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How Telecom Fared in the Out Going Year

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Nigeria telecommunications sector in the out going year was felt with mixed given. The sector which has been adjudged the fastest growing in Africa, witnessed low level of activities compared to previous years as it grasp with the effect of global economic meltdown, which led to reduction in the revenue accruing to operators.
The year began with operators seeking a palliative measure in the face of global economic meltdown which forced equipment vendors downsizing as well as withdrawing credit facilities to operators. Telecom operators led by Bayo Ligali, then chief executive officer, Zain Nigeria, said that the sector does not need financial bail out as was the case in United State of America and some European countries, and that they are requesting for tax waivers as a way of cushioning the effect of economic meltdown.
This request was not granted as government through Dr. Ernest Ndukwe, executive vice chairman Nigerian Communications Commission (NCC), explained that the effect of the global economic meltdown will not adversely affect the industry. He added that the industry is doing well and is not likely to be affected by the global crisis as it has the potential to act as a catalyst to other sectors for future economic recovery.
He pointed out that banks still want to do business with telcos because they remain the cash-cow of the economy, stressing that although people may not want to spend more money in other areas, ‘they still will make calls for business and social reasons.”
He anticipated that the sector would advance on its records by improving on broadband penetration, thereby accelerating the social and economic development in the modern world.
However, this did not happen as average revenue per user (ARPU) dropped drastically leading to operators adopting different internal strategy to reduce cost. Among such strategies is reduction in the budget for advert campaigns and downsizing. The situation, was compounded when Central Bank of Nigeria started the recent reform in the banking sector aimed at sanitizing the system, this resulted in banks’ refusal to grant loans to businesses including telecommunications operators while pressurizing those who were given loans to start repaying such loans.
More so, the government in this outgoing year realized the importance of ICT as a viable platform to transform the country’s economy into knowledge based economy. The telecom sector along with increased competition among players have brought substantial benefits to consumers in terms of lower subscription rates and enhanced choice. According to bharatbook research, ‘the country has a huge potential to boost its mobile market given the fact that penetration rate was just around 43% at the end of 2008. With rapidly improving mobile infrastructure and intense competition among mobile operators, the number of mobile subscribers will grow at a CAGR of around 15.5% between 2010 and 2012 and the penetration rate will exceed 75% (by 2012 end)’. In line with the escalating education and business in the country, it noted that the demand for Internet services will soar as businesses need new mediums to get exposure on the global map. Supported by forward-looking government programs, Nigeria is all set to become one of the leading Internet markets in Africa in terms of users, international bandwidth and services offered. The research report projects that the number of Internet users will grow at a CAGR of over 25% during forecast period.
Licensing of 2.3 GHz spectrum band
The licensing process of 2.3 Ghz spectrum band which was expected to boost telecommunications sector in 2009 turn out to frustrate the growth. Nigerian Communications Commission advertised for bidders to the spectrum it got from National Broadcasting Commission (NBC) that was aimed at boosting broadband service delivery. By the end of the bidding time 46 companies applied for the license out of which Mobitel, Spectranet and Multi-Links emerged as winners.
The 2.3GHz licensing round, concluded on May 8, had raised a lot of dust and led to a deluge of petitions to the Presidency with several complaints of a flawed process in the conduct of the exercise. This resulted to Prof. Dora Akunyili, Minister of Information and Communications, directing the cancellation of the exercise and for a fresh and transparent one to be conducted, while money already collected to the tune of N4.104 billion be refunded to the announced winners and for the whole process re-advertised.
One of the grouse of the petitioners is that the NCC only effectively gave the companies that indicated interest in the licence just a week (or five working days) within which to raise N1.3 billion to pay for the licence.
One of the petitions alleged that in the period of economic meltdown, five working days were not enough to raise the amount required before the deadline.
The NCC adverts were published Thursday, April 30, while May 1 was a public holiday and 2-3 fell on a weekend, leaving the firms just five working days to raise the fees.
It was also alleged that the exercise lacked transparency as the NCC was accused of adopting first-hand information approach with some companies said to have been favoured over others because they had prior information even before the commission placed the adverts in the papers with a week’s deadline given for payment.
After several efforts made by stakeholders in the telecommunications industry aimed at resolving the issue failed as none of the parties were ready to shift ground that the issue was taken to the president, who ordered the Nigerian Communications Commission to start fresh licensing for the spectrum band, declaring the previous contest void. An official statement by Olusegun Adeniyi presidential spokesman said: ‘having carefully reviewed official reports and representations from stakeholders, and after availing himself of competent advice on the recent licensing of the 2.3GHz spectrum band, President Umaru Musa Yar’Adua has come to the conclusion that the letters and spirit of the stipulated rules and guidelines were not adequately complied with.’
Undersea Cable Initiative
The outgoing 2009 will ever be remember in many years to come as it witness the landing of the first single company initiated submarine cable, Glo 1 in Lagos.  The 9,800 km cable stretching from the UK across all the West African countries was anchored to its landing station in Nigeria at Alpha beach in Lagos. 
The trend in the global telecommunication industry is for a consortium of companies to build submarine cables as was the case with the SAT submarine 3 cable which was built by a consortium of 36 countries.
The project jointly executed by Globacom and its partners, Alcatel Lucent is expected to give Nigeria lead in telemedicine, eCommerce and egovernance among other practices that transform economies.
Jameel Mohammed, the group chief operating officer of Globacom Limited, said Glo 1 would deliver transmission capacity that would radically change Nigeria and West Africa’s economic landscape by linking 17 countries to the rest of the world.
Jameel said the landing of Glo-1 was another milestone in the history of Nigeria’s communications industry, adding that the cable would provide unprecedented high speed Internet services and make telecom services much faster, more reliable and cheaper for consumers.
The Globacom GCOO said implementing submarine cable projects, particularly the one spanning about 10,000 km from London to Lagos, is an initiative that usually takes between two to two and a half years to complete.
He said because the cable passed through various territorial waters and jurisdictions of several African countries, Globacom had to contend with lengthy approval processes.
He said Glo-1’s current and upgradeable capacity is enough to provide whatever broadband capacity Nigerians require for the next 15 to 20 years at the minimum projections.
The telecoms giant had factored Nigeria’s long term bandwidth requirements into the equation, he said, adding that Glo 1 can carry voice traffic of all operators internationally.
Mr. Adewale Shangowawa,  Globacom’s executive director, Human Resources, noted that with the landing of the Glo1 submarine cable, Globacom has scored another first and as well has taken a  bold step to give Nigeria the lead in the magical broadband revolution in Africa.
The cable which is of the 32 STM 64 type has virtual infinite capacity and therefore offers sufficient capacity for traffic for the Globacom’s mobile, fixed, and internet telecommunication services.
This will translate into much faster and more robust connectivity for voice, data and video. The cable will connect 14 West African countries through the branching units to the rest of the world. It will boost economic activities in the region, create job opportunities and serve companies in Europe and Africa.
The year also witnessed the completion of survey work on the route where the first private sector led and funded international telecommunications highway project between West Africa and the rest of the world, known as the MainOne Submarine cable will be laid.
The main route survey operation followed the completion of the 27 kilometres in-shore survey operation, near Portugal. The in-shore survey which commenced in January ahead of schedule was completed successfully in February. "Kommandor Jack" the MainOne cable survey vessel started mobilization in Lisbon, Porugal on Wednesday March 25 and arrive Nigeria in October.
Mrs. Funke Opeke, chief executive officer, MainStreet Technologies, owners of MainOne cable, said the submarine cable project will further reduce the cost of telecom services in the country by between 10 to 20 percent of what is currently paid for such services. The project, according to her, will provide unlimited transmission capacity at improved rate and reduced prices, such that it will enhance speed of Internet browsing. The technology, she explained, will help telecom operating companies who connects to the submarine cable, to have enough transmission capacity to offer services and still sell to smaller operators, if they so desire.
The Main One project will also ease the difficulties of switching traffic between African countries, eliminating the inconvenience and added costs of fist routing traffic to Europe. The first phase will span 7,000 kilometres and is billed for completion in June 2010.


