Thursday, April 12, 2012

110.4 m subscribers registered, says NCC


• Commission maps out five year strategic plan
Ben Uzor Jr

As the ongoing registration of Subscriber Identification Module (SIM) cards nears conclusion, 110.43 million lines have so far been registered, a whopping 14.28 million more than the official figure of 96,150,836 active mobile lines in the country. Eugene Juwah, executive vice-chairman, Nigerian Communications Commission (NCC), who disclosed this weekend at a consultation forum organised by the commission to obtain requisite input as the commission looks to strengthen its five year (2013-2017) management plan, said it was a lucid indication of multiple registrations that must be corrected during the verification process that will soon commence.

This, Juwah further added would foster database integrity and credibility. “This will naturally lead to the implementation of a more robust Mobile Number Portability (MNP) which is at advanced stage of actualisation. The exercise, we believe can positively impact on Quality of Service (QoS) and stimulate another facet of healthy competition. That project will also broaden the choices available to subscribers and impose a code of behaviour on the operators to retain their subscriber.” He said five year strategic master plan would further deepen Information Communications Technology (ICT) penetration for economic gain in Nigeria.

The plan, which spans from 2013 to 2017, according to NCC, would transit the Nigerian economy to a digital one. According to Juwah, there is the need for the NCC to develop a five- year Strategic Management Plan to guide the regulatory body’s interest and intervention activities while enabling it respond quickly to the challenges of the sector with the overall aim of paving the way for an ICT-driven economic development. Therefore, he said the aim of the consultative forum is to ensure that critical inputs from ICT industry stakeholders are considered in the development of the five-year (2013 -2017) strategic management plan.

In her keynote address, Omobola Johnson, minister of Communications Technology, represented by John Ayodele, a director in the ministry, said if the plan must materialize, there was need for collaboration between government and the public. According to her, the challenges facing emerging economies, such as ours is the ability to prepare citizens for the growing information challenges, “I believe that enabling ICT Environment, the country can leapfrog and compete globally.” In her own contribution, Funke Opeke, chief executive officer, MainOne Cable Company, believed that if the plan must work and contribute meaningfully to the economy, it is imperative to have ubiquitous broadband in the country.

Opeke, who lamented the lack of a national backbone infrastructure for the deployment of broadband, said developmental objectives of Vision 20:2020 and Millennium Development Goals (MDGs) may remain an illusion in Nigeria. “It's unfortunate; we do not have a national backbone to serve as common distribution architecture in Nigeria as it is in South Africa and Ghana. The Infrastructure we have now was built by proprietary investors and it is not being shared. For us to achieve ubiquitous broadband access, end- users must have the service at their doorsteps but this will not be possible without shared infrastructure", she stated.

For Wale Goodluck, corporate services executive, MTN, there is need to strengthen the rural telephony project. In NCC’s plan for the future, Goodluck argued that rural communities are moving targets. “A rural community today might not be a rural community tomorrow. So, we must take that into consideration. We are going to see greater purchasing power in the rural communities. We have an opportunity to prepare our networks for the future needs. Telcos must begin to adopt a low-cost model that makes it easier to roll out additional infrastructure. However, more incentives are required to ensure that rural telephony succeeds.”

Osondo Nwokoro, regulatory director, Airtel Nigeria pointed out that there has not been sufficient operator buy-in as it relates to the Universal Service Provision Fund (USPF). He said the USPF must set clear targets to get the full buy-in of operators which would consequently drive infrastructure rollout to un-served and under-served areas of the country. “Public Private Partnership is central to the success of rural telephony. It should be target and performance driven. There should be a list clearly stating those areas of Nigeria that are unserved or underserved in order to deploy requisite funds to those areas”, he concluded.

Monday, April 2, 2012

E-waste: A nation sitting on a keg of gun powder




Nigerians are fast catching up with Information and Communication Technology (ICT) euphoria sweeping across the globe. As the craze for new technologies reaches astronomical heights, the issue of e-waste has become a subject of immense concern for governments worldwide. Sadly, the federal government has failed to prioritise the issue of its elimination as Nigeria becomes a thriving dump yard.

