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51% of World’s Population Connected to Internet

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  • 51% of World’s Population Connected to Internet

ABOUT 51.2 per cent of the global population, or 3.9 billion people, will, at the end of the year, be using the internet, International Telecommunication Union (ITU) has said.

The ITU is the United Nations’ (UN’s) specialised agency for information communication technologies (ICT). Of all ITU regions, the strongest growth was reported in Africa, where the percentage of people using the internet increased from 2.1 per cent in 2005 to 24.4 per cent in 2018.

According to the estimates, the regions with the lowest growth rates were Europe, with 79.6 per cent, and the Americas, with 69.6 per cent of the population using the Internet. In the Commonwealth of Independent States (CIS) region, 71.3 per cent will be using the internet, 54.7 per cent in the Arab states and 47 per cent in the Asia-Pacific region.

ITU’s Secretary-General, Houlin Zhao, said the agency’s global and regional estimates for 2018 are a pointer to the great strides the world is making towards building a more inclusive global information society.

“By the end of 2018, we will surpass the 50/50 milestone for internet use. This represents an important step towards a more inclusive global information society. However, far too many people around the world are still waiting to reap the benefits of the digital economy. We must encourage more investment from the public and private sectors and create a good environment to attract investments, and support technology and business innovation so that the digital revolution leaves no one offline,” he said.

The new estimates show that there continues to be a general upward trend in the access to and the use of ICT, according to the Director of the ITU Telecommunication Development Bureau, Brahima Sanou.

Access to telecoms networks, he said, has continued to increase, particularly in mobile connections. “However, affordability should continue to be at the top of our priorities for the digital economy to become a reality for all,” he said.

According to ITU, in developed countries, slow and steady growth has increased the percentage of population using the Internet from 51.3 per cent in 2005 to 80.9 per cent in 2018. In developing countries, growth has been much more sustained, increasing from 7.7 per cent in 2005 to 45.3 per cent at the end of this year.

Mobile access to basic telecoms services is becoming ever more predominant. While fixed-telephone subscriptions continue to decline with a penetration rate of 12.4 per cent this year, the number of mobile-cellular telephone subscriptions is greater than the global population. Growth in mobile cellular subscriptions in the last five years was driven by countries in Asia-Pacific and Africa regions. But the same growth was minor in the Americas and the CIS region while a decline was observed in Europe and the Arab states.

Broadband access has continued to demonstrate sustained growth, while fixed-broadband subscriptions are increasing. Also continuing the trend reported in 2017, there were more fixed-broadband connections, with 1.1 billion in 2018 than fixed-telephone than the 942 million recorded last year.

The growth in active mobile-broadband subscriptions has been much stronger, with penetration rates increasing from 4.0 subscriptions per 100 inhabitants in 2007 to 69.3 in 2018. The number of active mobile-broadband subscriptions have increased from 268 million in 2007 to 5.3 billion this year.

Developing countries are registering much faster growth in mobile broadband subscriptions compared to developed countries. In developing countries, penetration rates have reached 61 per 100 inhabitants in 2018, with much more scope for further growth in the coming years. In LDCs, penetration rates went up from virtually zero in 2007 to 28.4 subscriptions per 100 in 2018. The strongest growth in mobile broadband subscriptions has been observed in Asia-Pacific, the Arab states and Africa.

Nearly the entire world population, or 96 per cent, now lives within the reach of a mobile cellular network. Furthermore, 90 per cent of the global population can access the internet through a 3G or higher speed network.

ITU estimated that, globally this year, almost half of all households had at least, one computer up from just above a quarter in 2005. In developed countries, 83.2 per cent of households possess a computer this year, compared with 36.3 per cent in developing countries. LDCs showed the strongest growth during the period 2005-2018. This year, less than 10 per cent of households in LDCs has a computer. The strongest growth rates were observed in the Arab states and the CIS region. In Africa, the proportion of households with access to a computer increased from 3.6 per cent in 2005 to 9.2 per cent this year.

