. . . Small operators groan, claim it could drive them out of business
Ben Uzor Jr
Despite the fervent clamour from smaller and new operators about the realities of collective dominance alleged to be prevalent in Nigeria’s telecommunications market and the possibilities of it driving them out of business, the Nigerian Communications Commissions (NCC) has downplayed the issue accusing the concerned parties of misinterpreting the basic proposition surrounding the subject.
Collective dominance refers to a situation whereby the dominant players in a particular industry agree to deliberately conduct their business in a manner that lessens competition from smaller operators by way of entry barriers, structural links and cooperation agreements amongst firms etc.
Contrary to the views of these concerned parties especially Code Division Multiple Access (CDMA) operators that willful conspiracy and collusion amongst big operators would be necessary for such dominance to be established, the telecom regulator argued that tacit collusion may occur without any conscious strategic decisions among dominant players in the telecoms industry.
Furthermore, the evidence of collective dominance could exist without any direct confirmation of deliberate anti-competitive behaviour by any one or more players if market conditions led the leading firms to make certain business decisions that had the effect of diminishing the opportunities of smaller competitors. To this effect, such decisions would not necessarily be illegal by prevailing competition law standards in many countries, nor contrary to acceptable business practices.
But more importantly, if market conditions led to collective, non-coordinated behaviour by some operators which lessened the competitive viability of smaller operators, it might be possible to conclude that there is a degree of tacit collusion due to joint dominance, the commission added.
According to a new report released by the NCC and accessed by BusinessDay yesterday, “the commission has determined that no group of two or more licensees currently holds a position of joint or collective dominance in that market. The commission has not found conclusive evidence that any of the mobile licensees are engaging in conduct which has the purpose or effect of substantially lessening competition.” Moreover, MTN, Zain, Globacom as well as beleaguered NITEL who are opponents of the finding of collective dominance maintained that collectively the three largest operators have steadily lost market share recently, particularly with the emergence of the CDMA carriers.
On their argument, there are currently 11 licensees in the market, including CDMA, as well as Unified Access Service Licenses (USL) that allow operators offer extensive array of mobile services, indicating a robust level of competition with little opportunity for tacit collusion. “The newer operators may even have an advantage over established GSM providers; vigorous competition is leading to innovation, lower prices, and network investment; tariffs have come down significantly and there are a variety of choices. Also, average revenue per minute is also declining”, they claimed in the report.
On the other hand, Etisalat, ZoomMobile and Smile submitted that collective dominance was present, laying claims to artificially high pricing of leased circuits, refusal to collocate on reasonable terms, predatory pricing of off-net calls and termination rights, and unwillingness to support number portability as symptoms of collective dominance. According to them, this could invariably impair smaller operators’ ability to compete, further asserting that the regulatory framework for CDMA and GSM entrants had not been symmetrical and as a result, CDMA player had been placed at a disadvantage.
In response to these claims the telecom regulator stated: “The most direct way to determine the possibility of collective dominance is to observe the market behaviour of the accused firms. The commission would expect to find such trends as uniform and increasing tariffs for Mobile Telephone Services, leading to comparable revenue-per-minute for all companies.
“The commission would expect declining quality of service throughout the networks as a result of shared decision-making not to invest in costly network improvements The Commission might also expect to find evidence that barriers erected to prevent competitors from utilizing and sharing active network support infrastructure resulted in slow build out, lack of service differentiation, and piecemeal growth”, the commission concluded.
Wednesday, April 14, 2010
Nokia enhances social networking, messaging with new mobile devices
Ben Uzor Jr
World mobility leader, Nokia has announced three new handsets designed primarily to put better messaging and social networking tools in the hands of more people across the globe, at affordable prices. Expected to be available in Nigeria soon, the C3, C6 and E5 come with full QWERTY keyboards, and enable access to a range of different e-mail accounts, IM communities and social networks.
Phillip de la Vega, general manager, Nokia West Africa who spoke to newsmen at the launch of the device in Lagos recently noted, “Nigerians want the best messaging and social networking experience on an affordable device, whether it’s sending a simple text or instant message, an email, or a direct message from their Twitter account; we are proud to bring these new devices - the Nokia C3, Nokia C6 and Nokia E5 because they are made for just that.
