Telecom
Between Wireless and Fibre Optic to Increase Telecom Access
The information age has made technology, particularly information and communications technology, indispensable. Nigeria is often identified as the fastest moving economy and one of the most advanced ICT market sectors in the Africa. It has the largest population in Africa, also making it an attractive and big market. How has or how is IT and Telecoms allowing Nigeria to leap-frog into the information age?
Essentially answers to these questions have to do with access to IT and Telecoms services. To examine Information and Communications Technology (ICT) status and developments in Nigeria is by looking at several issues relating to infrastructure in Nigeria. In this regard, telecommunications infrastructure is particularly important, because of its far-reaching impact.
Telecommunication infrastructure remains one of the major issues affecting technology deployment required for growth and development in Nigeria. There has however, been massive improvement in infrastructure over the past few years. Nigeria has certainly left the telecomm state where there were only a few dial-up e-mail providers and Internet service providers (ISPs) as well as when Nigerian Telecommunications Limited (Nitel) was the only Telecommunications operator. It was a dark era characterized by slow Internet links, poor service, high cost, lack of infrastructure and an unprogressive telecoms monopoly. Things have certainly changed. So has night turned to day?
Deregulation of the telecommunications sector led to emergence of major Global System of Mobile Communications (GSM) operators in the country.
Government had earlier provided the impetus for liberalization by setting up the Nigerian Communications Commission (NCC). Although NCC became the regulatory body for Nigeria’s telecom sector in 1992, it is the government that dealt with the telecom policy, interconnection agreements and the empowerment of NCC. NCC issues licenses to private telecoms companies providing a variety of telecom services to the Nigerian populace.
All of these were responsible for the growth in the sector which today, level of penetration is put at 56% and number of active telephone lines to 71million.
The GSM revolution began in August 2001 and changed the face of Information and Communications Technology in Nigeria. But the picture will not be complete without mentioning the Private Telephone Operators (PTOs) and other landmarks such as the licensing of Globacom as well as the licensing of 22 fixed wireless operators.
But Nigeria’s telecom infrastructure story and growth has not been due to GSM alone. For example, GSM doesn’t have much to do with the upsurge in Internet usage and access. In essence it is the combined activities of Nigeria’s telecoms providers – GSM, FWA, PTOs, telephony and Vsat operators and NCC’s regulatory efforts that have led to increased competition and availability of a wide range of voice, data and internet applications and services.
The improvement in the telecom situation in Nigeria has made significant impact in all sectors – commerce, social and educational. Although most of the impact is presently felt only in the urban centers, NCC has announced plans to ensure that telecom revolution also touches the rural populace. As noted by one of the International Telecommunications Union (ITU) publications, there is "a direct correlation between access to telecommunications, economic wealth, and social development".
The telecoms boom has resulted in greater usage of Internet Technology, growth and availability of cyber cafés, increased Internet provision by ISPs and PTOs, increased communications services (mobile telephony, e-mail, VoIP), reduction of Internet costs, online information gathering and research, e-learning, Internet business opportunities, online advertising opportunities as well as developments in e-banking. Growth has been phenomenal because Nigeria’s size is massive and Nigerians have been starved of such access for decades.
Now that the sector has recorded appreciable level in terms of teledensity that it is now focusing on providing reliable telecommunications infrastructure that will guarantee sustainability as well as aid other services such as telemedicine, e-learning among others. And to do these, that the NCC is encouraging the deployment of both wireless, wired such as optic fibre, copper cable and satellite technologies.
Technological Drive
The telecommunications industry is divided into four main sectors: wired, wireless, satellite, and other telecommunications establishments. The largest sector of the telecommunications industry continues to be made up of wired telecommunications carriers. Establishments in this sector mainly provide telecommunications services such as wired (landline) telephone, digital subscriber line (DSL) Internet, and cable TV and Internet services. These organizations route TV, voice, Internet, data, and other content over a network of wires and cables, and control access to this content. They may own and maintain networks, share networks with other organizations, or lease network capacity from other companies. Establishments in the telecommunications industry, however, do not create the content that is transmitted over their networks, such as TV programs. (Establishments that create television programming are described in the Career Guide sections on the broadcasting and motion picture and video industries). Wired telecommunications also includes direct-to-home satellite television distributors and a variety of other businesses.
