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Telecom

Zoom Mobile, Starcomms, Others Were Programmed to Fail

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Eugene Juwah, EVC, NCC
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Nigeria mobile code-division multiple application (CDMA) mobile sectors is going through tough times and there appears no end in sight soon since government is not forthcoming with either a bail-out plan nor working out any mergers/acquisition scheme for the ailing firms.

Collins Onuegbu, a systems analysts and managing director of Signal Alliance Ltd, a full IT services company in Lagos told Nigeria CommunicationsWeek that the CDMA sector was programmed to fail when the Nigerian Communications Commission (NCC) initially adopted regional licensing for the CDMA operators; while opening up the market of universal licensing for the GSM mobile operators.

“The CDMAs are failing because their business model was flawed from the beginning. From the very beginning when the NCC decided to give them regional licences and the GSM operators were offered universal licence, it was evident the CDMAs will fail.”

“Nigerians are very mobile people and the very essence of the mobile phone is for you to connect wherever you go and there is no way you’d buy a phone that guarantees you connection only in Lagos and whenever you’ re out of town, you needed another system. So why not buy the one that connects you continually and leave the other one out of budget? So you see, the CDMAs cannot compete with that model of business in an environment like ours,” said Onuegbu.

He stated that elsewhere where copper (cables) are used to connected fixed lines, the model for regional licensing could work, but not in Nigeria where all the cables have either been dug up through road constructions or stolen by vandals.

Onuigbo noted that since the GSM operators had a heads-start, it opened windows of financing for them too which the CDMAs were shut out from.

“The CDMAs because of their regional operating licence couldn’t access bank financing or further investment for expansion and the resultant effect is that they’re dying one after the other.”

Starcomms PLC, the only telecom operator on the floor of the Nigeria Stock Exchange (NSE), is also not spared the meltdown as they struggle to remain afloat.

A recent attempt to merge with three other operators to form a medium size CDMA operator appear also to have hit a brick wall.

“I think Starcomms went to the stock market rather too early. They hadn’t spent enough time in the market to authenticate their real value. They needed to have been tested and trusted by investors. So that affected their market value and capitalization drive,” Onuegbu enthused.

Signal Alliance also has strategic affiliation with Microsoft, SAP, Cisco, CA Technologies and was recently rated the 27th fastest growing (non-listed) company in Nigeria by Michael Porter’s All World Network Nigeria Fast Growth 50 list.


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Telecom

Fines: Meta Threatens to Shut Down Facebook, Instagram in Nigeria

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Meta may shut down its Facebook and Instagram services in Nigeria in protest against the substantial fines imposed by multiple government agencies.

Fines: Meta Threatens to Shut Down Facebook, Instagram in Nigeria

The tech giant has been ordered to pay nearly $300 million in fines in Africa’s most populous nation, following regulatory demands which Meta described as “unrealistic.”

In July 2024, the Federal Competition and Consumer Protection Commission (FCCPC), imposed a $220 million fine on Meta for allegedly discriminatory and exploitative practices against Nigerian consumers.

The commission stated that Meta had failed to engage a Data Protection Compliance Organisation and had not submitted a Nigeria Data Protection Regulation audit report for two consecutive years.

Similarly, the Advertising Regulatory Council of Nigeria (ARCON), demanded $37.5 million over unapproved advertising, while the Nigerian Data Protection Commission (NDPC), announced a $32.8 million fine for an alleged data privacy breach.

Meta challenged the decisions at the Federal High Court in Abuja but was unsuccessful, as the court upheld the fines in a ruling delivered last week.

The court directed the company to comply with payment by the end of June, but Meta has indicated it may not do so, according to the BBC.

“The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures,” the company stated in court documents.

Responding to the NDPC’s assertion that Meta’s data processing could expose Nigerian users to health and financial risks, the company said the agency had failed to “properly interpret the laws guiding data privacy.”

 

 

 

 

 

 

 

 


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 Telecoms Services Resume in Kogi State as Telcos, Govt Resolve Dispute

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 Gbenga Adebayo, chairman of ALTON,
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Telecommunications services disrupted in Kogi State have resumed following a resolution of the dispute between MTN Nigeria and the state government, the Association of Licensed Telecoms Operators of Nigeria (ALTON) has said.

 Telecoms Services Resume in Kogi State as Telcos, Govt Resolve Dispute

Gbenga Adebayo, chairman of ALTON, told TVC News that the issues that led to the shutdown of telecom masts in the state, primarily affecting MTN, had been addressed, paving the way for service restoration.

TVC News earlier reported that businessmen and women were counting their losses as they suffered the impact of a shut down of telecommunication service in Kogi State

Over the past two weeks, telecoms connectivity had been erratic, with competing brands experiencing glitches, particularly in the Lokoja metropolis.

The State government suspended the operations of some telecom services citing unpaid taxes and fibre-related dues.

The shutdown stemmed from a compliance dispute between MTN and the Kogi State Utility Infrastructure Management and Compliance Agency, which accused the telecom giant of violating operational rules and under-declaring the extent of its optic fibre network coverage in the state.

 


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Banks Settle ₦160Bn USSD Debt to Telcos, Ending Five-Year Dispute

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The protracted Unstructured Supplementary Service Data (USSD) debt misunderstanding between the Deposit Money Banks (DMBs) and telecommunications operators appears to have been resolved.

This was confirmed by the Chief Executive Officer of MTN Nigeria, Karl Toriola, Thursday, March 1, when he appeared on Arise TV to speak on the firm’s first-quarter 2025 result, where the telecommunications company reported over N1 trillion in revenue earnings.

Recall that the USSD debt had been a major issue between the DMBs and telcos and had lasted for about five years.

In the third quarter of 2024, the telcos had threatened to withdraw their service over the lingering debt, which was around N200 billion at the time. This led to the swift intervention of the Central Bank of Nigeria and the Nigerian Communications Commission (NCC), and an agreement was reached on payment.

As of November 2024, the NCC put the debt at N160 billion. However, earlier this year, when it appeared the banks were not forthcoming with payments, the NCC directed the telcos to withdraw the USSD services from debt-owning DMBs, where about 18 banks were listed.

This directive prompted the banks to look inward and start to comply with an earlier circular signed by the CBN and NCC, which articulated the payment patterns for the debt.

Speaking, on Arise TV this morning, May 1, Toriola confirmed that the matter has been fully resolved and that banks have made payments.

“I can confirm that the matter has been fully resolved. We have received payments in full. Special thanks to the CBN, NCC, the banks, and other stakeholders that intervened in the matter,” the MTN CEO stated.


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