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Operators Face ‘Perfect Storm’ of Commercial and Tech Challenges in 2014

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Mobile operators are facing a ‘perfect storm’ of challenges in 2014 according to wireless experts Real Wireless.

The independent consultancy is warning that carriers have yet to grasp the scale of technological and commercial challenges that will start to hit in 2014, with many completely lacking a strategy to cope.

The analysis was taken from a landmark manifesto, launched yesterday, looking at every aspect of the wireless industry in 2014 and beyond, from 5G to small cells, spectrum, backhaul, M2M and more. These issues affect not just operators but regulators, vendors – and all of those that use wireless technology, from consumers to transport operators, stadium owners or enterprises.

With the wireless industry under unprecedented financial pressure and subscribers demanding ever more from their wireless service in terms of better coverage and more capacity, while technology complexity continues to accelerate, Real Wireless has found that 2014 will see a multitude of issues and challenges come to a head.

“We’ve taken a look at every aspect of the wireless industry, from spectrum to technology, the economics, the locations people are using wireless and the commercial opportunities. All included we’ve found that mobile operators are facing a perfect storm of challenges starting from this year. The next few years pose an unprecedented challenge, and few operators are preparing for it,” said Professor Simon Saunders, Director of Technology and co-founder of Real Wireless.

“While there’s never an easy time to be an operator, technology challenges are increasing in complexity at the same time as financial pressures bite. More CapEx is needed to support data traffic growth, improve coverage and build out 4G, but revenue & ARPU are under strain – indeed, in Europe the industry has moved ex-growth.”

Some of the challenges include: Small Cells. Sophisticated operators have developed plans for seizing the opportunities of small cells, and see them as an important source of competitive advantage.

Crucially, the technology enables them to re-engineer processes and human capital. They also involve partnering and outsourcing more operations, often to landline operators and MSOs. Other operators risk being commercially blind-sided.

5G is coming faster than many appreciate, with vendors demonstrating technology and standards activity progressing. However, as complex as spectrum has been for LTE, with UEs having multiple product SCUs to complicate roaming, it will be even harder for 5G.

There will be increasing tension between mobile operators, satellite operators, broadcast TV and other spectrum users. Few operators or regulators are prepared for these issues, which will come to the fore at WRC15.

Having 2G, 3G, 4G and 5G all running, all interacting and all needing spectrum will be a technical nightmare and financially insupportable – yet few carriers have planned for how to switch off any of their technologies – while growing use of M2M on 2G complicates this.

2G will be largely unaffected this year, but pressures to eventually phase it out will grow progressively. Meanwhile, other operators will make serious plans to phase out 3G in favour of 4G.
 
Wireless consumers and users are becoming more demanding. The remorseless growth in traffic poses its own challenges, but they are also increasingly unwilling to accept poor coverage. 

Enterprises, stadium owners, retailers are increasingly aware of this, and see good wireless service as business critical.

Some operators have developed strategies for how to serve this demand in a responsive and cost-efficient way. Others are in jeopardy of falling behind.

2014 will see change at both ends of the technology scale. It is difficult to phase-out 2G with concerns from rural users and the growing M2M market, but operators need to develop plans quickly. At the same time, Real Wireless warns that 5G is appearing on the horizon and operators need to plan for the next wave of generation upgrades, migrations, devices and service shifts.

Operators will also need to manage increasingly complex spectrum-sharing arrangements and roaming agreements.

“What will make 2014 different from any other year is that there are so many big challenges across such a wide range of areas all at the same time,” added Saunders.

“We’re anticipating further consolidation of both networks and operators as demanding consumers and new market entrants put pressure on an industry that is already seeing its growth slow.”  

The Real Wireless manifesto, ‘How wireless will – or should – evolve’, is available to download free of charge here. Bringing together the views of experts across the wireless industry, it highlights the challenges and opportunities for the sector over the next 12 months, with insights from the Real Wireless on how to best shape mobile and wireless strategies.

 


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Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

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MTN, Airtel, Glo and 9Mobile, four major Nigerian telecommunications companies, have a combined 267 tariff plans, according to Nigerian Communications Commission (NCC).

Telcos 267 Different Tariff Plans Confusing for Subscribers– NCC

The proliferation of tariff plans by mobile networks has been giving subscribers headaches, keeping them in dilemma on which to choose to get value for their money.

According to the NCC, the revelation of various tariff plans came through its research on the complaints of subscribers concerning data depletion.

