News
Spending on Telecom, Pay TV Services Hobbled by Inflation – IDC
International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker, has reported that worldwide spending on telecommunication and pay TV services will reach $1,55-trillion in 2023, an increase of 3 per cent over 2022.
The latest forecast is one percentage point higher than the previous forecast published in May.
This is the third increase in the forecast in the last 12 months with inflation being the primary driver.
The geographic regions seeing above-average forecast revisions are the Middle East and Africa (MEA), and Latin America.
This is mainly a consequence of hyperinflation happening in countries such as Turkey, Uganda, Egypt, and Argentina where it has become normal to see quarterly ARPUs (average revenue per user) growing by more than 50% on a yearly basis.
On the other hand, expectations for the telecom services market in Western Europe have been lowered slightly primarily due to a worsened economic environment in a few key countries including Germany.
IDC believes this is the first sign of a new market force emerging that will put the current growth rates under pressure and slowly bring them down toward the end of the forecast period.
Inflation is certainly a global phenomenon, but the trends it shapes in different local markets vary significantly. In many countries, telecom operators were allowed by regulators to increase their tariffs (often applying a Consumer Price Index model), resulting in healthy service revenue growth on an annual basis.
In other countries, however, this move drove the accelerated migration of customers to cheaper tariff packages and cheaper operators so the value growth rates were much lower than the nominal tariff increases.
A third group includes countries such as Italy, where the competitive situation did not permit operators to do any tariff adjustments.
And among a fourth group of countries, mainly the developing countries in Eastern Europe and Africa, tariff increases were prevented by the populations’ low purchasing power.
An analysis by type of telecom services confirms that the well-known trends continue despite the changes in top-line forecasts.
Mobile is and will remain the largest segment driven by the growth in mobile data usage and machine-to-machine (M2M) applications which are offsetting declines in spending on mobile voice and messaging services.
The fixed data services segment will also grow driven by the need for higher bandwidth services will fall over the forecast period as rapidly declining TDM voice revenues are not being offservices. Spending on fixed voice set by the increase in IP voice.
The traditional Pay TV market will decline slightly over the forecast period due to the growing popularity of video on demand (VoD) and over the top (OTT) services, but these services will remain an important part of the multi-play offerings of telecom providers across the world.
Prices of all goods and services have been increasing for quite some time. Economic growth has recently started to decelerate following increases in central bank interest rates.
Consumers and businesses have been under pressure as they try to maintain a balance between rising costs and limited budgets. Although the elasticity of the telecom services is relatively low, and it is hard for customers to imagine everyday life without them, any excessive tariff increases might affect demand.
“Operators need to carefully evaluate every single market for tolerance to price increases,” said Kresimir Alic, research director, Worldwide Telecom Services at IDC.
“They should continuously assess and compare the product mixes, quality of services, pricing, and customer support capabilities of all supply-side participants. That information should help them find a magic percentage that will not scare the customers away, have positive impact on revenues, and help them maintain healthy margins in these turbulent times.”
News
Head of Civil Service Celebrates 100 Days in Office with the Launch of Galaxy Backbone’s “Govmail”
In a landmark moment for Nigeria’s public service, the Head of Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, OON, MINI, today marked her 100 days in office and officially launched three digital services platforms for the Civil Service.
These include, Govmail, ServiceWise GPT and the Federal Civil Service Online Portal. These platforms, underscore President Bola Ahmed Tinubu’s administration’s commitment to enhancing digital governance and driving innovation across the nation’s Federal Civil Service.
Govmail, an email platform developed and powered by Galaxy Backbone (GBB) is an innovative solution set to enhance communication, boost efficiency, and accelerate Nigeria’s digital transformation journey within the public sector.
Speaking at a meeting where the Govmail Interface was first officially presented and demonstrated to her, the Head of Civil Service expressed her excitement about the platform, stating, “GBB’s Govmail is unbelievably WOW!
This is a game-changer for our nation’s civil service, streamlining communication and creating a secure path to other government digital services. With Govmail, we are truly embracing the future of digital governance.”
Govmail is a secure, Nigeria-centric email platform designed by a team from Galaxy Backbone, exclusively for public service professionals. It ensures that all official communication are seamlessly managed while safeguarding Nigeria’s data sovereignty. The initiative emerged as a key outcome of the Digitalisation War Room, established by Mrs. Walson- Jack, to drive the implementation of cutting-edge digital solutions in government.
Commenting on this milestone, Professor Ibrahim A. Adeyanju, Managing Director/CEO of Galaxy Backbone, shared, “We are immensely proud to have developed this revolutionary platform, ensuring that every Nigerian civil servant has access to a robust and secure communication channel.
