Telecom
Medallion, Galaxy Backbone Make Case for Infrastructure Sharing in ICT Sector
The issue of infrastructure sharing in Nigerian telecommunications industry is extremely important since the resources used to provide the services are limited.
Whether in passive or active model, infrastructure sharing is a key element in promoting healthy competition among market players, with a reasonable investment value and a fair price to be charged to the consumer.
These were the thoughts of panellists at the Mobile and Disruptive Technology Forum (#MoDiTECH2019) organised by TechEconomy.ng in Lagos, recently.
Moderated by Mr. Toba Obaniyi, the Vice President, Nigeria Internet Registration Association (NiRA), the panelists discussed issues around “Infrastructure as a Limitation to Unleashing Digital Services in Nigeria”.
Dr. Kris Ranganath, Chief Technical Officer (CTO), Medallion Communications, speaking during the panel session, reiterated that leveraging the capacity of colocation companies such as Medallion Communications Limited could be the way out for players to reduce capital expenditure (CAPEX) and operational expenditure (OPEX).
Dr. Ranganath said that despite a record of over $70 billion local and foreign direct investments (FDIs) into the country’s telecoms sector, lack of a robust infrastructure remains one of the challenges that have bedevilled the industry.
He said that as the major employer of labour and an enabler of economic development, the industry deserves protection by the government to continue to add value to the GDP.
He said that Medallion Communications Limited, one of West African one-stop interconnect and hosting companies readily comes into the picture as an enabler of colocation model for the country
The CTO said that the Company has preached and has painstakingly been building infrastructure backbone supporting Nigeria’s ICT and telecommunications industry in the area of carrier neutral infrastructure sharing and connectivity over the years and will continue to add value to the ecosystem.
He said, although they have not totally addressed the challenges, but their efforts have given rise to Nigerians appreciating the value of shared infrastructure and data center service delivery.
“The Medallion collocation center, located in Lagos, is today, one of the most connected facilities in Nigeria. Over 80 service providers, including all global system for mobile communications (GSM) operators, code division multiple access (CDMA) operators, fixed wireless and fixed line operators in Nigeria are connected to the Medallion’s collocation center.
“The resilience telecom infrastructure Medallion has built over the years is currently accommodating the hosting of contents from both local and international service providers in Nigeria. Therefore, we are localising a huge percentage of content and data, which were hitherto hosted abroad,” the Medallion Communications CTO added.
He said that while the Company drives colocation, among other services, the client lists also include all long distance, international fiber network operators and metro fiber transmission providers in Nigeria.
More so, Chidi Okpala, Marketing Manager, Galaxy Backbone Limited, said that infrastructure sharing is a way of reducing the costs of investing in networks, increasing the value of the business, optimizing the allocation and use of infrastructures when duplication is impossible, and guaranteeing the compliance with regulatory obligations.
He added that the resultant impact is in an improvement of the conditions of the service provided to the users, especially in offering quality service.
Okpala said that more importantly, infrastructure sharing is always advisable to foster competition in the sector, thus favouring the final consumer, either with an improvement in the quality of the service, or with a possible reduction in the prices charged by the sector.
According to him, Galaxy Backbone has continued to provide connectivity services to Government MDAs across the length and breadth of Nigeria on its 1GOV.ng platform.
“This has given federal government the opportunity to enjoy the benefits of economies of scale and encourage local partnerships”.
Galaxy Backbone (GBB) is the Digital and Shared Services Infrastructure provider of the federal government.
For close to two decades, GBB has continued to strive towards living its mission being, to drive national development through the provision of pervasive ICT Infrastructure and services to public institutions, underserved communities and other stakeholders.
This mission propels the day to day running of the organisation and how it interacts with institutions, local communities and other stakeholders.
Similarly, the persistent infrastructure deficit in the Nigerian telecoms sector are due to obvious multifaceted factors like multiple taxation, vandalism, inconsistent policies, among other factors.
In his contribution, the president, Association of Licensed Mobile Payment Operators (ALMPO), Mr. Chinedu Onuoha, said that in addition to improved infrastructure deployment, introducing innovative solutions that have the potential to reduce costs in digital payments is crucial too.
He said that FinTechs must continue to strive to develop and unleash real-time settlement solutions for financial institutions and capable of impacting of rural dwellers.
He said that standardization through policies cannot be overemphazised as the costs, risks and delays inherent in today’s infrastructure often limit electronic payment products, particularly to large-value transactions.
He referred to the recent issues generated by the Unstructured Supplementary Service Data (USSD) charges by banks and telecos could have been addressed through stakeholders’ engagements.
He reminded the participants that infrastructure deficit is chief among the reasons financial institutions find it difficult to even offer low-value payment products.
For instance, banks and licensed mobile money operators lack capacity to manager issues arising from network downtime among other issues.
Mr. Onuoha said that for these reasons and more, ALMPO was formed “to create a voice for the industry in order to create, influence and shape policies, Government legislations and to build standards within the frameworks that will provide stability and growth to the mobile money environment and also to contribute to the economy of the Mobile payment initiative in Nigeria”.
