Technology

Telcos Write Senate, Propose 1% Communication Tax

Published

8 years ago

November 8, 2016

Telcos Write Senate, Propose 1% Communication Tax

The Association of Telecommunications Companies of Nigeria, the umbrella body of telecoms companies in the country, has written to the President of the Senate, Bukola Saraki, proposing one per cent communication tax.

In the letter made available to our correspondent, and signed by the ATCON President, Mr. Olusola Teniola, the association said it would continue to kick against the proposed nine per cent Communication Service Tax Bill, until its review to one per cent.

Teniola said there were reasons to suggest that the desire to widen the tax net was laudable and that as things stood, telecommunications industry was about one of the few areas where the net-capture could be widened.

“We, therefore, suggest that an increase in VAT tax, which is already included in all services of telecommunications by an increase that is not beyond one per cent should be a good reform strategy,” the APCON president stated.

According to him, the input of recent studies by credible organisations is APCON’s guide.

“The projections are that a new tax on the ICT services as high as nine per cent that is being proposed will result in excluding 10 per cent of the population, that is talking of about 20 million Nigerians from access; whereas, the survival of our economy is on attracting more citizens to have access to Internet and therefore ICT services. It does not add up if whatever we do ends up not bringing more people into access.

“The reality of Internet access in Nigeria is that it is all about mobile. Only about 13 per cent of Nigerians get broadband access via mobile while less than one per cent of the people do from fixed services,” he said.

The ATCON boss stated that one of the main reasons the rate of Internet adoption and use was rather slow in Nigeria was the high cost of data subscription.

He said, “A 500MB plan costs typically 5.4 per cent of average monthly income. The current definition of affordability used by the United Nations Broadband Commission is where the price of a broadband plan is less than five per cent of average monthly income. If we are to use this definition, Nigeria is on the cusp of affordability.”

He added, “In Nigeria, the average income in 2014 was $2970 (GNI per capita, source: World Bank), 40 per cent of the population actually earned less than half that amount. In practice, this means that a 500MB mobile Internet plan priced at 5.4 per cent of average monthly income actually costs the majority of Nigerians anywhere between seven per cent and 18 per cent of monthly income.”

Teniola, however, said that ATCON would be happy to support the government to make the best of the tax efforts, saying they were certainly key components of strengthening the economy and sustaining the industry.

“Our mandate is to support the Federal Government to succeed in attracting and protecting investments in the telecommunications industry and to make meaningful input to all aspects of economic development, including legislation and management of our industry, so it continues to be the oil of growth and development.”

The group added, “No doubt, there is severe pressure at this time and government revenue cannot be different. We, however, pray that the template with which the telecoms industry is viewed and assessed be slightly modified.

“The truth is that there is severe over taxation in our industry. It explains the slow penetration of services into ‘unserved’ areas of the country. The truth again is that contrary to popular belief, telecommunication operators and service providers are barely sustaining existence in these times.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Technology

OpenAI’s Valuation Soars to $157 Billion After $6.6 Billion Funding Round

Published

14 hours ago

October 3, 2024

Samed Olukoya

OpenAI, the company that owns Chatgpt, has raised $6.6 billion in a new funding round to boost the company’s valuation to $157 billion as it looks to strengthen its lead in generative AI technology.

Thrive Capital led the funding round with $1.3 billion, while Microsoft invested an additional $750 million, bringing its total investment in OpenAI to $13.75 billion.

According to a source familiar with the matter, Khosla Ventures, Fidelity Management & Research Co., and Nvidia Corp., the chipmaker whose powerful processors are driving the AI boom—were also among the investors.

Apart from Elon Musk’s SpaceX and TikTok owner ByteDance Ltd, this deal ranks as one of the largest-ever private investments.

The ability of OpenAI to raise such a substantial amount despite heightened global risks demonstrates the industry’s confidence in the power of AI.

Other investors included Tiger Global Management, which contributed $350 million, and Altimeter Capital, which invested at least $250 million.

SoftBank Group Corp. and the new Abu Dhabi-based tech investment firm MGX also participated, with SoftBank’s investment totaling $500 million, according to one source who requested anonymity. Venture firm Coatue was another participant.

In a statement, the company said it plans to use the funds to advance AI research and expand its computing capacity. “AI is already personalizing learning, accelerating healthcare breakthroughs, and driving productivity,” said OpenAI Chief Financial Officer Sarah Friar. “And this is just the start.”

