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Knocks, Pats as Operators Dissect Interconnect Rate

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Argument swung left and right Friday, as stakeholders in the telecom industry disagreed on terms of measurement used in determining Nigeria’s interconnection rates regime that has caused problems in the sector.

The stakeholders at the forum called by the Nigerian Communications Commission (NCC) to review the 2009 interconnection rates determination for voice services to the regime apart and pointed at the various issues causative to high interconnection indebtedness in the industry.

Under the current regime, which kicked off in December 31, 2009, interconnection rates for mobile voice termination provided by new entrants irrespective of originating network were set at N10.12.

The rates were designed to fall progressively to N9.48 on December 31, 2010; N8.84 on December 31, 2011 and N8.20 on December 31, 2012, from which date all termination rates will be symmetric.

But Alastair Macpherson, partner, strategy consulting at the London based PWC who conducted a study on the Nigeria mobile market interconnection rates regime, noted that their study was based on asymmetric rates for the industry adopted by the NCC.

Macpherson stated that ‘asymmetry was the big issue and said they looked at the cost and scale of operation of each operator based on their capacity.

Their study, he noted was based on a ‘hypothetical operator’ which doesn’t represent any real operator in the country. “It only shows the level of termination regime that should be in operation” and added: “it is not essentially the number of sites (an operator owns) but its operational efficiency.”

Dr. Eugene Juwah, executive vice chairman & CEO of the NCC said the interconnection rates were reviewed every three years since 2006.

“The Commission reviewed the interconnection rates by applying multiple rates for mobile and fixed voice services in recognition of far-end and near-end calls termination principles.

“Notably, the subsisting 2009 Glide Path interconnection rates for voice services is the first time the Commission implemented the glide path asymmetric rates for the industry. This was in recognition of late entrants and the commencement of the unified service licensing regime in order to create an enabling environment for healthy competition in the telecommunications markets among the active players.”

But Macpherson noted that the Nigerian market still has a lot of “growth expectation, especially in GSM voice for 2013.”

He said most 3G networks were essentially urban based and stated that in reviewing the Nigeria interconnection rates regime, comparative analysis was made with countries like Tanzania, South Africa and Ghana.

According to Macpherson, Tanzania does a periodic review, South Africa like Nigeria was in the process of reviewing.

The rates operating in Ghana, he noted were lower than what obtains in Nigeria.

But as if in a rehearsed unison, operators and major industry players queried the PWC methodology used at arriving in their conclusions.

Uche Ojo, director at Visafone, Nigeria’s leading code-division multiple application (CDMA) operator insisted that the PWC presentation didn’t represent their market share of the industry.

“I’d first of like to acknowledge that you guys did a good job, but in doing so I am also going to express my disaffection that you did not represent our (CDMA) operations.

Ojo stated what the Nigerian market environment indicates is that from the very beginning, the GSM operators have ‘marked out’ the CDMA firms.

He stated that it was easy for smaller operators to survive under the current regime; hence their peculiarity should have been factored into the findings.

Steve Evans, CEO, Etisalat Nigeria, which has really captured the imagination of Nigeria mobile consumers with their innovative offerings and managed in the process of garner about 15 million customers in less than five years, said PWC did a good job.

He however noted that the ‘hypothetical’ research methodology adopted by PWC was faulty.

“First, I’d say you did a very good job. Asymmetry is a healthy option, but hypothetical option is vague, because it represents a smaller factor than some real-time operators like mine (Etisalat). There should be symmetry in two or three variances like the small, medium and larger operators,” said Evans.

While agreeing with the Visafone director, Evans noted that “it’s very clear that smaller operators are competing at a very big disadvantage. We pay more to MTN in interconnect rate than we made for ourselves even with our 15 million customers.”

Uche Onwudiwe, chief operating officer of Interconnect ClearingHouse also faulted the PWC report stating that their operation was not factored in the study.