Telecom
GSMA Report Reveals How Cybersecurity and Revenue Growth are Driving Enterprise Digital Transformation
A new report from GSMA Intelligence (GSMAi) shows that enterprises are focusing more on improving cybersecurity and boosting revenue rather than cutting costs, as they speed up their digital transformation.
The research, “The rise of digital industries: navigating enterprise needs, investments and supplier decisions” reveals that 60% of businesses prioritise revenue growth, customer experience, and competitive positioning over cost-related goals for their digital transformation.
Investment in digital technologies is projected to increase substantially over the next six years to meet business needs, with organisations surveyed planning to allocate 9% of enterprise revenue during 2024–2026, growing to 11% during 2027–2030.
Focus on 5G and AI
85% of enterprises see 5G networks and connectivity as important, with almost half marking them as extremely important, for their digital transformation success. Enterprises plan to spend 21% of their digital transformation budgets on connectivity and associated devices, 13% on mobile (including 5G), and 8% on fixed and Wi-Fi networks. Enhanced security (57%) and connectivity (52%) are the top 5G features they value most and investment in 5G between 2024 and 2030 is projected to be 2.5 times more than in 4G, especially in high mobility sectors such as automotive, transportation, logistics and warehousing.
AI is also a significant factor, making up 14% of enterprise technology expenditures, implemented to elevate customer experiences, strengthen security protocols and increase productivity among employees. Generative AI has swiftly gained importance in the digital strategy of companies, with 90% of them incorporating it, but only 33% are utilising it in advanced ways, indicating potential for further development.
IoT adoption is progressing, with businesses transitioning to more advanced use of IoT technology, including greater use of 5G. Moreover, enterprises show high interest in using eSIM for their IoT deployments, due to its scalability and enhanced security features. Enterprises expect eSIM to account for 42% of the total IoT cellular market by 2030.
Enterprise wants full stack suppliers
As enterprises accelerate their digital transformation journeys, they are opting to work with a broad range of suppliers to meet their technology needs. The research shows a preference for generalist suppliers – such as hyperscalers and telecoms network/equipment vendors – that offer nearly full-stack solutions.
Pablo Iacopino, Head of Research at GSMAi, said: “Enterprises of all sizes are eager to advance their digital transformation and are making the necessary investment. As a result, supplier competition is fierce.
“Telcos need to go beyond just providing network services since enterprises are increasingly looking for partners who can help them throughout their full digital transformation journeys, combining technologies such as 5G, AI, IoT and cloud to improve efficiency, security and drive revenues.
“The cost of implementation and complexity of tech integration are the top two deployment challenges faced by enterprises. This means the role of tech orchestrator will become even more important, and demanded in the future, which presents new opportunities for multi-service suppliers.”
Financial services leads in AI; automotive and mobility push 5G
The report highlights the vertical sectors driving digital transformation each with different priorities and technology investments:
- Financial services: 92% are already using generative AI technology, and they lead in both wider AI adoption (92%) and spending on digital transformation (10.4% of revenue).
- Media and entertainment: This sector leads in revenue growth as a top digital transformation objective, with 65% citing it as an extremely important objective. Also, 91% of media and entertainment enterprises are already using generative AI.
- Utilities and energy: 51% of utility and energy enterprises are making advanced use of cloud technology—the highest of all sectors. 37% are prioritising generative AI for their financial spending through 2026 and allocating 16% of their digital transformation budgets to AI in the longer term.
- Manufacturing and industrial: 33% of manufacturing enterprises identify a lack of internal expertise as a key challenge to AI deployment, the highest across all sectors. Manufacturing ranks high in its focus on cybersecurity, with 55% of enterprises making advanced use of these technologies.
- Transportation, logistics and warehousing: This sector shows strong engagement with AI, including working with MNOs for AI solutions in any forms. This sector also stands out for its focus on IoT, with 36% of enterprises making advanced use of IoT technologies.
- Healthcare: Healthcare enterprises allocate 14% of their digital transformation budgets to AI, and 41% of enterprises cite cybersecurity as one of their top five areas of financial spending over the next few years.
- Automotive and mobility: This sector leads in terms of its focus on 5G, with 54% of enterprises rating 5G as extremely important to digital transformation.
- Retail: 63% of retailers prioritise revenue growth as an extremely important digital transformation objective. They are also quickly adopting generative AI, with 87% using the technology and 34% making advanced use of it.
- Public sector: The public sector is investing heavily in digital transformation, allocating 10.1% of its revenues to these initiatives.
- Agriculture, forestry, and fishing: This sector shows the lowest digital transformation score overall, leaving potential for improvement in areas such as IoT, AI and 5G.
To explore the full findings and insights from the Global Digital Transformation Survey 2024, full access to the report and dashboard can be found here.
In addition, there is a GSMAi webinar on 3 December (10:30am – 11:30am GMT) where Pablo Iacopino and Christina Patsioura, IoT and Enterprise Research Lead Analyst from GSMAi, will explore the key findings and insights from the survey research, and their implications.
