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Ghana Connects to Nigeria’s Internet Exchange Point

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  • Ghana Connects to Nigeria’s Internet Exchange Point

Ghana Internet Exchange Point has connected to Nigerian’s Internet Exchange Point (IXPN) to route traffic locally within the region. While this process is on a vice-versa and partnership basis, checks revealed that the move is expected to enhance the chances of Nigeria becoming the regional hub for Internet content in the region and the continent; it will also serve as an opportunity for both countries to reduce cost and improve latency on the route.

Further analysis showed that the Internet traffic destined for the two countries will now remain local, meaning that instead of the traffic coming from Ghana to Nigeria, which first goes to Europe or the Americas before returning to Africa, will come straight to the region.This way, there will be some cost saving, improvement service delivery, and making services safer.

Besides, should Nigeria become the Internet hub for Africa, it will help the country to create contents, especially local that can serve the international market, and enable it attract foreign investors. The Guardian gathered at the weekend that the IXPN is now the second largest in Africa, and the regional IXP for the West African region, a status allocated to it by the African Union.

An IXP is a physical infrastructure through, which Internet Service Providers (ISPs), Content Delivery Networks (CDNs), and other IP centric organisations exchange Internet traffic between their networks.The primary purpose of an IXP is to allow networks to interconnect with one another directly via the exchange rather than through one or more third-party networks.

The advantages of the direct interconnection are numerous, but the primary reasons are cost savings, reduce foreign exchange transaction, reduced latency, high bandwidth availability, security, improving routing efficiency and providing fault tolerance.

Already, it has been revealed that a leading service provider in Nigeria now saves over N20million by localising its traffic using the exchange point. These cost savings for the service providers will eventually translate to reduction cost of Internet access to Internet subscribers in the country.The Ghana-Nigeria deal is already confirmed in document presented by a former Director-General, National Information Technology Development Agency (NITDA), Prof. Cleopas Angaye, at an interaction programme on, “Improving Socioeconomic Development of a Nation Through Qualitative Telecommunications Services,” organised by the Senate Committee on Communications.

In the document, which was obtained by The Guardian, Angaye said the coming together of these two countries will attract other countries, which would enhance the chances of Nigeria being the regional HUB for Internet content in the region and the continent.

Angaye said during his tenure at NITDA, the agency supported the implementation of various IXPs in Nigeria, specifically in Abuja, Port Harcourt, Enugu, and Kano, to ensure even growth of Internet access across the country.“We need to do more to assist the IXPN especially in other regions of Nigeria so that all the benefits being enjoyed by service providers in Lagos can be extended to them,” he stated.

The Managing Director and Chief Executive Officer, IXPN, Muhammed Rudman, who confirmed the connection with Ghana, told The Guardian that the exchange has connected about 45 top organizations in the country.

He said Ghana and Nigeria are working on collaborative efforts to exchange Internet traffic, saying it will give organisations in both countries easy access to each other’s content, while serving as a link to other parts of the world.Rudman said the move will attract foreign investors and content providers, saying that a major content provider would be coming to leverage the IXPN to expand its reach.

According to him, with traffic becoming local, there would be no need going to Europe first, before coming back to Nigeria, “such a move will help our data centres, business developers, content creators. This will ensure skills development, creation of more jobs, among others. Instead of first going to Google America to access traffic, it can now be done locally.”

He revealed that Nigeria being the largest country in Africa, has become a net importer of Internet content, “because there is more downloads than uploads, but with more exchange points and the country becoming a hub, there will be more uploads. So, other African countries can leverage the platform to expand.”

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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ALTON and ATCON Call for Tariff Review and Regulatory Independence

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The Association of Licensed Telecoms Operators of Nigeria (ALTON) and The Association of Telecommunications Companies of Nigeria (ATCON), representing Mobile Network Operators (MNOs) and telecommunication firms in Nigeria, have jointly raised concerns over the current state of the telecom industry.

In a unified call to action, they have urged the federal government to address critical issues such as tariff review and regulatory independence to ensure the sector’s sustainability and growth.

Despite facing significant economic challenges, Nigeria’s telecommunications industry has not adjusted its general service pricing framework upwards in over a decade.

ALTON and ATCON attribute this stagnation to regulatory constraints that have hindered the industry’s ability to align pricing with economic realities.

They argue that the current price control mechanism, which does not reflect market conditions, poses a threat to the sector’s viability and investor confidence.

In a statement released over the weekend and jointly signed by ALTON Chairman Gbenga Adebayo and ATCON President Tony Izuagbe Emoekpere, the associations highlighted a range of challenges plaguing the telecom sector.