Osondu Nwokolo, director government and regulatory affairs at Airtel Nigeria also noted that PWC should have segmented their asymmetric study into three principal market regimes: ‘very large, 2nd set and 3rd set.”

Rather, he noted that “your presentation reflects on two-lines of operators: dominant and other GSM, plus the CDMAs.”

Reacting swiftly,  Ms. Oyeronke Oyetunde, general manager, regulatory affairs at MTN Nigeria said: “asymmetry should look at operational cost and not necessarily size of operator. Care should be taken in terms of segregation.”

She implored the industry regulators, NCC to give operators time to study the review model presentation and revert at a later date.

Mohammed Buhari, senior manager, Interconnect & Carrier Services at MTN also raised objections to comparisons between Ghana and Nigeria.

He stated that Ghana’s system is sync with the global voice growth (GVG) regime, which means “it has a separation of termination rate.

In Nigeria, such doesn’t exist because it is the NCC based fixes our interconnection termination rate.

“If all of the West African countries are placed on the international rate, then you would discover that what obtains in Nigeria should be far cheaper than in Ghana, or elsewhere in the region.”

He also faulted another aspect of the report which mentioned operators having one alternate power generating set at a BTS.

“In Nigeria, no BTS can be served on one generator. Your analysis should be two generators by BTS because that is what obtains in this market,” said Buhari.

Ikechukwu Nnamani, CEO of Medallion Communications, queried the non-factorisation of fixed wired/wireless operators into the study.

He noted that the new policy thrust of the NCC which gives preference to broadband connectivity implies that fixed operators would become essential market elements.

Macpheson in a bid to save his study said that the study was essentially based on Nigerian market factors with mobile operators has dominant factors.


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IHS Partners LSI to Deepen STEM in Schools with Global Educators Program

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Telecommunications infrastructure provider, IHS has expressed commitment to advancement of Science Technology Engineering and Mathematics (STEM) through the Global Educators Program.

Global Educators Program is one-year sponsored training on STEM and space education of secondary school teachers, hosted in the United States and partially in Nigeria.

The program is sponsored by IHS Nigeria in collaboration with Limitless Space Institute (LSI).

The ten beneficiaries, selected from various regions across Nigeria, were hosted at a roundtable event in Lagos recently organized by IHS Nigeria and LSI.

The program, a ground-breaking initiative aimed at providing professional development in STEM fields tied to space exploration, seeks to inspire both educators and students while enhancing STEM learning experiences.

Speaking on behalf of IHS Nigeria, Mohamad Darwish, Chief Executive Officer commended the teachers for their commitment to advancing STEM education. He pledged IHS Nigeria’s ongoing support for initiatives that train more teachers and students in STEM and space science education.

In addition, Dapo Otunla, Chief Corporate Services Officer at IHS Nigeria, expressed his pride in the program’s success.

“For us, education and economic growth are key pillars of our sustainability program, with the mind as the foundation for all progress,” he said. “IHS has been deeply involved in educational initiatives, especially in STEM, as we are fundamentally a company of engineers. Partnering with LSI aligns perfectly with our Mission T program, which promotes STEM education.”

Otunla highlighted that IHS Nigeria, which started operations in 2001, has invested in technology innovation hubs, such as those in Alimosho, Lagos State, and Ogbomosho, Oyo State, to support education and technology advancement across Nigeria.

Also speaking at the event, Kaci Heinz, LSI’s Executive Director, disclosed that over 200 teachers from public schools across Nigeria applied for the program, with only ten ultimately selected to join an additional ten teachers from Brazil for the year-long training.

“By connecting STEM education with the captivating subject of space, we aim to inspire both educators and students while simultaneously enhancing STEM learning experiences,” explained Heinz.

“These teachers are expected to return and impart the knowledge gained to their students, nurturing a new generation of interest in STEM education.”

Beneficiaries’ Share Experiences

The ten beneficiaries, who shared their experiences at the event, expressed immense gratitude for the opportunity provided by IHS Nigeria and LSI.