Telecom
NEC Calls on States to Embrace NASENI’s Tech Innovations
In a move to fast-track Nigeria’s industrialization, the National Economic Council (NEC), has urged state governments to patronize technological innovations developed by the National Agency for Science and Engineering Infrastructure (NASENI).
The Vice President Kashim Shettima stated this during the 146th NEC meeting which he chaired at the Presidential Villa, Abuja following a presentation by the Executive Vice Chairman of NASENI, Mr. Khalil Suleiman Halilu, which detailed a strategic roadmap by the Agency for Nigeria’s industrialization.
Mr. Halilu in his presentation titled “NASENI Economic Transformation Through Advancement in Technology Transfer and Adaptation”, detailed the Agency’s focus in critical sectors such as Renewable Energy & Sustainability, Health & Biotechnology, Agriculture & Food Manufacturing, Sustainable Transportation & Mobility, Digital Technology, Construction & Smart City, Defense & Aerospace.
The Agency sought NEC support to establish manufacturing industries in states, access local natural raw materials, streamline processes related to land and seaport facilitation, sought guidance or partnerships to tap into public sector market, assistance to set up showrooms for NASENI products and favourable policies to promote NASENI activities.
The EVC/CEO of NASENI highlighted the agency’s innovations in energy security, including electric vehicles, NASENI Solar Home Systems for enhanced rural electrification; Smart devices including laptops and tablets tailored for Nigeria’s market; and Solar irrigation pumps and coal-based fertilizers to improve agricultural productivity.
Halilu reiterated the Agency’s commitment to transforming Nigeria into a global innovation powerhouse through technology transfer, product commercialization, adding that the Agency is working with key partners on NASENI Troment (Vaccine factory), NASENI Portland (CNG Centre), NASENI Devfrontier (Solar light & battery), NASENI Renewable Park and NASENI Family Homes (Sustainable homes).
“Our mission is clear: to make NASENI the ‘go-to’ institution for technology transfer in Nigeria,” he stated, adding that the Agency has attracted $3.23 billion in investments, launched the DELT-Her initiative for female engineers, and how the Agency is championing renewable energy projects.
The Council lauded NASENI’s efforts in driving local manufacturing and industrial development and therefore directed the Agency to scale up the establishment of lithium battery factories in resource-rich regions and repair tractors nationwide under the National Asset Restoration Programme.
The NEC meeting further resolved to harness NASENI’s tailored support for manufacturing and public sector partnerships, ensuring Nigeria benefits from infrastructure, policy frameworks, and market access critical for economic diversification.
NASENI remains committed to working with states and the private sector to unlock Nigeria’s potential for industrial innovation and sustainable development.
Telecom
NCC, CBN to Resolve Telecoms, Banks’ USSD Debt Issue
Nigerian Communications Commission (NCC) is in talks with the Central Bank of Nigeria (CBN) over the Unstructured Supplementary Service Data (USSD) debt totalling N250 billion between the telecom operators and the commercial banks in the country.
USSD, known as quick or feature codes, is a global system for mobile communications (GSM) protocol used to send text messages and initiate financial transactions such as cash transfers, balance inquiries, payments for services and others.
However, the USSD platform, which is widely relied upon by millions of Nigerians for quick and efficient mobile transactions, has become a point of disagreement between the banks and telecom operators.
The crisis dates back to 2019 when telcos proposed charging N4.50 per 20 seconds of USSD usage in order to cover operational costs after years of providing the service for free.
But the banks kicked against this, saying a 450% increase in transaction costs will significantly grow the debt and strain relations between the two vital industries.
However, Dr Ikechukwu Adinde, director of Consumer Affairs Bureau, NCC, who disclosed this move, said commission was hopeful the issue would soon be settled.
According to him, “The NCC remains committed to ensuring that the interests of all stakeholders—consumers, telcos, and banks—are protected.”
He insisted that a resolution is critical to maintaining the seamless operation of mobile financial services that millions of Nigerians depend on daily.
Adinde, who also said plans are on to introduce reforms at enhancing tariff transparency in the telecommunications industry, believed the new move between the NCC and the CBN would put the debt issue finally to rest.
On transparency and responsibility policy, Adinde said the changes, set to roll out in the coming months, will require telecom operators to provide consumers with clear, easily accessible tables outlining tariff plans, billing rates, and the terms and conditions associated with their services.
Indeed, Karl Toriola, chief executive officer (CEO) of MTN Nigeria, had said in October that banks might be disconnected from the USSD platform due to debt arising from the use of the quick codes by their customers.
Toriola had said mobile network operators (MNOs) might, subject to regulatory approval, suspend use of the service on the network for banking operations, as the debt had continued to pile up and was becoming unsustainable to the operators.
Also, Gbolahan Awonuga, executive secretary of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), said in October that the debt between telecoms operators and commercial had hit N250billion.
Earlier, the telcos had lamented that they could no longer provide the services free, proposing a cut of N4.50k per 20 seconds from the charges paid by customers to the banks.
But the banks kicked against this, adding that it would raise costs by 450 percent.
Credit: Daily Post
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