These include unsustainable tariff structures, lack of regulatory independence, infrastructure deficits, a harsh business environment, multiple taxation and regulations, prohibitive Right of Way (RoW) charges, inadequate power supply, and vandalism of telecommunications infrastructure.

The industry leaders stressed the urgent need for collaborative efforts between the public and private sectors to overcome these obstacles.

They called for constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

Furthermore, ALTON and ATCON emphasized the importance of regulatory independence in fostering a conducive environment for the telecom sector.

They advocated for the sustenance of a culture of independence within the regulatory landscape to safeguard against undue influence and ensure the impartiality of regulatory decisions. Regulatory neutrality and independence, they argued, are crucial for maintaining public confidence and encouraging investment in the sector.

ALTON and ATCON reaffirmed their commitment to working collaboratively with the government to address the challenges facing Nigeria’s telecommunications industry.

They urged the government to prioritize infrastructure development, enhance security measures, and facilitate pricing adjustments to unlock the sector’s full potential.

The call by ALTON and ATCON underscores the pressing need for regulatory reforms and policy interventions to drive sustainable growth and development in Nigeria’s telecom sector.

As stakeholders await government action, the industry remains hopeful that concerted efforts will pave the way for a more resilient and competitive telecommunications landscape.

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Madica Empowers African Startups with $200,000 Investments Each

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Madica, a structured investment program dedicated to nurturing pre-seed stage startups in Africa, has announced its inaugural investments in three innovative ventures.

Each of these startups is set to receive up to $200,000 in funding from Madica and will participate in the program’s comprehensive 18-month company-building support initiative.

The investment program provides a personalized curriculum, hands-on mentorship, founder immersion trips, executive coaching, and access to Madica’s extensive global network of investors for follow-on funding.

The primary objective of this support is to drive growth and ensure the long-term success of the startups.

Emmanuel Adegboye, Head of Madica, expressed his excitement regarding the investments, highlighting the abundant talent and innovation present in the African tech ecosystem.

He said Madica is committed to supporting African founders who often face challenges in accessing necessary support due to perceptions of risk among global investors.

Madica employs an open application process, collaborating closely with local ecosystem players such as incubators, accelerators, and angel networks to identify and support promising entrepreneurs.

The selection process remains rigorous, with investments made on a rolling basis throughout the year.

With plans to invest in up to 10 additional startups this year, Madica aims to expand the reach of venture capital and founder mentorship across Africa, addressing the existing imbalances in funding availability.

The announcement of these investments marks a significant milestone for the selected startups, providing them with vital financial support as well as access to invaluable resources and networks to propel their growth and success in the competitive landscape of the African startup ecosystem.

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Meta’s Revenue Woes Shake Tech Industry Confidence

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The tech industry faced a wave of uncertainty as Meta Platforms Inc., formerly known as Facebook, delivered a disappointing earnings report that sent shockwaves through the market and dented investor confidence.

Meta’s forecast of weaker-than-expected sales for the current quarter, coupled with plans for higher capital expenditures, rattled investors who were eagerly anticipating robust results.

Shares of Meta plummeted by as much as 19% in after-hours trading to trigger a cascade effect across the tech sector.

The tech-heavy Nasdaq 100 Index experienced a decline of up to 1%, reflecting broader concerns about the health of the industry.

Analysts and investors alike expressed dismay at Meta’s inability to meet revenue expectations, citing uncertainties surrounding the company’s adoption and monetization of artificial intelligence (AI) technologies.

Jack Ablin, Chief Investment Officer at Cresset Wealth Advisors, highlighted the disappointment on the revenue front, overshadowing any optimism about AI adoption.

Questions lingered regarding the efficacy of AI investments and their potential benefits to users, leading to increased skepticism among stakeholders.

The repercussions of Meta’s earnings miss extended beyond its own stock, impacting other tech giants slated to report earnings in the coming days.

Alphabet Inc., Amazon.com Inc., and social media companies like Snap Inc. and Pinterest Inc. all witnessed notable declines, signaling a broader sentiment shift within the industry.

The fallout from Meta’s revenue woes reverberated across the tech landscape, affecting chipmakers, server manufacturers, and software firms. Nvidia Corp., Micron Technology Inc., and International Business Machines Corp. were among the companies affected, as investor concerns over AI investment and revenue growth cast a shadow over the sector’s outlook.

As the tech industry grapples with Meta’s disappointing results, stakeholders are left to ponder the implications for future investments and strategic decisions.

The episode serves as a stark reminder of the inherent volatility and uncertainty within the tech sector, underscoring the importance of diligent risk management and strategic foresight in navigating turbulent markets.

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