Maranatha Haa, a Chemistry teacher from Federal Government College, Jos, noted, “This program has introduced me to the exciting possibilities of space science and the importance of collaboration across borders. I’m eager to share what I’ve learned with my students and fellow educators.”

Mr. Olayinka Adeoshun, from Ilupeju Junior Grammar School, Lagos, shared, “The training has exposed me to what I could never have imagined in space science. My students are now more motivated than ever in space technology education. We’ve even established a virtual knowledge exchange program with the Space Institute in Houston.”

Blessing Akila, from ECWA Secondary School, Makurdi, expressed her excitement about the program’s impact on her teaching approach. “One of the subjects we were taught was Geometric and Space, which has helped simplify mathematics for my students, many of whom previously had a phobia for the subject. I want to thank IHS and LSI for this life-changing opportunity.”

Other beneficiaries who shared their experiences included Oluwabanke Adewusi from Itire Community Senior Secondary School, Lagos; Joshua James from Greenpath Preparatory School, Abuja; Soji Megbowon from Ifesowapo Aboru Senior Secondary School, Lagos; Ngobiri Abraham from Federal Government College, Enugu; Wahab Abubakar from Sango Senior Secondary School, Ilorin; Kayode Adewale from Odu’a Comprehensive High School, Ijebu Ode; and Rashidat Ademosu from Eva Adelaja Girls Junior Secondary School, Lagos.


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Mastercard, KaiOS Technologies Partner to Democratize Digital Payment for millions of SMEs

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KaiOS Technologies, a leading operating system that brings the best of the internet to affordable devices, today announced a collaboration with Mastercard to integrate a range of digital payments solutions.

Beginning in Cote d’Ivoire and Nigeria, Mastercard and KaiOS Technologies will deliver affordable payment acceptance devices and stimulate the growth of a more inclusive, connected global economy.

Beginning in Cote d’Ivoire and Nigeria, Mastercard and KaiOS Technologies will deliver affordable payment acceptance devices and stimulate the growth of a more inclusive, connected global economy.

Small and medium-sized businesses (SMEs) – especially in developing markets – still struggle to adopt digital payments, from the expenses linked to traditional payment acceptance terminals to technical implementation challenges.

This, in turn, makes it harder for these businesses to meaningfully participate in the digital economy and limits inclusive growth.

Read Also: Mastercard and Kalabash54 launch innovative travel card in Nigeria and Ghana

KaiOS Technologies and Mastercard are collaborating to help millions of SMEs globally accept digital payments using KaiOS devices.

Even the smallest businesses will be able to use their low-cost devices to accept payments safely and easily via Mastercard QR, Mobile Point-of-Sale solutions and Tap & Go contactless payments technology.

Signing up is simple. Business owners can use their KaiOS-powered phone to enroll. After entering their registered credentials and authenticating via a one-time password, SMEs can then access and use a variety of digital payment options.

“Acceptance fuels a successful digital economy, so it’s critical that we meet people where they are today and move them forward together,” said Jorn Lambert, chief product officer at Mastercard.

“Whether it’s a micro-merchant in Cote d’Ivoire to an enterprise in Indonesia, our goal is to make it as easy for merchants to accept digital payments as it is for consumers to make them.

“We’re looking forward to working closely with KaiOS Technologies to bring the best of our technology, scale, and expertise together to drive growth for emerging markets around the world.”

“At KaiOS Technologies, our mission is to connect underserved communities with the digital world.

“By bringing Mastercard’s secure payment technology to affordable internet phones running KaiOS, we’re unlocking new opportunities for small businesses and entrepreneurs, allowing them to participate in modern commerce more fully.

“This innovation brings down the barriers and enables an affordable consumer device to become a powerful business tool,” said Sebastien Codeville, chief executive officer of KaiOS Technologies.

This announcement strengthens the alliance between Mastercard and KaiOS Technologies as the operating system continues to grow.