Govmail is not just about email—it’s about enabling productivity, efficiency, and sovereignty in governance. Galaxy Backbone remains committed to driving the digital transformation of Nigeria’s public sector.”
The Permanent Secretary, Federal Ministry of Communications, Innovation & Digital Economy, Engr. Faruk Yusuf Yabo emphasized the strategic importance of the Govmail for the nation’s Civil Service stating that “Govmail significantly reduces the government’s reliance on foreign email platforms, cutting costs and addressing licensing challenges. This is a commendable achievement by the Head of Service and the leadership of Galaxy Backbone.”
Through GBB’s dedicated efforts, Govmail will rapidly roll out email accounts to over 70,000 Federal civil servants across Nigeria, ensuring every government professional is equipped with a secure communication platform in record time. This initiative aligns with Nigeria’s goal of leveraging technology to build a digitally driven and globally competitive public service.
News
Senate Approves New $2.2Bn External Borrowing for Nigeria
The Senate has approved the new external borrowing plan request of $2.2 billion presented for consideration by President Bola Tinubu.
The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts at the plenary session on Thursday.
The report was presented by the Sen. Aliyu Wammako, chairman of the Committee.
President Bola Tinubu had on Tuesday, Nov 19, in separate letters to both chambers of the National Assembly, requested approval of a $2.2 billion external borrowing plan to part fund the N9.7 trillion deficit in the 2024 budget .
Senate upon receipt of the request, mandated its committee on local and foreign debts to expeditiously ensure further legislative inputs on the request and report back within 24 hours.
Presenting the committee‘s report, Wammako said the presidential request was very necessary for approval.
He said the loan request would be utilised for execution of ongoing projects and programmes in the 2024 appropriation act , saying that the projects were critical for national growth and development.
“It will contribute to the implementation of the debt management strategy, which seeks to reduce the cost of borrowing.
” It will lengthen maturity of the public debt stock, free – up space in the domestic market for other borrowers, and help increase Nigeria’s external reserves .” Wammako said Nigeria could raise all or part of the 2.2billion dollars through the issuance of Eurobonds in the International Capital Market ( ICM) .
Wammako thereafter is recommended as follows:
“That the Senate do approve the implementation of the new external borrowing of 2.2 billion dollars at the budget exchange rate of one dollars to N800 in the 2024 appropriation act and that the amount should be raised from one or more sources.
“Namely, issuance of eurobonds in the ICM, issuance of debut sovereign Sukuk in the ICM, and bridge, syndicated loans, subject to market conditions.”
The report was thereafter unanimously approved via an affirmative voice vote.
In his remarks after the approval, Senator Jibrin Barau, deputy president of the Senate, who presided plenary, commended the Wammako led committee for a job well done.
News
Airtel, Mobihealth Partner to Improve Healthcare Access for Nigerians
Airtel Nigeria, a telecommunication and mobile money service provider, has announced a groundbreaking partnership with Mobihealth International, a pioneering telehealth service provider.
This strategic collaboration is set to significantly improve healthcare access for millions of people across Nigeria, particularly in underserved communities.
Under this partnership, Nigerians will enjoy affordable and round the clock access to Mobihealth’s innovative telemedicine services, allowing them to connect with licensed healthcare professionals from the comfort of their homes via mobile phones.
Mobihealth’s platform offers a range of services including 24/7 teleconsultations, prescription services, delivery of genuine medications, and access to international medical specialists.
A Game Changer for Healthcare in Africa
Airtel’s vast network infrastructure will empower Mobihealth to extend its reach to rural and remote areas, ensuring that even the most vulnerable populations can access quality healthcare. This partnership also aims to support the government’s efforts at resolving the nation’s healthcare challenges, including limited access to doctors, high healthcare costs, and a shortage of medical facilities.
Speaking on the partnership, Femi Oshinlaja, Chief Commercial Officer of Airtel Nigeria, stated, “We believe that telemedicine will play a crucial role in Nigeria’s healthcare future. Our partnership with Mobihealth showcases our dedication to providing innovative solutions that significantly improve the lives of Nigerians.”
Dr. Funmi Adewara, Founder and CEO of Mobihealth, added: “This partnership with Airtel is a major milestone in our mission to democratize healthcare in Africa. Together, we will offer a lifeline to millions who face barriers to accessing timely, affordable, and quality medical care. Our telehealth platform will provide convenient access to qualified doctors, diagnostics, and treatments, ensuring that no one is left behind.”
This collaboration is expected to transform the healthcare landscape across Nigeria, making healthcare services more accessible, affordable, and effective.
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