Tuesday, March 30, 2010

No phone factory for Nigeria except counterfeiting is tackled, says Nokia VP

Ben Uzor Jr
If Nigeria does not put proper Intellectual Property (IP) protection controls in place there will be no investment in that area of establishing a phone factory here, Jussi Hinkkanen, vice president, government relations, Middle East and Africa for Nokia Corporation has said.
Hinkkanen added that government needs to realise that "for us to have new income sources for the national economy, we need to have IP protection in place otherwise they would certainly be no investment from the international phone manufacturers."
He lamented that the issue was creating an impediment inspite of Nigeria's enormous mobile phone market. He observed that the counterfeit market currently constitutes over 18 percent of the country's mobile handset business. "The reality on ground is that if the country does not have proper Intellectual Property (IP) protection in place there would be no investment in that area of establishing a phone factory. I think this is a strong message to the government. The government needs to realise that for us to have new income sources for the national economy, we need to have IP protection in place otherwise they would certainly be no investment from the international phone manufacturers."
The Nokia VP made these disclosures in Lagos while speaking exclusively to Business Day recently. According to him, counterfeiting discourages foreign investment as prospective financiers may be apprehensive that their investment could be negated by competing counterfeiting activity. But more importantly, Hinkkanen pointed out, counterfeit products are not only potentially detrimental to consumers, but also have a negative impact on supporting local innovation.
Alluding to the downbeat impact of counterfeiting on Research and Development (R&D) which firms are discouraged from embarking on, he noted that legitimate manufacturers and intellectual property owners suffer from trade mark patent and copyright infringement and loss of goodwill, further adding that government loses huge revenue in form of taxes from the actions of counterfeiters.
"What we see very much is the impact on national economy. So basically, what happens now is the Nigerian government itself is losing significant tax income with these counterfeit products. The reason for that is that these businesses are illegal. All of these traders are illegal traders who import these devices without paying any taxes. So, the tax impact is quite serious."
Hinkkanen stated: "Another important one is basically the use of these devices in occurrences or in interventions which affect national safety. So, we see as an example currently from Egypt which a few weeks ago basically blocked all the counterfeit devices off the national operating network. This is because they cannot be recognised by the operating network, technically.
"Each of these legal devices carries an ID number called an IMEEI code and many of these fake devices do not carry one. So, they are invisible to the network when you make a call and can be used for terrorist activities. The Egyptian government blocked these devices from the network as did the Indian government as well four months ago in November of 2009. They blocked 20 million phones over night."
Commenting on what strategies the company was putting in place to tackle the menace, he added: "We are working currently on two major fronts. We are supporting the different public institutions in building capacities in finding counterfeit products and supporting them in enforcement. So, we provide them the technical assistance required to carry out their enforcement. Secondly, we have been raising the awareness of government about the potential problems relating to counterfeit business."