“We are sitting on a keg of gun powder that will one day explode. While developed countries have discovered ways of managing e-waste; Nigeria is still lagging behind….” This was the blunt reaction of a computer products dealer at Ikeja Computer Village who expressed dismay at federal government’s flippant attitude towards addressing the electronic waste menace. E-waste is now regarded as a ‘rapidly expanding’ issue considering the health and environmental implications posed by the indiscriminate dumping of electronic materials. So, what is e-waste? It may be defined as discarded computers, office electronic equipment, entertainment device electronics, mobile phones, television sets and refrigerators.

This definition includes used electronics which are destined for reuse, resale, salvage, recycling, or disposal. Rapid changes in technology, changes in media, falling prices, and planned obsolescence have resulted in a fast-growing surplus of electronic waste around the globe. Let us look at what’s obtainable across the globe in terms of how other mature nations are coping with the challenge. Though, technical solutions are available, in most cases a legal framework, a collection system, logistics, and other services need to be implemented before a technical solution can be applied. An estimated 50 million tons of E-waste are produced each year. The United States America (USA) discards 30 million Personal Computers (PC) each year and 100 million phones are disposed of in Europe each year.

The Environmental Protection Agency estimates that only 15-20 percent of e-waste is recycled, the rest of these electronics go directly into landfills and incinerators. According to a report by UNEP titled, "Recycling - from E-Waste to Resources," the amount of e-waste being produced - including mobile phones and computers - could rise by as much as 500 percent over the next decade in some countries, such as India. The US is the world leader in producing electronic waste, tossing away about 3 million tons each year. On the other hand, China already produces about 2.3 million tons (2010 estimate) domestically, second only to the United States. And, despite having banned e-waste imports, China remains a major e-waste dumping ground for developed countries.

Electrical waste contains hazardous but also valuable and scarce materials. Up to 60 elements can be found in complex electronics. In the US, an estimated 70 percent of heavy metals in landfills come from discarded electronics. While there is agreement that the number of discarded electronic devices is increasing, there is considerable disagreement about the relative risk (compared to automobile scrap, for example), and strong disagreement whether curtailing trade in used electronics will improve conditions, or make them worse. According to an article in Motherboard, attempts to restrict the trade have driven reputable companies out of the supply chain, with unintended consequences.

African continent

Africa, typically a dumping ground for electronic waste from other mature nations, could produce more e-waste than the European Union by 2017, experts have said. Across Africa, a combination of population growth and increased access to mobile phones and other technologies will produce a surge in e-waste over the next five years, Miranda Amachree of the National Environmental Standards and Regulations Enforcement Agency told reporters at the Pan-African Forum on E-Waste. While Africa has long received tons of waste for disposal from developed nations, a recent report by the United Nation (UN) Basel Convention’s E-waste Africa Program found that as much as 85 percent of Africa’s e-waste is now local.

In five West African nations, a UNEP report showed that ten times more people have PC compared with a decade ago, and 100 times as many people have cellphones. In those countries alone, between 650,000 and 1 million tons of domestic e-waste are now generated per year. By comparison, the U.S produces the most e-waste annually, with about 3 million tons, followed by China (2.3 million). “There is population growth … and there is the penetration rate — there are increasing numbers of people with access to these devices. “You have to bear in mind that there are efforts undertaken at all levels to increase access — it’s part of development,” she said. Kummer described the growth of both the population and the penetration rate as ‘exponential’, adding that Africa must “move towards more formal recycling in order to ensure precious metals are properly extracted from, say, mobile phones.”

Nigerian situation

The study conducted by the UNEP showed that Nigeria was one of the major sources of electronic waste in Africa without the needed protection against its impact on human health and the environment in the country and the West African sub-region. Detailing the Nigerian situation, the report also disclosed that “an analysis of 176 containers of two categories of used electrical and electronic equipment imported into Nigeria, conducted from March to July 2010, revealed that more than 75 per cent of all containers came from Europe, approximately 15 per cent from Asia, five per cent from African ports (mainly Morocco) and five per cent from North America.”

