Telecom
Ndukwe Provides Insights into MTN’s Dominance Of Nigeria’s Telecoms Space
Dr Ernest Ndukwe, Erstwhile Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), has been speaking on why the foremost telecommunications services provider, MTN, has continued to dominate the Nigerian telecom space like a colossus.
Ndukwe, who spoke as a guest at the Virtual Digital Africa VIP Leadership Series on Tuesday, organized by Digital Africa Group, organisers of the annual Digital Africa Conference & Exhibitions noted that three factors: good finance, good management and discipline in terms of managing resources, separate MTN from the rest of the pack.
“I think it is important to say that MTN is a particularly disciplined company right from its roots; it has always been a well-run organization. It has not had the board squabbles associated with some of its competitions. The first board of MTN, some of them just retired last year. Meanwhile, one of their competitions has had various owners, various quarrels, and various issues,” he said.
Ndukwe, who is the Chairman of MTN Nigeria Board, said that nobody can be blamed for this position as the way organisations manage their affairs translates to the kind of position they occupy in the business environment.
“One thing that people don’t know also is that for the first five years of existence of MTN in Nigeria, it did not pay dividends to its shareholders. They recognized the importance of scale and were pumping in all the earnings, all the profits into building networks. They started building their own microwave links, they started building their own fibre optic links all across the country. It is all a matter of foresight and planning ahead.”
On the question of what local companies could do to be able to play effectively in the telecommunications sector, he said, “Let it be said that technology always changes and the best company today might not be the best company tomorrow. A few years ago, Facebook was not on the reckoning but today, it is a much bigger company.
“People might not make it in terms of new entrants in the area of telecommunications service delivery. This is because in most countries, there is a maximum number of operating companies that can profitably play in the market, after which the market gets saturated. There are definitely opportunities in the technology space; all that is needed is for operators to discover them and leverage.”
He mentioned Zinox Technologies as one other Nigerian technology company that has leveraged on the opportunities in the ICT industry to turn itself to one of the biggest ICT companies in the country that is well run and managed.
According to Ndukwe, “Zinox Technologies is another company that is well run; it is a company that is making a big mark in the country quietly and remains one of the biggest IT companies in the country today without anybody recognizing it. You may not be the biggest telecommunications provider but you can be the best in some other areas; you can be the next Facebook in Africa.
“When Zoom started, no person knew it was going to scale to the level it has now reached; thanks to Coronavirus pandemic. People should continue to look for opportunities and niche markets and go there because that’s where they can scale. There are many companies that are doing very well in the financial technology space in the country too.”
On 5G deployment in Nigeria, the MTN Board Chair stated that the network would require a lot of base stations, as well as large scale fibre deployment, adding that the role of policy makers and regulators is critical to timely deployment of 5G.
He expressed delight that some State governments in Nigeria have started clearing the huddles to seamless deployment of the technology in Nigeria.
“That’s why I am particularly excited and would like to commend the Minister of Communications and Digital Economy for his foresight with the Minister of Works and Housing who came out with this bright idea that they will give 2-year moratorium on Right of Way charges on Federal Highways in Nigeria, in order to encourage optic fibre rollout and installation.
“5G is a high speed network and countries have been struggling to have first mover advantages in order to benefit from the advantages that 5G will bring about. I think that if Nigeria, South Africa and Ghana decide that they want to be forerunners in this 5G business, then the regulatory environment must be such that it will be possible to earn those advantages early enough. The regulator in Nigeria, the NCC, is very committed to facilitating early deployment of 5G.
“I am happy that many states in our country have improved in their welcoming of ICT companies in their domains. In fact, as far back as when I was EVC, I came out with a slang- “Fibre without Borders”. I was actually dreaming of an Africa linked with fibre optic cable across countries. If that had happened, we would have been at the same level with some of the most developed countries of the world as far as harnessing the benefits of ICT is concerned,” Ndukwe said.
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
In a bid to build AI-enabled data centres, Brad Smith, vice chair and president, Microsoft has disclosed the company’s plan to spend approximately $80 billion in its current financial year (to end in June), with more than half of that investment designated for the US.
Smith in a blog post, explained the tech giant plans to use the data centres “to train AI models and deploy AI and cloud-based applications around the world.”
Smith welcomed U.S. President Donald Trump to his second term in office, he cautioned against “heavy-handed regulations” that could slow down the private sector.
“The most important US public-policy priority should be to ensure that the US private sector can continue to advance with the wind at its back,” Smith stated.
He further explained that the U.S. “needs a pragmatic export control policy that balances strong security protection for AI components in trusted data centers with the ability for U.S. companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends.”
Stating that the US is well-positioned to flourish in its development of AI due to solid technology development and an innovative private sector.
“If the Trump Administration can develop a strong national AI talent strategy and use AI to make the government more effective and efficient, it will put the country on a promising path.”
He stated the U.S. is in a strong position to “win the essential race with China by advancing international adoption of American AI.”
Smith further claimed U.S. “products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world.”
TD Africa, a leading technology distribution company in Africa, has unveiled its Green Hero Initiative, a groundbreaking program designed to tackle Nigeria’s persistent energy challenges and promote the adoption of sustainable energy solutions.
This initiative underscores TD Africa’s commitment to advancing cleaner, more affordable energy alternatives for Nigerian households and businesses.
As the cost of fossil fuels continues to rise, the urgency for a shift to renewable energy has never been more apparent. Recognizing this need, TD Africa has partnered with global industry leaders Huawei and EcoFlow to introduce innovative renewable energy solutions tailored to meet the unique needs of Nigerian consumers.
“The Green Hero Initiative is more than just a product launch; it’s a commitment to a sustainable future,” said Chidiebere Nwabuko, Business Manager, Renewable Energy Solutions at TD Africa. “We’re empowering Nigerians to take control of their energy needs, reduce their carbon footprint, and enjoy the benefits of reliable, clean power.
“By partnering with global leaders like Huawei and EcoFlow, we’re bringing cutting-edge technology to the market that is not only affordable but also tailored to the specific needs of our customers and Nigerians across the country.”
Through the Green Hero Initiative, TD Africa is offering a variety of renewable energy solutions that cater to diverse energy needs. These solutions include the powerful Huawei ISite Power M, ideal for powering homes and small businesses, and Huawei ISite Power S, designed for commercial and industrial applications.
Additionally, EcoFlow’s portable power stations are made up of the River series and Delta series that attend to the needs of low and mid-range Nigerians and provide a convenient and clean energy source for residential homes, small and medium businesses and outdoor activities or backup power.
By promoting the adoption of renewable energy, TD Africa is committed to significantly reduce carbon emissions and contribute to a more sustainable and environmentally friendly future for Nigeria. The company’s Green Hero Initiative is a significant step towards achieving this goal.
To ensure accessibility, TD Africa has made these solutions available through various online platforms. Consumers can conveniently shop for these products at justownitapp.com or KongaPlus via konga.com. Authorized partners of TD Africa can also access the range of offerings through the TD SuperApp at superapp.tdafrica.com.
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