“Services that provide easy access to the world’s consumer and corporate email and instant messaging are really popular on our QWERTY smartphones such as the Nokia E71 and Nokia E63. Our messaging device range is very successful in Nigeria and globally”, he posited.
De la Vega pointed out that the Nokia C3 was the first device to bring a full QWERTY keyboard to the world’s most popular mobile phone platform – Series 40 – and was also the first in the range to enable access to social networks directly on the home screen. With this device, “people can view, comment, update their status and share pictures to their favourite social networks such as Facebook and Twitter.”
In addition, the device comes with Ovi Mail and Ovi Chat, meaning first time users can set up email and chat accounts straight from the device, without the need for a Personal Computer (PC). Other notable features are the Wi-Fi connectivity, a two megapixel camera, rich color 2.4 inch screen and support for up to an 8GB memory card.
The Nokia C6 is a Symbian-based smartphone combining the benefits of a 3.2 inch touch screen with a full slide out keyboard. The large screen provides a great Internet experience, as well as offering access to Facebook feeds directly on the home screen. A full suite of email and social networking capabilities means the Nokia C6 is perfect for people who want to stay up to date while on the go.
It has an impressive feature set including a high quality five megapixel camera with autofocus and flash, and Ovi Maps with free walk and drive navigation. In addition, thousands of apps – from games and videos to news aggregators and web services – are available in the Ovi Store.
Rounding off the trio is the latest addition to the Nokia E-series range, the Nokia E5. Designed for those that want to be productive in both their professional and personal lives, the Symbian-based Nokia E5 follows the successful blueprint of devices such as the Nokia E72 and Nokia E63.
The Nokia E5 combines high quality business features with all of the personal networking and entertainment capabilities that a busy professional expects from a smartphone. This device is perfect for managing busy schedules with a variety of productivity applications available in the Ovi Store. And with direct access to over 90 percent of the world’s corporate email through Mail for Exchange and IBM Lotus Notes Traveler, it’s easy to keep in contact from anywhere.
World mobility leader, Nokia has announced three new handsets designed primarily to put better messaging and social networking tools in the hands of more people across the globe, at affordable prices. Expected to be available in Nigeria soon, the C3, C6 and E5 come with full QWERTY keyboards, and enable access to a range of different e-mail accounts, IM communities and social networks.
Phillip de la Vega, general manager, Nokia West Africa who spoke to newsmen at the launch of the device in Lagos recently noted, “Nigerians want the best messaging and social networking experience on an affordable device, whether it’s sending a simple text or instant message, an email, or a direct message from their Twitter account; we are proud to bring these new devices - the Nokia C3, Nokia C6 and Nokia E5 because they are made for just that.
“Services that provide easy access to the world’s consumer and corporate email and instant messaging are really popular on our QWERTY smartphones such as the Nokia E71 and Nokia E63. Our messaging device range is very successful in Nigeria and globally”, he posited.
De la Vega pointed out that the Nokia C3 was the first device to bring a full QWERTY keyboard to the world’s most popular mobile phone platform – Series 40 – and was also the first in the range to enable access to social networks directly on the home screen. With this device, “people can view, comment, update their status and share pictures to their favourite social networks such as Facebook and Twitter.”
In addition, the device comes with Ovi Mail and Ovi Chat, meaning first time users can set up email and chat accounts straight from the device, without the need for a Personal Computer (PC). Other notable features are the Wi-Fi connectivity, a two megapixel camera, rich color 2.4 inch screen and support for up to an 8GB memory card.
The Nokia C6 is a Symbian-based smartphone combining the benefits of a 3.2 inch touch screen with a full slide out keyboard. The large screen provides a great Internet experience, as well as offering access to Facebook feeds directly on the home screen. A full suite of email and social networking capabilities means the Nokia C6 is perfect for people who want to stay up to date while on the go.
It has an impressive feature set including a high quality five megapixel camera with autofocus and flash, and Ovi Maps with free walk and drive navigation. In addition, thousands of apps – from games and videos to news aggregators and web services – are available in the Ovi Store.
