service providers were programmed to fail when the initial licensing regime gave it a regional outlook, rather than the universal for its GSM mobile operators.

However, it’s the CDMA who’s ultimately responsible for their troubles with widespread corporate mismanagement, including, but not limited to its non-compliance with laid down internal controls and operation procedures, biased recruitment exercises and general lack luster management practices.

These issues alone are bad enough, however, to make matters worse over the years CDMA operators have regularly and consciously ignored sustained and systematic red flags as their promoters and managers diverted funds meant for expansion into frivolous projects like manufacturing, oil and gas, elections, just to name a few.

The misappropriation of funds and inability of unified license holders to roll out services has not helped matters, fueling subscribers’ preference toward GSM services.

Due to these poor business practices and mishandling of funds some CDMA companies are already dead and decomposing, those remaining have reportedly axed large chunks of their workforce due to their hemorrhaging finances.

The cutbacks will only provide a temporary palliative as government is not forthcoming with a bail-out plan, nor is the industry eager to consummate mergers or acquisitions, making the long term survival of the companies doubtful.

To ensure that the faith which befell CDMA operators do not have ripple effect on the entire telecom industry, it is important to entrench transparency and adequate disclosure of information for the industry.

That is why we welcome the new corporate governance initiative recently introduced by the Nigerian Communications Commission (NCC) for the internal management of players in the industry.

Bu the commission should ensure tighter supervision of the management of the companies because the consequences of systemic failure in the industry will be far reaching.

Financial institutions should also be compelled to lend preferentially to the CDMA subsector to give them enough funds for expansion.


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Telecom

NCC Denies Approving New Telecom Tariff Hike

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Nigerian Communications Commission (NCC) has denied reports making the rounds online that it did approved new tariffs for mobile network operators.

Some blogs over the weekend published reports with screaming headlines such as; ‘Nigerians to Pay More for Calls as NCC Approves New Tariff Plans for Telcos’, ‘Nigerians to Pay More for Calls As NCC Approves New Tariff’, ‘NCC Reportedly Okays Tariff Hikes for Telcos’.

However, the commission, through its verified X handle, debunked the news, thus,

“The NCC has neither approved any new Telecom Tariff Plans nor hike as reported on online. The public is advised to please disregard.

“NCC issued a directive for all operators to simplify their current tariff plans in a transparent & fair manner for consumers”.

Recall that telecommunications companies in Nigeria have been pushing for upward review of tariffs for voice, SMS and data services.

The telcos said it is due to the need to mitigate the challenging economic environment currently facing the sector.

The last time there was a tariff review for the telecom sector was 11 years ago, in 2013.


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CSI Initiatives: MTN Invests N2.6bn in Commitment to Bridging Digital Divide in Nigeria

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In its commitment to fostering social inclusion and driving digital transformation across Nigeria, MTN Nigeria, through its foundation, has announced a significant investment of N2.6 billion towards Corporate Social Investment (CSI) initiatives in 2023, up 35.2% compared to 2022, and reaching more than 58,000 people in over 90 communities. This achievement was revealed in the company’s recently released 2023 sustainability report.

Olatokun Toriola, Chief Executive Officer (CEO), MTN Nigeria

At the heart of the company’s CSI strategy lies a commitment to bridging the digital divide in Nigeria. Recognizing that access to digital technologies is pivotal for socio-economic development, MTN has directed a substantial portion of its CSI budget towards ICT-enabled initiatives. These initiatives aim to empower underserved communities with the necessary digital skills and tools to thrive in an increasingly connected world.

In 2023, MTN Nigeria prioritized projects within the ICT ecosystem, focusing on areas such as digital skills training, mobile connectivity expansion, and promoting digital entrepreneurship. By empowering individuals with digital literacy and access to online resources, MTN aims to unlock opportunities for economic growth and social inclusion, particularly among marginalized groups such as women, youth, and persons with disabilities.

The 2.6 billion-naira investment was distributed across various sectors; 2% for orphanages and community sponsorship each, 47% for health initiatives, 31% for educational programs, and 7% for economic empowerment projects. The remaining 11% was allocated to other operating expenses, ensuring effective administration and implementation of their philanthropic efforts throughout the country.

Speaking on MTN Nigeria’s commitment to national priority areas such as equity and drug abuse, Odunayo Sanya, Executive Director of MTN Foundation emphasized that “The core message of our Anti-Substance Abuse campaign at the MTN Foundation is that it is everyone’s fight, because the singular objective of the campaign is to reduce the rate of first-time abuse amongst youths aged 10-25 years.”

Again, the MTN Foundation, a key driver of these initiatives, continues to play a pivotal role in advancing education, healthcare, and youth empowerment across Nigeria. Programs like the Anti Substance Abuse Programme (ASAP), Y’ellopreneur initiative, MTN Scholarships and the “What Can We Do Together” community development programme have gained significant traction, addressing critical societal issues and fostering healthier communities through education and advocacy.

By collaborating with local stakeholders and global partners, MTN Foundation ensures that its initiatives are aligned with both national development priorities and the United Nations Sustainable Development Goals (UNSDGs). Also, MTN Nigeria implemented robust monitoring and evaluation mechanisms for all its CSI initiatives, as part of its commitment to transparency. This ensures that resources are deployed efficiently and that the impact of investments is accurately measured and reported.

Through regular stakeholder engagements and rigorous reporting standards, MTN has always strived to uphold the highest standards of corporate governance and accountability in its CSI endeavors.


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NCC Reportedly Okays Tariff Hike for Telcos

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Nigerian Communications Commission (NCC) has finally introduced new tariff plans for the industry, after many months of agitations by telecommunications services providers in the country.

NCC Reportedly Okays Tariff Hike for Telcos

According to  Newtelegraph findings, the approval by the regulator was also followed by new pricing rules, according to a document, “Guidance On The Simplification of Tariffs In The Nigerian Communications Sector” signed by Dr Aminu Maida, executive vice chairman/CEO.

According to the Commission, “the Guidance shall take effect on July 29, 2024, and will remain valid and binding on licensees until further reviewed by the Commission.”

The document aims to simplify the pricing of a wide range of services across the Nigerian telecoms industry.

The rules guide what service providers can charge to their subscribers for either a bundle or unit of a product/service across the Nigerian telecoms market that accounts for 219,304,281 phone lines; 164,368,292 internet subscriptions and 94,364,751 broadband connections as of Q1 2024.

It also provides stricter pricing rules for tariff plans, add-ons, bundles, bonuses, promotions, top-ups, and other elements that provide subscribers access to voice, data, SMS and other services delivered by telcos in Nigeria.

Under the rules, which stipulate a tariff plan as “a structured pricing scheme that outlines the charges and conditions under which telecommunications services are provided to subscribers,” NCC orders that “every subscriber must be on a tariff plan and no subscriber can be on more than one tariff plan at a time.”

 

 


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