Thursday, March 25, 2010

BryMedia still hopeful on NITEL

Ben Uzor Jr
BryMedia, the second reserved bidder in the sale of Nigerian Telecommunication Limited (NITEL) with $551 million offer to buy the state-owned operator, has expressed optimism to take over the telcos despite irregularities arising from the bid process.
New Generation Telecommunications Consortium had offered to pay N350 billion ($2.5 billion) for all the components of NITEL, including the mobile unit, M-Tel, the CDMA (Code Division Multiple Access) network, transmission backbone, the fixed line network and the Nigeria end of the SAT 3 fibre-optic cable network, to which NITEL has exclusive rights.
Nick Batchelor of Telecom New Zealand, technical partners to BryMedia Consortium who spoke exclusively to Business Day said: “Well we are not frustrated because as I said Telecom New Zealand International has been done this path before. We are a major international carrier with offices in Australia, Newzealand, Los Angeles, London, Dubai, Singapore and Japan. We have been involved in processes like this before, we move about 2 percent of the world’s traffic, that’s six billion minutes a year. We look for growth opportunities globally.”
In the same vein, Adrian Wood, the head of the consortium argued that the $2.5 billion bid for NITEL was irrational from an investment returns perspective. According to the former chief executive officer of MTN Nigeria, a large proportion of the funds could be channeled strategically towards positioning the company for global competitiveness after having taken possession.
“Yes, it’s a lot of money from the point of view I just gave you about what can be justified in investment returns. But more than that, it’s what has to be invested in NITEL once you have hold of it. It is not so much what you pay for it but what you then have to invest. In our own case, our bid was $551 million and over 5 years, we will invest over $5 billion. So, we think the ratio of 1:10 is a great one because by investing after possession, we will be able to build a network that reaches every corner of Nigeria, every small village and community. We would have the highest world standards of capacity and connectivity”
In drawing out BryMedia’s strategies for transforming NITEL into a world class business after taking over, Wood disclosed plans to provide telecoms services in all the 774 local government area of Nigeria. “We will have road coverage and even enable economic development. Our plans include direct fibre interconnection to Burkina Faso, Niger and Chad which of the moment are just connected by a very poor satellite. We also have a plan to upgrade the SAT-3 Cable to multiply capacity.”
He added that it would require 12, 000 km of fibre optic cable to achieve maximum coverage of the entire country. “There are already 8, 000 km right now; there are 128 breakage points in that fibre optic network. So, the first job is to repair that entire network and to extend it up to 12, 000km”, he added.

LTE to remove technology barriers to consolidation in Nigeria’s telecom industry

Ben Uzor Jr
Indications have surfaced that the emergence of LTE (Long Term Evolution) technology could eliminate the technological barriers to consolidation via mergers and acquisition in Nigeria’s telecommunication industry as both CDMA (Code Division Multiple Access) and GSM networks can co-exist simultaneously on this new radio platform, Business Day can now reveal.
Business Day had earlier reported that a wave of hushed mergers and acquisition moves was already going on in Nigeria’s telecom space, as small operators struggle to acquire the critical mass necessary for survival and bigger ones strive to acquire the small and move to positions of greater strength.
Conversely, issues revolving around the interoperability of networks and ‘politics in telecom’ may have impeded the consolidation process especially between GSM and CDMA operators, industry watchers have argued. In providing the needed pedestal for CDMA and GSM to coexist, LTE assumes a full Internet Protocol (IP) network architecture designed strategically to support voice in the packet domain.
In addition, facilities such as broadband internet access and streamed multimedia would be provided to users on an ‘anytime, anywhere’ basis and at much higher data speeds compared to previous generations. It was also learnt that LTE would open up new revenue generating streams for operators in the face of harsh economic conditions by enabling new capabilities well beyond traditional voice and data services. This is even as Nigeria’s telecom market remains dominated by pre-paid 2G services.
But more basically, there are also claims that LTE if deployed could assist operators to potentially get ahead of many markets thus putting Nigeria on the front foot rather than playing catch-up. Furthermore, operators may look upon LTE as been a better investment than 3G because they already recognize that 3G will not be the definitive solution to broadband access in the country.
Business Day investigations reveal that operating companies such as Starcomms, ZoomMobile and Multilinks-Telkom have already started making various levels of commitment in a future with LTE by developing strategies and making considerable investment in that regard. Globally, over 100 telecom operators as of Q1 2009 had indicated interest and actually made commitments to LTE adoption.
Moreover, for the first time, leading GSM and CDMA operators are building towards global consensus on their planned deployment of LTE which had begun with trials in 2009 and hopefully initial deployment in 2010 and 2011. Some telecom operators in Nigeria share the view that LTE will enable them offer better value to their customers.
“GSM and CDMA are going to end up on a new technology called LTE. Right now, there are trials of LTE in the United States of America (USA), Japan and China has just adopted LTE, China Telecom. In a couple of years, maybe maximum next three years, we would see full scale commercial implementation of LTE.
“So, if you are going to have a convergence, we are gradually moving to technology neutrality or if you like interoperability of devices, networks, and so on. This is the time for a major GSM operator to begin to look at consolidating the CDMA sphere because it just adds value”, Ken Aigbinode, executive vice chairman, ZoomMobile had revealed to BusinessDay in an exclusive interview.
He added: “Now, CDMA as at today is the best technology for data service. GSM as a basic technology is very good for voice however GSM has to upgrade to GPRS, EDGE to begin to do data. CDMA in its basic form, CDMA 20001X, it already does internet very well. “So, if you take the entire spectrum that we have on the CDMA area in Nigeria and dedicate it to data then leave your GSM spectrum to voice only, I think you will see a lot of efficiency in that.
On the other hand, Maher Qubain, chief executive officer, Starcomms Plc who also spoke to BusinessDay recently noted to migrate to LTE would however require more spectrums. “So, if part of my LTE growth strategy means that I have to acquire spectrum from other operators then that’s something we would definitely look at. However, to go to the 4G technology, by the way 4G means both GSM and CDMA coming together, no more differential, and one handset in the world.
To achieve the speed and the benefit of LTE, you need 20 MEGs of spectrum”, he revealed. According to the GSMA, LTE will deliver significant capacity, data rate sped and throughput enhancement and reduced latency to support new services and features requiring higher levels of capability and performance. They revealed that LTE will enhance more demanding applications such as interactive TV, mobile video blogging, advanced games and professional services.

