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N1.08tn Shortfall Threatens Telecom Service

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  • N1.08tn Shortfall Threatens Telecom Service Quality

The quality of voice calls and data services is expected to worsen this year as telecommunications companies have failed to raise the N1.08tn needed to fill the current infrastructure gap in the sector.

With N40m needed to build a base station, the telecoms firms will need an investment of N1.08tn to build additional 27,000 base stations this year.

Till date, telecoms companies in Nigeria have built about 33,000 base stations against the estimated 60,000 base stations said to be needed in the industry for the operators to provide optimum quality of service to their over 60 million subscribers.

“Going by the strong economic headwinds and the continuous downslide in revenue generation, it has now become very glaring that the telcos cumulatively cannot possibly come up with such funds this year that is needed to build additional 27,000 base stations and strengthen the quality of service,” a top management employee in one of the major telecoms firms said.

Speaking on the condition of anonymity, the source added, “What this implies is that we will not be able to provide best quality of service this year. To be candid with you, the quality of service may even get worse this year if urgent steps are not taken to tackle this challenge.”

The Head, Public Relations and Protocol, MTN Nigeria, Funso Aina, said, “We plan to roll out as many new BTS as possible this year, most especially sites that are fully optimised for 4G coverage. We also intend to consolidate our 3G coverage in many areas too.”

Nigeria’s telecoms investment rose from $500m in 2001, following the licensing of the Global System for Mobile Communications operators, to $15bn in mid-2008; $25bn in 2009 and $32bn in mid-2013.

The figure has increased currently to over $68bn from $38bn in 2014, the Nigerian Communications Commission said.

According to the latest NCC statistics for November 2016, mobile subscription also increased from less than 500,000 in 2001 to over 153 million; teledensity moved up from less than one per cent to over 107 per cent; while mobile Internet subscription has risen from base zero to close to 100 million.

However, industry players stated that aside the dwindling telecoms revenue, the national roaming service was another challenge affecting the raising of funds to build additional 27, 000 base stations.

A telecoms analyst, Mr. Akin Akinbo, said “We expect major telecoms companies such as MTN Nigeria, Airtel, Globacom, Etisalat as well as ntel, among others, to deploy aggressively this year, but we have noted that a policy such as the national roaming service being introduced by the NCC may slow investment in this area.

“This is because an operator that does not have coverage in an area can just agree with an operator with coverage in that area to service the former’s subscribers, thereby foreclosing the desire to invest due to an operator’s ability to leverage on the network of another.”

Despite reservations being expressed in some quarters about the national mobile roaming service, the NCC said it would go ahead with its implementation, saying the policy would not deter investment.

The Head, Legal and Regulatory Services, NCC, Mrs. Yetunde Akinloye, told our correspondent, “National mobile roaming is a must. It is not a matter of whether or not it will happen. It is already part of the licensing conditions given to the operators.

“So, what we are working on through various stakeholders, especially the service providers, is the framework for launching the service to make life easier for telecoms subscribers. So, whether we like it or not, it is coming soon.”

Sharing Akinloye’s views, the Director, Public Affairs, NCC, Mr. Tony Ojobo, said the national mobile roaming service was good because it would help subscribers to have network access at all times even if their service providers did not have network in an area.

“National mobile roaming will allow a subscriber, who finds himself in any part of the country where his service provider has no network coverage, to make and receive calls as well as send and receive text messages,” Ojobo stated.

He noted that till date, regulation on national mobile roaming was non-existent in Nigeria, adding, “Only international roaming service between Nigerian telecoms players and their counterparts in other countries is possible.”

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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TikTok Vows Legal Battle Amid Threat of US Ban

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As the specter of a US ban looms large over TikTok, the popular social media platform has declared its intention to wage a legal battle against potential legislation that could force its Chinese-owned parent company, ByteDance Ltd., to divest its ownership stake in the app.

In what amounts to a fight for its very existence in one of its most crucial markets, TikTok is gearing up for a high-stakes showdown in the courts.

The alarm bells were sounded within TikTok’s ranks as Michael Beckerman, the company’s head of public policy for the Americas, issued a rallying cry to its US staff.

In a memo obtained by Bloomberg News, Beckerman characterized the proposed legislation as an “unprecedented deal” brokered between Republican Speaker and President Biden, signaling TikTok’s readiness to challenge it legally once signed into law.

“This is an unprecedented deal worked out between the Republican Speaker and President Biden,” Beckerman stated in the memo. “At the stage that the bill is signed, we will move to the courts for a legal challenge.”

The urgency of TikTok’s response stems from recent developments in the US Congress, where lawmakers have fast-tracked legislation mandating ByteDance’s divestment from TikTok.

The bill, intricately linked to a vital aid package for Ukraine and Israel, has garnered significant bipartisan support and is expected to swiftly pass through the Senate before landing on President Biden’s desk.

Beckerman minced no words in his critique of the proposed legislation, labeling it a “clear violation” of TikTok users’ First Amendment rights and warning of “devastating consequences” for the millions of small businesses that rely on the platform for their livelihoods.

TikTok’s defiant stance reflects the gravity of the situation facing the tech giant, which has spent years grappling with concerns from US officials regarding potential national security risks associated with its Chinese ownership.

Despite extensive lobbying efforts led by TikTok CEO Shou Chew to allay these fears, the company now finds itself at a critical juncture, where legal action appears to be its last line of defense.

ByteDance, TikTok’s Beijing-based parent company, has also signaled its intent to challenge any US ban in court, signaling a united front in the face of mounting pressure.

However, navigating the legal landscape will not be without its challenges, as ByteDance must contend with both US legislative measures and potential obstacles posed by the Chinese government, which has reiterated its opposition to a forced sale of TikTok.

As TikTok prepares to embark on what promises to be a protracted legal battle, the outcome remains uncertain.

For the millions of users and businesses that call TikTok home, the stakes have never been higher, as the platform fights to preserve its presence in the fiercely competitive landscape of social media.

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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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