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Telcos Renew Push for OTT Regulation

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  • Telcos Renew Push for OTT Regulation

Nigeria telecoms operators have renewed the push to get the Nigerian Communications Commission (NCC) to regulate the activities of Over-The-Top (OTT) players.

The carriers, including MTN, Globacom, Airtel, 9mobile and others, acting under the aegis of Association of Licensed Telecoms Companies of Nigeria (ALTON), said the time has come for the regulator to re-examine its position on issuing technology neutral licences because of emerging issues in the industry.

Its Chairman, Gbenga Adebayo, lamented the high mortality rate of telcos. He said the number of operators has dipped by half over the past years because of issues that are not entirely their making.

What is OTT?

Online knowledge bank, Wikipedia, explains that “OTT is where a telecoms service provider delivers one or more services across an IP (internet protocol) network. “The IP networks is predominantly the public internet, although sometimes telco-run cloud services delivered via a corporation’s existing IP-VPN (virtual private network) from another provider, as opposed to the carrier’s own access network. It embraces a variety of telco services including communications (e.g. voice and messaging), content (e.g. TV and music) and cloud-based (e.g. compute and storage) offerings.”

It said stimulated by the availability of high performance fixed and mobile broadband networks as well as the rapid adoption of smartphones and tablets, telco-OTT is viewed by a selection of industry analysts and media commentators as the mechanism that mobile network operators need to employ in order to compete with the vast and growing range of over-the-top (OTT) services provided by non-telco companies.

Telco-OTT is a response to the fact that users will have multiple devices (smartphones, laptops or other connected devices such as TVs, games consoles) which almost inevitably will have various different access providers (especially with the growth of public-access Wi-Fi).

According to Wikipedia, to deliver consistent telco-branded services, at some points at least, they will need to be delivered over third-party access, Wikipedia submitted.

ALTON’s position

Adebayo said the regulator has said continuously that it is neutral about technology. This, in essence, means it licences for services and not for technology.

He said today, the reality is that technology is driving the market. It is no longer services. There is a need for the regulator to begin to look at the issue of regulating technology and not services.

For example, OTT as it is called, the likes of YouTube, Facebook, WhatsApp, BlackBerry Messenger and others, all of these are OTT and not part of the core services for which operators are licensed.

“Those kinds of services have a social implication, economic implication, security implication and if they are not licensed, that means they are not regulated and if they are not regulated, there is no limit or scope to what they can do. And no control over their services and content they can provide.

“We are therefore saying there is a need for the regulator to begin to look away from the neutrality of technology and technology certification and regulation than just licensing for service not only because of the social security implication but also because of the economic implication for the operators.

“Today, more people send WhatsApp messages, they send messages over the social media platforms than they do on the conventional SMS platform.

“Operators have been licensed to provide voice, SMS and data services for which they are licensed and being charged annual operating levy. OTT don’t have such and there is even loss of revenue to the regulator of the country too because they are not paying for rendering those services.

“That is why we are saying that our regulator must begin to look away from technology neutrality but Health of the telecoms industry.

He said studies and report had shown that in a market such as Nigeria’s, bigger operators survive better than smaller operators.

“When I took up this role as the Chairman of ALTON, there were 35 companies in our group. Today we are 16, meaning that we have lost half of our members due to problems not of their own making,” he lamented.

He said this might be forces of competition, this might be forces of market forces, the challenges of investing, it might be access to fund, it might be anti-competitive prices of on the part of some of the big players.

“We just think that studies such as the Study of the Level of Competiton in the Telecoms Industry in Nigeria organised by the NCC should dwell into those areas so that we begin to see the issues leading to the death of telecoms companies.

“The challenge we have now with one of the big operators attests to the fact that the industry may not be as healthy as we are thinking and therefore studies such as this are very important first as health check, to see where we are and to see where and how we can further adjust and tune things for a more competitive industry and for a more robust market and for the greater interest of the consumers,” Adebayo said.

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.

Telecommunications

Lagos Residents Frustrated by Rapid Data Drain, Call for NCC Action

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Lagos residents are expressing increasing frustration over what they describe as the rapid depletion of their data bundles.

