Telecom
Telcos May Block Skype, WhatsApp Calls over Haemorrhaging Revenue

With the economic crisis in the country hitting businesses hard, telecommunication firms are opting for drastic measures to boost revenue, including moves that may block subscribers from accessing Skype and other Over-the-Top services, according to the Punch.
Telecoms companies in the country are hoping to address concerns over revenue loss from international calls and hit a revenue target of N20 trilion.
Pucnh gathered that subscribers might also be prevented from performing certain functions like voice and video calls on WhatsApp and Facebook, among other OTT services.
Skype is a proprietary Voice-over Internet Protocol software for calling other people on their computers or mobile phones.
Phone calls using the Skype software can be placed to recipients on the traditional telephone networks; and calls to other users within the Skype service are free-of-charge, while calls to landline phones though reasonably priced, are charged via a debit-based user account system.
“It is an aggressive approach to stop further revenue loss to OTT players on international calls, having already lost about N100tn between 2012 and 2017,” a manager at one of the major telecos in the country said.
Speaking on the condition of anonymity, the manager said, “If we fail to be pro-active by taking cogent steps now, then there are indications that we may lose between N20tn and N30tn, or so, by the end of 2018.”
The source added that the increasing rise of the OTT players, who provide voice and Short Message Services, or apps such as WhatsApp, Skype, Facebook, BlackBerry Messenger and Viber, was eating deep into the voice revenue of telecommunications companies in the country by more than 50 per cent.
A United Kingdom-based research and analytics company, Ovum, stated in a report recently that $386bn loss would accrue over a period of six years – between 2012 and 2018 – from Nigerian customers using the OTT voice applications.
“Generally, the main fear of the telecoms operators here will be that customers will increasingly use Skype as a substitute for conventional international calls,” the Principal Analyst at Informa Telecoms and Media, Matthew Reed, said.
Telecoms operators in the country said that international calls made up a critical part of their revenue because of Nigeria’s large expatriate and Diaspora population.
The apprehension over shift from voice call, according to them, is worsened by the steep decline in voice revenue.
The operators stated that at the start, they were looking to offset the fallout of intense competition by closing gaps that were spurring revenue leakage in the business.
They blamed the Nigerian Communications Commission for not properly regulating the sector in order to protect and keep them in business.
But reacting to the development, Mr. Tony Ojobo, Director, Public Affairs, NCC said, “We don’t have any evidence of that. We do not regulate the Internet.”
Mr. Kenneth Omeruo, Managing Director, TechTrends Nigeria said, “I am not aware of this development but globally, operators and network equipment makers don’t really embrace Skype.
“They liken Skype to an individual who takes undue advantage of other people’s generosity without giving anything in return. Globally, there is this apprehension among telecoms operators that Skype only steals their customers, while they invest billions of dollars to build, expand and upgrade networks.”
Major operators in the country’s $38bn telecoms market such as MTN, Globacom, Airtel and Etisalat said if the NCC failed to take decisive actions, they would keep struggling to counter a trend in which the prices of basic voice and data services were declining.
For instance, MTN Nigeria said that the OTT content services had a “cannibalising effect” on network operators’ voice and data revenue, because they provide “free” services, which duplicate those already provided by network operators such as voice calls and the SMS.
According to the firm, a ready example is WhatsApp, which provides free instant messaging services as an alternative to text messaging services provided by mobile network operators.
“It (WhatsApp) has also launched a free voice service,” the Public Relations and Protocol Manager, MTN Nigeria, Mr. Funso Aina, said, adding, “The point to note in this argument is that the OTTs allow users to send unlimited texts, images, video and audio messages free of charge, using their current data plans.”
According to him, the problem is that these services are provided using network infrastructure of the operators, but without commensurate compensation to operators.
Aina added, “At the same time, they are denying operators of revenue to grow their networks, thereby impacting on service delivery and long-term sustainability.
“For instance, to date, MTN has invested over $15bn in building its network in Nigeria. You can now imagine an OTT leveraging the network to deliver its content without investing a kobo locally. The impact on revenue is huge.
“Furthermore, because these entities are not licensed, and because they have not built any infrastructure locally, they do not have the same costs as the licensed operators.
“They do not pay taxes, they do not employ any people locally, and indeed, they have no local presence whatsoever, meaning they do not make any contribution to our economy and their services are denying those who make contributions of income.”
The MTN public relations manager stated that it was the view held by most within the industry, but noted that “at MTN, we are looking to find win-win solutions for all stakeholders.”
Aina, however, dismissed the allegation that some telecoms operators had continued to dispute a view that they were making enough money from their higher paying data services to offset the loss of voice and messaging revenues.
He explained, “Every service is provided at a cost, and we cannot subsidise one service through revenue from another; so, the argument as to whether loss of revenue from one is being offset by another is really not a fruitful argument.
“The important thing is that services must be produced efficiently and all stakeholders, including our customers, must get fair value for their investments.”
Checks by The PUNCH showed that in the United Arab Emirate, Etisalat and Du had recently lifted a ban on Skype services. Both telecoms companies had announced that their subscribers could now download the application online and make Skype-to-landline or mobile calls, which were not previously permitted.
Many telecoms operators worldwide, including some companies in the United States, the United Kingdom, France and Spain, prohibit their mobile phone customers from downloading Skype’s software, or outlaw the use of voice over the Internet phone services in their standard sales contracts.
Other carriers have imposed fees to undermine Skype’s attraction. Moreover, barriers to Skype software and similar Internet calling services are coming under increasing scrutiny as the Internet goes mobile.
Telecom
Court Dismisses N1Bn Suit against MTN, Awards N3m Costs