Fintech

Kazang Pay Launches Card Acquiring Service in Zambia

Published

2 days ago

October 2, 2024

Samed Olukoya

Kazang, the prepaid value-added services (VAS) and card acquiring business within JSE-listed fintech Lesaka Technologies, has launched its Kazang Pay card acceptance solution for merchants in Zambia. Kazang Pay makes it affordable for merchants to accept card payments on the same Kazang terminal they use to sell prepaid products and services.

The Kazang Pay enabled terminal in Zambia accepts VISA debit and credit cards as well as mobile wallet payments. Payments are settled to the merchant’s Kazang wallet on the same day. It’s as easy as letting the customer tap or insert their bank card and enter their PIN on the secure scramble PIN pad.

Kazang operates around 12,000 VAS terminals in Zambia. The goal is to enable the majority to accept card payments over the next six months. Benefits to merchants include low transaction fees and no monthly terminal rental fee for those that meet a modest monthly transaction threshold as well as the opportunity to grow their business through card acceptance.

Kazang is Zambia’s largest VAS point-of-sale terminal provider, enabling mobile money payments, bank and mobile money cash in and out, bill payments, airtime, Zesco, and many other prepaid services on one platform. The addition of card acceptance makes the platform even more comprehensive for merchants and consumers alike.

The launch of Kazang Pay in Zambia follows the introduction of the solution in South Africa, where around 60,000 small and micro merchants use Kazang Pay to accept card payments. In Zambia, there are around 3.8 million debit, credit and ATM cards in issue and 41,000 point of sale (POS) terminals in place. The value of POS transactions has grown to K 111.4 billion by 2022 from less than K 20 billion in 2018, according to the Bank of Zambia.

Says Leon de Wit, managing director at Kazang Zambia: “Zambia has made enormous strides in terms of financial inclusion, with card usage and penetration growing at a rapid pace. With Kazang Pay, merchants can now easily accept card payments on the same all-in-one terminal they already use for vending of VAS products.

“Card transactions help merchants to grow basket sizes and potentially attract more customers, and at the same time, reduce the risks and costs of handling cash. Moving towards digitalised payments will also enable merchants to track sales, manage cash flow, and create a footprint that could make it easier for them to access loans.”

Ashley Naidoo, director of Kazang Pay in South Africa says: “Our Zambian merchants have eagerly embraced our card acquiring service as a valuable part of our one-stop solution. Following the launch of Kazang Pay in Zambia, we have seen higher VAS sales across our merchant base and much-improved merchant retention and with our card acquiring solution we now appeal to a broader merchant base.”

Technology

Nigerians Outraged as Starlink Hikes Subscription Fees by 97% Amid Inflation

Published

2 days ago

October 1, 2024

Ugwoke Ogbodo

Nigerians have expressed disgust over the decision by Elon Musk’s internet service company, Starlink, to increase its monthly subscription for its service in Nigeria by 97%.

The company, while blaming worsening inflation in the country for the rate hike, disclosed that its N38,000 package has now become N75,000.

For new users, the company also increased the price of the Starlink kits (hardware) by 34%, from N440,000 to N590,000.

While Starlink has previously reviewed the price of its hardware in Nigeria both upwards and downwards several times, this is the second time it has increased subscriptions.

In a message to its customers in Nigeria, the company stated that old customers would start paying the increased price by October 31, while new customers would pay the new price immediately.

The company’s message to its customers, as posted on its website, read, “Due to excessive levels of inflation, the Starlink monthly service price will increase from current rates to the respective rates below: Standard (Residential): N75,000; Mobile-Regional (Roam Unlimited): N167,000; Mobile – Global (Global Roam): N717,000.

“As a current customer, your monthly service price will increase in 1 month, beginning on 31 October 2024. For new customers, the price increase is effective immediately.

“If you do not wish to continue your service, you can cancel at any time.”

Starlink is Gaining Traction in Nigeria

Despite its higher costs compared with local ISPs, Starlink, which announced its presence in Nigeria in January 2023, has sparked high interest among Nigerians eager to change their service providers.

The ubiquitous nature of its satellite service also encourages people in areas with poor internet networks to choose Starlink.

Notwithstanding its acceptability, some of its customers have expressed outrage over the price hike, saying it is excessive.

One of those who reacted, Adedayo Abisoye Idowu, said, “The rich just want to continue increasing their wealth by collecting the little from the poor always.”

For Anachuja Philano, the Nigerian government should fix the economy to prevent inflation that forces companies to raise the prices of goods and services.

Philano wrote, “Let the clueless Nigerian government fix their depleted economy. You can’t have an economy that is in shambles and expect prices of goods and services to be low.”