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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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West Africa’s Data Centre Market – Growth Requires Skills, and OEMs can Help

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By Faith Waithaka, 

With some of Africa’s biggest data centre providers now based in West Africa, it would be safe to say that the region is going that an era of tremendous and even unprecedented growth. 

Faith Waithaka

Traditionally quite modest, with capacities ranging from one to three Megawatts (MW), West Africa now features numerous high-capacity datacentres; with plans underway to build its first Tier-4, 1500 rack data centre later this year.

But with size comes complexity.  Building a Tier-4 data centre is not simply a matter of scaling up from a 1 MW facility; technical requirements and complexities increase exponentially.

Let’s use UPS (Uninterruptible Power Supplies (UPS) as an example, while commissioning a single unit is quite straightforward, paralleling multiple systems to achieve higher power outputs introduces significant complexity.

Here, you require an experienced design engineer that can plan for the integration of multiple systems from get-go, ensuring that components like bus bars and cables can handle the combined power load. Without this foresight, designs may fall short and necessitate costly and time-consuming revisions.

It’s double-edged sword, West Africa is going through a wonderful growth era but at the same time facing a lack of skilled individuals that can handle these big data centre projects. And unlike our peers in countries such as Sweden and Ireland, which have extensive experience with 40 MW or even 100 MW data centres, West Africa is still building its capacity.

