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Opportunity in Radio

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Looking at the African broadcast media and technology landscape today, there is a definite flavour and preference that comes through; you can take your pick of [pay] TV; the Internet; Mobile telephony (and related data and media content delivery services) being launched, upgraded, and/or introduced on an almost continuous stream.

We constantly here of new investments being made, new entrants into the market – either vendors or competitors. We hear of upgrades, new technologies being introduced, their impact on their markets and demographics. We are reminded of the subscriber and user numbers, their growth rate, the revenues they generate for their investors and incumbent service providers; the projected revenues and impact in the future for these technologies and media delivery platforms. The role they play in shaping perceptions, transferring information, enabling societies and communities; in essence, their critical importance to our communities and societies.

You will not readily find announcements of a similar fanfare or interest in Radio.

However, Radio is the most accessible and the most consumed media in all of Africa. This is especially true when you consider reach and access capabilities in the urban and rural areas. Radio reaches all parts of the African continent; rural and urban; electrified or not. Radio dominates the mass media spectrum with regionally-based commercial stations demonstrating the largest consistent growth in numbers, followed by community radio, where increases have been reported only in certain countries and growth remains strong, if inconsistent.

Radio dominates the media output of, amongst other genres, the religious media (e.g. PanAm Broadcasting – 600 million listeners; over 20 countries, using shortwave & FM transmitters), partly due to the lower economic and regulatory entry barriers for owners than those for newspapers or television. Moreover, the focus on radio allows owners to expand the broadcast spectrum beyond the urban areas, avoid the economic barriers to consumers posed by high-priced newspaper or TV subscriptions, and to address the high illiteracy rates in the population.

National commercial radio broadcasters are the exception not the rule, operating in only six countries (DRC, Kenya, Somalia, South Africa, Tanzania and Zambia). Some countries have experienced an increase in national commercial stations since 2000. State radio is coming under increasing pressure from regional or local commercial radio. This is mainly in urban areas, with the exceptions being Botswana, Ethiopia and Zimbabwe where state radio remains largely unchallenged. Large increases in regional or local commercial radio have been seen in nine countries. While DRC’s dramatic increase from eight to 150 stations may be explained partially by elections, growth in the other countries is attributed to economic growth brought on by changes in government (e.g., Senegal), or a liberalizing broadcast policy and investment.

Adopting a Converged Technology Approach?

Radio Stations should use the internet much more aggressively to promote their offerings and services, receive content, playlists, programming, etc. share content and programming (within a regional radio network, for example) and extend their reach and audience.

At present, new communications and information technologies (such a on-line programmer sharing, internet radio, web portals, text-to- radio, etc.) will increase the efficiency and capability of Africa’s radio stations, to a similar extent as in the more developed parts of the world – especially the commercial (FM) radio stations operating in the larger urban areas with a sizeable demographic to justify the investment. It is possible, however, to combine the most advanced technologies – Internet audio, for example – with more traditional broadcasting techniques such as "radio relay".

Audio files could be exchanged over the Internet between national "flagship" stations located in the capital (these could be community-radio associations) and then sent out by more conventional means (cassettes, CD ROMs) to the member stations.

 

There are a variety of initiatives to promote the understanding and use of the Internet by Africa’s radio stations. One of these is BDP on-line, an Internet-based alternative to shipping CDs or cassettes by e-mail in West Africa. Using BDP on line, twelve participating radio stations in ten French-speaking African countries are able to use the Internet to upload or download programmes free-of-charge.

 

There are a number of ‘extras’ that can be added to the basic station model, which add functionality. These include: Station Automation, to allow programming without a technician/producer in studio. Stream the station on the web. This requires a computer with a soundcard with an ‘always on’ link to the internet. This usually requires an internet link from the station premises.

Another technology option is using a mobile phone to take SMS messages – prepaid phone is better/cheaper for this, as it won’t generally be used for outgoing calls.

Yet another option is the provision of an Email address for requests/audience feedback (preferably with an internet link into the studio/station). Other Internet options, such as exchanging text instead of audio are more realistic for everyday radio use.

 

There are factors that have to be addressed, however for this to be a viable reality that will add to the profitability and efficiency of radio stations.

 

First of these is the cost and access to the Internet. The next is the awareness of Commercial Radio station owners as to the capabilities, features and benefits that an integrated (or converged) technology approach will deliver to them if designed and applied effectively .

 

Using transmitting equipment with power ranging from 1,000 Watts (FM) to 250,000 Watts (Shortwave), commercial radio station owners (shortwave, and more often FM), are able to reach various sizes of demographics – rural or urban, literate or illiterate, electrified or not. In addition, several "intermediary" organisations with strong local roots – such as the Panos Institute of West Africa – could help to link new technologies (the Web or satellites) with local radio stations by selecting and formatting information from the Web and by supporting the development of networks.

