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4G Has 4% Users in Nigeria -Report

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Despite the hype about the ubiquity of 4G connections by the telcos in the country, 44 per cent of mobile subscribers in the country are using 3G technology while only four per cent use 4G technology as compared to over 18 per cent 4G penetration in South Africa and 16 per cent in Angola, a new report, Jumia Mobile Report, unveiled has shown.

According to the Nigerian Communications Commission (NCC), the country has more than 63million subscription on broadband while in the voice segment, there are 173million lines as at March this year which translates to 91 per cent teledensity.

According to the report, the country will be the only one in Africa to contribute 700 million new global subscribers by 2025.

Telecommunications and Information Services, a sub-sector of the Information Communications Technology (ICT), contributed 77 per cent of the entire sector’s contribution to the gross domestic product (GDP). Overall, the mobile telecoms sub-sector contributed 7.4 per cent to the country’s total GDP last year, compared to 5.5 per cent in 2017.

Nigeria’s mobile broadband penetration is forecast to rise to 55 per cent of the population by 2025, with 70 per cent having 3G connectivity and 17 per cent having access to 4G networks.

The report noted that 5G network with the 26 gigahertz (GHz), 38 GHz and 42 GHz spectrum bands will be rolled out by 2020 while some 700 million new mobile subscribers from various countries across the world will push the total number of global mobile subscribers to six billion between now and 2025.

Interestingly, Nigeria has been identified among these countries, with others being India, China, Pakistan, Indonesia, United States (U.S.), and Brazil. “It is predicted that Nigeria will contribute four per cent of the estimated 700 million new global mobile subscribers, making it the only country in Africa marked with a significant contribution to increasing mobile penetration in the world. By this quota, it is expected that 28 million new mobile subscribers will emerge from Nigeria between 2019 and 2025, that is, an average of seven million new mobile subscribers annually, if the country is to meet its quota,” the report said.

It said Asian brands have consistently enjoyed massive patronage because of their Africa-specific strategy of introducing lower price point smartphones into the Nigerian market. In 2018, Fero, Samsung, Nokia, Infinix and Tecno remained the customers’ favourites and the top-selling mobile brands on Jumia. “It is interesting that a one-time king of mobile phone, Nokia is gradually returning to the limelight, riding on its durability claim. Infinix continues to lead the pack, year on year. The average price of smartphones continues on a downward trajectory, as it dipped to $95 in 2018, from $117 in 2016, and $216 in 2014. This development is laudable as again, the major driver of this trend is attributed to the influx of Asian brands specifically targeted for the Nigerian market,” it added.

During the period under review, across the globe, there were over five billion unique mobile subscribers, and 60 per cent of the connection was through smartphones. Internet users peaked at 3.6 billion, that is, almost half of the world population had mobile internet access.

“In Nigeria, there were over 172 million mobile subscribers, accounting for a penetration rate of 87 per cent of the population. This figure represented a 6.4 per cent growth increase, compared to 162 million subscribers in 2017.

“Over 112 million Nigerians had access to the internet in 2018, representing 56 per cent of the population. This accounted for an increase of 14.32 per cent year-on-year from 2017. The availability of lower price point phones still remains the major driver of smartphone penetration. At the end of 2018, there were over 36 million smartphone users, representing a penetration of 18.37 per cent. While the number of smartphone users might have increased year-on-year, its penetration is still very insignificant.

“Internet connectivity and the availability of affordable smartphones continue to drive an increasing uptake of social media networks. The number of active social media users rose from 17 million in 2017 to 24 million at the end of 2018. This represents a 12 per cent penetration of the country’s population,” the Jumia Mobile Report said.

In 2018, Chrome continued to lead the pack among the four major browsers Jumia customers use to access the website, taking up 43 per cent. The reason for this is simple: Chrome has higher system requirements, which make customers’ browsing experience faster. Eighteen per cent of Jumia customers accessing the website did so via Android Webview. Opera Mini on the other hand, is a lighter browser in terms of data usage and is popular among new mobile internet users who have lower incomes and can’t afford costly internet data packs; and took up 16% per cent. Other browsers used, accounted for 23 per cent.

Notably, 57 per cent of Jumia customers visited the website via mobile web, 28% via the mobile App and 15 per cent via the Desktop in 2018.

There is however, an increasing migration from shopping on the mobile web to the Jumia App. This shift, although gradual, is attributed to the fact that the App consumes less data, is more convenient and more affordable due to the frequent discounts offered. It is a commendable development, and a higher conversion is expected in 2019.

Nigeria’s largest commercial city, Lagos, had the highest number of mobile phone orders in 2018, followed by Abuja, Rivers (Port Harcourt), Edo, and Delta. The mobile phone category still remains one of the top selling categories on the Jumia website

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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