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NCC to Regulate Mobile VAS Market

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Nigeria Communications Commission (NCC) has intensified actions towards regulating the Value Added Service (VAS) segment, short codes allocations and operations, of the telecoms sector, all important aspects of service delivery to mobile network customers.

A mobile value-added service (VAS) is associated with non-core services, or all services beyond standard voice calls and fax transmissions.

According to industry statistics, mobile VAS is currently worth over $200 million annually with huge potential to accelerate to $500 million in the next five years.

Actually, NCC said its findings showed that the exponential growth in the Nigerian telecoms industry in the last 12 years has given rise to the evolution of the mobile phone from a device just to support communications requirements to a smart platform with the capacity to provide a plethora of service.

The identifiable services include mobile entertainment, caller-tune, ring-back tunes, music download, news breaks, Biblical and inspirational quotes, flights information, tele-marketing, among others.

But, evident in the system is the operations of ‘data miners’ and network hackers who are threatening the good intentions of mobile value added service providers and mobile network operators that have seen mobile VAS as palliative measure to the dwindling average revenue per user (ARPU) in the voice services owing to increased competition.

Same time, NCC expressed concerns that most of the operators are negligent of the basic operational guidelines which call for stricter regulatory framework.

Heralding the imperatives of proper regulations of the operations, Dr. Eugene Juwah, executive vice chairman of NCC, said that, the Commission has witnessed, “some practices and behaviours in the VAS segment which as individuals subscribers and as industry regulator have given us a lots of concern”.

Juwah who was represented at the session by Dr. Okechukwu Itanyi, executive commissioner, Stakeholders Management (NCC) said disclosed that the Commission has received avalanche of complainants from subscribers regarding forceful activation of various value added services by operators without explicit consent. “Worse still, these services are auto-renewal resulting to perpetual lock-in of subscribers by the VAS providers.

“We have witnessed high level of tele-marketing, especially unsolicited messages by mobile network operators/value added service operators soliciting for subscription for their services most times constituting nuisance to consumers,” the EVC added.

He said that the Commission deemed it necessary to have an interactive session with the VAS providers, mobile network operators and other critical stakeholders to identify ways of tacking the pressing issues.

Nodding in agreement, Mr. Efosa Idehen, head, Compliance and Enforcement Department of the NCC, said that, indeed the participatory regulation has become entrenched in their corporate culture, as a means of soliciting industry response to a host of issues.

“This is to ensure to ensuring that whatever policies and regulations we come up with, enjoy wide acceptance within the industry,” he noted.

In a contribution, Mr Simon Aderinlola, national coordinating consultant, WATSPAN, said that unsolicited messages and other challenges identified in the system are solvable.

He advised that whatever criteria to be adopted by a working committee on the regulatory framework should take into cognizance the protection of local businesses and local content, hinting that foreign firms have devised means of monopolizing the system, and sometimes with hidden agenda.

Aderinlola also identified the guilty parties in the supposedly spam text messages or unsolicited texts to include in-country VAS providers, in-country Bulk SMS retailers, retail partners of international operators and MVNOS, International SMS termination partners engaged by telecos, among others.

He disclosed that WATSPAN is working towards developing a portal through which mobile subscribers can express their grievances.

 


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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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