Earlier, the Basel Action Network (BAN), a Seattle-based environmental group, disclosed that an estimated 500 shipping containers with a load equal in volume to 400,000 computer monitors or 175,000 large TV sets enter Lagos each month. About 75 percent of some shipments are classified as e-waste. “The reasons for this huge influx of e-waste into Lagos are not far fetched. “Lagos has a large sea port where the items easily slip through. “Also there is a huge appetite for cheap second hand imported electronics items in the city,” Peter Ejiofor, a Lagos dealer in second hand PCs, said. But Lagos is indeed paying a huge environmental cost for these cheap items.

Most of the imported items get discarded almost as soon as they are shipped into Lagos. "E-waste is a major problem, it's a major challenge, we have a pile up of them," Ola Oresanya, managing director of the Lagos Waste Management Authority (LAWMA), said. With no facilities to recycle e-wastes, they are indiscriminately discarded around the city. Some of them end up in dumpsites where they are burnt. Environmentalists have expressed apprehension over the health implications of this as toxic gas are pushed into the atmosphere during burning.

“It is a very worrisome situation because components from these electronic items are very hazardous," Leslie Adogame of the Nigerian Environmental Society stated. He is particularly concerned about the health implication. "There is open burning. Some components produce a lot of particulate matters,” he says. "People around the areas where the wastes are being burnt have to be suffering from chest-related diseases because they inhale a lot of noxious substances,” he added.

Health implications

Certain components of some electronic products contain materials that render them hazardous, depending on their condition and density. Thousands of old electronic goods and components leave the EU for Africa every day, despite regulations prohibiting the trade in e-waste. Some are repaired and reused, but many are beyond repair, meaning that they will eventually be dumped in places where no facilities exist for safe recycling. The poor in Nigeria regularly sort through piles of e-waste, burn plastics, break open lead-laden with Cathode Ray Tubes (CRTs) from computer monitors while picking apart electronic waste to scavenge for the precious metals inside.

These unsuspecting poor scavengers expose themselves and their environment to abysmal amounts of toxic hazards thereby becoming vulnerable to health risks. The poorest people, in many cases children are put to work breaking apart TVs, mobile phones, game consoles, etc, that arrive in their tons with no safety measures; they are exposed to highly toxic chemicals, including mercury, which damages the brain; lead, which can damage reproductive systems; and cadmium, which causes kidney damage. “Large parts of groundwater in Nigeria have also become polluted and un-safe for human consumption due to indiscriminate disposal of e-waste. “They have contaminated the soil, air, and food also.

“Chemicals and toxins from e-waste are known to lead to serious health problems like reproductive failures, genital deformities, thyroid malfunctions, behavioral abnormalities and immune suppression, miscarriages in women, foetal deformation bronchitis, and evidences of polychlorinated biphenyl’s (PCB) to cancer in animal, reproductive system, nervous system, endocrine, stunted growth and other serious health crisis”, James Okafor, a medical practitioner told Business Day. In terms of air pollution, particulate materials such as dust, ash, soot, smoke, toxic metals released into the air in the form of metal fumes by waste incinerators e.g. nickel, beryllium, cadmium, fumes: chlorinated dioxins & furans affects humans, animals, plants, building materials and pollutes the soil.

Government’s failure

Despite increasing evidence of the harm caused by electronic waste, the federal government has failed to prioritise the issue of its elimination as over five million second-hand computers are unloaded every year in Lagos. To this end, Nigeria is emerging as the top dumping ground for e-waste from developed and mature markets. These "junks" have a unique pattern of flooding the market as they are shipped and air-freighted into the country. But more importantly, they pass through what is perceived to be a litany of security agencies struggling for recognition at the nation's sea and air ports as well as approved and unapproved but known border routes. According to reliable information from the UNEP, globally 20 - 50 million tons of electronics are discarded each year. However, less than 10 percent gets recycled and half or more end up mostly in developing countries like Nigeria.

Industry watchers say that as western technology becomes cheaper and the latest machine comes to be regarded as a disposable fashion statement, dumping would only intensify. The chaotic management of e-waste arising from the uncontrolled importation of disused computers, mobile phones, and television sets into the country has drawn the resentment of various Information Technology (IT) associations in Nigeria. Commenting on the issue, Jimson Olufuye, vice chairman of the World Information Technology and Services Alliance (WITSA), said, “As far as I am concerned, though we have a full fledged ministry charged with the responsibility of enforcing all environmental laws, guidelines, policies, standards and regulations in Nigeria, nothing proactive has been done towards tackling the issue of e-waste.

