Telecom
Why Government Should Encourage Telcos in Nigeria- Jane Egerton-Idehen
BY chukwuemeka fred agbata
There is no doubt that Nigeria has one of the largest Telecom markets in Africa as the sector attracts considerable foreign investment.
Over The Top Players, OTTPs, such as WhatsApp, BlackBerry Messenger, Telegram and many others, have significantly affected the average revenue per user of Telecom subscribers and this has adversely affected the overall revenue of the industry.
Questions that are begging for answers includes, ‘where does the industry go from here, having invested billions of dollars?’ ‘How does the Television compete with OTT players who have very little investments in overheads?’
I recently had a chat with Jane Egerton-Idehen, Country Manager, Avanti Satellite Communications and our discussion centered on her thoughts on the way forward for the Telecom industry in Nigeria.
Jane, who has been in the Telecom industry for a while now, thinks that the industry is currently at the threshold of an evolution, where it is about to enter into a transformation phase.
She observed that the growth of the industry is slowing down globally, with declining revenues, although the customers are becoming more savvy and aware in the face of technology that is daily becoming more sophisticated.
In terms of returns on investment, however, Jane thinks that it is not coming in as it should be. She also observed that, one good thing that is currently happening in the industry, is that, there is ample room for growth.
“It is also at a point where we are about to access a new layer of countries on the continent of Africa. Places that we haven’t been before”, she stated. She further observed that, all this while, the Telecom industry had concentrated in the cities, but now, gradually moving into the rural areas.
Jane is of the opinion that investors should be interested in investing in rural telephony because, that is the next phase where the billionaire subscribers will come from. “And that is where technology hasn’t really accessed untapped potentials”, she observed.
She, however, stressed that, for efficient return on investment, the infrastructures used in the cities cannot be used in the rural areas because, the cost model for rural areas has to be lower as the expected revenues from there will not be as much as we currently have in the cities.
“Yes, the technology in the sense of base stations or switches have to be the same, but how can we make the costs lower? How can we make them cheaper? How can we use lower cost models to access them? So, we really have to rethink all these”‘, she posited.
Government can compel investors to invest in the rural areas, through policies and regulations as well as complement the efforts of the investors, In Jane’s view, even though, they might be reluctant to do so because of the lower returns they are likely to get from there, coupled with the projected higher cost expected to be used in running the facilities in the rural areas.
To Jane, technology is capable of positively affecting the growth of the rural areas as this is where most of the Small and Medium Scale Enterprises, SME’s, are located, so, the government should be interested in this. She emphasised that the government can assist in facilitating the process for the investors in areas, such as site cost, customs clearance, swift right of way approvals, etc. She also suggested the use of Satellite KA band of a low cost model for accessibility in rural areas.
Jane believes that the OTT players are making a huge impact in the Telecom industry, even though, they are eroding the revenue accruing to the Telcos. In her opinion, therefore, players in the Telecom industry should be thinking about what to do about it, instead of whining about it.
In Jane’s view, we should take a look at relaxing some of our policies and regulations to encourage Telcos that have physical infrastructures, pay tax and are helping to reduce the unemployment in Nigeria by employing Nigerians to work in their companies. This is in contrast to OTT players who do not have or do these things in Nigeria but take a chunk of the revenues that would have accrued to the Telcos.
“We can demand for things, like they should have physical presence in the country. We can demand that they invest in certain sectors of our industry as a way to give back, for the kind of revenues they are making from our country”, she concluded, in respect of the foreign OTT players.
In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year.
According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29%, solidifying its position as a leading telecom provider in the region.
In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19% decline in market share and 9mobile experiencing a 0.5% decrease.
Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58% drop in its share of internet subscribers.
Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165% basis points increase.
This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.
Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.
Google Developer Groups Lagos (GDGLagos) has announced a regional edition of the global #BuildWithAI hackathon, in partnership with SeerBit, Africa’s most trusted payment solutions provider and GOMYCODE.
This hackathon, taking place on Saturday, April 27th and Wednesday, May 1st, 2024, will empower participants to explore Google’s AI tools, Gemini and Vertex AI and develop innovative solutions for real-world challenges.
“We are excited to partner with Seerbit and GoMyCode to bring the #BuildWithAI hackathon to Lagos,” says Co-Organizer, GDGLagos, Femi Taiwo. “This event fosters innovation and empowers individuals to use AI to solve real-world problems. We encourage everyone interested in AI to join us for this inspiring event.”
Founder & CEO of SeerBit, Omoniyi Kolade articulated the profound impact of this collaboration, stating, “At SeerBit, we are committed to pioneering innovative solutions that enhance financial security and foster trust in digital transactions. Collaborating with GDG Lagos amplifies our quest to combat fraud effectively. Together, we aim to empower developers to harness the power of technology for the greater good, ultimately benefiting society as a whole.”
“At GOMYCODE, we are committed to unlocking the potential of innovators across Nigeria and beyond through accessible technology education. The ‘Build With AI’ hackathon with Google Developer Groups Lagos offers a hands-on chance for innovators to use AI for real-world solutions. We’re excited to create a space where technology meets creativity, empowering participants to actively shape the future,” Country Head, GOMYCODE Nigeria, Babatunde Olaifa said.
The #BuildWithAI hackathon aligns with Google’s global initiative to democratize access to AI technology. This regional event in Lagos offers a unique opportunity for developers, data scientists, designers, students, and anyone curious about AI to:
- Gain hands-on experience with Google’s cutting-edge AI tools, Gemini and Vertex AI.
- Tackle real-world challenges across various sectors like sustainability, finance, education, healthcare, and social good.
- Leverage SeerBit’s expertise in digital payments to create solutions with tangible applications.
- Develop in-demand skills with the support of GoMyCode’s training resources.
- Collaborate in teams and network with fellow AI enthusiasts.
- Compete for a chance to win a cash prize of NGN 1,000,000, office space to further develop their winning solution, and the opportunity to partner with SeerBit, with NGN 500,000 and NGN 250,000 for second and third place respectively.
The GDGLagos #BuildWithAI hackathon serves as a springboard for the global Google AI Hackathon, taking place online. This international event focuses on pushing the boundaries of what Generative AI apps can do with Gemini. Participants in the Lagos event are highly encouraged to consider entering the global competition as well.
GDGLagos will provide ongoing support and guidance to the regional winner as they prepare to compete on the global stage. This includes access to mentorship, resources and technical expertise to help them refine their solution and showcase their talent to a worldwide audience.
Startup founders, experienced developers, data scientists and expert resources and designated mentors will be available during the hackathon to provide guidance, refine ideas, answer questions and offer technical support to participants. This ensures they receive the necessary guidance to tackle the challenges and bring their innovative ideas to life.
Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.
The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.
Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.
“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”
According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.
Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.
With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.
Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.
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