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Telecoms Boom Leaves Rural Nigeria, Others Behind

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While mobile phone usage has exploded across Africa over the last decade, transforming daily life and commerce for millions, it’s a revolution that has left behind perhaps two thirds of its people.

Poor or no reception outside the towns helps explain why the continent’s mobile penetration, in terms of the percentage of the population using the service, is far lower than previously thought, and the cost of providing that service to impoverished, sparsely populated areas remains prohibitive.

According to Reuters, in rural Sierra Leone, a country where GDP per capita is less than US$400 a year, money doesn’t grow on trees, but mobile reception can, says street trader Abass Bangura in Freetown, the West African country’s capital.

In parts of Tonkolili, a district in the centre of the country, or Kailahun to the east, it’s the only way you can get reception, he said.

“You climb stick, like mango tree, before you have network,” he said.

In South Sudan, the world’s newest state, it’s a similar story. Less than a year old, the country already has five mobile operators, and its capital, Juba, is teeming with giant billboards advertising mobile phones, but go just a few kilometres beyond a handful of fast-growing towns, and mobile phones become useless.

Multiple SIM cards help users navigate patchy network coverage and take advantage of price promotions from rival operators.

That is typical of much of the continent.

With a population of just over a billion people, Africa has over 700 million SIM cards, but with most users owning at least two cards, penetration is only about 33 per cent, according to a study released in November by industry research firm Wireless Intelligence.

“If we look at the fact that the rural population of Africa is about 60-70 per cent of the population, and if we look at the degree of penetration into the rural market, it’s very, very low,” said Spiwe Chireka of advisory firm IDC.

In Nigeria, Africa’s most populous country, there are more than enough SIM cards for everyone, but penetration is only 61 per cent, according to a last year study by research firm Informa.

The average mobile phone user in Nigeria owns an average of 2.39 SIM cards. Globally, only Indonesia is higher, with an average of 2.62 SIM cards per user.

Even in Africa’s biggest economy, South Africa, SIM numbers comfortably exceed the population, but given the number of people using multiple devices, actual population penetration is closer to 80 per cent, says market leader Vodacom.

“You’ve got a lot of people buying SIMs, but maybe not enough phones to put it in,” said Olayemi Jinadu, an executive with the Sierra Leone arm of Indian telco Bharti Airtel .

The unserved rural millions could represent another growth opportunity for Africa-focused telcos like South Africa’s MTN Group, Bharti Airtel and Kuwait’s Zain, but first they have to figure out a cost-effective way to push into sub-Saharan Africa’s remote corners.

“There’s great potential, but the big concern for us is operational costs,” said Andre Claasson, chief operating officer at Zain South Sudan.

In rural Africa, the cost of running a network tower often exceeds the revenue it reaps. Fuel is typically about 40 per cent of a tower’s operating cost, and in remote areas companies burn more diesel by bringing fuel to towers than is used powering them.

Although roughly 73 per cent of Africa’s land has mobile phone coverage, according to market research firm IDC, that still leaves vast tracts of rural Africa without network access.

Africa has 170,000 mobile towers now and needs another 60,000, according to tower company IHS Group, which at an average $200,000 each means an outlay of $12 billion.

“If you are an operator asked to spend $200,000 to build a site and another $2,000 a month to run it in an area with 500 people herding cows, it doesn’t make sense,” said Issam Darwish, IHS’s chief executive.

Average revenue per user is also low. It can vary between $1 and $10 per month, much lower than in developed markets such as the United States, which delivered ARPU of $51 last year or Britain, $27.

Bharti, sub-Saharan Africa’s third-largest telecom group, says it makes $6.40 per user in Africa, which is higher than its home Indian market, where it makes only $3.30 a month, but the cost of operating in Africa is much higher and there isn’t a comparable middle class ready and able to spend more.

“You either have a handful of people in the affluent part of the society or you have lots of people who can’t afford the services,” its chairman, Sunil Mittal, said last year.

Operators can save money by sharing towers, but even then, some sites will never make sense without government subsidies, analysts say.

African expansion has not been cheap for telcos. Over the past five years, mobile operators have spent a combined US$16.5 billion on capital expenditure in the key markets of South Africa, Nigeria, Kenya, Senegal and Ghana, according to Wireless Intelligence.

Bharti has earmarked US$1.5 billion for capex this year, while fourth-placed France Telecom is spending US$9.3 billion between 2010 and 2015.

Spare cash is increasingly rare for debt-strapped European telecoms operators, which are cutting their dividends to cope with falling revenues and network upgrade costs in their home markets.

Some African regulators have set up funds to promote coverage, to which operators are expected to contribute.

In Sierra Leone, the Universal Access Development Fund (UADF) is yet to subsidise the cost of putting up a single mast, though it has been active for several years. The regulator complains networks do not contribute the fees they should.

“If we can’t subsidise, they’ll never erect towers there,” said Bashir Kamara, Project Manager at UADF.


