Technology

Telcos Urged to Boost Broadband Capacity in Hinterlands

Published

7 years ago

March 30, 2017

Telcos Urged to Boost Broadband Capacity in Hinterlands

Worried about the limited broadband capacities in the hinterlands, which has been attributed to high cost of broadband services in cities that are located outside the shores of the country, the Chief Executive Officer of VDT Communications, Mr. Biodun Omoniyi has asked telecommunications operators (Telcos) to pull resources together to enhance the trunk capacities of broadband connectivity from the shores of the country to the hinterlands.

Omoniyi who spoke in one of the panel sessions during the launch of Insurance Market online platform, at the eInsurance Conference organised by Pinet Informatics in Lagos recently, decried paucity of broadband capacities in the cities, which he said, had led to high cost of broadband services rendered by telecommunications operators in the country, even though the country has excess broadband capacities at the shores.

He the excess capacities were provided through the landing of broadband submarine cables at the shores of the country from Europe by MainOne, Glo 1, MTN WACS, and SAT-3.

Omoniyi who blamed the paucity of broadband capacity in the hinterlands on lack of coordinated efforts by the telecommunications operators to build a national backbone of broadband capacity from the shores to the hinterlands, called on telecommunications operators to form a synergy that would enhance the trunk capacities of broadband connectivity to cities outside the shores of the county.

According to him, once this is achieved, it would not only reduce cost of broadband services in the country, but would also boost broadband connectivity for all players in the insurance industry, whom he said, were willing to embrace technology to further grow the insurance sector and the newly launched Insurance Market online platform.

“Insurance is a key sector to economic growth but it’s market penetration is still very low in Nigeria. The sector needs technology and broadband connectivity to deepen penetration and this can only be achieved if the telcos provide ubiquitous broadband and expand their 4G LTE technology for players in the insurance sector to key into,” Omoniyi said.

Speaking on how the insurance sector could access the Internet, Omoniyi said there must be sufficient and affordable wireless technology like the 4G LTE technology across the country.

He said VDT, one of the sponsors of the eInsurance Conference, has been servicing over 80 per cent of insurance companies in the area of broadband connectivity. He promised quality service, while insisting on sufficient and affordable broadband cost.

The Director General, National Information Technology Development Agency (NITDA), Dr. Isa Ibrahim Pantami, who delivered a keynote address at the eInsurance forum, said there were policies offered by most insurance companies and the rising number of customers and policy holders makes it difficult for most insurance companies to operate effectively and efficiently without the adoption and use of information and communications technologies (ICTs).

Pantami who was represented by the Deputy Director, Corporate Strategy and Research at NITDA, Dr. Idris Mohammed Yeluwa, said; “There are number of ways that ICTs can be integrated into the insurance process, especially in the area of big data analytics, which is about analysing vast amounts of data in order to identify patterns, trends and other business information that can help decision makers to make informed decisions.”

The Managing Director, Pinet Informatics, Lanre Ajayi said the essence of the launch of Insurance Market place, was to provide an online platform, where insurance companies could set up micro websites on the online platform for enhanced transaction between vendors and buyers of insurance policies.

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Samed Olukoya

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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Technology

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

Published

1 day ago

April 15, 2024

Samed Olukoya

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.

Technology

iPhone Shipments Drop Amid Resurgence of Android Rivals

Published

1 day ago

April 15, 2024

Samed Olukoya

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.

Technology

Meta Platforms Inc.’s Astonishing Rally Adds $1 Trillion in Value

Published

5 days ago

April 11, 2024

Samed Olukoya

Meta Platforms Inc., formerly known as Facebook, has witnessed an extraordinary rally that has propelled its market value by $1 trillion.

The tech giant’s record-breaking surge, fueled by strategic investments in artificial intelligence (AI), underscores its resilience and adaptability in navigating the ever-evolving digital landscape.

Since its darkest days in 2022, Meta’s shares have undergone a remarkable transformation, soaring to new heights and shattering records along the way.

Despite its monumental growth, some perspectives suggest that Meta is still trading at a discount with its shares valued at 24 times estimated earnings early Wednesday, closely aligned with its 10-year average and just below the Nasdaq 100’s multiple of 25 times.

Among its peers in the Magnificent Seven group of big tech companies, only Alphabet Inc. boasts a lower multiple, standing at approximately 21 times.

AI emerges as the primary catalyst behind Meta’s astonishing rally, driving gains and serving as a harbinger of future growth prospects.

Meta’s substantial investments in AI have revolutionized ad targeting and content recommendation algorithms, enhancing user engagement and advertiser relevance.

The strategic bet on AI has paid off handsomely, with profits tripling in Meta’s most recent quarterly report, accompanied by a surge in revenue growth. Such robust earnings prompted Meta to announce a $50 billion buyback program and implement a dividend, further solidifying investor confidence in the company’s trajectory.

Conrad van Tienhoven, a portfolio manager at Riverpark Capital, lauds Meta’s strategic focus on AI, stating, “Outside of chip or hardware companies like Nvidia or Dell, no company has benefited more from AI than Meta, just in terms of the impact on growth.”

Meta’s unparalleled surge, exceeding 450% from its nadir almost 18 months ago, positions it as a standout performer among its peers. This year alone, Meta’s shares have surged by approximately 46%, trailing only chipmaker Nvidia Corp. within the Magnificent Seven cohort.

The recent selloff that preceded Meta’s current rebound underscored investor concerns over its spending on the metaverse initiative. However, Meta’s proactive measures, including a concerted focus on cost efficiency and innovation, have restored market confidence.

Rick Bensignor, chief executive officer of Bensignor Investment Strategies, affirms Meta’s trajectory, stating, “Meta has figured out how to get rid of unnecessary spending, which has been a real balance sheet plus, and it continues to innovate.”

As Meta prepares to unveil its first-quarter earnings results on April 24, investors eagerly anticipate updates on key metrics such as ad revenue growth and the efficacy of AI solutions.