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Telecom

Medallion, Galaxy Backbone Make Case for Infrastructure Sharing in ICT Sector

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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”.


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Telecom

Fines: Meta Threatens to Shut Down Facebook, Instagram in Nigeria

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Meta may shut down its Facebook and Instagram services in Nigeria in protest against the substantial fines imposed by multiple government agencies.

Fines: Meta Threatens to Shut Down Facebook, Instagram in Nigeria

The tech giant has been ordered to pay nearly $300 million in fines in Africa’s most populous nation, following regulatory demands which Meta described as “unrealistic.”

In July 2024, the Federal Competition and Consumer Protection Commission (FCCPC), imposed a $220 million fine on Meta for allegedly discriminatory and exploitative practices against Nigerian consumers.

The commission stated that Meta had failed to engage a Data Protection Compliance Organisation and had not submitted a Nigeria Data Protection Regulation audit report for two consecutive years.

Similarly, the Advertising Regulatory Council of Nigeria (ARCON), demanded $37.5 million over unapproved advertising, while the Nigerian Data Protection Commission (NDPC), announced a $32.8 million fine for an alleged data privacy breach.

Meta challenged the decisions at the Federal High Court in Abuja but was unsuccessful, as the court upheld the fines in a ruling delivered last week.

The court directed the company to comply with payment by the end of June, but Meta has indicated it may not do so, according to the BBC.

“The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures,” the company stated in court documents.

Responding to the NDPC’s assertion that Meta’s data processing could expose Nigerian users to health and financial risks, the company said the agency had failed to “properly interpret the laws guiding data privacy.”

 

 

 

 

 

 

 

 


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 Telecoms Services Resume in Kogi State as Telcos, Govt Resolve Dispute

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 Gbenga Adebayo, chairman of ALTON,
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Telecommunications services disrupted in Kogi State have resumed following a resolution of the dispute between MTN Nigeria and the state government, the Association of Licensed Telecoms Operators of Nigeria (ALTON) has said.

 Telecoms Services Resume in Kogi State as Telcos, Govt Resolve Dispute

Gbenga Adebayo, chairman of ALTON, told TVC News that the issues that led to the shutdown of telecom masts in the state, primarily affecting MTN, had been addressed, paving the way for service restoration.

TVC News earlier reported that businessmen and women were counting their losses as they suffered the impact of a shut down of telecommunication service in Kogi State

Over the past two weeks, telecoms connectivity had been erratic, with competing brands experiencing glitches, particularly in the Lokoja metropolis.

The State government suspended the operations of some telecom services citing unpaid taxes and fibre-related dues.

The shutdown stemmed from a compliance dispute between MTN and the Kogi State Utility Infrastructure Management and Compliance Agency, which accused the telecom giant of violating operational rules and under-declaring the extent of its optic fibre network coverage in the state.

 


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Banks Settle ₦160Bn USSD Debt to Telcos, Ending Five-Year Dispute

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The protracted Unstructured Supplementary Service Data (USSD) debt misunderstanding between the Deposit Money Banks (DMBs) and telecommunications operators appears to have been resolved.

This was confirmed by the Chief Executive Officer of MTN Nigeria, Karl Toriola, Thursday, March 1, when he appeared on Arise TV to speak on the firm’s first-quarter 2025 result, where the telecommunications company reported over N1 trillion in revenue earnings.

Recall that the USSD debt had been a major issue between the DMBs and telcos and had lasted for about five years.

In the third quarter of 2024, the telcos had threatened to withdraw their service over the lingering debt, which was around N200 billion at the time. This led to the swift intervention of the Central Bank of Nigeria and the Nigerian Communications Commission (NCC), and an agreement was reached on payment.

As of November 2024, the NCC put the debt at N160 billion. However, earlier this year, when it appeared the banks were not forthcoming with payments, the NCC directed the telcos to withdraw the USSD services from debt-owning DMBs, where about 18 banks were listed.

This directive prompted the banks to look inward and start to comply with an earlier circular signed by the CBN and NCC, which articulated the payment patterns for the debt.

Speaking, on Arise TV this morning, May 1, Toriola confirmed that the matter has been fully resolved and that banks have made payments.

“I can confirm that the matter has been fully resolved. We have received payments in full. Special thanks to the CBN, NCC, the banks, and other stakeholders that intervened in the matter,” the MTN CEO stated.


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