Wireless telecommunications carriers provide telephone, Internet, data, and other services to customers through the transmission of signals over networks of radio towers. The signals are transmitted through an antenna directly to customers, who use devices, such as cell phones and mobile computers, to receive, interpret, and send information. A large component of this industry segment consists of companies that provide cellular phone service, which has grown rapidly over the past decade. Another component includes establishments that deliver mobile Internet services to individuals with Internet-enabled cellular phones and computers.
Satellite telecommunications establishments are made up of mostly government and private organizations that transmit a variety of data through satellites, including photos of the earth, messages to and from public safety officials, and a variety of other information.
Other sectors in the telecommunications industry include telecommunications resellers, as well as operators of other communication services ranging from radar stations to radio networks used by taxicab companies.
Telecommunications carriers are expanding their data transmission capabilities, known as "bandwidth," by replacing copper wires with fiber optic cables. Fiber optic cable, which transmits light signals along glass strands, permits faster, higher capacity transmissions than traditional copper wire. In some areas, carriers are extending fiber optic cable to residential customers, enabling them to offer cable television, video-on-demand, faster high-speed Internet, and conventional telephone communications over a single line.
Wireless telecommunications carriers are deploying several new technologies to allow faster data transmission and better Internet access in an effort to make them more competitive in a market that includes wired Internet carriers. With faster connection speeds, wireless carriers can transmit music, videos, applications, and other content that can be downloaded and played on cellular phones, giving users mobile access to large amounts of data. In addition, as use of this mobile technology increases, wireless companies continue to develop the next generation of technologies that will allow even faster data transmission.
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (Alton) said government need to rebuild last mile infrastructure in order to aid broadband penetration in the country.
He said copper and fibre should not be regarded as old technology because there is no where in the world where wireless access has become a direct replacement for wired line access.
He said that the best mobile technology in the world today, has a limit to the capacity it can offer. He added that fibre and copper infrastructure gives that limitless capacity and access required to effectively increase telecom access to last mile.
He noted that the hope of reaping the benefits of the landing of Glo 1, MainOne and other new entrants can be realize with availability of national fibre optic and copper network.
He urged government to eliminate all form of charges associated with the “right of way”, saying that free access should be given for people to build cable infrastructure without hindrance.
Adebayo said as a policy, all roads that are being upgraded and redesigned should be provided with sufficient telecommunications dots in order for operators not to go through the recurring procedure of seeking “right of way” if the country must drive telecom access to last mile.
Telecom
Subscriber Group Rejects Telcos Push for Tariff Hike
National Association of Telecoms Subscribers (NATCOMS), a telecoms subscriber body, has warned Nigerian Communications Commission (NCC) not accede to demands by telecommunications companies in the country to hike tariff, insisting that such increase would unleash further hardships on its members.
Chief Deolu Ogunbanjo, president, NATCOMS said in statement that the group in a recent emergency meeting over the planned tariff hike of telecommunication services, unanimously voted against any tariff hike.
Ogunbanjo, said telecoms services are taxable services under the Value Added Tax Act.
The Act was amended in 2019 by the Finance Act of that year to raise the tax rate from five per cent to 7.5per cent which was 50per cent increment and the increment has been borne by the consumers of rateable telecom services.
“That increment brought about untold hardship to our members many of who have been forced to cut back on their telecom requirements.
“As if that was not bad enough, the Federal Government got the National Assembly to enact the Finance Act of 2020. Section 37 of the Act amended Section 21 of the Customs, Excise Tariff etc. (Consolidation) Act by imposing an excise duty charge on Telecommunication Services. The then president, President Muhammadu Buhari by an order prescribed five per cent as the rate of the excise duty charge, chargeable for telecommunication services. The additional tax burden was greeted with public outcry and this association, at the prompting of our members, challenged the excise duty charge in court, in the case of Registered Trustees of National Association of Telecommunications Subscribers (NATCOMS) V MTN Nigeria Communications Limited and Others – Suit No: FHC/L/ CS / 189) 2023 on the ground of double taxation which is illegal and unconstitutional.