Internet access at home is gaining traction. ITU estimated that almost 60 per cent of household has internet access at home in 2018, up from less than 20 per cent in 2005. In developing countries, almost half of all households has internet access at home, a considerable increase compared with 8.4 per cent in 2005. Regional developments broadly follow the trends observed for households with computers.

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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Multichoice Nigeria Rolls Out Tariff Increase Despite Tribunal’s Interim Order

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Multichoice Nigeria, a prominent Pay TV provider, has proceeded with the implementation of tariff adjustments for its DStv and GOtv subscribers, despite an interim order issued by a competition and consumer protection tribunal (CCPT) in Abuja.

On April 24, Multichoice announced plans to increase prices for its cable services, scheduled to take effect from May 1.

However, the CCPT ruled that the company should refrain from raising rates as initially scheduled, following an ex-parte motion presented by the applicant’s counsel.

Despite the tribunal’s interim order, checks conducted by Nairametrics revealed that Multichoice Nigeria has forged ahead with the tariff increase, with the new prices being displayed and enforced on its official website.

For DStv Premium subscribers, the price has surged from N29,500 to N37,000, while Compact Plus subscribers now face an increase from N19,800 to N25,000.

Similarly, Compact, Confam, and Yanga subscribers witness price hikes, ranging from 20% to 25% compared to previous rates.

GOtv subscribers also experience a similar fate, with tariff adjustments reflecting significant increases across various subscription packages.

Despite legal injunctions, Multichoice Nigeria’s decision to proceed with the price hike signals a bold move in a highly contested legal battle.

The Acting Chairman of the Federal Competition & Consumer Protection Commission (FCCPC), Adamu Abdullahi, disclosed that Multichoice had provided a detailed explanation for the price adjustments in a four-page letter to the commission.

The company cited factors such as foreign exchange fluctuations, high electricity tariffs, and operational costs as drivers behind the rate revisions.

Abdullahi explained that the FCCPC would scrutinize Multichoice’s justifications for the price hike, collaborating with regulatory bodies like the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) to ensure compliance with market regulations.

The decision to proceed with the tariff increase has sparked concerns among consumer rights advocates, who question Multichoice’s adherence to legal directives.

Despite the company’s rationale for the price adjustment, critics argue that subscribers should not bear the brunt of economic challenges beyond their control.

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Nigeria’s OPay Valuation Hits $2.7 Billion Amid Digital Payments Surge

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Nigeria’s OPay, the fintech startup that has been making waves in the country’s digital payments landscape, has seen its valuation soar to $2.7 billion.

This represents over 30% since its Series C funding round in 2021.

This surge in valuation shows the exponential growth of Nigeria’s digital payments sector and the increasing prominence of financial technology companies within the nation’s economy.

The valuation update comes from recent corporate filings made by Opera, an early investor in OPay. Opera’s stake in OPay gradually declined over the years to 6.4% by 2021.

However, a strategic move in early 2023 saw Opera increase its stake to 9.4% after selling its Asian fintech subsidiary, Nanobank, to OPay in exchange for equity in the company.

According to filings with the US Securities and Exchange Commission (SEC), Opera valued its 9.4% stake in OPay at $253 million, reflecting the $2.7 billion valuation of the fintech startup.

OPay’s meteoric rise can be attributed to several factors, including Nigeria’s increasing adoption of digital payments and the company’s innovative services.

The surge in digital payments volumes, driven in part by an ill-timed currency redesign that led to cash scarcity, has propelled OPay’s growth.

As more Nigerians turned to fintech apps like OPay for transactions, the company experienced a quadrupling of its user base in 2023, accompanied by a revenue growth of over 60% on a constant currency basis, according to Opera.

Despite its rapid growth, OPay, like other fintech companies, faces challenges related to fraud and customer safety concerns.

Regulatory bodies, including the Central Bank of Nigeria, have tightened rules on account safety, highlighting the need for OPay and similar companies to address these issues while continuing to innovate and expand their services.

As Nigeria’s digital payments ecosystem continues to evolve, OPay’s rising valuation underscores its position as a key player in driving financial inclusion and transforming the country’s economy through innovative technology solutions.

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ALTON and ATCON Call for Tariff Review and Regulatory Independence

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telecommunication-tower

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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