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GSM Subscribers to Pay More for Data From Dec.1

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  • GSM Subscribers to Pay More for Data From Dec.1

Subscribers of the Global System of Mobile telecommunications across the country would pay more for data with effect from December 1, 2016.

Although the telecoms companies declined to speak on the matter, top management workers across the networks confirmed the story to our correspondent, saying that the directive was from the Nigerian Communications Commission.

Speaking on the condition of anonymity, a senior management employee of Etisalat Nigeria said, “The NCC issued the directive late last week on the orders of the Federal Government. We have not announced it yet because most of the major telcos have been meeting the NCC on how to reverse this policy, because it will be too harsh for Nigerians.

“However, we further gathered that the Federal Government took the decision having discovered that data rates are very low-priced in Nigeria, compared to other countries, including nearby African countries.

“The government might have also taken the decision given that Nigerian subscribers have been kicking against the proposed nine per cent Communication Tax, whose bill is currently in the National Assembly.”

Pleading not to be mentioned, an employee of MTN said, “What this means is that MTN, Airtel, Etisalat And Globacom will increase their data rates as from December 1, 2016. A data plan of N1,000 for 1.5 Gigabytes will now be increased to N3,000 at N1,000 per 500 Megabytes.”

In text messages sent out to its subscribers, MTN, Africa’s mobile telecommunications giant, confirmed that it had agreed to implement the directive of the NCC.

The MTN text read, “Dear customer, please be informed that from 1st of December, some MTN data tariffs will be increased to reflect the new rates set by the NCC for operators. Thank you.”

However, a representative of the commission said that the telecoms regulator was unaware of such plans by the operators, even as she said her bosses had claimed ignorance of the circulated message.

“We are unaware of it. I just asked my bosses; they are unaware. We will forward your query to MTN for appropriate attention,” she said over the telephone.

However, in a letter by the NCC to the operators sighted by our correspondent, the commission stated, “This rate will subsist pending the finalisation of the study on the determination of cost-based pricing for retail broadband and data services in Nigeria.

“In order to provide a level playing field for all operators in the industry, small operators and new entrants to acquire market share and operate profitably, small operators and new entrants are hereby exempted from the price floor for data services.”

It added, “For the avoidance of doubt a small operator is one that has less than 7.5 per cent market share and a new entrant is an operator that has operated less than three years in the market.

“All operators are to ensure that subscribers are not automatically migrated to pay-as-you-go platform.

“Also, note that effective date for the interim price floor is December 1, 2016.”

Reacting to the development, the President, National Association of Telecommunications Subscribers, Mr. Adeolu Ogunbanjo, said that the NCC representative was being economical with the truth.

He said that for MTN to have sent out millions of text messages to its subscribers “clearly shows that the NCC indeed issued the directive.”

Ogunbanjo, however, said that the association would resist the tariff hike, adding, “We will challenge it in court. We are going right away to set the machinery in motion. We are also going to do an urgent letter to the NCC Executive Vice Chairman, Prof. Umar Danbatta, which we will drop in his e-mail box.

“Unfortunately, the notice is short; today is November 28, yet the order will take effect from December 1. It is not just good for broadband penetration, whatever the reason may be. It is against telecoms subscribers.”

According to him, data availability means more youth engagement because they use data to develop apps and build software.

“But with what the NCC has done, these boys who develop apps will be slowed down and limited. The cost of doing business will also increase,” he added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Starlink Pulls Plug on Ghana, South Africa, and Others

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Starlink, the satellite internet service operated by SpaceX, has announced the cessation of services in countries including Ghana and South Africa.

This decision comes as a significant blow to users who have come to rely on Starlink for their internet connectivity needs.

The decision, set to take effect by the end of April 2024, will disconnect all individuals and businesses in unauthorized locations across Africa, including Ghana, South Africa, Botswana, and Zimbabwe.

While subscribers in authorized countries such as Nigeria, Mozambique, Mauritius, and others can continue to use their kits without interruption, those in affected regions face imminent loss of access.

One of the reasons cited by Starlink for the discontinuation is the violation of its terms and conditions.

The company explained that its regional and global roaming plans were intended for temporary use by travelers and those in transit, not for permanent use in unauthorized areas. Users found in breach of these conditions face the termination of their service.

Furthermore, Starlink’s recent email to subscribers outlined stringent measures to enforce compliance.

Subscribers who use the roaming plan for more than two months outside authorized locations must either return home or update their account country to the current one. Failure to do so will result in limited service access.

The decision to discontinue services in certain countries raises questions about the future of internet connectivity in these regions.

Also, concerns have been raised about Starlink’s ability to enforce the new rules effectively. Reports indicate that the company has previously failed to enforce similar conditions for over a year, raising doubts about the efficacy of the current measures.

Starlink’s decision to pull the plug on Ghana, South Africa, and other nations underscores the complexities of providing satellite internet services in diverse regulatory environments.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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