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Poorer Telecoms Services Loom Over Forex Access

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Services Tax
  • Poorer Telecoms Services Loom Over Non-access to Forex

Difficulties in accessing foreign exchange to import the equipment needed to expand infrastructure may worsen data and voice telecommunications service delivery for the rest of this year, our correspondent learnt on Friday.

According to the latest monthly industry data from the Nigerian Communications Commission, there are currently over 153.9 million active voice subscribers in the country and over 93 million data subscribers.

Some of the operators told said that they were facing a major setback in implementing their infrastructure expansion plan this year.

The operators stated that except the Federal Government put telecoms on the list of preferred sectors to have seamless access to foreign exchange, “subscribers will have difficulties accessing voice and data services.”

Speaking on behalf of the operators, the President, Association of Telecommunications Companies of Nigeria, Mr. Olusola Teniola, said that the government’s policy on forex adversely affected the firms in expanding their networks in 2016.

He said not acceding to the request in 2017 meant that the industry would continue to experience a setback.

Teniola said, “In terms of how we performed last year in the area of telecoms infrastructure rollout, the impact of the devaluation of naira has been felt by most telecoms operators.

“We should realise that 99 per cent of telecoms equipment are imported from the United States and Europe, and you need forex to do this. Not having access to forex, therefore, means a debacle to infrastructure expansion.”

He noted that there were no legal ways of working around the foreign exchange issue.

“Until the government allows telecommunications equipment to be on the preferred list of items that can access cheaper dollars, it is hard to see where further growth will come from in 2017,” the ATCON president said.

Teniola argued that without expansion of networks or increase in capacity upgrades, the networks would not be able to sustain the quality of service or even improve on it, and revenue would stagnate or decline.

“Again, the government needs to show strong leadership on this critical issue,” he added.

The ATCON president noted that despite being a $68bn sector, there appeared to be a lull in telecoms investments and general infrastructure expansion among operators last year.

He, however, said the reason for the lull was simple. “The uncertainty in the naira to US dollar exchange rate has led to anxiety within the investment community and this has also meant that foreign direct investments needed to fund network expansion and capacity upgrades under our members’ capital expenditure programmes have had to be put on hold.

“We need the government to see that an enabling environment with clarity in policy formulation and execution that leads to transparency will encourage investors, both domestic and foreign, to bring funds to drive this expansion.

“Government needs to remove the fear, uncertainty and doubt that are prevailing in the economy in 2017, or there will be further contraction in the economy irrespective of crude oil prices on the global market.”

Teniola said that the over 153.9 million subscribers in the country might witness debilitating quality of service this year due to the inability of the operators to import the necessary equipment as a result of the forex issue to roll out more infrastructural facilities across the country.

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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Fintech

From Trading to Credit: Robinhood Launches No-Fee Credit Card with Gold Membership Perks

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Robinhood

Robinhood Markets Inc. has announced the launch of its highly anticipated no-fee credit card and it was accompanied by exclusive perks for Gold membership subscribers.

This bold move is a step in the company’s mission to evolve into a comprehensive financial services provider.

The Robinhood Gold Card boasts an array of enticing features. Chief among them is the absence of annual costs or foreign transaction fees, positioning it as an attractive option for consumers seeking financial flexibility.

Moreover, cardholders stand to benefit from a generous 3% cash back on all categories of purchases, a competitive offer in comparison to industry rivals.

Vlad Tenev, CEO of Robinhood, emphasized the company’s commitment to innovation and industry leadership in an interview.

He expressed the intention to not merely introduce a credit card, but to revolutionize the market with a product that sets new standards for customer satisfaction and financial empowerment.

The announcement has sparked enthusiasm among investors, with Robinhood’s shares witnessing a 6.9% surge in early market trading following the news.

This surge further underscores the market’s confidence in the company’s strategic direction and its potential to disrupt traditional financial services.

Beyond the credit card venture, Robinhood has been steadily diversifying its offerings. With the introduction of retirement products and the expansion of commission-free trading services internationally, the company is positioning itself as a formidable player in the global finance landscape.

As Robinhood continues to innovate and expand its suite of services, its trajectory suggests a promising future as a leading force in democratizing access to financial tools and services.

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Telecommunications

NCC Files Copyright Infringement Charges Against MTN Nigeria and Others

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Karl O Toriola - Investorsking.com

The Nigerian Copyright Commission (NCC) has taken legal action against MTN Nigeria Communications Ltd. and four individuals, including its Chief Executive Officer, Karl Toriola, over alleged copyright infringement.

The charges, filed in the Federal High Court, Abuja Division, revolve around the unauthorized use of musical works belonging to artist Maleke Idowu Moye.

According to the NCC, the defendants are accused of offering for sale, selling, and trading musical works of Maleke without his consent between 2010 and 2017. These works were allegedly used as Caller Ring Back Tunes without proper authorization.

The musical pieces in question include popular tracks such as “911,” “Minimini-wanawana,” and “Stop racism,” among others.

The commission further alleges that the defendants distributed these musical works to subscribers without authorization, infringing upon the rights of the artist.

The charges are based on provisions of the Copyright Act, Cap. C28, Laws of the Federation of Nigeria, 2004.

As the case awaits assignment to a judge and a fixed date for mention, it marks a significant development in the ongoing efforts to uphold copyright protection in Nigeria’s telecommunications sector.

This legal action underscores the NCC’s commitment to safeguarding the intellectual property rights of artists and creators within the country.

MTN Nigeria, a major player in the telecommunications industry, now faces a legal battle that could have broader implications for how intellectual property rights are respected and enforced within Nigeria’s digital landscape.

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Telecommunications

MTN’s MoMo Sees 32.2% Surge in Transaction Volumes

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MTN Nigeria - Investors King

MTN Group’s mobile money platform, MoMo, has experienced a 32.2% surge in transaction volumes.

With 72.5 million active users, MoMo continues to solidify its position as a leading fintech service provider in Africa, tapping into the continent’s burgeoning mobile banking sector.

The company’s success underscores the growing trend of Africa’s young and tech-savvy population embracing mobile technology to address financial needs.

Mobile phones are increasingly becoming a tool for bridging gaps in services, particularly in banking, presenting a lucrative opportunity for wireless carriers like MTN to capitalize on the burgeoning fintech market.

MTN’s achievement comes as it finalizes a deal with Mastercard Inc., valuing its fintech business at an impressive $5.2 billion.

This strategic partnership further enhances MTN’s position in the digital finance space, positioning it for continued growth and innovation.

However, MTN is not alone in its fintech endeavors. Rivals such as Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. are also making strides in digital transformation, with plans to separate and monetize their fintech businesses in the long term.

Airtel Africa, for instance, is reportedly considering an IPO for its mobile money unit, indicating the high stakes and intense competition within the sector.

Despite the remarkable success in its fintech ventures, MTN faced challenges in its core telecommunications business, with service revenue growth slowing to 6.8%.

Inflation and currency devaluation in key markets, particularly Nigeria, impacted profitability, highlighting the complexities of operating in diverse African markets.

As MTN continues to expand its fintech footprint and invest in infrastructure to enhance connectivity across the continent, it remains poised to capitalize on the immense potential of Africa’s digital economy.

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