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Telcos May Block Skype, WhatsApp Calls over Haemorrhaging Revenue

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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.


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NCC Speaks of Plans to Secure Telecom Infrastructure Nationwide

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Nigerian Communications Commission (NCC) has reiterated its commitment to safeguarding telecommunications infrastructure across the country, in line with President Bola Tinubu’s Executive Order, which criminalises the vandalism, theft or obstruction of critical national infrastructure.

NCC Speaks of Plans to Secure Telecom Infrastructure Nationwide

The Commission noted that the enforcement drive is aimed at curbing the growing incidence of sabotage at telecom sites, which continues to degrade the quality of network services nationwide.

Speaking during a courtesy visit by the Executive of the Nigeria Union of Journalists (NUJ), Federal Capital Territory (FCT) Council to the Commission’s headquarters in Abuja, Mrs Nnenna Ukoha, head of Public Affairs at the NCC, reaffirmed the Commission’s resolve to act.

She stated, “President Tinubu signed the Executive Order on 24th June 2024, declaring telecom infrastructure as Critical National Information Infrastructure (CNII). The NCC is now mandated to implement this order fully, and anyone found tampering with these facilities will face the full weight of the law.”

Mrs Ukoha, who represented  Dr Aminu Maida, executive vice chairman and chief executive officer, added that the NCC has launched a nationwide awareness campaign to sensitise the public about the significance of protecting critical national infrastructure, including telecom, energy and transport facilities.

Expressing concern over rampant damage, she said, “The destruction of fibre cables, theft of generators and fuel, and removal of key components from telecom base stations have become all too common. These acts directly affect the quality of service that millions of Nigerians depend on.”

She identified three major challenges undermining telecom service delivery:

Vandalism and Theft: “We are witnessing frequent attacks on telecom sites. These lead to service outages and cost operators billions in repairs.”

Restricted Site Access: “Operators face obstruction from local communities, touts and even some government officials who demand levies, making it difficult to access sites for maintenance and refuelling.”

Road Construction Damage: “Ongoing road projects often result in accidental damage to underground fibre cables, further compounding the situation.”

Responding to public complaints about fast-depleting data, Mrs Ukoha clarified that “mobile network operators do not steal users’ data. What many people experience is due to automatic app updates, background processes, and hotspots being shared unknowingly.”

She advised users to be proactive: “We encourage consumers to review their phone settings, limit background data, turn off auto-play videos, and regularly change hotspot passwords.”

Commending the media, she added, “Journalists play a vital role in educating the public. We appreciate your efforts and urge continued partnership in disseminating accurate, impactful information.”

She also revealed the Commission’s drive to improve digital inclusion: “The NCC is committed to supporting underserved communities with affordable internet access and has commenced specialised training for journalists, particularly senior editors in Lagos and Abuja.”

Mrs Ukoha emphasised collaboration with government agencies to reduce infrastructure damage: “As construction projects expand nationwide, we must work together to prevent unnecessary damage to telecom assets.”

Also speaking, Mallam Yakubu Musa, head, Corporate Communications, NCC,  reinforced the importance of the media in the telecom ecosystem.

He said, “Our partnership with the press is key to promoting transparency, building consumer trust, and supporting regulatory compliance.”

In her remarks, Comrade Grace Ike, chairman, NUJ FCT, commended the NCC’s regulatory efforts and expressed interest in deeper collaboration.

She stated, “We look forward to partnering with the NCC on media training, expanding internet access for journalists, and enhancing public awareness. We also seek your support for our forthcoming Press Week and capacity-building programmes.”

She continued, “The NUJ recognises the importance of digital tools in journalism. Equipping media professionals with access and knowledge will strengthen democratic engagement and promote good governance.”

The NUJ delegation, comprising key executives and media team members, reiterated its commitment to working closely with the NCC to promote national development.

This enforcement initiative—anchored on President Tinubu’s July 2024 Executive Order—provides a solid legal framework for protecting vital telecom infrastructure and ensuring uninterrupted communication services.