A Federal High Court in Lagos has dismissed a N1 billion lawsuit filed against MTN Nigeria Communications Plc by Walls and Gates Ltd and Okechukwu Udeichi, its managing director, over alleged copyright infringement, breach of confidentiality, and trademark violations arising from MTN’s 20th anniversary promotional campaign.

Delivering judgement on Tuesday, Justice Ayokunle Faji held that the plaintiffs failed to establish any legally protectable right in their proposal titled “20 for 20”, describing the action as frivolous, speculative, and vexatious.
The court dismissed the suit in its entirety and awarded N3m in costs against the plaintiffs.
The plaintiffs instituted the action under Suit No. FHC/L/CS/1935/2021, alleging that MTN unlawfully used their “20 for 20” proposal, which they claimed to have submitted to the telecoms company on 17 September 2019, ahead of MTN’s 20th anniversary celebration in 2021.
They argued that MTN’s anniversary promotion, in which 20 sport utility vehicles were given out to subscribers, emanated from their proposal and amounted to infringement of their copyright, confidential information, and trademark.
Based on those claims, the plaintiffs sought N1bn in damages or, alternatively, an order directing MTN to render an account of revenue generated from the promotion and remit 50 per cent of it to them.
MTN denied the allegations, contending that the proposal was an unsolicited business idea that imposed no contractual or confidential obligation on the company.
The telecoms firm maintained that its 20th anniversary programme was independently developed and that the plaintiffs’ document was merely a general business concept not protected under Nigerian copyright law.
MTN further argued that the plaintiffs lacked a valid registered trademark and failed to demonstrate access to or copying of any protected expression.
In resolving the dispute, Justice Faji noted that the plaintiffs conceded during oral submissions that they failed to prove their claim of trademark infringement, leaving only the issues of alleged breach of confidentiality and copyright infringement for determination.
On confidentiality, the court held that no confidential relationship existed between the parties.
Justice Faji observed that before sending the proposal to MTN, the plaintiffs had already submitted it to the Nigerian Copyright Commission and relied on it for a trademark application, thereby placing the document in the public domain.
The judge further noted that after transmitting the proposal to MTN, the plaintiffs admitted circulating it to other organisations, which extinguished any claim to confidentiality.
According to the court, MTN had no obligation to respond to an unsolicited proposal in the absence of a contractual, fiduciary, or business relationship, or a non-disclosure agreement.
On the allegation of copyright infringement, the court held that registration with the Nigerian Copyright Commission does not confer copyright, stressing that Nigerian law protects expressions, not ideas or business concepts.
Justice Faji ruled that the plaintiffs’ “20 for 20 Millennium Promotion” amounted to no more than an idea of rewarding customers during an anniversary celebration and lacked the originality and intellectual effort required for copyright protection.
He described the proposal as a bare business concept devoid of original qualities capable of attracting copyright. The judge also held that MTN’s use of the phrase “MTN 20th Anniversary” was a natural description of an anniversary event and did not originate from any protectable work of the plaintiffs.
He further relied on evidence showing that MTN affiliates in other jurisdictions had implemented similar anniversary reward ideas before the plaintiffs’ proposal.
Justice Faji characterised the suit as a “gold-digging exercise” aimed at forcing a commercial relationship on MTN. He criticised the plaintiffs for using MTN’s trademark in their proposal without authorisation and then seeking to ground a billion-naira claim on the same document, adding that the case wasted valuable judicial time.
While affirming that citizens should have access to the courts, the judge stressed that such access must be limited to suits with prima facie merit.
He therefore awarded N3m in costs in favour of MTN, holding that costs must follow the event.
The court accordingly dismissed the suit in its entirety and ordered the plaintiffs to pay the awarded costs to the defendant.
Credit: Punch
Telecom
Nigeria, Egypt to Lead Africa’s Data Center Boom