NCC and other Federal Bodies are parties to the suit and the Federal Government as represented by the Federal Inland Revenue Service (FIRS) entered an appearance and filed processes opposing the suit. The case is now pending before Hon. Justice Aluko, sitting at the Lagos Division of the Federal High Court, and the case is slated to come up in the court on the 13th March, 2025,” Ogunbanjo said.
Telecom
Mafab Communications to Roll out 5G Services in Kano and Abuja this Quarter
Mafab Communications, a Nigerian telecommunications company that acquired a 5G license in 2021, is set to begin operations by the end of the first quarter of 2025, according to Adebayo Onigbanjo, chief operating officer of the company.
Onigbanjo who shared this update with TechCabal, this launch will mark the first time Mafab’s services will be available commercially, nearly three years after the company entered the 5G market.
The company plans to roll out its 5G services with 102 operational sites located in Kano and Abuja.
Subscribers will need to purchase routers to access the network. Mafab is also working with multiple vendors to develop these sites in phases as part of its strategy for deployment.
Mafab Communications obtained its 5G license on the same day as MTN.
However, while MTN launched its 5G services within eight months, Mafab, being a newer entrant, experienced delays in deploying its network due to insufficient telecom infrastructure.
These challenges were further exacerbated by the company’s delay in receiving its Unified Access Service License (UASL) and numbering plan, which was only granted in July 2022.
This situation led Mafab to seek an extension from the Nigerian Communications Commission (NCC), postponing its initial rollout deadline to January 2023.
Following its launch event in January 2023, the company began promoting the sale of 5G routers on its website.
However, buyers quickly discovered that they could not activate the service, as uncovered by TechCabal.
Consequently, the sale of these routers has been suspended while the company focuses on completing its infrastructure buildout.
Despite the early stage of the 5G market in Nigeria, these delays have put Mafab at a disadvantage, leaving it to catch up with competitors like MTN and Airtel, particularly in Lagos, the country’s bustling commercial hub where most 5G subscribers are currently concentrated.
Although Mafab is actively working on its Lagos sites, the company has yet to announce when services will officially launch in the city.
According to Onigbanjo, foreign exchange (FX) fluctuations have posed a significant challenge, leading to higher rollout costs than initially projected—a difficulty faced by many telecom operators.
Since its commercial introduction in August 2022, Nigeria’s 5G market has experienced steady growth, spearheaded by MTN Nigeria.
By October 2024, 5G services accounted for 2.33% of the nation’s internet subscribers, with MTN Nigeria commanding a 79% market share and Airtel Africa holding roughly 20%.
Mafab’s anticipated rollout in Q1 is expected to further drive 5G adoption, particularly in cities beyond Lagos and Abuja.
The company has prioritized building robust infrastructure and extending its coverage in Kano and Abuja to support broader access to 5G services.
According to Onigbanjo, this includes developing a Radio Access Network (RAN), transport systems, and intelligent networks designed to connect various user devices—ranging from smartphones to IoT gadgets—to the company’s core telecom network.
Telecom
Telcos Firms Seek 100 Percent Tariff Hike to Survive Economy
Telecommunication companies in Nigeria are lobbying their regulator for permission to double price tariffs to weather harsh economic conditions and inflation running near a three-decade high.
“We’ve put forward requests of approximately a 100% increase” to the regulator, Karl Toriola, chief executive officer of MTN Nigeria Communications Plc, told Lagos-based Arise TV.
“There’s no way that the industry could continue to sustain itself and provide the required quality of service under the present structure,” he said.
The industry has been stepping up efforts for permission to relax pricing rules that have been in place for 11 years, amid surging annual inflation that touched 34.6% in November, and the steep depreciation of the naira against the dollar.
If the pricing issue is resolved, Toriola is optimistic 2025 will be a good year for operators.
The unit of MTN Group Ltd. plans to grow voice and data revenue this year by increasing coverage of rural areas as well as 5G broadband penetration, he said.
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