“Industry has made recommendations on several occasions to the ministry as regards collaboration to arrest the situation, but all have proved futile. In this regard, we cannot stop the importation of PCs into the country because penetration is still low. I must admit, this is a very serious issue that demands all stakeholders to come together to find ways to curb this menace”, he added. Still assessing the magnitude of e-waste importation into the country, John Oboro, Secretary-General, Computer and Allied Products Dealers Association of Nigeria (CAPDAN), noted that the failure of the Federal Government to take a significant step to manage the waste arising from the importation of disused electronics is unsafe as the nation may have to pay for it in a disgusting way in the near future.

Oboro cried out: “We are sitting on a keg of gun powder that will one day explode. Developed countries have discovered ways of managing e-waste. It is quite unfortunate that the manufacturers of even the new ones do not have plans of how to take back these things when they become obsolete. “We need the foreign information technology (IT) firms to take full responsibility for the safe recycling of their products and put an end to the growing e-waste dumps that poison people and the environment across the developing world, Nigeria inclusive. We need companies to introduce voluntary take-back schemes and remove hazardous substances from their products so they can be recycled safely and easily”, he said. Oboro challenged the relevant government agencies in Nigeria to ensure that only electronic products tested and certified fit for use are allowed into the country.

In the same vein, Charles Uwadia, past president, Nigerian Computer Society, added: “Well, I would not say that the Federal Government is not doing anything to tackle e-waste. I am aware that the Standard Organisation of Nigeria (SON) is trying to stop the importation of fairly used electronic goods into the country so as to prevent Nigeria from becoming a dumping ground. One would expect our government to be much more upbeat as regard ridding this country of e-waste.” Continuing, he said, “For those used electronics that have already found their way into the country, government must find a way to take back these goods for recycling and use materials derived for other useful purposes.

Also, for those electronic goods containing harmful chemicals, there should be a methodological system of getting rid of them. However, I am not aware of any regulatory policy on e-waste. Experts, however, say that Nigeria is lagging behind as regards implementing international environmental treaties as it lacks the needed national regulatory framework to implement them. Regardless of the international regulations prohibiting trade in e-waste, thousands of old electronic goods and components leave the European Union and America for Nigeria every day. Under the EU legislation, it is illegal to export used electronic products indiscriminately as the Basel Convention on hazardous and other wastes adopted in 1989 and entered into force in 1992, obliges member countries to ensure that hazardous wastes are managed and disposed of in an environmentally friendly manner.

Global strategic alliances

International collaboration to promote environmentally sound management of e-waste was strengthened with the signing of an agreement between the Secretariat of the Basel Convention (SBC), a United Nation Organisation’s (U.N.O) system and the International Telecommunications Union (ITU) specifically aimed at protecting the environment from the adverse effects of e-waste. According to the U.N last week, the rapid spread of electrical and electronic equipment (EEE) has raised public attention on the negative effects arising from inadequate disposal and waste management. Besides, the body warned developing countries, including Nigeria, with huge market potential to be wary of mobile phone waste, which according to it are extremely dangerous to the living.

The global body stressed that electronic waste, which contains toxic materials used in the manufacturing process, can cause widespread damage to the environment and human health. According to UN, developing countries are expecting a surge in e-waste, with mobile phone waste expected to grow exponentially, adding that sharp increases of e-waste have until now not been matched with policy and regulatory mechanisms nor with infrastructure to cope with the influx in developing countries. The global body noted that, currently, only 13 per cent of e-waste is reported to be recycled with or without safety procedures. It noted that, the issue of e-waste as an emerging telecommunications policy and regulatory issue have received recognition at the highest level in ITU.