Africa’s data center landscape is rapidly evolving from small, isolated initiatives into a large-scale, fast-paced expansion.

According to Africa Telecom Review, between 2025 and 2030, capacity demand is expected to soar, driven by rising cloud adoption, generative AI workloads, and the growth of digital services.
Leading this momentum are Nigeria in West Africa and Egypt in North Africa, which are drawing significant investment, carrier-neutral facilities, and increased interest from hyperscalers, even as developers and governments work to overcome challenges in power, connectivity, and talent.
Nigeria: West Africa’s Gateway to Scalability
Nigeria’s data center market has rapidly shifted from discussions to active development. Driven by a vibrant digital economy, a large mobile-first population, and a dynamic startup ecosystem, Lagos has emerged as the prime location for both colocation facilities and hyperscale projects.
Nigeria’s data center market is expanding rapidly, with an estimated 136.7 MW capacity in 2025 and projections to reach 279.4 MW by 2030 at a 15% CAGR, driven by recent facilities such as Equinix’s LG2.3 expansion in Lagos, and upcoming projects including MTN Nigeria’s 1,500-rack center and new 38-MW and 24-MW facilities under construction.
However, growth is challenged by severe power constraints, as Nigeria’s grid, capable of about 6,000 MW, fails to meet the nation’s total demand (100,000 MW), forcing data centers to rely on costly backup generation like diesel and gas, with limited current adoption of renewables despite some efficiency gains.
Growing demand from enterprises, banks, telcos, and government platforms for low-latency, sovereign hosting is driving a fundamental shift away from dependence on foreign landing points and offshore cloud regions. Developers are answering this need with multi-purpose campuses that offer carrier neutrality, cloud on-ramps, and edge infrastructure tailored for content delivery, fintech, and e-commerce surges.
The business case is strong and industry studies consistently rank Nigeria’s market growth and capacity outlook among the fastest-rising on the continent through 2030.
Egypt: The North African anchor
Egypt’s strategic geography, sizeable domestic market, improving policy environment, and Digital Egypt initiative have made it a prime destination for large-scale data hub projects. Cairo and the Nile Delta corridor offer fiber connectivity routes to Europe and the Middle East, and recent corporate deals and project pipelines point to a race to build hyperscale-ready campuses.
As of mid-2025, Egypt has 15 operational submarine cables with three more under construction. The country is targeting 18 by year-end to enhance low-latency access to Europe and Asia and the data center market is projected to grow from USD 278 million in 2024 to USD 694 million by 2030 at a robust pace.
These Egyptian developments matter beyond national borders as a consolidated Cairo hub creates new routing options and resiliency for MENA traffic and provides another competitive alternative to Western European clouds and submarine routes. For pan-African architects, Egypt represents both a distribution point and a home market for AI-scale infrastructure.
Demand Drivers and the AI Inflection Point
Two intertwined forces are powering the boom. First, enterprise cloud migration, digital payments, and streaming service growth require regional capacity to meet latency and sovereignty demands. Second, the rise of AI, from localized language models to enterprise inference farms, is intensifying the need for dense compute that is both scalable and economical.
According to McKinsey, the expansion of data centers is crucial for Africa’s businesses and consumers to achieve global competitiveness. Its latest report estimates that an investment of USD 10 billion to USD 20 billion in new capital is required to achieve this. As a result, this investment could unlock an estimated revenue pool of USD 20 billion to USD 30 billion across the data center value chain by 2030.
Furthermore, the firm projects that AI-driven demand for data center capacity could grow significantly, increasing by 3.5 to 5.5 times its current base within the same timeframe, translating to a total installed capacity of 1.5 to 2.2 GW by 2030.
The Infrastructure and Policy Hurdles
Despite the strong growth outlook, developers are contending with significant challenges. Power availability and grid stability remain the biggest obstacles to scaling quickly, often forcing projects to rely on costly hybrid energy setups that blend grid supply, on-site generation, and renewable sources.
By 2025, industry analysts had already identified power constraints as a major factor slowing data center rollouts across EMEA, highlighting why energy planning has become the decisive factor for African deployments.
Additional barriers include slow permitting processes, land acquisition difficulties, high import costs for specialized equipment, and a shortage of skilled technicians trained in modern data center operations.
For investors, managing these operational risks alongside rising demand will require stronger public–private collaboration and more innovative financing models.
Local Partnerships and the Path Forward
The coming five years will be critical for Nigeria and Egypt. By simplifying regulatory processes, strengthening grid infrastructure, and promoting green energy, both countries can establish themselves as leading data center hubs in Africa. For operators and cloud providers, achieving success will rely on providing reliable, sovereign, and energy-conscious capacity that supports both enterprise needs and AI-driven workloads.
Nigeria and Egypt are leading the charge, each offering distinct advantages that, together, are reshaping the continent’s digital backbone. The potential rewards are substantial: improved latency, local cloud sovereignty, and a strong foundation for AI-powered economies.
Telecom
xAI Faces Backlash Over Grok’s ‘Digital Undressing’ Images

