General News
The Need to Harmonize VAS Operations in Telecom
The traditional service that telecommunications operators are meant to provide is voice communications. However, there has been increased demand for value added service which is secondary focus of operators that has turned to be a strong source of revenue.
A value-added service (vas) is term for non-core services or, in short, all services beyond standard voice calls and fax transmissions but, it can be used in any service industry for the services providers provide at no cost to promote their main service business. In telecommunication industry on a conceptual level, value-added services add value to the standard service offering, spurring the subscriber to use their phone more and allowing the operator to drive up their average revenue per user (ARPU). For mobile phones, while technologies like SMS, MMS and GPRS are usually considered value-added services, a distinction may also be made between standard (peer-to-peer) content and premium-charged content.
There are about 10 billion mobile subscribers worldwide, out of which 95 million mobile subscribers are Nigerian. Over 350 billion text messages are exchanged across the world every month.
Value-added services are supplied either in-house by the mobile network operator themselves or by a third-party value-added service provider (VASP), also known as a content provider (CP). VASPs typically connect to the operator using protocols like Short message peer-to-peer protocol (SMPP), connecting either directly to the short message service centre (SMSC) or, increasingly, to a messaging gateway that allows the operator to control and charge for the content better.
In the mobile phone market, new models are being rolled out with features targeted at specific user groups.
Encouraging VAS
In Nigeria the list of content providers and platforms are growing by the day, some of the major providers include, MTech, Cellcast, TaviaTxt, SaveMyContacts, Textnigeria, Entegration Solutions, Cellulant, CellTrust, 3G Reality Centre and A3&O among others, which generate mobile content to deliver value-added services via the GSM network operators. The mobile operators share the revenues equally with these private VAS companies.
The main players in the Mobile value added service chain in Nigeria apart from the National mobile operators are the content aggregators. They provide content to mobile operators; perform in-house content development and aggregating contents from other small players. They own the short codes and they have a tie up with multiple operators to ensure subscribers of all operators can access same short codes. Revenue sharing in percentage will either encourage more independent developers or discourage them from rolling out innovative services that will promote the service.
Nigeria CommunicationsWeek investigations revealed that sharing formula has changed from 60% for the mobile operator and 40% for VAS operators to present 70% for mobile network operators while VAS providers take 30%. Wireless Application Service Providers Association of Nigeria (Waspan), the umbrella body of VAS providers has argued that the present sharing formula and none payment of money that accrue to providers is adversely affecting their effort to develop the market.
Growth is stifled in the vas market in Nigeria because National mobile operators are playing safe and concentrating only on mass services for which content is readily available and chances of failure less. For instance, entertainment value added service despite the fact that its practical value is minimal, is popular because of its mass appeal especially to youth segment and it is promoted over mobile commerce and infotainment which has the capacity to create real value for subscribers.
According to Simon Aderinlola, coordinator, Waspan, said, they have made effort to formalize the operation of VAS in the country by seeking license from Nigerian Communications Commission (NCC) which was granted last year. They also seek intervention of NCC to harmonize their relationship with mobile network operators.
Against this backdrop thatDr. Eugene Juwah, Executive Vice-Chairman of Nigerian Communications Commission, pledged to address complaints by companies that provide value added service using mobile networks over unfair treatment by network operators.
Juwah noted that VAS is a licensable set of services that run on mobile networks but added that NCC was yet to develop requisite regulation for such services. He noted that given that complaints about their relationship was now in the public, NCC could then convey a VAS stakeholder conference.
Wireless Application Service Providers ofNigeria, recently rejected a proposal an operator for a change of VAS revenue sharing formula from 70:30 to 75:25 between operators and VAS companies respectively.
According to Waspan, the proposal seeking a change of the current revenue sharing formula was not in the best interest of VAS companies.
According to Eunice Benjamin-Ade Head, Business Development, Waspan, companies that are affected by the proposal have already contacted their lawyers to seek possible legal redress of the matter if other steps taken to redress the matter fail.
Benjamin- Ade said Wireless Application Service Providers are legally-registered businesses in Nigeria that operate based on laid down business laws and have helped develop various offerings in the telecommunications sector since inception until now.
She added that VAS providers have consistently allowed a change of revenue share over the years in favour of operators and will not agree to any further shift that will reduce revenue that accrue to VAS companies.
“We believe that the recent moves by various operators to continue to change the revenue sharing ratio in their favour will not only set the stage to run down businesses of many wireless providers, but one that could eventually destroy the entire industry,” she said.
The new development represents yet another twist in the battle between mobile network operators and Value Added service providers over the sharing of revenue generated in wireless application services.
The move by NCC to call stakeholders forum to address issues arising from relationship between mobile operators and vas providers is a welcome development that will harmonize the market for development in that segment.
General News
FlashChange Partners Ruth Foundation to Empower Vulnerable Children in Alimosho with Skill Acquisition
In an inspiring initiative to uplift the next generation, FlashChange and Ruth Foundation have successfully implemented the “Orphanage Skill Acquisition Assembly 2.0 program,” a skills empowerment program for vulnerable children in Alimosho, Local Government Area of Lagos state.
The five-day programme, which began on Monday, April 14, was created to equip vulnerable children aged 4 to 18 years with essential life skills such as financial literacy, fashion design, photography, creative arts, cooking, and leadership development
Speaking at the closing ceremony of this year’s edition of the programme, the Chief Operating Officer, Flashchange, Olamide Ajibola said, “We are delighted to be part of this life-changing initiative.
