Telecom
Cash Injection in CDMA Rings Resurgence, Fears
The multi-million dollars cash injection into the Code Division Multiple Access (CDMA) operations by CAPCOM, the new operator from the merger of Starcomms, Multilinks and MTS First Communications is spreading panics in the telecom space as the industry sense the emergence of a dominant player in the fixed wired/wireless segment.
With the huge financial war-chest and an avalanche of contiguous spectrum to be held by the consolidated operations, a new powerful company may be in the making if it also gets its business model right.
Nigeria CommunicationsWeek investigations showed that CAPCOM is planning to form a single national Long Term Evolution (LTE) broadband operator that will reap from 20 MHz of contiguous 1900MHz spectrum, the largest spectrum allocation for any mobile operator in Nigeria.
Already, Starcomms Plc has reached an agreement with CAPCOM Limited to provide it with a capital investment of cash and assets independently valued at $210 million.
The fear is that this collaborative effort is capable of giving the CDMA Operators a competitive advantage over the GSM operators who are unable to launch LTE services in Nigeria, owing to the dearth of spectrum.
The spectrum according to the Nigerian Communications Commission (NCC) would be released after Nigeria must have achieved the digital migration from analogue.
LTE has several advantages over the existing 3G network as it has reduction in traffic communications while sending data.
LTE also allows more users to use the same frequency in a cell, which results in increment of mobile broadband users and offers faster data rate transfer which is in higher download and upload rate.
As subscribers consume more data than voice, GSM operators fear that their subscribers would be lost to the CDMA as there would be reduction in internet connection lagging.
In time past, the CDMA segment was faced with severe operational and financial challenges caused by unfavourable policies, uneven playing field, scarce government support, preference for GSM telephony in the country, corporate governance issues, among others.
At the moment, the CDMA industry which started with about 12 operators in 2001 is left with just Visafone as the dominant player.
To facilitate the CDMA consolidation, CAPCOM will provide $98 million in cash to finance the post-acquisition integration of assets to meet on-going short-term losses in the business and to deliver the combined company’s new business plan.
CAPCOM was founded by MBC, a trust of 20 years standing whose portfolio companies manage over $1.25 billion in the asset management and commercial banking sectors focused on emerging markets.
With this investment, CAPCOM aims to create a national broadband Internet champion capable of significantly contributing to the government’s ambition to overcome the digital divide between Nigeria as an emerging market and other developed markets internationally.
Telecom
African Telcos Compete to Launch Eco-Friendly Data Centres
African telecommunications companies are hurrying to build data centres powered by green energy as the demand for digital services on the continent increases, driven by the largest youth demographic in the world.
According to newscentral.africa, the continent has already established itself as a leader in mobile money, headlined by Kenya’s M-Pesa and various other mobile payment platforms, with 60% of the population using mobile devices to access the internet.
By the year 2025, an additional 167 million individuals in Sub-Saharan Africa are expected to subscribe to mobile services, totaling 623 million users, and the number of smartphone connections in the region is projected to more than double.
The International Finance Corporation (IFC) estimates that Africa’s Internet economy could account for 5.2% of the continent’s gross domestic product (GDP) by 2025, which would contribute nearly US $180 billion to its economy.
Leading telecommunications companies across the continent are capitalizing on this demand opportunity—encouraged by initiatives to digitize education, healthcare, agricultural services, and governance—by preparing data centre projects they claim will rank among the largest and most environmentally friendly in the region.
In its 2024 sustainability report, Kenya’s major telecom firm, Safaricom, has detailed plans to build three Tier 3+ scale data centres as a component of its long-term vision to evolve from a telecommunications business to Africa’s foremost purpose-driven technology enterprise by 2030.
“The facility is equipped with a 200 kWp rooftop solar PV plant, with plans to scale up to 2MWp. Additionally, we are exploring partnerships with renewable energy producers to further enhance our commitment to sustainability,” according to the sustainability report.
In June, MTN Nigeria announced it was building a 1,500-rack, Tier 4 data centre to play a pivotal role in meeting the growing data demands and digital needs of businesses and consumers in the country.
In a LinkedIn post, Karl Olutokun Toriola, CEO, MTN Nigeria, said the facility will be the largest in West Africa upon completion and will enable the telco to respond swiftly to market demands and support businesses in Nigeria.