Explaining the outcome of the research at a 2-Day Upskilling On Trends In Telecom Industry For Media Stakeholders held in Lagos,  Dr. Ikechukwu Adinde, director, Public Affairs, Nigerian Communication Commission, said majority of the telecoms subscribers did not know the actual tariffs charged by their network providers.

Analysing the various tariff plans by the telcos, Adinde said MTN as the largest operator, currently had 159 tariff plans, with 14 for voice and 145 for data. Airtel has 27 for voice and 41 for data services.

Globacom has six for voice and 32 for data, while 9mobile has seven different tariff plans for voice and 97 for data. According to him, the situation has made it difficult for many subscribers to actually select the beat tariff plan for them since there is proliferation of such plans on the networks of their providers, noting that most times, the difference between two tariffs is not discernable by the subscribers.

He said this had been affecting the quality of experience (QoE) advocating by the Agency, and so creating uncertainty for the consumers.

Meanwhile, he said the Commission was going to streamline the various tariff plans to just seven for better understanding of the consumers and to enhance the quality of experience.

“The whole idea is to ensure that consumers have a good experience, because too many tariff plans affect the quality of service – all benefits or allowances, voice, SMS and data must be seated in clear, useful and user friendly formats. “We don’t get this kind of transparency many of us are passionate about.


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First Set of Winners Emerge in Glo Festival of Joy Promo in Warri

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Digital solutions company, Globacom, on Thursday, in Warri, Delta State, held the first draw of its ongoing consumer promo, Festival of Joy. The draw was conducted at Gloworld, Delta Mall, and was attended by Glo subscribers, the media and representative of National Lottery Regulatory Commission, Mr. Anwyuli Efejukwu.

Globacom said the lucky winners including, “the winner of a brand new Toyota Prado and winners of tricycles, sewing machines, generators and grinding machines will receive their prizes on November 21, 2024 at the same Gloworld”.

To participate in the promo, Glo advised new and existing subscribers to dial *611# and recharge (voice and data) during the promo period. It added that new subscribers can join by purchasing a new SIM, registering it, and dialing *611#.

“New and existing customers are required to recharge up to N100,000 cumulatively during the promo period to qualify for the draw for the Prado Jeep, N50, 000 cumulative recharge for Kia Picanto, N10, 000 in a month for tricycle and N5, 000 total recharge in a month to win a generator.

For the sewing machine, a total recharge of N2, 500 in a month is required, while for the grinding machine, a recharge of N500 in a day will be eligible for the draw”. The company said.


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MTN Foundation Enhances Education with Renovation of 29 Laboratories in Nigeria

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MTN Foundation recently unveiled 29 fully renovated science and ICT laboratories in public secondary schools located in the Northeast and Southeast areas of Nigeria, including Kano, Gombe, Enugu, and Anambra.

This is part of MTNF’s Science and Technology Laboratory Project (STLP). The nationwide initiative has enhanced science education by equipping public school laboratories with state-of-the-art facilities and vital resources.

The STLP initiative reflects the Foundation’s commitment to youth empowerment and educational advancement in Nigeria, providing students with practical learning experiences in core science subjects such as Physics, Chemistry, Biology, and Agriculture.

The third phase of this project alone has seen the complete transformation of laboratories in six schools, with structural renovations, alternative power installations, digital learning tools, and specialised training for teachers and lab attendants.

The Foundation’s investment in education has paved the way for transformative programs like the MTN Scholarship Scheme, which supports Nigerian students in their academic pursuits, and digital skills training programs aimed at fostering technological competence and readiness.

Now, with its Science and Technology Laboratory Project, MTNF is extending these commitments to the very heart of the Nigerian classroom, transforming learning environments into spaces where students can explore, innovate, and excel.

MTNF Executive Director, Odunayo Sanya expressed the Foundation’s resolve, stating, “We are proud to support young Nigerians with the resources and environments they need to excel in science and technology.

“Our commitment is rooted in ensuring access to quality education for every Nigerian student.”

This dedication has fuelled MTNF’s efforts to establish impactful projects nationwide, positioning the Foundation as a pivotal player in advancing Nigeria’s socio-economic development and shaping a brighter future for its youth.

As the Foundation celebrates its 20th anniversary, its impact extends beyond laboratory renovations. Over the past two decades, the Foundation has invested N29.4 billion in diverse programs that improve the lives of millions across Nigeria, with a focus on youth empowerment, education, healthcare, and community development.

Guided by its new theme “Inspiring Impact Where it Matters,” the Foundation is committed to addressing critical national priorities, ensuring that underserved communities will continue to benefit from its initiatives.


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