News
More Headache for CDMAs as Report Paints Gloomy Year
A new report by Ernst & Young, has posted a poorer outlook this year for smaller mobile operators like those of the code-division multiple access (CDMA) segment in Nigeria, tracking a stringent operational conditions as the possibility of government bailout appears bleak, Nigeria CommunicationsWeek can report.
According to the Ernst & Young’s global report on ‘top 10 risks in telecommunications 2012’, the survival of CDMA operators hangs in the balance.
Specifically, the report assets that worldwide, telcos face daunting task of staying afloat due to competing demands for new products and service.
Ernst & Young, specialist in assurance, tax, transaction and advisory services in their latest report stated that a lack of will to move away from a defensive business strategy would be the most heinous crime for failure by telecom operators in 2012.
Jonathan Dharmapalan, global telecommunications leader at Ernst & Young says: “Telecom operators across the world face changing demands from customers, competitors and regulators, creating new pressures across their organizations. Failure to shift their business models to cater to data services is mission-critical for all and is this year’s leading sector risk.
“New approaches to pricing are crucial and operators have an important role to play as telecoms infrastructure become central to the development of other sectors, such as healthcare and utilities.“ he added
This sync with Nigeria CommunicationsWeek’s report of February 12, which quoted Alex Dadson, managing director, Qualcomm West Africa as saying that poor business strategy was responsible for failures among small operators, specifically the CDMA sector in Nigeria.
“The CDMA while an early entrant was also disadvantaged. We did not start out with nationwide CDMA licensing. There were riggings. The interconnect regime weighed against CDMA. All these problems have been subsequently fixed but CDMA took a beating as a result of business strategy, as a result of environmental factors,” said Dadson.
Mrs. Omobola Johnson, minister of communication technology acknowledges the challenges faced by small operators in Nigeria. She told reporters in Lagos recently that her ministry was looking into ways of reducing cost of business operation for them.
“From an investigation we carried out, we discovered that their greatest challenge arose from the cost of carrying their traffic to the point of destination. The cost deploying bandwidth and data from the undersea cables to their areas of need in Nigeria is quite expensive and this has brought a lot of strains on their interconnect charges from other operators,” said Johnson.
“We are presently working with them so that we can resolve their challenges. There must be a level playing ground for all the players in the sector for them to succeed,” the minister enthused.
But the regulatory agency, Nigeria Communications Commission, (NCC) thinks otherwise as its chief executive stated that CDMA operators have no peculiar operational problems that warrant any government bailout at the moment.
Dr. Eugene Juwah, executive vice chairman & CEO of NCC stated in Lagos that the Commission had asked the operators about their condition and they had not told him of any such challenges.
“We are a regulator and we provide a level-playing ground for all the players. There has not been official request from the CDMA community on any issue as per them facing any challenge – except issues that I read in the papers. As I speak, I don’t think they have any problems. I have not got any formal notice that they are having problems,” said Juwah.
Nigerian CDMA operators may have lost business valued at above N10 billion in 2011. The key indicator of revenue loss follows an arithmetic loss of customers from 6.1 million in January to close at 4.6 million by December 2011. The revenue loss calculation is predicated on average ARPU per month of N1, 000 in Nigeria.
Dharmapalan states that for operators to survive under the prevailing global harsh economic climate, they must “keep pace with changing user expectation.” The report ranks as #2 changing customer mindset as a major hiccup operators need to keep pace with to remain afloat. “Failure to do so would mean that demand cannot be turned into value.”
Ernst & Young ranks lack of regulatory certainty as number 10 key concerns among telcos. Adrian Baschnonga, Senior Telecommunications Analyst notes that “regulation of legacy parts of the business is well understood yet policies are evolving quickly in areas such as mobile spectrum release and super-fast broadband deployment. Engaging with a range of stakeholders is needed to help incentivize industry investment.”
“Failure to formulate clear viewpoints on privacy, in terms of responsibilities to end-users and other industry players, could undermine operators’ roles in the digital age” concludes Baschnonga.
The United Kingdom’s Minister for Africa, Lord Collins of Highbury, has concluded a three-day visit to Nigeria, aimed at reinforcing the UK-Nigeria Strategic Partnership.