MTN ePresence solution to cut travel costs for Nigerian enterprises

Ben Uzor Jr
For Nigerian businesses seeking to reduce travel costs amidst unfavourable economic condition without necessarily constituting a downside to employee productivity and efficiency, MTN in strategic partnership with Cisco Systems and Resourcery Limited has introduced a new business solution that creates a live face-to-face communication experience conveyed on an IP MPLS ((Internet Protocol/ Multiprotocol Label Switching) network.
MTN ePresence, using the latest Cisco TelePresence technology offers an ‘in-person’, video conferencing experience with life-sized images in full high definition video and crisp CD-quality audio. Furthermore, the solution can assist businesses eliminate security risk associated with travelling whilst channeling relevant resources to more productive use.
The company also disclosed that the ePresence network is fully secure, as validated by third party auditors. Consequently, no individual can access the audio and video images that travel between MTN ePresence rooms. Ahmed Faroukkh, chief executive officer, MTN Nigeria who spoke to new men yesterday at the product launch in Lagos revealed that the solution was the first of its kind in sub-Saharan Africa outside South Africa.
He said: “This is what differentiates MTN from so many other companies in the market, the way we think. We like to do things differently. We bring in first time innovations not just for first time sake but because it is extremely beneficial to our customers. The business case behind this solution is simply innovation and trying to do things differently.”
In the same vein, Derek Appiah, chief enterprise solution officer, MTN Nigeria observed: “With MTN ePresence you can hold meetings with your counterparts in various locations and make or share presentations and documents as if you were all in the same room. The solution also enables you to see each body movement and facial expression that you would have seen if you were holding the meeting in the same room. By using this solution you can save on air tickets, hotel bills and other costs associated with business travel.”
In addressing issues revolving around network failure and latency issues, Appiah pointed out that without the company’s 6, 000km fibre optic ring with dual protected rings, the project would not have been feasible.“That’s the backbone that allows us to provide this service. It is actually what we call the IP MPLS service which is the biggest IP MPLS network in Nigeria. So, it is that huge level of investment that this service is riding on. That is why this type of service has not been provided in Nigeria. We are confident that there would be no network failures”.
“It is not just about businesses, we talk about government, health, education, entertainment. Eventually, with the adoption of this technology, he would get to see the application in those very key aspects of our lives that actually help transform how we live in the country”, Richard Edet, managing director, Cisco Nigeria concluded.
MTN ePresence is currently available only in Lagos, Abuja and Port Harcourt but would be available internationally in the near future. It is available to both MTN and non MTN subscribers.