Rounding off the trio is the latest addition to the Nokia E-series range, the Nokia E5. Designed for those that want to be productive in both their professional and personal lives, the Symbian-based Nokia E5 follows the successful blueprint of devices such as the Nokia E72 and Nokia E63.
The Nokia E5 combines high quality business features with all of the personal networking and entertainment capabilities that a busy professional expects from a smartphone. This device is perfect for managing busy schedules with a variety of productivity applications available in the Ovi Store. And with direct access to over 90 percent of the world’s corporate email through Mail for Exchange and IBM Lotus Notes Traveler, it’s easy to keep in contact from anywhere.
Thursday, April 8, 2010
New technology platform eliminates merger barriers of CDMA, GSM networks
Ben Uzor Jr
Indications have emerged that the sprouting of LTE (Long Term Evolution) technology could eliminate the barriers to consolidation via mergers and acquisition in Nigeria’s telecommunication industry. This is because 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 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.
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 importantly, 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.
“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.
“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, he added.
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.
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. 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.
Indications have emerged that the sprouting of LTE (Long Term Evolution) technology could eliminate the barriers to consolidation via mergers and acquisition in Nigeria’s telecommunication industry. This is because 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 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.
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 importantly, 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.
“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.
“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, he added.
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.
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. 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.
Friday, April 2, 2010
Linkserve addresses cost, latency with wireless broadband solution
Ben Uzor Jr
Strategically designed to address latency and cost issues associated with internet service delivery in the country, Linkserve Limited, Nigeria’s pioneering Internet Service Provider (ISP) has introduced a novel broadband solution aimed primarily at meeting the connection needs of homes, small and medium sized businesses (SMEs).
Blast Broadband, is an integration of the widely-used terrestrial wireless industry technology with the latest in advanced and proven satellite technology. In addition, the solution is based on Viasat’s Surfbeam Broadband System, a totally new kind of satellite based system designed expressly for building broadband access networks but very unlike Very Small Aperture Terminal (VSAT) systems.
Chima Onyekwere, chairman, Linkserve Limited who spoke to newsmen in Lagos yesterday observed that downtime constitutes a major challenge in the Nigerian market, adding that the company intends to fully address the issue. This, he stated necessitated huge capital investment into the solution to ensure the highest uptime available in the market at 99.99 percent.
“Most Broadband users want their internet to work every time without failing for each other day or often as most users’ experience. This Hub has capacity to support concurrently over 2 million subscribers. This means more people can easily be served. Linkserve partnered with the two world leaders in Satellite communication, Viasat and Intelsat for the mass roll out of Blast Broadband VSAT solution. Intelsat 14 this has a 54.5db over the region”, Onyekwere posited.
Commenting on the cost effectiveness of the solution, the chairman stated that the launch of the internet solution which costs less than N100, 000 was a distinct way of supporting the local economy in the period of exigent financial limitations. “This is the first in the region, but we are taking this further. We are starting this deployment by making the equipment (CPE) even much lower at N55, 000 for the first 150 subscribers. We feel this is a unique way to support the economy during this period of challenging financial constraints. All these make the solution appealing to small home offices, small businesses, individual homes and lots more”, he added.
In the same vein, Victor Oisaghie, managing director, Linkserve said the solution employs bandwidth efficiency and frequency re-use which allows us to deploy additional customers on the same frequency without any additionally costs. This, he revealed immediately benefits the customers as the pricing of the solution was much lower than what obtains in the market.
“This solution is designed for Corporate, home users and educational institutions with multiple deployments. We have already secured a huge deployment of over 250 units’ pre launch sales programme. Today, Video has become a reality for it to be received through the internet.
“The streaming capacity will enable Churches, distance learning, Educational and institutional organization and religious organizations, reach multiple sites at a very affordable costs. Effectively reducing travelling cost. The solution also provides a platform for many other exciting features and services for the customers including Voice over IP (VoIP), Direct To Home (DTH), Advanced Quality of Service (QoS), Multicasting and accelerated IP/Web-centric applications”, Oisaghie concluded.
Linkserve, since its inception in 1996, has been at the forefront of providing quality connection. The company pioneered internet in Nigeria and has multiple satellite HUBs dedicated to serving the African market with broadband internet, data service and video streaming. The company’s data services are very popular among corporate organisations and its innovative approach to providing connection service is highly acclaimed in the industry being the winner of many awards.
