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Top 4 Digital Transformation Priorities for African Telcos

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After nearly two decades of uninhibited growth and profitability, African telecoms operators (telcos) are facing the converging forces of digital disruption.

Some of the factors contributing to this are: easily accessible broadband internet, popular over the top (OTT) services such as WhatsApp, and changing consumer needs.

According to Ovum, telco operators will lose out on USD 386 billion between 2012 and 2018 purely because of over-the-top VoIP services cannibalizing voice revenues.

This has sparked the players in the industry to reimagine their business models, shifting away from simple communication services delivery to becoming digital service providers (DSPs) that power their customers’ digital lifestyles.

As the telco gold rush of the past two decades slows down, operators are increasingly looking at owning more of the customer mindshare by creating great brands built on practical usefulness, reliability, innovation, cost, and entertainment.

Telcos are no longer simply looking for revenue-generating customers; the focus is now on creating new revenue opportunities that allow them to sell business and lifestyle services at higher margins.

Telco operators in the African continent are faced with an urgent need to fast-track digital transformation to meet the challenges posed by the new business and consumer environment. Currently, four major digital transformation priorities have emerged. Let’s unpack them one by one.

Priority 1 – Improving the customer experience
Consumers today demand personalised services and products to match their lifestyles.
For telcos, the focus has shifted away from customer relationship management (CRM) to personalised engagement across any device, anywhere, anytime.
According to a global EY telecoms industry study, 82% of telcos consider customer experience (CX) management as a top three (3) priority for the industry.
The increasing demand for personalisation has given rise to the development of unique experiences delivered to match individual customers’ interests.
As customers interact with telcos through their channel of choice – whether email, voice call, social media, or another channel – operators will need to take a non-linear approach to customer engagement.
Here, telcos need a platform that can integrate all channels and provide a single accurate view of a customer.
And by leveraging analytics to improve product development, telcos can enable smarter selling by increasing the relevance of their offer based on individual customer behaviour.

Priority 2 – Big Data and real-time analytics
With a predicted internet population of 3 billion and an expected 30-50 billion connected devices by 2020, the role and importance of big data in the business world cannot be underestimated.
According to the Mobile World Congress, 74% of telco operators believe that the ability to manage big data is a major differentiator in the digital economy.
With an estimated economic impact of USD 4-11 trillion by 2025, the business case is clear.
Telcos have a key role to play, as they are uniquely positioned to bridge physical and digital assets.
With the Internet of Things (IoT) taking grasp, telcos should latch on to become enablers of innovation by leveraging their network assets for connectivity purposes.
By adopting cutting-edge in-memory computing platforms, telcos can also leverage big data from mobile devices, sensors, usage patterns, social media, and geolocation to create a single integrated data set that can inform improved business processes and create optimal customer experiences.
This can also drive real-time insights and unlock new revenue streams. As sensors and IoT devices become increasingly common and affordable, this capability gets amplified.

Priority 3 – Effective workforce engagement
As millennials increasingly enter the workforce, employers are forced to rethink their employee engagement models to accommodate the disruptive expectations and demands of this highly connected, informed, and technology-enabled workforce. According to PwC, millennials will constitute more than 50% of the workforce by 2020.
For African telcos, workforce management is critical due to the on-going digital skills shortage. Operators are relooking how they recruit, retain, and manage employees in a market where talent is a key commodity.
Complexity is also on the rise: many operators do business in multiple countries, across various languages, and under different sets of regulations. Within this context, organisational complexity is driving up costs while slowing down progress.
Telcos that digitise their workforce gain the benefit of total workforce management supported by advanced analytics. As machine learning becomes more pervasive, manual transaction work in areas such as procurement, inventory management, and payment processing become digitised, requiring access to real-time analytics in order to support rule-based decision-making. And with real-time information at their fingertips, field technicians, store employees, and customer service representatives are able to deliver personalised services, exceeding customer expectations.

Priority 4 – Enabling machine learning capabilities to drive innovation
With an estimated market value of USD 47 billion by 2020 according to the IDC, machine learning is bringing new innovation capabilities and improved operations to data-heavy industries around the world, spanning from supply chain to retail to telecoms.
Machine learning can unlock new operational efficiencies by automating manual tasks and speeding up time-to-resolution.
This can play a transformative role in the way telcos conduct finances (through automated payment matching, for example), recruit for top talent (through intelligent job matching), and improve customer service (by gathering, analysing and responding to feedback quickly and efficiently).
Operators should take a platform approach to ensure they have the tools to innovate quickly and deploy machine learning solutions at speed and scale.
In a recent McKinsey report, 40% of all the potential value locked within IoT demands interoperability between IoT systems, which requires a strong platform.
SAP Leonardo is a digital innovation platform that brings together breakthrough technologies such as machine learning, IoT, analytics, big data, and blockchain, all integrated to the in-memory SAP Cloud Platform.
It enables telcos to launch new innovations at scale while unlocking additional revenue opportunities from historical data and processes, and helps to redefine business models at a time when the industry needs it most.


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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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