NetApps, Cisco, VMware advocate cloud computing for enterprise profitability

Ben Uzor Jr
In the face of increased economic pressures, Nigerian enterprises can no longer afford to put their Capital Expenditure (CAPEX) upfront to purchase Information Technology (IT) infrastructure such as servers, network switches, and storage platform for new projects. Consequently, IT executives are tasked with doing more with less to meet up with changing customer dynamics.
To this end, leading technology companies have advocated the adoption of innovative ways of reducing cost thus enabling businesses move from capital expenses to operational expenses whilst delivering efficient service. According to them, ‘Cloud Computing’ which describes a new supplement, consumption and delivery model for IT services based on the internet can enable such transition.
They made these revelations in Lagos last week at the 5th annual ‘NetApp Innovation’ Conference which focused primarily on Cloud Computing, Virtualisation, and Dynamic Data Centres. The conference which hosted more than 500 IT executives and decision makers also identified how business could leverage on the cloud model for improved Return on Investment (ROI) on IT infrastructure.
Martyn Molner, director, Middle East and Africa, NetApps who spoke to news men at the event revealed that businesses who refuse to embrace efficiency as part of its core strategy from an IT perspective would be looking at increased cost and poor utilisation. In his opinion, cloud computing would be beneficial to Nigerian businesses as it increases their ability to streamline resources as well as derive better ROI from IT assets. “For Nigerian businesses, if they want to be flexible, efficient and move into new markets and get the benefits swiftly, the cloud is paramount”, Molner added.
Corroborating the views of Molner, Rex Mafiana, country manager, Nigeria and Ghana, NetApp further stated that the cloud paradigm would change the way IT was delivered and would bring great value to the technology industry. “Cloud computing model gives IT departments’ elastic scalability, a pay-as-you-go model, predictable cost structure, data access any time, anywhere and better operational efficiency. Virtualization technology enables IT departments build a shared and service-oriented infrastructure that the cost is per usage and not constant cost.”
In the same vein, Tosin Amusa, technology sales manager, Cisco Nigeria pointed out that cloud computing delivers more flexibility in service delivery at higher scales with dramatic cost advantage. “If you look at your data centre you would discover that 77 percent of the IT budget goes into powering up the servers, switches and other infrastructures needed in your IT environment. You only spend 23 percent of your revenue delivering new capabilities”, he observed.
“If the business demand a new challenge and you are not able to meet it, the business becomes frustrated, you as an IT staff becomes frustrated as well. Then, the game has to change if you intend to keep up with the business needs in our unique environment especially in this part of the world. That is the concept of cloud computing”, Amusa posited.
In explaining how cloud computing converts CAPEX to operational expenditure (OPEX), Brendan Widlake, director, VMware observed that it apparently lowers barrier to entry, as infrastructure is typically provided by third-party and does not need to be purchased for one-time or infrequent intensive computing tasks. He also said that the software solution radically lowers management overhead and provides immediate access to broad range of applications.
Business Day gathered that the NetApps, Cisco, VMware had introduced an end-to-end Secure Multi-tenancy Design Architecture that provides enhanced security in cloud environments by isolating the IT resources and applications of different clients, business units or departments that share a common IT infrastructure. As part of their collaboration, the three companies would also offer a cooperative support model for this pretested and validated design architecture to help customers quickly build unified, virtualised infrastructure.

Friday, March 5, 2010

Microsoft improves on-line security with Internet Explorer 8

Microsoft improves on-line security with Internet Explorer 8
Ben Uzor Jr
In a conscious attempt to address the prevalent issue of cybersecurity especially for Nigerians who are increasingly relying on public places (cybercafés, schools, offices) for internet access, Microsoft has introduced the latest version of its popular internet browsing software.
Designed specifically to make online experience more secure, Internet Explorer 8 is built with a host of other security technologies that will also ensure that personal surfing habits and identity information are secure especially in places where lots of individuals share public computers.
Ken Spann, development platform manager, Microsoft Anglophone West Africa observed that whilst public places remains a great way to ensure internet access, “it does open you to a security minefield that you need to be aware of, particularly if you are using a computer that hundreds of other people also have access to.”
“Unfortunately, the way the Internet works is that it leaves little ‘signs’ and ‘trails’ all over the World Wide Web when you surf websites and log into your secure accounts (like Facebook, online shopping sites or even your online bank account)”, Spann explained.
According to him, some of this information is stored on the computer and can be readily accessed by any one who has a relatively good understanding of computers and where to find these little weaknesses. “So, if you’re not careful about cleaning off all the traces that you left behind on a public computer, it’s possible that someone else could have access to your most personal information like credit card numbers, bank account details or passwords”, he pointed out.
Spann disclosed that Microsoft was working hard to ensure that internet users can surf the web on public computers without worrying about having their personal details stolen when you leave. “Users have full control over what can and can’t track their activities so it gives you peace of mind that you know exactly what is happening with your personal information.”
In the same vein, Sola Bickersteth, general manager of ChamsCity, a network of digital facilities based in Lagos, Abuja, Port Harcourt delivering internet services to the local community said: “When Internet Explorer 8 was released, I simply had to install it and find out what all the fuss was about. And my customers and I were very pleased.”
“A feature called InPrivate, gives you the ability to surf the Internet in virtual anonymity, preventing the computer from permanently recording your browsing history, and storing temporary Internet files and little tracking files called cookies. “It is also a lot more powerful, giving users the ability to filter content coming from third parties, which may give them information about your surfing habits”, he concluded.