He reaffirmed the UK Government’s strong commitment to deepening trade and investment ties between the United Kingdom and Nigeria.
During his visit, Lord Collins met with senior Nigerian government officials, business leaders, civil society representatives and United Nations agencies.
These engagements underlined the UK’s long-term drive to support Nigeria’s prosperity and stability while deepening bilateral cooperation for transformative growth across our shared priorities.
A key highlight of the visit was Lord Collin’s bilateral meeting with Nigeria’s Minister of Foreign Affairs, Yusuf Tuggar, in which both parties reaffirmed their unwavering commitment to strengthening economic ties and promoting regional security. The Minister was joined by the UK’s Trade Envoy to Nigeria, Florence Eshalomi MP.
Lord Collins also met with Deputy Speaker of the House of Representatives, Hon. Benjamin Kalu, and discussions focused on opportunities to strengthen engagement between UK’s parliament and Nigeria’s National Assembly and the importance of furthering women’s participation in politics.
Speaking on his visit, the UK Government’s Minister for Africa, Lord Collins said: “Nigeria and the UK share a rich, ambitious relationship: one that is deeply rooted in respect.
“Our Strategic Partnership is at the forefront of this, and my visit has focused on how our countries can continue deepening our cooperation on key issues such as trade and investment to drive economic growth and deliver prosperity for us all.”
The Minister held discussions with United Nations representatives on the ongoing reform of the UN system, its implications for Nigeria and how the reform can effectively support those most in need, particularly in Northeast Nigeria, whilst also contributing to global humanitarian efforts.
Lord Collins also met with civil society leaders to discuss electoral integrity and governance reforms, reinforcing the UK’s commitment to democratic values and community empowerment.
He later visited Nigeria’s Anti-Kidnap Fusion Cell: a key security initiative supported by UK expertise through the National Crime Agency and the Integrated Security Fund, which plays a vital role in enhancing local safety and combating serious crime.
Also commenting on the visit, the British High Commissioner to Nigeria, Dr Richard Montgomery, said: “Driving growth is central to the UK’s foreign and development policy. Lord Collins’ visit to Nigeria underscores the UK’s unwavering commitment to deepening our shared prosperity through expanded trade and investment. We are proud to stand alongside Nigeria as it forges a resilient and dynamic economy.”
This visit underscores the UK’s enduring partnership with Nigeria – built on mutual respect, shared goals, and a vision for a prosperous future for both nations.
News
PalmPay Launches CSR Initiatives to Empower Women, Foster Financial Literacy in Northern Nigeria
In a strategic move to expand financial inclusion in Nigeria, leading mobile banking platform, PalmPay has launched a series of CSR programs across Kano and Kaduna. The CSR initiative named “Passing the Baton” represents the brand’s commitment to passing on knowledge and providing the resources individuals and businesses need to achieve financial independence and drive economic empowerment.
This initiative is a bold move by PalmPay to bridge the opportunity gap in the North by providing financial literacy training and micro-business branding support to 5,000 women-owned businesses in Kano and Kaduna. This strategic initiative reaffirms PalmPay’s commitment to inclusive development and economic empowerment, particularly in underserved regions.
“At PalmPay, we believe that real financial inclusion must be far reaching and cover the grassroots,” said Chika Nwosu, Managing Director of PalmPay. “Our new CSR program is focused on supporting gender equity by equipping women with the knowledge, tools, and visibility they need to thrive as entrepreneurs in their communities.”
Through this initiative, beneficiaries will receive free health insurance, hands-on training workshops, enhanced store branding to boost visibility, and branded merchandise to strengthen their business presence.
The initiative is part of PalmPay’s broader strategy to extend its innovative solutions, expand its footprint in Northern Nigeria, while building sustainable partnerships with local stakeholders for long-term impact.
In a show of support, His Royal Highness, the Emir of Kano, Dr. Muhammadu Sanusi II, has endorsed the initiative, calling on other stakeholders to join forces with PalmPay in ensuring the North benefits fully from the growing digital economy. PalmPay has received commendation from community stakeholders, as the initiative aims to serve as a model for similar projects across other northern states.
As PalmPay continues to scale across Nigeria, the company remains committed to bridging the financial inclusion gap and empowering underserved groups, particularly women and youth, through its innovative solutions and impact initiatives.
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