Today, KaiOS Technologies works with major carriers, mobile network operators, and mobile phone manufacturers in emerging regions, with plans to expand to include acquiring banks, payment facilitators, fintechs and more.

Previously, KaiOS Technologies joined Mastercard’s award-winning startup engagement program, Start Path, to embed a range of payment solutions to foster digital inclusion.

As part of this extended collaboration, Mastercard and KaiOS Technologies will focus on African markets first, collaborating with partners like Touch and Pay Technologies (TAP) and Wizzit to extend access to in-market merchants.

Hear from our partners:

“At TAP, we are always looking for innovative solutions that enhance the accessibility and convenience of financial services for underserved populations.

“Our partnership with KaiOS and Mastercard is a game-changer for our existing and new customers, particularly in emerging markets,” said Olamide Afolabi, chief executive officer of TAP.

“By integrating KaiOS into our platform, we’re enabling millions of users with feature phones to access seamless digital payment solutions and financial services that were previously out of reach.

“This partnership is a vital step in furthering our mission to drive financial inclusion and empower communities through technology.”

Read Also: Meet 2024 winners of Mastercard Women SME Leaders Awards

“Wizzit is excited to join forces with KaiOS and Mastercard to expand secure payment acceptance solutions across Africa and beyond,” said Dirk Bruynse, chief operating officer of Wizzit.

“This partnership will enable us to scale our switching capabilities and deliver innovative payment solutions that cater to the evolving needs of businesses of all sizes.

“We are confident that this collaboration will set new benchmarks for efficiency and drive greater financial inclusion.”


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Japa: Over 2,500 Telecom Professionals left Nigeria in 2022 – NCC

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Nigerian Communications Commission (NCC), has decried the alarming rate of talent migration from Nigeria’s telecommunications sector and called for immediate action to prevent further loss of skilled professionals.

Japa: Over 2,500 Telecom Professionals left Nigeria in 2022 – NCC

The NCC disclosed that over 500 software engineers and more than 2,000 trained telecom professionals fled the country in 2022 alone, posing a significant threat to the industry’s future.

Aminu Maida, executive vice chairman/CEO, NCC, who sated this while speaking at the fifth edition of the Telecom Sector Sustainability Forum, TSSF 5.0, themed “Mitigating the Effects of Talent Exodus and its Impact on the Growth of Nigeria’s Telecommunications Industry,” urged telecom companies to adopt flexible work policies, improve remuneration packages, and foster a culture of innovation.

Maida stressed the importance of creating an environment that values and nurtures talent, saying it is crucial to retaining skilled professionals and ensuring the sector’s continued growth.

Represented by Tunji Jimoh, Lagos zonal controller, NCC, Maida warned that the global demand for tech talent has driven many of Nigeria’s brightest minds to seek more lucrative opportunities abroad.

This trend, if left unchecked, could create a skills gap that threatens the sustainability of the nation’s telecom sector.

Maida, referencing a report by the Association of Telecoms Companies of Nigeria (ATCON), highlighted the exodus of telecom professionals as a major setback, adding that the loss of such talent directly impacts innovation and development in the industry.

To address this challenge, he called on telecom companies to offer more attractive working conditions.

“Remote work options, continuous learning opportunities, and collaborative spaces that encourage creativity will make the local telecom sector more appealing to professionals who might otherwise seek opportunities abroad,” he said.

He further urged telecom companies to partner with educational institutions to create programs tailored to industry needs, stressing that the partnership would help address the talent gap and build a pipeline of young professionals eager to contribute to the telecom sector.

He also underscored NCC’s role in mitigating talent migration through initiatives aimed at promoting indigenous content and improving the infrastructure necessary for digital growth.

“The Commission is actively participating in the 3 Million Technical Talent, 3MTT, a programme initiated by the Ministry of Communications, Innovation, and Digital Economy, which aims to train three million Nigerians in digital and technical skills by 2027,” he said.

 

 

 


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