Why SMEs need to engage clientele on their mobile phones - experts

Why SMEs need to engage clientele on their mobile phones - experts
Ben Uzor Jr
“A clothing retailer in Nigeria who recently ran a focused pilot campaign by sending a ‘N3, 000 off clothing purchase’ coupon via SMS to 35, 000 consumers ages 18-35 in the Lagos metropolitan area experienced within three weeks, 225 coupon redemption for total net sales of N5.8 million”.
Nigerian businesses must realize that it is no longer enough to ‘push’ marketing campaigns at consumers; they need to involve and engage with them to find new ways to create and retain loyalty. Femi Adebiyi, managing executive, Legwork Limited made these observation in Lagos recently while delivering a white paper on mobile marketing and its potential to provide relevant, targeted advertising.
Legwork Limited enables businesses to utilise the digital channels (mobile phones, internet) as the primary communication tool with their consumers by delivering high value interactive content. According to him, mobile phones offer enterprises that unique opportunity to do this and create a two-way relationship. This, he further added would ultimately build product awareness, drive sales and retain customer loyalty.
Adebiyi explained: “There are over 70 million active mobile subscribers and almost all working age consumer have mobile phones. Consider even the exponential growth of pre-paid blackberry used predominantly for mobile-web or instant messaging and you must agree that the mobile channel is a must for any business with a serious marketing plan”. He also noted that mobile has the scale, adoption and reach to make a difference.
“Seven times as many people have mobile phones than have personal computers, more households have mobile phones that TV sets. “And most importantly, the mobile phone can replicate all of the previous mass media with six unique benefits, which is why already 588 million people consumed premium content such as news, TV, entertainment and games on mobile phones in 2007”.
In a recent study conducted by Legwork Limited for a FMCG that uses mobile as part of their marketing campaign activation revealed that 24 percent of their target audience first heard about the campaign via mobile. Mobile was next to Television at 51 percent.
“What is clear is that mobile marketing is finally here and businesses today that are incorporating mobile into their marketing mix are seeing their efforts pay off”, he posited. Adebiyi pointed out that businesses should initially be focused on using mobile especially SMs and applications to build database of consumers who have opted to receive targeted offers, alerts and information from the business.
In the same vein, Emmanuel Okogwale, lead researcher for MobileMoneyAfrica, Africa’s leading resource for mobile financial inclusion said: “Available data reveals that there are 23 million television sets in Nigeria, 7 million radio sets, one fully national television station, 60 regional and semi-regional television stations, one national radio station but 74 million active mobile users under an addressable population of 140 million.
“Furthermore, a new survey conducted by Informa Telecom and Media indicates that mobile phone transactions, worth more than $860 billion, would be conducted using a mobile phone which represents a twelve fold increase in gross global transaction values in just five years.”
In his opinion, enterprises must employ the mobile channel to deliver their message to the mobile audience. This is because the phone is the most personal device that a consumer possesses. Okogwale further argued that while traditional media is largely untargeted, mobile marketing can be tailored to targeted audiences, measured and track result, reduce cost and capitalize on emerging technologies.