Many subscribers are now calling on the Nigerian Communications Commission (NCC) to address their concerns as they suspect changes in billing practices by telecommunication providers.

Numerous subscribers have reported that their data does not last as long as it used to. A Lagos-based teacher, Mrs. Nafidah Zaynab, shared her experience, stating that a N2,000 data bundle, which previously lasted almost a month, now depletes within just a few days.

This sentiment is echoed by many, including Idowu Anabili, a trader who has reduced his data usage due to rising costs.

Abdullahi Yunus, who runs a café, noted a significant increase in his data expenses, spending between N70,000 and N100,000 monthly, up from N30,000. He attributes this spike to faster data consumption.

Telecom operators deny any wrongdoing, attributing the faster data consumption to increased usage by subscribers.

An anonymous official from MTN explained that the variety of activities performed on smartphones has increased, leading to faster data usage.

Airtel Nigeria’s spokesperson, Mr. Femi Adeniran, suggested that background apps and high-definition streaming contribute to the issue.

Despite complaints, operators assert they have not officially increased data prices. They emphasize that automatic app updates and other technical factors may be responsible for the perceived quick depletion.

Experts suggest that the challenging economic climate may be pressuring telecom companies to subtly reduce data value.

The industry has reported a 43% rise in operational costs, although no formal tariff hikes have been announced.

The NCC has clarified that it has not authorized any increase in data tariffs. The commission highlights technical factors like automatic video play and app updates as potential causes for quick data depletion.

In a bid to assist consumers, the NCC has advised turning on data saver modes and managing app updates to conserve data.

To combat the issue, Mobile Network Operators (MNOs) have initiated a campaign to educate consumers on optimizing their data usage.

They recommend practices such as disabling automatic updates and closing unused apps.

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Social Media

Meta Shuts Down 63,000 Nigerian Accounts in Sextortion Crackdown

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In a significant move to combat online crime, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has removed 63,000 accounts in Nigeria linked to sextortion scams.

This sweeping action is part of Meta’s ongoing effort to address the growing threat of digital extortion on its platforms.

Unmasking the Scammers

The crackdown, which took place at the end of May, targeted accounts engaged in blackmail schemes.

These scammers posed as young women to coerce individuals into sharing intimate photos, which were then used to extort money from the victims.

The removal follows a Bloomberg Businessweek exposé highlighting the rise of such crimes, particularly affecting teenagers in the United States.

The Global Impact

The U.S. Federal Bureau of Investigation (FBI) has identified sextortion as one of the fastest-growing crimes targeting minors.

The schemes often lead to severe consequences, including the tragic suicides of more than two dozen teens.

In one high-profile case, the death of 17-year-old Jordan DeMay in Michigan led to the arrest of suspects traced back to Lagos, Nigeria.

The Role of the Yahoo Boys

Many of the dismantled accounts were linked to the “Yahoo Boys,” a notorious group known for orchestrating various online scams.

These individuals have been using social media to recruit and train new scammers, sharing blackmail scripts and fake account guides.

Meta’s Response

Meta’s spokesperson emphasized the company’s commitment to user safety, stating, “Financial sextortion is a horrific crime that can have devastating consequences.”

The company is continually improving its defenses and has reported offenders targeting minors to the National Center for Missing & Exploited Children.

To enhance protection, Meta has implemented stricter messaging settings for teen accounts and safety notices regarding sextortion.

They are also employing technology to blur potentially harmful images shared with minors.

Ongoing Efforts

Meta’s actions highlight the complex and evolving nature of online crime. The company has pledged to remain vigilant, adapting its strategies to counter new threats as they emerge.

“This is an adversarial space where criminals evolve to evade our defenses,” Meta noted.

Looking Forward

As digital platforms continue to grapple with issues of privacy and security, Meta’s recent actions demonstrate a proactive stance in safeguarding users.

By dismantling these networks, the company aims to reduce the prevalence of sextortion and foster a safer online environment for all.

The crackdown serves as a reminder of the need for continued vigilance and collaboration between tech companies and law enforcement to protect individuals from the harmful effects of digital exploitation.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

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Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

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