Already, part of measures adopted by ITU in this area include; the adoption of Recommendation ITU-T L.1000, “Universal power adapter and charger solution for mobile terminals and other Information Communication Technology (ICT) devices”, which dramatically reduces production and cuts the waste produced by mobile chargers; the adoption of Recommendation ITU-T L.1100, which details the procedures to be employed when recycling rare metal components included in ICT equipment and the designing e-Waste management strategies for environmental protection; publishing and disseminating best practices; and assisting countries in the drafting, adoption and implementation of policies, laws, and regulations related to e-waste management.

Meanwhile, the UN noted that the level of global environmental policy, the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal, which came into force in 1992, is the most comprehensive environmental agreement on the management of hazardous and other waste, “but many countries have not yet successfully translated its provisions into their national legislation. Now, with the signing of the ITU-SBC Administrative Agreement, efforts between both UN mechanisms will be leveraged, maximising value at the global level and strengthening collaboration between telecommunication/ICT and environmental policy makers for the global good.”According to ITU Secretary-General, Hamadoun TourĂ©, the ICT sector is already making significant progress in improving its environmental performance and reducing e-waste through improved best practices and standards.

“The collaboration with the Secretariat of the Basel Convention will allow the global community to address this ever-increasing problem through a holistic approach, involving the recycling industry as well as environmental policy makers”, stressed Toure. To the Executive Secretary of the Basel, Rotterdam and Stockholm Conventions, Jim Willis: “The positive impact of ICT on development, particularly in developing countries and countries with economies in transition is well recognised and acknowledged. “However, ICT equipment has to be dealt with in view of its entire life-cycle, and this includes the time when the equipment comes to its end-of-life and becomes e-waste. Collaboration between ITU and SBC will further our shared objectives in support of sustainable development that essentially includes environmentally sound management of waste.”

Solution

An Information Technology expert, Kunle Ogunfowokan said there was need for foreign information technology (IT) firms to take full responsibility for the safe recycling of their products and put an end to the growing e-waste dumps that poison people and the environment across the developing world, Nigeria inclusive. “We need companies to introduce voluntary take-back schemes and remove hazardous substances from their products so they can be recycled safely and easily”, he said.

Ogunfowokan challenged the relevant government agencies in Nigeria to ensure that only electronic products tested and certified fit for uses are allowed into the country. Indeed, the ITU-SBC collaboration seeks to collect and recycle the hazardous materials by introducing safeguards in the management of the waste of electrical and electronic equipment (WEEE), or e-waste.

According to Achim Steiner, the Executive Director of UNEP, “effective management of the growing amount of e-waste generated in Africa and other parts of the world is an important part of the transition towards a low-carbon, resource-efficient Green Economy. “We can grow Africa’s economies, generate decent employment and safeguard the environment by supporting sustainable e-waste management and recovering the valuable metals and other resources locked inside products that end up as e-waste.” There is an urgent need for improved collection strategies and the establishment of more formal recycling structures, which can limit environmental damage and provide economic opportunities.

Telcos to fuel generators with N46bn this year


Ben Uzor Jr

Telecommunications companies in Nigeria will spend about N45.9 billion in 2012 to fuel generators that power Base Transceiver Stations (BTS) – a critical network infrastructure component required to deliver telecoms services. Informed analysts in the power sector told BusinessDay that the amount could provide 284.8 megawatts of electricity at $1 million per megawatt, as states like Yobe, Taraba and Akwa Ibom can have 24 hours power supply if they have 284.8 megawatts of electricity each.

This gives credence to a recent CEO Survey conducted by PriceWaterhouseCoopers International Limited, which stated that among the major concerns to Nigerian CEOs is energy cost, which rated 93 percent on the scale of their major sources of concerns. The telecoms operators are threatening to “do something radical” in the next 18 months if the country’s epileptic power situation persists. A source told BusinessDay that tariff hike may be one of the options on the table.

Titi Omo-Ettu, president, Association of Telecommunications Companies of Nigeria (ATCON), spoke weekend at a consultation forum organised by the Nigerian Communications Commission (NCC) to obtain requisite industry input as the commission looks to develop a five-year (2013-2017) management plan. Omo-Ettu, who addressed a broad section of industry stakeholders, said operators use 25 million litres of diesel monthly to fuel 20, 000 generators located at over 15, 000 cell sites across Nigeria.