What’s Next

 

Digital radio broadcasting has emerged, first in Europe, and later in many other countries worldwide. The most simple system is named DAB Digital Radio, for Digital Audio Broadcasting,

 

HD Radio Technology enables AM and FM Radio stations to broadcast programs digitally, a tremendous technological leap forward from analog. The HD Radio system is propelling the medium into the digital space and marks the most significant advancement in Radio broadcasting since the introduction of FM stereo more than 50 years ago.

The digital technology opens the doors to a variety of services in addition to the digital stations. In September 2007, iTunes® Tagging was introduced. This new HD Radio feature enables listeners using HD Radio receivers equipped with a special Tag button to download and buy songs they hear on HD Radio stations via Apple’s iTunes.

The benefits of HD Radio Technology include the following:

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Expanded programming choices with HD2, HD3, etc.

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Multicasting allows the broadcast of more than one program over one position on the FM spectrum

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Enhanced audio quality; AM digital will have FM audio quality; FM digital will have CD audio quality

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Improved reception – Static-free, crystal-clear reception, without pops, hisses, or fades

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New wireless data services

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Scrolling text displayed on Radio screen, including song titles, artist names, traffic updates, weather forecasts, sports scores, and more.

 

A Better Listening Experience

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FM stations now have CD-quality sound

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AM stations now have FM-quality sound

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Crystal-clear reception

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No hiss, distortion or station drop off

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Hear the Difference

 

Better Features

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Real-time artist and song IDs scrolled across your radio’s display.

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More info on your dial, such as traffic alerts, stock info, scores, weather alerts, school closings, etc.

 

More Channels

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Now offering multiple channels on the same FM frequency

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No new station numbers to learn, digital signal is broadcast on current analog frequencies.

 

 

The Same Local Stations You Love

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Your favorite programs with local personalities

 

Advanced data services:

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Surround sound

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On-demand audio services

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Store-and-replay (listeners store a Radio program for replay later)

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Overlaying real-time traffic information on a navigational map

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iTunes Tagging for HD Radio Technology

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A unique and easy conversion process

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No service disruption

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Same dial position

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Maintain station brand equity

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A seamless transition for consumers

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Smooth evolution to a digital Radio world

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It’s FREE! No subscription fees.

 

All of these enhancements to local AM and FM Radio are designed to better serve the listening public while offering tremendous growth opportunities for advertisers, broadcasters and retailers, amongst others. HD Radio Technology takes Radio into the digital age, allowing stations to compete more aggressively for Time Spent Listening (TSL) and share of audience.

 

Finally (definitely one for the future!),

Satellite radio broadcasters are slowly emerging, but the enormous entry costs of space-based satellite transmitters, and restrictions on available radio spectrum licenses has restricted growth of this market. In the USA and Canada, just two services, XM Satellite Radio and Sirius Satellite Radio exist.More Programming

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Broader song lists with more music diversity

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Undiscovered artists and music

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New blends and mixes of formats

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More talk, more comedy, more news

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Find digital radio stations on the air


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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NELFUND Says UTME, NIN, BVN Mandatory for Student Loans

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Nigerian Education Loan Fund (NELFUND) has said that Nigerian students will need to present their Unified Tertiary Matriculation Examination registration number (UTME); National Identification Number (NIN); and Bank Verification Number (BVN) to access student loans.

NELFUND Says UTME, NIN, BVN Mandatory for Student Loans

Mr Akintunde Sawyerr, managing director of NELFUND, assured that the body would ensure that those he called ‘ghost students’ would not have access to the soon-to-be-launched scheme.

The MD noted that NELFUND has put processes in place to ensure that all applicants and beneficiaries are traceable to prevent the loan from turning into a sort of national cake.

“We are using technology to run the system. The process of application is online and we are limiting human contact as much as possible. Once you have a Bank Verification Number, BVN and National Identification Number, NIN, which are parts of the requirements, we will have access to your data and all your accounts. This will also help us to know if you are qualified or not,” he explained.

He explained further that those who are already in school can apply for the loan at any level of their study, but must be at the beginning of each session. They would also have to provide their admission and matriculation details in addition to BVN and NIN.

According to the NELFUND boss, about 1.2 million Nigerian students in tertiary institutions and government-recognized skill acquisition centres would be among the first batch of beneficiaries. The number may increase as time goes on.

The programme, he noted, will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS), which will amount to N194 billion if the agency meets its projection.