Also, this skills gap spans from design and technical implementation to the ongoing maintenance of operations facilities, once up and running. There is therefore a critical need to develop a workforce capable of supporting both 1 MW facilities and large-scale 100 MW operations.

OEMs’ part to play

As global entities with extensive experience and expertise, OEMs can transfer knowledge and best practices to the West African data centre market.  And it works, in East Africa, Schneider Electric is proactively leveraging its global expertise to upskill local teams in countries like Kenya to among others bring in specialists from Europe to work alongside local engineers.

This hands-on, on-the-job training leaves a lasting impact, building local capacity and importantly ensuring that the skills remain within the region.

However, OEMs can’t do it alone, and they shouldn’t.  To accelerate the upskilling process, OEMs should form strategic partnerships with local companies, data centre operators, and educational institutions.

In turn, these partnerships can facilitate comprehensive training programmes, internships, and graduate placements, creating a pipeline of skilled professionals ready to meet the demands of the growing market.

There is also another element to consider; the positive impact Africa’s data centre growth will have on the rest of the world.

These facilities are becoming integral to the global digital infrastructure, supporting a wide range of services and applications.

It is therefore in all role players’ best interest to ensure that these data centres are built and operated to the highest standards. This investment will not only support local economies but also enhance the reliability and resilience of the global digital ecosystem.

Through strategic, local partnership, OEMs like Schneider Electric can contribute to an environment that fosters knowledge transfer and relevant, comprehensive training programmes.

Success is always reliant on the sum of its parts and OEMs have an important role to play in establishing West Africa as key player in the global data centre industry.

Faith Waithaka, works at Schneider Electric as Cloud and Service Provider Segment Sales Lead: Anglophone Africa. 


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Mart Networks Rallies Stakeholders to Deepen Commitment in Nigeria’s Tech Ecosystem

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Mart Networks Group, a global value-added IT distributor, on Thursday convoked an international stakeholders conference for its partners and Original Equipment Manufacturers (OEMs) geared towards empowering local partners with the necessary skills and support that would ensure the successful implementation of its solutions in the Nigerian market.

L-R: Alex Nderitu, System Engineer, Roijie Networks; Peryan Aydas, Channel Manager, Mitel; Moiz Malooo Managing Director, Mart Networks Group; and Motunrayo Adigun, Sophos Product Manager, Mart Networks at the Stakeholders Conference tagged “Delivering Tomorrow’s Technology, Today” organised by Mart Networks Group in Lagos on Thursday.

Moiz Maloo, Managing Director of Mart Networks, speaking at the conference themed: “Delivering Tomorrow’s Technology, Today” reiterated the company’s focus on local talent development, technology transfer, and empowering Nigerian businesses with a comprehensive range of infrastructure and cybersecurity solutions.

The event held at Radisson Blu Hotel, Lagos highlighted the company’s dedication in knowledge transfer as well as showcasing its comprehensive solutions tailored to the Nigerian market.

Maloo emphasized the global nature of the business, with team members traveling from Europe, Asia, the Middle East, and Africa to engage with local partners and discuss the latest in technology offerings.

Operating in 10 countries, Mart Networks established its Nigerian base in 2013, focusing on the distribution of a wide array of technological infrastructure.

Maloo explained, “We sell various technologies, including data centre infrastructure, networking, cybersecurity, cloud solutions, and cloud solution training,” adding that the company also offers cutting-edge services such as compute, storage, hyper-converged infrastructure, video collaboration, and unified communication.

The event, aimed at strengthening relationships with local partners, saw product managers and technical engineers from across Europe, Asia, the Middle East, and Africa sharing their expertise, with these professionals providing insights into Mart Networks’ diverse product portfolio and its application in the Nigerian market.

“Our goal with this event is to showcase the full range of solutions we provide,” Maloo noted. “By sharing knowledge with local system integrators, we empower them to deliver even greater value to their customers in Nigeria.”

With a strong presence in Nigeria for over a decade, Mart Networks is reinforcing its role as a key enabler of digital transformation, offering essential tools and training to help Nigerian businesses thrive in the technology-driven future.

Maloo who reiterated the company’s commitment to technology transfer and local talent development as it continues to expand in Nigeria, highlighted the company’s investment in knowledge transfer and training, emphasizing the importance of understanding the products they sell and the local markets they operate in.

“We believe strongly in knowledge transfer. If you don’t know what you’re selling or how to use it, it’s very hard to implement, especially on our continent. That’s why we invest heavily in training and building a strong technical team to support our local partners,” Maloo said.

He stated that Mart Networks takes pride in being a Pan-African distributor, unlike many competitors that bring in talent from outside the region.

“We understand the culture and business here. Our entire team in Nigeria is Nigerian, just like in Kenya, Tanzania, and wherever we operate. We focus on nurturing local talent and adding value to the market.”