Elon Musk’s xAI is under intense scrutiny after its AI chatbot, Grok, generated a flood of sexually explicit images through user prompts known as “digital undressing,” including some appearing to depict minors.

Grok
Users have exploited Grok to strip clothing from images—primarily of women, often real individuals—and pose them suggestively. Reports from last week highlighted cases involving apparent underage subjects, sparking alarms over child sexual abuse material.
This incident amplifies risks of unregulated AI on social platforms. Critics argue it breaches local and global laws, endangering vulnerable people, especially children.
xAI and Musk claim swift measures on X, such as content removal, account bans, and law enforcement collaboration. Yet, Grok persists in producing sexualised women’s images despite these pledges.
Musk’s public disdain for “woke” AI and censorship, coupled with reported internal resistance to Grok safeguards, fuels the fire. xAI’s diminished safety team reportedly shrank just before the surge.
Unique Integration Sparks Spread
Unlike Google’s Gemini or OpenAI’s ChatGPT, Grok embeds directly into X, enabling public tagging and instant, visible replies. This accelerated non-consensual image sharing.
The trend ignited in late December with bikini requests, escalating to explicit manipulations without consent. Research reveals over half of Grok’s people images show minimal clothing—mostly women—with a disturbing fraction featuring apparent minors.
Grok has honoured some underage explicit prompts, clashing with xAI’s policy against sexualisation or child exploitation. Enforcement remains spotty.
Grok later admitted safeguard failures, deeming such content illegal and banned, while urging reports to authorities. Musk vowed repercussions for violators.
Regulatory Scrutiny Mounts
Detractors link Musk’s anti-moderation views to lax controls, noting his resistance to image-tool limits amid rising internal red flags.
Global regulators respond: Europe, India, and Malaysia probe; Britain’s media watchdog urgently engages Musk’s firms over explicit and child content.
Experts note existing tech can curb misuse but demands compromises like delayed replies and rigid filters. Absent these, platforms invite grave harm.
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