Telecom
IDC Commends Telcos over Outsourcing Business Models
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International Data Corporation (IDC) has commended mobile network operators in the country for adopting outsourcing business models aimed at reducing operational costs and sustain profitability.
According to a statement from IDC, “the business models employed by Nigeria’s mobile network operators (MNO) are undergoing a notable period of evolution. Spurred by the pressing need to optimize or even reduce costs relating to network operations and maintenance fees, MNOs in the country are increasingly scoping outsourcing models in collaboration with third-party infrastructure providers rather than deploying and owning their entire network infrastructure themselves.”
“This quest to sustain profitability is not unique to Nigerian operators, with the trend proving popular globally. But there are distinct forces at play within the Nigerian market that are making profitability ever more challenging for operators in the country. Legacy voice revenues are steadily declining, competition is forcing down tariffs, and, in general terms, the average revenue per user is falling and is expected to continue doing so”.
The statement added that: “To combat this, attention is been diverted to boosting the provision of data services as operators strive to generate additional revenue streams, but such efforts bring with them additional capital and operation expenditure requirements for new and improved data network infrastructure. Such costs are already impacting negatively on the profitably of MNOs in the country, and generally relate to factors like the acquisition of land, power generation, security and generator maintenance.”
So far, MTN, Airtel, and Etisalat have all signed some form of outsourcing contract with a telecom equipment vendor or telecom infrastructure provider.
Etisalat has even gone a step further by forming a strategic IT outsourcing partnership with Huawei that will see the Chinese company take over responsibility for the operations and management of Etisalat Nigeria’s IT network.
This increasingly popular approach is expected to enable MNOs to focus more on their core business — providing improved customer experience through excellent network service.
“IDC believes the evolution in business models employed by Nigerian MNOs is a step in the right direction. In the long term, we expect this trend to lead to a notable improvement in the quality of service on the networks provided by these MNOs. There will also be a dynamic shift from cost reduction efforts to efficiency enhancements on the part of third-party infrastructure providers. As the market matures, competition will force a need for differentiation among third-party infrastructure providers and this will ultimately lead to an improved value proposition. Finally, as more successful outsourcing case studies emerge, there will be a quest for increased efficiency in terms of capacity management, network planning, and end-to-end performance management. IDC predicts that this will eventually lead to one or two MNOs outsourcing their entire core network infrastructures,” said Oluwole Babatope a telecommunications and networking research analyst with IDC West Africa.
Telecom
MTN Nigeria Recovers N32Bn out of N74Bn USSD Debt
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MTN Nigeria has recovered N32 billion from Nigerian banks as part of the N74 billion outstanding debt owed to the telecom operator for Unstructured Supplementary Service Data (USSD) service charges.
However, N42 billion remains unpaid, highlighting the lingering tensions in the protracted dispute between banks and telecom companies.
USSD, otherwise quick codes or “feature codes s a Global System for Mobile Communications (GSM) protocol that is used to send text messages.
According to MTN Nigeria’s Q5 financial statement, the circular specified that: “The directive from CBN and NCC requires sixty percent (60%) of all pre-API invoices to be paid as full and final settlement by 2 July 2025 while for post-API invoices the DMBs are required to pay 85 percent (85%) of outstanding invoices issued after the February 2022 implementation of APIs by 31 December 2024. In addition, future invoices are to be settled within one month of issuance.
Based on this directive, on 31 December 2024 MTN received N32 billion payment from the banks out of the N74 billion in CBN and NCC circulars to banks,” they stated.
Recall that telecommunications companies had threatened to withdraw their services over the N250 billion accumulated debt by banks.
In December 2024, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) issued a joint circular to resolve the long-standing USSD debt impasse between banks and mobile network operators (MNOs).
Telecom
Microsoft Confirms Skype is Shutting Down
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Microsoft has confirmed that Skype will shut down on May 20, 2025, with the free version of Microsoft Teams for consumers as the designated successor.
The company said, “Skype users will be in control, they’ll have the choice. They can migrate their conversation history and their contacts out and move on if they want, or they can migrate to Teams.”
However, telephony features are being discontinued.
Skype, the once one of the go-to messaging platforms is being shut down after 21 years.
The video calling service that was
Introduced in 2003, Skype was then acquired by Microsoft in 2011.
It was used as a replacement for early communications apps like Windows Live Messenger, but the history of the Skype platform within Microsoft products has been bumpy.
The writing has been on the wall for a while now since Microsoft has put most of its efforts over the last decade into its Teams platform.
Skype has also become less relevant over the years as platforms like Google Chat, WhatsApp Messenger, Facebook’s Messenger, Zoom and Apple’s FaceTime have taken over the mobile video calling space.
Telecom
GSMA Report Finds 70 Percent of Consumers Willing to Pay Premium for Environmentally Friendly Phones
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Fast-changing consumer attitudes towards repair and reuse of mobile phones are driving a rapidly growing market for ‘circular’ devices and services which could exceed $150bn by 2027, according to a new report published today by the GSMA, which represents mobile operators worldwide.
As technology leaders prepare to gather for MWC25 Barcelona, the world’s largest and most influential connectivity event, the GSMA’s ‘Rethinking Mobile Phones: the Business Case for Circularity’ report which surveyed more than 10,000 mobile phone users across 26 countries worldwide, shows that evolving consumer attitudes, regulatory changes and the growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry.
With more than 70% of consumers surveyed globally stating that they would be prepared to spend more for environmentally friendly phones, the report highlights the growing opportunity for the mobile industry to embrace circularity, not simply for positive environmental reasons, but also commercial benefits.
Within the report, a survey of 31 operators from around the world highlights how they are embracing circular business models. 90% of operators surveyed already operate at least one circular business model, with refurbishment and e-waste management being the most popular.
However, respondents recognised huge potential in scaling up further; 80% with refurb programmes thought ‘a lot more’ could be done.
This could include developing leasing, renewal and upgrade propositions which would tap into new revenue streams, increase customer loyalty, and provide quality assurance.
Steven Moore, Head of Climate Action, GSMA, said: Fast-growing consumer demand for green and refurbished phones, as well as repair services, is a fantastic business opportunity for the mobile industry.
Unlocking this requires strong collaboration across the value chain, helped by enabling policies and incentives from governments, bringing together manufacturers, mobile operators, refurbishers, repairers, and recyclers to address key barriers to unlock new revenue streams and future-proof business models.”
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