Strategically designed to address latency and cost issues associated with internet service delivery in the country, Linkserve Limited, Nigeria’s pioneering Internet Service Provider (ISP) has introduced a novel broadband solution aimed primarily at meeting the connection needs of homes, small and medium sized businesses (SMEs).
Blast Broadband, is an integration of the widely-used terrestrial wireless industry technology with the latest in advanced and proven satellite technology. In addition, the solution is based on Viasat’s Surfbeam Broadband System, a totally new kind of satellite based system designed expressly for building broadband access networks but very unlike Very Small Aperture Terminal (VSAT) systems.
Chima Onyekwere, chairman, Linkserve Limited who spoke to newsmen in Lagos yesterday observed that downtime constitutes a major challenge in the Nigerian market, adding that the company intends to fully address the issue. This, he stated necessitated huge capital investment into the solution to ensure the highest uptime available in the market at 99.99 percent.
“Most Broadband users want their internet to work every time without failing for each other day or often as most users’ experience. This Hub has capacity to support concurrently over 2 million subscribers. This means more people can easily be served. Linkserve partnered with the two world leaders in Satellite communication, Viasat and Intelsat for the mass roll out of Blast Broadband VSAT solution. Intelsat 14 this has a 54.5db over the region”, Onyekwere posited.
Commenting on the cost effectiveness of the solution, the chairman stated that the launch of the internet solution which costs less than N100, 000 was a distinct way of supporting the local economy in the period of exigent financial limitations. “This is the first in the region, but we are taking this further. We are starting this deployment by making the equipment (CPE) even much lower at N55, 000 for the first 150 subscribers. We feel this is a unique way to support the economy during this period of challenging financial constraints. All these make the solution appealing to small home offices, small businesses, individual homes and lots more”, he added.
In the same vein, Victor Oisaghie, managing director, Linkserve said the solution employs bandwidth efficiency and frequency re-use which allows us to deploy additional customers on the same frequency without any additionally costs. This, he revealed immediately benefits the customers as the pricing of the solution was much lower than what obtains in the market.
“This solution is designed for Corporate, home users and educational institutions with multiple deployments. We have already secured a huge deployment of over 250 units’ pre launch sales programme. Today, Video has become a reality for it to be received through the internet.
“The streaming capacity will enable Churches, distance learning, Educational and institutional organization and religious organizations, reach multiple sites at a very affordable costs. Effectively reducing travelling cost. The solution also provides a platform for many other exciting features and services for the customers including Voice over IP (VoIP), Direct To Home (DTH), Advanced Quality of Service (QoS), Multicasting and accelerated IP/Web-centric applications”, Oisaghie concluded.
Linkserve, since its inception in 1996, has been at the forefront of providing quality connection. The company pioneered internet in Nigeria and has multiple satellite HUBs dedicated to serving the African market with broadband internet, data service and video streaming. The company’s data services are very popular among corporate organisations and its innovative approach to providing connection service is highly acclaimed in the industry being the winner of many awards.
Banks withdraw ATMs in hotels, shopping malls
John Omachonu & Ben Uzor Jr
Some commercial banks on Wednesday commenced the process of shutting down their Automated Teller Machines (ATMs) in hospitality homes and shopping malls, in compliance with the CBN's directive. The CBN had in June 2009 directed all banks to remove their ATMs from public places, following complaints by their customers on the rising cases of fraud and robbery.
It gave the banks March 31, 2010 deadline to withdraw the ATMs, and restrict their operations to bank premises only. Our correspondent who visited Grand Square, a major shopping mall in Abuja, shows that the ATM installed in the premises by First City Monument Bank (FCMB) had been demobilised.
Those installed by Zenith Bank Plc at Cedi Plaza and Reiz Continental Hotel respectively have also been put out of service. Abdulhameed Idris, an ATM user, said the shutting down of the ATMs had not had much adverse effects on customers, since there were alternatives in most of the public places in Abuja. “Most of the banks have their branches in key shopping malls in Abuja, making it easy for customers to access their ATMs.