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Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

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MTN, Airtel, Glo and 9Mobile, four major Nigerian telecommunications companies, have a combined 267 tariff plans, according to Nigerian Communications Commission (NCC).

Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

The proliferation of tariff plans by mobile networks has been giving subscribers headaches, keeping them in dilemma on which to choose to get value for their money.

According to the NCC, the revelation of various tariff plans came through its research on the complaints of subscribers concerning data depletion.

Explaining the outcome of the research at a 2-Day Upskilling On Trends In Telecom Industry For Media Stakeholders held in Lagos,  Dr. Ikechukwu Adinde, director, Public Affairs, Nigerian Communication Commission, said majority of the telecoms subscribers did not know the actual tariffs charged by their network providers.

Analysing the various tariff plans by the telcos, Adinde said MTN as the largest operator, currently had 159 tariff plans, with 14 for voice and 145 for data. Airtel has 27 for voice and 41 for data services.

Globacom has six for voice and 32 for data, while 9mobile has seven different tariff plans for voice and 97 for data. According to him, the situation has made it difficult for many subscribers to actually select the beat tariff plan for them since there is proliferation of such plans on the networks of their providers, noting that most times, the difference between two tariffs is not discernable by the subscribers.

He said this had been affecting the quality of experience (QoE) advocating by the Agency, and so creating uncertainty for the consumers.

Meanwhile, he said the Commission was going to streamline the various tariff plans to just seven for better understanding of the consumers and to enhance the quality of experience.

“The whole idea is to ensure that consumers have a good experience, because too many tariff plans affect the quality of service – all benefits or allowances, voice, SMS and data must be seated in clear, useful and user friendly formats. “We don’t get this kind of transparency many of us are passionate about.


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First Set of Winners Emerge in Glo Festival of Joy Promo in Warri

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Digital solutions company, Globacom, on Thursday, in Warri, Delta State, held the first draw of its ongoing consumer promo, Festival of Joy. The draw was conducted at Gloworld, Delta Mall, and was attended by Glo subscribers, the media and representative of National Lottery Regulatory Commission, Mr. Anwyuli Efejukwu.

Globacom said the lucky winners including, “the winner of a brand new Toyota Prado and winners of tricycles, sewing machines, generators and grinding machines will receive their prizes on November 21, 2024 at the same Gloworld”.

To participate in the promo, Glo advised new and existing subscribers to dial *611# and recharge (voice and data) during the promo period. It added that new subscribers can join by purchasing a new SIM, registering it, and dialing *611#.

“New and existing customers are required to recharge up to N100,000 cumulatively during the promo period to qualify for the draw for the Prado Jeep, N50, 000 cumulative recharge for Kia Picanto, N10, 000 in a month for tricycle and N5, 000 total recharge in a month to win a generator.

For the sewing machine, a total recharge of N2, 500 in a month is required, while for the grinding machine, a recharge of N500 in a day will be eligible for the draw”. The company said.


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MTN Foundation Enhances Education with Renovation of 29 Laboratories in Nigeria

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MTN Foundation recently unveiled 29 fully renovated science and ICT laboratories in public secondary schools located in the Northeast and Southeast areas of Nigeria, including Kano, Gombe, Enugu, and Anambra.

This is part of MTNF’s Science and Technology Laboratory Project (STLP). The nationwide initiative has enhanced science education by equipping public school laboratories with state-of-the-art facilities and vital resources.

The STLP initiative reflects the Foundation’s commitment to youth empowerment and educational advancement in Nigeria, providing students with practical learning experiences in core science subjects such as Physics, Chemistry, Biology, and Agriculture.

The third phase of this project alone has seen the complete transformation of laboratories in six schools, with structural renovations, alternative power installations, digital learning tools, and specialised training for teachers and lab attendants.

The Foundation’s investment in education has paved the way for transformative programs like the MTN Scholarship Scheme, which supports Nigerian students in their academic pursuits, and digital skills training programs aimed at fostering technological competence and readiness.

Now, with its Science and Technology Laboratory Project, MTNF is extending these commitments to the very heart of the Nigerian classroom, transforming learning environments into spaces where students can explore, innovate, and excel.

MTNF Executive Director, Odunayo Sanya expressed the Foundation’s resolve, stating, “We are proud to support young Nigerians with the resources and environments they need to excel in science and technology.

“Our commitment is rooted in ensuring access to quality education for every Nigerian student.”

This dedication has fuelled MTNF’s efforts to establish impactful projects nationwide, positioning the Foundation as a pivotal player in advancing Nigeria’s socio-economic development and shaping a brighter future for its youth.

As the Foundation celebrates its 20th anniversary, its impact extends beyond laboratory renovations. Over the past two decades, the Foundation has invested N29.4 billion in diverse programs that improve the lives of millions across Nigeria, with a focus on youth empowerment, education, healthcare, and community development.

Guided by its new theme “Inspiring Impact Where it Matters,” the Foundation is committed to addressing critical national priorities, ensuring that underserved communities will continue to benefit from its initiatives.


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