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Improvement in Broadband Penetration – Coronation Merchant

internet subscriptions stood at 151 million in June ‘22. This represents a y/y increase of 7.7% and a m/m increase of 0.4%

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The latest data released by the Nigerian Communications Commission (NCC), the industry regulator, show that internet subscriptions stood at 151 million in June ‘22. This represents a y/y increase of 7.7% and a m/m increase of 0.4% (or c.650,000 new subscriptions).

The figure implies a density of 76% in a population estimated at 200 million, placing Nigeria well above the African average of c.37% according to Statista. Telecom operators have ramped up SIM registration and NIN enrolment capacity after the partial deactivation of the lines of users yet to link Subscriber Identification Module (SIM) cards with unique National Identification Number (NIN) in April ’22.

MTN Nigeria (MTNN) accounted for the largest share (42.3%) of total internet subscriptions among the mobile network operators. Based on MTNN’s Q1 ’22 results, service revenue grew by 22% y/y. This was due to significant growth in data (+54.5% y/y), value added service (+46.5% y/y) and voice (+6.5% y/y).

Among the mobile network operators MTNN recorded the highest m/m increase in subscriptions of (+1.1%), this was followed by Airtel (+0.9%). Glo remained unchanged (+0.0%), while 9mobile recorded a decline of -2.6% in subscriptions. Furthermore, the commission’s data show that as at end-June ’22, outgoing porting requests were highest for 9mobile (1,661) while MTNN was the chief recipient of incoming porting requests (1,770).

According to the latest national accounts, the telecommunications segment grew by 14.5% y/y in Q1 ’22, compared with 5.3% y/y recorded in Q4 ‘21. The segment continues to benefit from growth in subscriptions and increased usage from existing subscribers. This is partly driven by adjustments to hybrid work structures.

Furthermore, the latest inflation report shows that the communications segment increased by 11.2% y/y in June ‘22 compared with 11.0% y/y recorded in the previous month. This can be partly attributed to growth in operating expenses.

The commission has hinted that an increase in the price of telecommunication services such as calls, and data is unlikely in the near-term. This is despite the push by telecom operators under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON) to increase the cost of these services.

In June, broadband penetration increased to 44.3%, compared with 40% recorded in June’21. The FGN had through the National Broadband Plan 2020-2025 set a target of 90% penetration by 2025.

The steady growth in broadband penetration will have a positive impact across other sectors such as healthcare, education, agriculture, finance, transportation, and commerce. However, existing challenges such as epileptic power supply, poor infrastructure, and right of way (RoW) fees continue to hinder expansion in broadband penetration.

We recall that in 2020, the Nigerian governors’ forum resolved that telecom operators should pay a RoW fee of N145 per linear meter of fibre. However, based on local newswires, only Kaduna, Ekiti, Katsina, Plateau, Ekiti, Kwara, and Imo are implementing the new fees.

However, we understand that Anambra waived RoW fees for telecom operators in an attempt to boost broadband penetration in the state.

Many states continue to charge relatively high RoW fees. Industry sources suggest that, in states like Benue, Ogun and Lagos, it costs operators N2,500, N4,000 and N1,500 per linear metre of fibre respectively in RoW charges. The absence of a unified RoW fee across the country continuously stalls the advancement of broadband fibre networks.

The NCC has disclosed that the rollout of fifth generation (5G) spectrum services is expected to commence in August ‘22. The commission has also confirmed the issuance of the final letters of award of the 5G spectrum licenses to MTN and Mafab Communications, winners of the 3.5 gigahertz (GHz) spectrum auction conducted in December ‘21. The two licensees are now expected to accelerate the deployment of 5G network that will deliver higher data speeds, ultra-low latency, more reliability, increased network capacity, availability, and uniform user experience.

Regarding mobile money, prior to 2020, the CBN had excluded mobile network operators from offering mobile money services. However, in August‘20 as part of the CBN’s financial and digital inclusion strategy, the regulator granted final approval to Glo’s Money Master Payment Service Bank (PSB) and 9Mobile’s 9PSB to begin operations.

In May’22, final approval was granted to MTNN’s MOMO PSB and Airtel Africa’s SMARTCASH PSB to begin operations. The PSB licenses should enable telecom operators to engage in financial services which include receiving cash deposits, processing payments and remittances, issuing debit and prepaid cards, operating electronic wallets, among others.

The sector still requires significant investment in telecommunications infrastructure to drive broadband (and internet) penetration as well as affordability for data packages.

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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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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