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Africa’s Lawmakers Commit to Strengthening AI, Digital Health and Smart Manufacturing Frameworks

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The Pan-African Parliament (PAP) and the African Population Health Research Center (APHRC), in collaboration with the GSMA, have concluded the first Africa Digital Parliamentary Summit focused on building legislative capacity in Artificial Intelligence (AI), data protection, digital health and smart manufacturing, in a bid to promote evidence-based policy-making for Africa’s digital future.

The three-day Summit, held from 9-11 July in Lusaka, convened over 20 Members of Parliament from the Pan-African Parliament Committees on Transport, Industry, Communications, Energy, Science and Technology, and Health, Labour and Social Affairs and was opened by the Zambian Minister of Technology and Science, Honourable Felix Mutati. Strategic partners in attendance included AUDA-NEPAD, Africa CDC, ECOSOCC, and the African Peer Review Mechanism (APRM).

This concluded with the publication of the Lusaka Declaration outlining shared priorities and next steps for ensuring Africa’s digital transformation is inclusive, responsible and grounded in evidence-based policy.

The Lusaka Declaration recognised the vital role of Members of Parliament in shaping laws and policies that drive the continent’s development. The Digital Parliamentary Summit offered a timely platform to enhance the knowledge and capacity of Parliamentarians on critical aspects of digital transformation.

A key highlight of the Summit was the consideration and discussion with Parliamentarians on the draft Africa Digital Health and Smart Manufacturing reports developed by APHRC and the GSMA.

Both reports will be submitted to the Plenary of the PAP when Parliamentarians of the 55 member states of the African Union meet in Midrand later this month on the occasion of the 5th Ordinary Session of the 6th Legislature of the Pan-African Parliament.

Honourable Behdja Mokrani, Chairperson of the Pan-African Parliament Committee on Transport, Industry, Communications, Energy, Science and Technology said “Against the backdrop of global economic uncertainties and the accelerating pace of technological disruption, this Summit has highlighted the critical need to equip African legislators with the foresight and capabilities required to navigate the Fourth Industrial Revolution.

The capacity-building component of the Summit, along with the presentation of the Africa Digital Health and Smart Manufacturing Reports by APHRC and GSMA, reinforced the importance of African policymakers acquiring the relevant skills to address policy issues related to digital transformation – particularly in the areas of Digital Health and Smart Manufacturing – in alignment with the African Union’s Agenda 2063.

Anthony Mveyange, Director of Programs, Synergy, African Population Health Research Center adds “At APHRC, we firmly believe that digital health is a transformative force, holding immense potential for Africa to ‘leapfrog’ traditional development pathways.

This Summit powerfully demonstrates how, by leveraging AI alongside advancements in digital health and smart manufacturing, we can accelerate socio-economic progress and foster deeper continental integration, directly aligning with the ambitious goals of the African Union’s Agenda.”

Key themes explored during the Summit included:

  • The potential of AI-driven digital health to accelerate universal health coverage through better data integration and cross-border information exchange
  • The role of smart manufacturing in enhancing industrial resilience and job creation through automation and IoT
  • The need for harmonised, Africa-led data governance frameworks to ensure responsible AI development and protect privacy and human rights

“AI, digital health, and smart manufacturing have the potential to transform Africa’s economies and improve lives – but unlocking that potential requires the right policy environment.

“This Summit is an important step in equipping lawmakers with the tools to shape secure, inclusive and future-ready digital economies” said Kenechi Okeleke, Senior Director, Regional, Social and Policy Research, GSMA.

Participants reaffirmed their commitment to advancing digital transformation through coordinated reforms, including:

  • Strengthening STEM education and digital literacy among policymakers
  • Embedding ICT training in public service development
  • Establishing cross-sector collaboration between the health, trade and ICT sectors
  • Creating enabling conditions for investment in advanced connectivity infrastructure

Draft findings presented during the Summit estimate that Africa’s digital health market could reach $6.5 billion by 2030 under an optimistic scenario, highlighting the urgent need for policy alignment to maximise impact and drive inclusive growth.

