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No to Telcom Price Hike

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Within the space of a few months the country’s telecommunications sector is abuzz again with pressure from the operating companies who are demanding a 100% price hike for voice and data calls. 

According to reports, the telecommunication operators (telcos) have been pressuring the Nigerian Communications Commission (NCC) to approve the price increase since the first quarter of this year, as they belly-ached over the rising cost of operations.

The series of cost-driven challenges include the rising price of the dollar which has inflated the cost of expanding their capacity as well as network.

That factor has also resonated with the dwindling revenues from decreasing levels of patronage by subscribers.

 Experts said due to rapidly declining average revenue per user for voice calls, which since 2004 has decreased from just over $15 per month per subscriber to a new low of $4 due to the current economic crisis, telcos have been finding it increasingly difficult to make ends meet.

In fact, experts say that in the last 10 years, a drastic reduction had been recorded in call and data tariffs.

To accentuate the challenge is the situation whereby On-Net and Off-Net per minute tariffs which now stand at N12.01k and N12.64 respectively used to be N24 and N75.30k.

In the light of the foregoing, observers contend that if the NCC accedes to the demand of the telcos, the implications would be far-reaching.

In the first place, the consumers of their services would be put under pressure as the charge for calls and data would double.

For instance, it would cost at least N24.00 per minute of call and N2,000.00 per gigabyte of data. Besides, given the slow growth of fresh subscription and low internet penetration, the economy may be worse off for it as a price hike would discourage increase in demand of telecommunication services. 

This newspaper is inclined to identify with the anti-price hike lobby for now, given the fact that a rapid resort to price increase at any instance of finance related operational challenge to the telcos,  is hardly a sustainable practice.

We are inclined to appreciate that the telecommunications sector in Nigeria is still needy of expansion and deeper penetration which the telcos are yet to exploit to the maximum. Rather than increase the prices the issue before them is a matter of market development.

Telecommunication business is a volume-driven enterprise, hence a better approach should be a resort to expanding the market to the rural population to most of whom telecommunication service is still utopian.

According to available evidence, of the country’s tele-density over 70% are urban and semi-urban subscribers.

Meanwhile the urban population is less than 30% of the country’s total population of about 200 million.

This is just as internet penetration in the country is still very low. The implication is therefore clear that there is so much for the telcos to benefit from increased attention to the rural populace.

The foregoing is not to discount the glaring challenges that are associated with running big business in rural Nigeria.

What with the almost non-existent power supply in the rural areas and the issue of security among others, any contemplation of telcos expanding operations to the rural areas may on the surface look unrealistic.

However when it is considered that the Nigerian economy is mostly a rural-driven one the primacy of the rural environment becomes clearer.

Hence, the motivation of juicy returns from investing in a willing and ready market like rural Nigeria is more than enough incentive for telcos to direct their gaze in that direction instead of skinning their current mostly urban-based consumers to the bone.


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Telcos Record N27Bn Loss from Damaged Fibre Cables

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Repairs and revenue losses from damaged cables are estimated to have cost Nigeria’s telecom industry almost N27bn ($23m) in 2023, according to documents obtained by Bloomberg.

Telcos Record N27Bn Loss from Damaged Fibre Cables

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 in 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 N11bn —enough to build 870 kilometers of new fiber lines in areas without coverage.

Broadband fibre optic cables form the backbone of modern communication infrastructure, enabling the high-speed data transmission that underpins a wide range of personal, business, and societal activities.

On several occasions, the Nigerian Communications Commission (NCC), the industry regulator, has acknowledged this challenge and expressed willingness to work on measures to address it.

These measures include stricter regulations to deter vandalism and improved collaboration between telcos and government agencies responsible for construction activities.

According to the NCC, the telecom sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5 per cent in the third quarter of last year.


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NCAIR Relaunch: Pantami, Tijani Fight for Credit

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Isa Pantami, former minister of Communications and Digital Economy, has voiced his discontent over the relaunch of the National Centre for Artificial Intelligence and Robotics (NCAIR) by Bosun Tijani, his successor.

Isa Pantami, former minister of Communications and Digital Economy,

Tijani announced the revitalization of NCAIR, highlighting enhancements in its capacity and partnerships with global tech firm Cisco.

However, Pantami took to social media to assert that NCAIR was already established during his tenure in November 2020, dubbing it “the first of its kind in Africa” and emphasizing its effectiveness in training numerous Nigerians.

Tijani responded by detailing the new initiatives accompanying the relaunch, including increased computing infrastructure, dedicated research labs, and remote connectivity for AI hubs across the country. He also unveiled outcomes from the Ministry’s National AI Workshop, such as the country’s first Multilingual Large Language Model and partnerships aimed at accelerating AI development projects of national significance.

The exchange between Pantami and Tijani underscores ongoing efforts to advance AI research and application in Nigeria while navigating questions of continuity and leadership transition within the Ministry.

 


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ABoICT Lecture 2024 to Focus on Artificial Intelligence (AI) In A Digital Economy

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This year’s Africa’s Beacon of ICT Merit and Leadership lecture will focus on the role of artificial intelligence in a digital economy with the theme: “Artificial Intelligence (AI): The Good, The Complex and The Anticipated”.

The lecture which will herald Africa’s Beacon of ICT Merit and Leadership Awards hold on May 25, 2024 at Four Points by Sheraton.

The sixteenth edition of the award ceremony according Ken Nwogbo, editor-in-chief of Nigeria CommunicationsWeek the organizers of the event, “is a special edition to recognize and celebrate organizations and individuals in the ICT industry that have been distinguished in delivery innovative services in the sector.

“Most of these organizations and individuals have consistently being voted by our readers as leaders in their areas of operations and we have decided to reward them in this especial edition”.

He added that, AI is considered to have the potential to instigate a fourth industrial revolution,1 and is dramatically changing people’s patterns of interaction and economic activities.

“The traditional factors of production and physical capital and labour may no longer promote substantial economic growth. It is generally believed that AI will be one of the most important factors determining future economic growth.

“However, unlike traditional machines, which replaced the use of human and animal labor for simple manual work and heavy or dangerous activities, AI-related inputs may change the type of human work in a comprehensive way.

“In contrast to previous industrial revolutions, AI does not simply involve the invention of a new machine or technology. Instead, AI has similarities to the accumulation of human capital, as it can learn and accumulate knowledge by itself,” he said.

The Africa’s Beacon of ICT Merit and Leadership Distinguished Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.

The lecture series however is reserved for distinguished achievers in the ICT sector.

Past lecturers included Dr. Ernest Ndukwe, then executive vice chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Uche Orji, managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodu Omoniyi, Managing Director/CEO, VDT Communications; Ayotunde Coker, Managing Director, Rack Centre Limited; Peter Adedayo Arogundade, managing director and chief executive officer, Sidmach Technologies Nigeria Limited; Dr. Adewale Obadare, chief visionary officer, Digital Encode and John Obaro, CEO and founder of Systemspecs; Prof. Isa Pantanmi, minister of Communications and Digital Economy; among others.


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