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Telcos May Cough out N720Bn to Power Services- Punch

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The cost of powering telecommunication services could hit N60bn per month and N720bn in one year if the cost of diesel reaches N1500/litre as hinted by marketers of the product.

Telcos May Cough out N720Bn to Power Services- Punch

The Punch quoting industry data estimated that mobile telecommunication operators use an average of 40 million litres of diesel per month to power telecom sites.

This, therefore, means that telecoms firms can spend as much as N720bn in powering their services in 12 months.

The Natural Oil and Gas Suppliers Association (NOGASA), recently told journalists in Abuja that there was a shortage of diesel in the nation and it was also affecting petrol stations since trucks could not convey diesel to them.

Bennett Korie, national president, NOGASA, said, “If you go round now, you will see that about 75 per cent of filling stations in Nigeria have gone out of business.

“There is no diesel to take fuel to their stations. All of them are going down. And it is not that the fuel is not there, but the cost of bringing it to the stations is too high. We know that the crisis between Ukraine and Russia has contributed badly, but the government has to do something fast, otherwise, we are going to buy diesel in the next two weeks at N1000 to N1500/litre.”

He added that diesel was currently being sold for N850/litre. According to the Association of Licensed Telecoms Operators of Nigeria (ALTON), the telecom industry was one of the largest consumers of diesel in the nation accounting for about 35 per cent of operators’ costs.

In a recent letter to the Nigerian Communications Commission (NCC), ALTON had lamented the high cost of providing telecom services in the nation, hinting at the need for a price review of these services to reflect market prices.

It said, “The telecommunication industry has been heavily financially impacted following Nigeria’s economic recession in 2020 and the effect of the ongoing Ukraine/Russia crisis.

“This has resulted to an increase in energy costs (which constitutes an appreciable 35 per cent of ALTON’s members’ operating expenses).

“Consequently, the cost of diesel required to power operators’ towers, base stations, and offices rose by a staggering 233 per cent from N225 per litre in January 2022 to over N750 per litre in March 2022.”

In the letter, ALTON suggested a 40 per cent upward review in the cost of calls, SMS, and data. This would have increased the floor price of calls from N6.4 to N8.95 and the price cap of SMS from N4 to N5.61.

According to industry statistics from the National Communications Commission (NCC), the operating cost of GSM operators was N1.39tn in 2019. It increased by 0.24 per cent to N1.4tn in 2020 and by 18.85 per cent to N1.66tn in 2021.

The data revealed that operators had 38,288 base stations at the end of 2021. A source in one of the telecom companies added that each base station had two diesel-powered generators.

Commenting, a source at ALTON, who did not want to be named because of the delicacy of the matter, said, “They said about N1,000/litre. Diesel is the source of our energy, and it will affect us.

 


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NCC Plans 6G Spectrum Deployment to Expand Wi-Fi Access

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Nigerian Communications Commission (NCC) has announced plans to deploy the 6G spectrum in Nigeria to enhance access to Wi-Fi technology.

NCC Plans 6G Spectrum Deployment to Expand Wi-Fi Access

Speaking on Thursday at a consultative forum on emerging technologies in Lagos, Aminu Maida, executive vice-chairman of the NCC, highlighted the need for efficient management and utilisation of spectrum resources.

The event, tagged ‘The Use of 6GHz (5925-7125) MHz for WiFi and IMT Applications in Nigeria’, sought input from stakeholders on how the new frequency band can be optimally used.

Maida, represented by Abraham Oshadami, executive commissioner of technical services at the NCC, explained that existing spectrums, including 5G and 2G, are becoming congested due to increasing demand, necessitating the introduction of additional frequency bands such as 6GHz.

“The 6GHz band offers a substantial increase in available spectrum, crucial for supporting the growing demand for high-speed internet and advanced applications,” Maida said.

“Wi-Fi plays a crucial role in the distribution of fixed broadband connectivity in homes, offices, and various other environments.”

Maida further explained that with Wi-Fi 6, users will benefit from increased capacity, enabling seamless connectivity for emerging technologies such as virtual reality (VR) and augmented reality (AR), which current spectrums cannot fully support.

He added that the introduction of unlicensed Wi-Fi 6 will lower the cost of internet access.

Caroline Alenoghena, a telecommunications engineering professor at the Federal University of Technology, Minna, stated that the introduction of the new spectrum is necessary to reduce congestion in existing Wi-Fi frequencies.

She noted that the 6G band would create new opportunities for start-ups in the digital services sector.

Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), emphasized that the proper allocation of the 6G spectrum would enable the deployment of diverse technologies and help democratise access to urban, semi-rural, and rural areas.