The Summit also set out a roadmap for ongoing engagement between the Pan-African Parliament, APHRC and the GSMA, including the establishment of ‘Evidence-to-Policy’ resource units, sustained capacity-building efforts, and regional forums to harmonise legislation on AI, digital health, and data governance across Africa.


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NITDA DG: AI Is an Ally for Innovation, Not an Enemy

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Kashifu Inuwa, director general of the National Information Technology Development Agency (NITDA) has called on business leaders to embrace artificial intelligence (AI) as a collaborative partner in driving innovation and economic growth, rather than viewing it as a threat to human jobs.

Speaking during a high-level panel session titled “Builders of the New Nigeria – Stories of Scale, Grit, and Innovation” at the BusinessDay CEO Forum Nigeria, held in Lagos, Inuwa challenged the conventional notion of AI as merely an automation tool, and encouraged CEOs and business leaders to view AI as a thought partner and a strategic ally in generating innovative ideas, discovering new business models, and creating competitive advantages in a rapidly evolving global economy.

“I see artificial intelligence not just as a tool, but as a thought partner,” he said, urging business leaders to integrate AI into their operations not as a replacement for human input, but as a collaborator that can unlock new levels of productivity and creativity.

He explained that while AI can outperform humans in certain tasks, its primary function should not be seen as replacing human workers.

Instead, it is poised to take over specific processes and skills currently relied upon to accomplish routine tasks. This shift, according to him, requires business leaders to reposition themselves at the center of this technological evolution.

“The key is to position yourself at the center of this collaboration. Yes, AI can outperform humans in many tasks, but it will not replace you or me. What AI will replace are the skills and processes we rely on today to perform our work.”

Inuwa emphasised the need for CEOs and decision-makers to proactively redefine their roles in an AI-driven world by evolving their capabilities to work effectively alongside intelligent systems.

He highlighted the importance of learning how to collaborate with AI, rather than competing against it, as the surest way to remain relevant and successful in the digital age.

To get the best out of AI, Inuwa advised that businesses should approach AI systems by assigning them specific roles or personas based on the context of their usage. Whether as a virtual lawyer, doctor, co-founder, or advisor, he said assigning a clear role to AI makes its interaction with humans more purposeful and productive.

Despite his optimism about AI’s potential, Inuwa cautioned that AI systems must be approached with vigilance. He warned business leaders not to assume AI is always accurate or ethical by default, stating that AI should always be treated as the “worst version” of itself until it proves otherwise.

“This is where government’s role becomes critical. As regulators, we need to create policy labs where we can test AI technologies in safe, controlled environments. We must evaluate them thoroughly to ensure they are safe, ethical, and reliable,” he added.

He noted that NITDA has adopted a progressive regulatory approach centered on collaboration, experimentation, and co-creation. Rather than imposing restrictive regulations out of fear or uncertainty, the agency works hand-in-hand with innovators, startups, and the private sector to experiment with emerging technologies like AI.

According to Inuwa, the insights gained from such collaborative initiatives help government agencies like NITDA establish clear, evidence-based benchmarks and policies that both support innovation and safeguard public interests.

“This is our approach to regulation. Rather than rushing to regulate based on fear, we collaborate with the private sector to experiment, learn, and build together.

“We co-create solutions, then use the lessons from these experiments to establish clear benchmarks that will inform future frameworks, guidelines, and regulations,” he added.

Inuwa said, “Nigeria is setting a precedent for balancing technological innovation with societal responsibility, enabling businesses to thrive while ensuring that new technologies benefit the broader society.”

“Our aim is to create an environment where businesses can innovate responsibly, while ensuring society as a whole benefit from these new technologies,” he concluded.

The BusinessDay CEO Forum Nigeria attracted an influential audience of business executives, entrepreneurs, policymakers, and thought leaders from across the country. The event served as a platform for high-impact conversations on scaling businesses, building resilience, and driving sustainable innovation in Nigeria’s challenging economic climate.

Throughout the session, panelists shared personal stories of perseverance, discussed strategies for business growth, and explored how technologies like AI, digital payments, and data analytics are shaping Nigeria’s future economy.


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