Another ATM user, Moses Ekpo, said that he uses the ATMs mostly at the weekends when the banks had gone on break, noting that it would not be difficult to locate a payment point. Ekpo, who resides at Mararaba, Nasarawa, said most of the bank branches in the area also operated ATMs, explaining that it would still be easy for customers to access them at the weekends. A source at the CBN said that the apex bank regulatory body had started monitoring compliance by banks before rolling out sanctions.
Meanwhile, BusinessDay investigations revealed that the level of compliance so far recorded was based on equity holding of banks in the Automated Teller Machines-Consortium. It was further gathered that the struggle for market share of Nigeria’s off-banking sites ATM network may have begun, as newly licensed Independent ATM Deployers (IADs) battle the incumbent, Automated Teller Machine Consortium (ATM-C) to take over banks ATM networks.
CBN recently granted two Consortiums, Chams Access and CSS approval-in-principle to operate as ATM consortium in Nigeria. The apex bank, however, said it would conduct a post approval-in-principle visit to firms in April 2010 to ensure their readiness and compliance with the requirements. This brings to three the number of IADs in Nigeria’s ATM market. These IADs will be solely responsible for the deployment of ATMs at off-banking sites.
Reliable sources informed Business Day that the IADs have commenced frantic lobbying at the banks with various incentives to persuade the banks’ management to transfer their off-banking sites cash machine to them, even before final approval by CBN. Consequently, some banks are said to be reluctant to comply with the hope that their choice consortium would soon commence operation.
Moreover, others have also solicited for the extension of the date to weigh the options available when the two additional licensed independent ATM deployers, Chams Access and Cooperative Support Services start operation fully.
Some commercial banks on Wednesday commenced the process of shutting down their Automated Teller Machines (ATMs) in hospitality homes and shopping malls, in compliance with the CBN's directive. The CBN had in June 2009 directed all banks to remove their ATMs from public places, following complaints by their customers on the rising cases of fraud and robbery.
It gave the banks March 31, 2010 deadline to withdraw the ATMs, and restrict their operations to bank premises only. Our correspondent who visited Grand Square, a major shopping mall in Abuja, shows that the ATM installed in the premises by First City Monument Bank (FCMB) had been demobilised.
Those installed by Zenith Bank Plc at Cedi Plaza and Reiz Continental Hotel respectively have also been put out of service. Abdulhameed Idris, an ATM user, said the shutting down of the ATMs had not had much adverse effects on customers, since there were alternatives in most of the public places in Abuja. “Most of the banks have their branches in key shopping malls in Abuja, making it easy for customers to access their ATMs.
Another ATM user, Moses Ekpo, said that he uses the ATMs mostly at the weekends when the banks had gone on break, noting that it would not be difficult to locate a payment point. Ekpo, who resides at Mararaba, Nasarawa, said most of the bank branches in the area also operated ATMs, explaining that it would still be easy for customers to access them at the weekends. A source at the CBN said that the apex bank regulatory body had started monitoring compliance by banks before rolling out sanctions.
Meanwhile, BusinessDay investigations revealed that the level of compliance so far recorded was based on equity holding of banks in the Automated Teller Machines-Consortium. It was further gathered that the struggle for market share of Nigeria’s off-banking sites ATM network may have begun, as newly licensed Independent ATM Deployers (IADs) battle the incumbent, Automated Teller Machine Consortium (ATM-C) to take over banks ATM networks.
CBN recently granted two Consortiums, Chams Access and CSS approval-in-principle to operate as ATM consortium in Nigeria. The apex bank, however, said it would conduct a post approval-in-principle visit to firms in April 2010 to ensure their readiness and compliance with the requirements. This brings to three the number of IADs in Nigeria’s ATM market. These IADs will be solely responsible for the deployment of ATMs at off-banking sites.
Reliable sources informed Business Day that the IADs have commenced frantic lobbying at the banks with various incentives to persuade the banks’ management to transfer their off-banking sites cash machine to them, even before final approval by CBN. Consequently, some banks are said to be reluctant to comply with the hope that their choice consortium would soon commence operation.
Moreover, others have also solicited for the extension of the date to weigh the options available when the two additional licensed independent ATM deployers, Chams Access and Cooperative Support Services start operation fully.
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