“This invariably means telecoms companies will spend N45.9 billion in 2012 to fuel generators, given that a litre of diesel is sold at N153. If in the next 18 months nothing is done about this, we might do something radical,” he said. He said telecoms services were poor across board, adding that power supply contributes significantly in lowering quality of service levels in the industry. In the same vein, Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators in Nigeria (ALTON), called on government to eliminate some of the bottlenecks hindering deployment of telecoms infrastructure.

Issues revolving around multiple taxes, right-of-way licences, according to him must be swiftly addressed in order to assist operators roll out networks timely to meet the growing demands of subscribers. According to him, Nigeria requires 60, 000 base stations to meet QoS thresholds. “There are currently a little over 20, 000 base station sites in Nigeria serving a population of over 150 million people by the end of year 2011. In comparism, there were approximately 55, 000 base station sites in the UK at the end of 2011 serving a population of just 60 million people,” Adebayo disclosed. On the other hand, the NCC disclosed that it had adopted some definite measures to address the issue of QoS. Eugene Juwah, executive vice chairman, NCC, said the commission had engaged the services of seven Driven Test Contractors to carry out quality of service testing in the six geo-political zones and Lagos.

“They will commence fully by April. It is expected to lead to comprehensive and across-the-country quality of service monitoring. In addition, our Monitoring and Enforcement Personnel have been very busy lately, either shutting down the activities of illegal users of spectrum or engaging importers of handsets that are not type-approved. We will not permit professional banditry in the industry as we are fully empowered by the Communications Act to deal with issues of compliance and standard,” he stated.

This story was first published on Business Day 02 April 2012

Thursday, March 8, 2012

Why Nigeria needs to develop fixed-line infrastructure


Ben Uzor Jr

Eugene Juwah, executive vice chairman of the Nigerian Communications Commission (NCC) says the country is suffering great losses in terms of untapped wealth, employment and value creation prospects, on account of the failure of telecom operators to deliver the broadband data and internet capacity available on the coast, to the hinterland via land-line networks. Juwah, who spoke with Business Day at the Mobile World Congress in Barcelona, said this failure had made nonsense of the number of submarine cable systems on the country’s coastline, which had significantly reduced the cost of wholesale bandwidth capacity.

Emphasising the losses accruing from the failure to deliver significant broadband internet services to the hinterland, Juwah observed that for every 10 percent increase in broadband delivery, a country would enjoy a 1 percent increase in Gross Domestic Product (GDP). “The majority of broadband we have now is through mobile networks. We have very little practical broadband on fixed networks. We cannot make appreciable progress in broadband without first of all treating our fixed-line broadband infrastructure. “Actually, the reason why mobile broadband in Nigeria is not working too well, is because there is no fixed broadband infrastructure. There is no in-land fibre to backhaul all this capacity back to their various switches.”

Juwah observed that operators were reluctant to invest heavily in fixed broadband infrastructure because voice services were still profitable. For this reason, he said the NCC has decided to create a broadband-focused infrastructure sector. According to him, “building good fixed broadband infrastructure will impact on the quality of service of operators because they can now backhaul their traffic, which is what they have been doing now using microwave. “Microwave is a thin route and very unreliable. The NCC is making a regulatory intervention into the provision of fixed broadband, so that an infrastructure sector is created which includes within itself, a sophisticated sharing of resources.

“This is not a question of an operator monopolising it and charging very high prices as is evident right now.” He said the NCC was prepared to put government funds in the infrastructure sector to ensure that the end-point prices come down, in order to ensure that internet access is available to the entirety of Nigerians at affordable cost. “My administration is really focused on developing broadband for employment creation. I am strongly looking at this issue from a policy and implementation standpoint. We are also looking at killer applications for broadband.”

Nigeria, according to analysts at the congress, missed a great opportunity due to the Nigerian Telecommunications Limited (NITEL’s) inability to massively deploy fixed lines when other development-focused nations of the world, such as the United States (US) and United Kingdom (UK) did. Whilst it is true that the mobile phone has attained high penetration and usage, for many homes, businesses and companies, according to analysts, there exist, a yawning need for basic fixed line access, with its numerous advantages. By year 2000, NITEL could only put in 400,000 connected telephone lines and 25,000 analogue mobile lines. The total teledensity stood at a paltry 0.4 lines per 100 inhabitants.