Despite the volatility of the Nigerian naira, which has been a challenge for many businesses, Mart Networks has adapted through strategic planning and partnerships.

As an importer of technology—mainly hardware not manufactured locally—the company has worked closely with banking partners to hedge against currency fluctuations. “We plan better, speak to our banking partners, and hedge funds to ensure we have access to dollars,” Maloo explained.

Reflecting on Mart Networks’ 11-year presence in Nigeria, Maloo noted the company’s steady growth since its entry into the market in 2013. “We’ve grown year on year, despite challenges, including the pandemic.

“Over the last 18 to 24 months, we have restructured, invested in more resources, and have faith in the Nigerian market,” he said, adding that comparing the first nine months of 2023 with the same period in 2022, the company has already seen growth, and Maloo is optimistic about the future.

“Nigeria is a very promising market with great potential. If the naira stabilizes further, the economy could be even stronger. We’re committed to being a part of that growth and continue investing in the market and its talent,” he said.

With a focus on empowering local partners, Mart Networks is poised for further expansion, helping to shape the future of IT infrastructure in Nigeria and beyond.

Meanwhile, IT Horizons, a leading IT systems integration company, has commended Mart Networks Group for its consistent support and long-standing partnership over the years.

Speaking at Mart Networks’ conference in Lagos, Stephen Asishana, Head of Sales and Business Development at IT Horizons, highlighted the crucial role Mart Networks has played in the company’s success since its inception 12 years ago.

“When we started on this journey, Mart Networks was one of the distributors that supported us, ensuring products were available at the right time, helping us fulfill our customers’ needs quickly,” said Asishana. “Our relationship has grown over the years as Mart Networks has expanded its portfolio, adding more brands, OEMs, and solutions. It’s truly a win-win relationship.”

Asishana who lauded the company’s commitment to engaging with its partners, not just through large-scale events like this, but with continuous interaction throughout the year, described the event as a key feature of Mart Networks’ annual calendar, which brings together local partners to showcase the distributor’s latest offerings.

“Mart Networks does this annually, but the great thing is that it’s not just a one-off. They stay in touch with partners throughout the year, constantly engaging us and providing insights into their products and services,” he added. “This event helps us as partners learn about the solutions they distribute, so we can pass that knowledge on to our customers.”

Asishana emphasized the significance of attending such events, noting that IT Horizons stands to benefit greatly by staying updated on the latest technological innovations. “Technology is always evolving, and events like this keep us informed about the latest trends. For us at IT Horizons, it opens our eyes to new possibilities, helping us identify solutions that can address the challenges faced by our customers.”

As the event progresses, IT Horizons expects to continue gaining valuable insights into cutting-edge technologies that can enhance their service offerings. “We know our customers’ pain points, and this event helps us discover solutions that can effectively address them,” Asishana concluded.

With a solid partnership and continued collaboration, IT Horizons and Mart Networks are poised to drive further innovation and deliver greater value to businesses across Nigeria.

In a related development, Sophos, a global leader in cybersecurity, has commended its long-standing partnership with Mart Networks Group during the distributor’s annual event, “Mart Day,” which brings together key partners, OEMs, and end users from across West Africa.

Sandra Nnadozie, Channel Account Manager for West Africa at Sophos, highlighted the importance of the event as an opportunity to strengthen relationships and showcase cutting-edge cybersecurity solutions.

“Mart Networks is our distributor in West Africa, covering Nigeria, Ghana, and other regions,” Nnadozie said. “Today’s event is a chance for us to meet with our partners and end customers, celebrate with Mart Networks, and continue building on the solid foundation we’ve developed over many years.”

Sophos’ relationship with Mart Networks spans well over a decade, not just in West Africa, but also in regions like East Africa and the UK. “We’ve had a very cordial relationship, working together for more than 15 to 20 years. It’s like family. The partnership continues to grow stronger year after year,” she added.

Nnadozie emphasized that the primary goal for Sophos at the event was to further solidify its relationship with Mart Networks while also promoting the importance of cybersecurity. “We’re here to spread the ‘gospel of cybersecurity.’ The future of cybersecurity lies in Managed Detection and Response (MDR), which helps organizations manage their cybersecurity infrastructure, especially in the absence of a dedicated security team,” she explained.

As organizations face increasing cyber threats, Sophos is focused on educating businesses about advanced cybersecurity solutions like MDR to prevent data breaches and security lapses.

Sophos’ presence at the event underscores its commitment to helping businesses in West Africa safeguard their operations against evolving cyber threats while reinforcing its partnership with Mart Networks. “We are here to show that we stand strongly beside them,” Nnadozie concluded.

With cybersecurity becoming an increasingly critical concern across industries, Sophos and Mart Networks continue to work together to provide comprehensive solutions, ensuring that businesses in West Africa are better equipped to defend against the threats of tomorrow.


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