“Ultimately, this centre will play a vital role in supporting Nigerian businesses to collaborate through cloud services, expand their capabilities, and thrive,” said Toriola.
”Our commitment to Environmental, Social, and Governance (ESG) principles is reflected in the data centre’s eco-friendly design to utilize efficient cooling systems and a combination of traditional energy sources, gas, and renewable energy,” he added.
After launching a multi-million data centre business, Nxtra by Airtel, in December 2023 the telco broke ground in March to what it termed as one of Africa’s largest data centres in Lagos, Nigeria- with plans for more across the continent.
“Through this business we aim to create one of the largest networks of data centres in Africa with high-capacity facilities in major cities complementing our existing sites. We’re taking great care to incorporate modern energy efficiencies into our operations,” said Airtel Africa’s Sustainability Report 2024.
Africa Data Centres Association also affirms the expansion of industry due to the increasing demand for such facilities throughout the continent-citing Kenya, Morocco and South Africa as fast-growing markets- abeit with a huge infrastructure gap to fill in.
“Africa needs up to 1000 MW and 700 facilities to meet demand and bring capacity density on a par with that of South Africa, the region’s leader,” according to Data Centres in Africa focus report 2024.
Africa, the report shows accounted for less than 2% of global colocation Data Centres supply, with over half that total located in South Africa.
“The development of data centres is picking up pace due to strong demand from economic operators, as well as increasing awareness that African countries must establish their digital sovereignty in an increasingly competitive and complex world,” said Ayotunde Coker, chairman, Africa Data Centres Association.
Nigeria is listed in the data centres focus report as Africa’s largest digital economy with the internet contributing US$36.5 billion to its GDP, followed by South Africa(US$31.5 billion) and Egypt (US$26 billion).
Other large digital economies include Morocco(US$21.1 billion), Kenya(US$12.8 billion), and Algeria (US$11.9 billion).
Allied Market Research projects that the global market for DC provision will reach US$517.2 billion by 2030, up from an estimated of US$187.4 billion in 2020.
Telecom
Starlink Warns Against Grey Market Products
Starlink, a global leader in satellite internet technology, has issued a caution to customers, advising against purchasing from unauthorized grey market products. Each Starlink kit is equipped with a unique serial number tailored to the country of activation.
Kits obtained from grey markets will not be activated, and any kits currently active outside their designated regions may face penalties, including potential service restrictions.
This advisory is to guarantee the quality, support, and compatibility needed for optimal performance users get from each kit.
According to a reliable source in Zimbabwe, there have been reports of buyers acquiring Starlink kits not intended for their specific countries.
Customers are strongly encouraged to purchase only from authorized distributors and retailers to ensure authenticity and functionality.
This measure is designed to uphold the integrity of Starlink’s operations and protect customers from fraudulent products and service interruptions.
As part of its mission, Starlink remains committed to expanding internet accessibility worldwide, especially in underserved and remote areas.
By delivering reliable, high-speed internet through its advanced satellite network, Starlink is bridging the digital divide and connecting communities across the globe.
To uphold this mission, Starlink maintains strict quality control and distribution practices, ensuring that each kit meets the requirements of its intended market.
Starlink encourages consumers to be vigilant and to purchase kits only from verified Starlink retailers and distributors to ensure seamless service.
Telecom
TikTok Founder, Zhang Yiming, 41 Becomes China’s Richest Man
China has a new richest person and it’s the entrepreneur behind the app TikTok.
Zhang Yiming, 41, co-founder of TikTok’s parent company ByteDance, topped the 2024 Hurun China Rich List, released Tuesday, October 29.
His wealth reached $49.3 billion, as assessed by research, media and investment group Hurun Inc, which publishes the ranking of the country’s richest people.
Zhang’s ascendency comes after ByteDance’s global revenue grew 30% last year to $110 billion, Hurun said.
Since its official launch in May 2017, TikTok has been catapulted to mass global popularity as well as becoming an era-defining social media platform beloved by many young people around the world.
Zhang owns 20% of ByteDance, which he co-founded with college roommate Liang Rubo in Beijing in 2012. He stepped down as its CEO 2021 after building ByteDance into one of the biggest names in Chinese tech.
ByteDance also holds China’s popular news app Toutiao and Douyin, TikTok’s sister app in China.
Zhang’s rise to the top of the rich list knocked China’s “bottled water king” Zhong Shanshan out of the lead spot for the first time in three years, though he remained second.
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