He explained that the loan would be paid in two segments. The first, he said, is the chargeable school fees which would be paid directly to the institutions while stipend would be paid into individual student’s account for day-to-day upkeep.

Mr. Sawyerr stated that the amount individual applicants will access will vary because of the course of study, school fees payable and geographical location of the institutions among others.

On the method of payback, he said, “You don’t start paying back the loan until two years after your National Youth Service Corps, NYSC Scheme and that is, if you have secured a job or business. A beneficiary can defer repayment if he has not secured a job, but if after due diligence, he defaulted, then he becomes a criminal and we will work with every agency that can help us get the money back, for example, EFCC, ICPC etc.”

 


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Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC

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Sun International Limited, run by Anthony Leeming, South African entrepreneur, has agreed to sell its Nigerian interests to Rutam Finance Company Limited (RFC) for roughly $14.4 million.

Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC

The move is part of Sun International’s strategy to consolidate operations and focus on key markets. Sun International joined the Nigerian market in 2009, but has struggled in recent years due to a challenging operating climate.

This divestiture is consistent with the company’s strategic objectives and represents a shift in portfolio management.

Sun International, will sell a 43.3 percent ownership investment in Tourist Company of Nigeria PLC (TCN), which manages Lagos’ Federal Palace Hotel, to RFC for $1.875 million.

In addition, the group would pay off its whole $12.675 million credit to RFC, effectively exiting the Nigerian market. The corporation also intends to sell its remaining 6% ownership in TCN in due course.

The transaction, subject to customary closing conditions including as regulatory approvals, is estimated to create a cash inflow of about $14.41 million for Sun International.

These funds will be utilized to reduce debt.

Following the completion of the acquisition, TCN will no longer be included in Sun International’s financial statements.

This will reduce group debt by about $41.82 million, excluding IFRS 16 lease liabilities.

The closing is scheduled for no later than May 28, 2024, provided that all usual closing conditions are met. The Nigerian Competition Authority, the Securities and Exchange Commission, and the Nigerian Stock Exchange have all provided key clearances.

Sun International, founded in 1968 by the late Sol Kerzner, has grown into a renowned gaming and resort company under Leeming’s leadership.

In fiscal 2023, the company’s revenue increased by 7% to $646.14 million, while headline earnings increased by 86 percent to $55.35 million.

This demonstrates Sun International’s resiliency and strategic direction. Sun International’s pullout from Nigeria demonstrates the company’s dedication to streamlining its portfolio and pursuing growth possibilities in key areas.

With a rich history and a focus on the future, this transaction demonstrates the company’s commitment to create wealth for shareholders and stakeholders while also strengthening its position in the gaming and hospitality industries.

 

 


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Sam Darwish, US-Nigerian Businessman Suffers $6m Loss as IHS Shares Plunge

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Sam Darwish, a US-Nigerian telecom entrepreneur, has experienced a huge financial setback in his holding in IHS Holdings following a recent drop in the shares of the top telecom infrastructure company on the New York Stock Exchange (NYSE).

Sam Darwish, US-Nigerian Businessman Suffers $6m Loss as IHS Shares Plunge

Sam Darwish

According to data, Sam Darwish’s investment in IHS Holdings has lost $6 million in market value during the last 13 days. This drop reflects increasing selling pressure among NYSE investors.

From March 12 to 30, Darwish’s investment in IHS Holdings increased from $35.17 million to $49.27 million, resulting in a $14 million gain.

Darwish founded IHS Holdings in 2001, and it has since grown to become the largest telecom infrastructure business in Africa, Europe, Latin America, and the Middle East.

It is renowned for its huge tower count and is the world’s third-largest independent international tower firm.

In the last 13 days, IHS Holdings shares on the NYSE have dropped by 11.72 percent, from $3.67 on April 3 to $3.24 at the time of writing.

As a result, the company’s market capitalization has dropped below $1.1 billion, causing significant losses for stockholders.

As chairman and CEO of IHS Holdings, Sam Darwish holds a critical position in African telecom.

With a strong 4.17 percent ownership holding, equivalent to 13,958,158 ordinary shares, he is a key participant in the global telecom infrastructure business.

The recent double-digit loss in IHS Holdings shares has resulted in a $6 million decrease in the market value of Darwish’s shareholding in the top telecom infrastructure company. His shareholding has decreased from $51.23 million on April 3 to $45.22 million.

Despite this defeat, Darwish remains an important figure in the worldwide telecom business.

IHS Holdings’ extensive tower network and smart acquisitions have secured its position as a major participant in the global telecom infrastructure sector.

 


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