He said, “Foreseeable challenges are things like infrastructure requirements, the whole of investment that’s required, competing technologies, because some of these technologies are still being developed.”

Emoekpere described the consultative forum as standard practice in the industry to ensure that all stakeholders are involved in the development of new technologies and policies.

 

 

 


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IFC, Airtel Africa Partner to Increase Access to High-speed Mobile Connectivity in sub-Saharan Africa

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IFC has provided new financing to three of Airtel Africa plc’s subsidiaries with the aim of bringing high-speed mobile connectivity to more than 37 million subscribers in sub-Saharan Africa.

IFC’s $200 million loan will support the expansion and modernization of Airtel Africa’s network, as well as further investment into its distribution infrastructure, with a continued focus on rural areas.

Across Africa, approximately 600 million people lack access to 4G mobile coverage. In many countries across sub-Saharan Africa, the availability of mobile internet, and network performance, are below regional averages.

Despite this connectivity gap, up to 86 percent of firms on the continent use mobile phones for business operations, according to IFC’s recent report on digital connectivity in Africa. IFC’s financing is intended to help close this gap.

The new financing will take the form of a sustainability-linked loan, with key performance indicators related to the main pillars of Airtel Africa’s sustainability strategy: digital connectivity focused on smartphone adoption rates, financial inclusion for women, and gender balance within Airtel Africa’s own management team.

These three metrics will contribute to bridging the digital divide in Africa and support the equitable distribution of economic opportunities, poverty reduction, and financial stability across the continent. Most of the financing package is denominated in local currency, which IFC is providing to reduce the impact of currency volatility.

“IFC’s partnership with Airtel is critical to expanding high-speed connectivity in Africa,” said Mary Porter Peschka, IFC’s Regional Director for Eastern Africa. “Better connectivity means more opportunity. Our work with Airtel will help millions more people not only to come online but also gain access to high-speed networks so that they can better leverage the digital economy opportunities.”

With limited banking infrastructure in East Africa, mobile network operators are, in many cases, the only providers of financial services for consumers in these markets. In particular, women are especially reliant on this form of mobile banking.

Increasing digital connectivity is therefore a way to increase financial and gender inclusion.

Airtel Africa intends to partner with local and regional financial institutions to further enhance the mobile money eco-system by providing additional financial services to all customers across the region, further enabling the economic empowerment of women.

Airtel Africa’s Group CEO, Sunil Taldar said: “The expansion of our network is critical to our ambition of bridging the digital divide across Africa. This ambition can only be unlocked through continued investment into the region, and we welcome the partnership with IFC to enable this and further support our sustainability strategy of transforming lives and building better futures for communities across Africa.”


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IHS Nigeria Partners Jaza Energy to Deploy Solar Hubs @ Tower Sites

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IHS Nigeria, a subsidiary of IHS Towers, has formed a strategic partnership with Canadian-based energy company Jaza Energy, that will see Jaza install solar hubs at 250 towers in underserved areas of Nigeria.

IHS Nigeria Partners Jaza Energy to Deploy Solar Hubs @ Tower Sites

Tower infrastructure company, said that the partnership will enable it to reduce the environmental footprint of its operations.

According to IHS, the hubs will provide clean energy to the towers, while the excess power generated by the solar panels at these hubs will be used to charge battery packs for local households and businesses, which it notes will reduce reliance on diesel generators.

Jaza Energy specializes in providing energy equipment and solutions, aimed at supporting homes and communities.

IHS has sought to reduce carbon emissions as part of its Project Green initiative.

The project aims to reduce kWh emissions intensity by approximately 50 percent by 2030.

The tower company has invested more than $200 million into the initiative over the past two years.

“This partnership with Jaza Energy complements this initiative, as we seek to integrate more solar solutions on our sites, and simultaneously help support local communities,” said Mohamad Darwish, CEO of IHS Nigeria.

“In this case, by helping Jaza Energy provide more local households with access to battery packs for domestic use, as substitutes for diesel-powered generators.”

Jaza Energy claims to have delivered more than three million solar battery swaps and reached more than 100,000 people in Tanzania and Nigeria with its clean energy solutions.

IHS said it expects the 250 hubs to help it achieve an emissions reduction of approximately 32,600 – 33,000 tonnes of CO2e over the seven-year agreement.

Last month, IHS Towers struck an agreement to renew and extend its Nigeria tower master lease agreements with MTN Nigeria until December 2032. The contract renewal covers approximately 13,500 tenancy contracts.

 

 

 

 

 


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