“At FlashChange, we believe that children are the heartbeat of every community, by investing in their development today, we are not just shaping the future of individuals but nurturing future leaders, creators, and change-makers that would make a positive contribution to the growth and development of the society in the near future.”
“Initiatives of this nature gladdens our heart and we are open and willing to participate in them at any time. In the coming months, we hope to do more in that area as our own little way of improving society. This is in line with our CSR pillars, which include human capital development.”
Ajibola appreciated the benefitting children for accepting to be part of the life changing training which has the capacity to catapult them to a brighter future. The facilitators were also commended for impacting the children with the skills and knowledge to help shape their lives.
The founder Ruth Foundation, Itunuoluwa Ruth Da-Silva, in her remarks, expressed the foundation’s deepest appreciation to partnering organizations like FlashChange for believing in the vision and throwing their full weight behind it.
She said, “It will interest you to know that 153 vulnerable children benefitted from the Orphanage Skill Acquisition Assembly 2.0 programme and the training ran simultaneously at Compassionate Orphanage home; Precious Pearl Orphanage; Little Saints Orphanage and House of Mercy Orphanage respectively. Providing the children access to knowledge and skills early in life to create a ripple effect that can transform the entire community.”
The Chief Marketing Officer, FlashChange Jesujoba Ojelabi commended Ruth foundation for the initiative and urged the children to take the skills learnt seriously, as it has the capacity to change their lives for good.
He said, “As a company, we would be proud to lend our support to the foundation whenever we are called upon to do so in the future. My candid advice to you children would be this, to be great ambassadors of this initiative, you need to continuously put to practice the skills and knowledge you have acquired from the programme. We are indeed proud of you all and the success stories recorded so far.”
To support the continuous development of the children the following items were donated; electric sewing machine, cake mixer; packs of Yeye yarn, packs of pins, some stitch markers, scissors, measuring scale, make-up kit box filled with make-up tools among several others.
FlashChange and Ruth Foundation therefore urge community leaders, government organizations, private sector partners, and stakeholders to support programmes of this nature aimed at equipping children with the skills they need to thrive in a world that is evolving quickly.
Economic and Financial Crimes Commission, EFCC, has dismissed the claims that the defunct digital asset trading platform, CBEX, was registered with its Special Control Unit against Money Laundering, SCUML.
However, EFCC stated that ST Technologies and not CBEX registered with SCUML, saying that the certificate didn’t imply clearance by the Commission.
The clarification comes after Lesley Kessy Oviritsa, one of the victims of the CBEX Ponzi Scheme said she fell prey to CBEX after seeing and verifying its CAC and SCUML Certificate.
Oviritsa claimed they had no reason to suspect foul play, especially since they claimed their SEC certificate would be ready by May 2025.
Nigeria CommunicationsWeek reported how CBEX swept over N1.3 trillion from their investors’ accounts.
In a post on its official handle on X on Monday, EFCC said the Commission is not a clearing house or regulatory authority of online businesses.
The post read: “SCUML Certificate Is Not CLEARANCE BY EFCC.
“ST Technologies (not CBEX) registered with the Special Control Unit against Money Laundering, SCUML in line with Section 17 of the Money Laundering, (Prevention & Prohibition) Act, 2022.
“Registration is a statutory requirement for all Designated Non-Financial Businesses and Professions, DNFBPs, in Nigeria in consonance with Nigeria’s Anti-Money Laundering/ Control of Financing Terrorism, AML/CFT regime.
“The EFCC is not a clearing house or regulatory authority of online businesses.
“But financial fraud of any kind is the remit of the Commission, and it is committed to ensuring justice for victims of the CBEX scam.”
MoMo PSB, a subsidiary of MTN Nigeria and a leading provider of digital financial services, has unveiled its Customer Refer & Win Promo, an exciting initiative aimed at rewarding loyal customers with free airtime or data for life.
This campaign underscores MoMo PSB’s commitment to advancing financial inclusion and enhancing the digital banking experience for millions of Nigerians.
The promo offers customers the chance to win incredible prizes, including free airtime or data every month for 50 years for 11 lucky winners, and consolation prizes for 110 winners who will receive airtime or data every month for one year.
Open to both new and existing customers, the initiative encourages participants to perform qualifying transactions and refer friends and family to activate or reactivate their accounts.
Phrase Lubega, CEO of MoMo PSB, emphasized the company’s dedication to customer satisfaction and seamless financial transactions. “This initiative is about giving back to our customers while promoting the ease and convenience of using MoMo for everyday transactions.
“By simply transacting on the platform, customers get the chance to enjoy free airtime and data for life, an offer that truly rewards their loyalty,” he said.
To participate, customers must complete eligible transactions such as MoMo-to-MoMo transfers, other bank transfers, bill payments, betting wallet top-ups, and airtime/data purchases.
Referrals also earn participants an instant 100MB for every active referral. Weekly electronic draws will determine winners, with the promo running for 12 weeks from April 3rd to June 25th, 2025.
MoMo PSB will also engage users through nationwide activations, interactive sessions, and digital campaigns to drive awareness and participation.
This initiative further solidifies MoMo PSB’s role as a key player in Nigeria’s financial services sector, offering innovative solutions that simplify transactions and enhance customer satisfaction.
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