By the end of 2011, according to the NCC, Nigeria has attained over 90 million lines .The NCC is however conscious of the importance of fixed lines infrastructure in broadband deployment. This, according to analysts explains why the Juwah-led administration is looking to revive the segment by providing the enabling environment for private investors to expand the country’s broadband infrastructure. Statistics show that fixed-line telephone users make up less than 1 percent of the total subscriber base. Opportunity exists there, for growth in broadband communication as demand for data services grows.

First published on Business Day Media on Friday, 02 March 2012.

Etisalat plans to surpass Airtel in Nigeria


Ben Uzor Jr

Etisalat Nigeria says its strategic target for the new business year is to further narrow the gap between the firm and, Airtel, the third biggest operating company in Nigeria’s telecoms market. The telecoms company intends to reach over 15 million subscribers by the end of 2012, to achieve this feat. As at December 2011, official subscriber statistics from the Nigerian Communications Commission (NCC), nation’s telecoms regulator showed that MTN Nigeria had 41.6 million subscribers, while Globacom had 19.8 million; Airtel had 18.0 million and Etisalat Nigeria had 10.7 million, in the voice segment.

Steve Evans, chief executive officer, Etisalat Nigeria who made this revelation in an interview with Business Day at the recently concluded GSMA Mobile World Congress, said the telecoms company was well positioned to meet this target, pointing out that by the end of 2011, Etisalat Nigeria grew its subscriber numbers from 6.8 million to 10.8 million. “This year, we are targeting to take our subscriber base by the end of 2012 to over 15 million. We plan to add at least another four million net subscribers so that we would be well over 15 million. I think at that point, we are going to be quite close to been the number three telecoms operator in Nigeria’s competitive market. That’s our challenge for this year.

“We intend to grow our customer base while continuing obviously to grow the revenue per user at the same time. We have to be innovative. “We have to keep churning out interesting services to our customers and we have to ensure that the quality of network is of the highest standard”, he said. Analysts strongly believe the commencement of the Mobile Number Portability (MNP) scheme in October will be the game changer for Etisalat, a late entrant in Nigeria’s telecoms market. MNP scheme is expected to allow Nigeria’s over 90 million mobile telephone users to retain their numbers when changing from one mobile network operator to another.

“We need to promote mobile number portability because it is the only way that you create a more open market. Otherwise, the early entrants will have an advantage because they have mobile numbers which they gave to people 10 years ago and it is very difficult for people to change those number. If you look at measures which the regulator can take to enhance competition, number portability is very important”, Evans posited. In his reaction, Eugene Juwah, executive vice chairman (EVC), Nigerian Communications Commission (NCC) pointed out that MNP scheme was already on-going in the country.

“We have issued a license and we are expecting that come October number portability will be available in Nigeria. With this, if for instance an MTN customer is not satisfied with the quality of service they can switch to Etisalat and still retain their phone number. This is what Nigerians have been yearning for and it is my objective to make this scheme available to them by October”, Juwah said in an interview with Business Day recently. According to him, a combined registration of 110,433,976 SIM cards has been registered and the data is going through processing and cleaning at the moment.

Thursday, February 23, 2012

Telcos, MNP firms begin consultation on service implementation


Ben Uzor Jr

Consultations have begun between Mobile Number Portability (MNP) firms and top-level management of telecommunications firms in Nigeria’s highly competitive market on technical and commercial issues critical to the successful implementation of the scheme, Business Day can reliably now inform. This is ahead of September date set by Nigerian Communications Commission (NCC) for the commencement of the scheme in the country’s telecoms sector. Beyond that, MNP will enable Nigeria’s 90 million mobile telephone users to retain their numbers when changing from one mobile network operator to another.

The contract for the establishment of the MNP Clearing House, which forms the pillar of the scheme, was awarded last October. A consortium of three firms had won the bid to operate. The firms that make up the consortium are Interconnect Clearing House Nigeria (ICN) Telecordia of the USA and Saab Grintek of South Africa. These operators, according to the telecoms regulator will make it easy for mobile network operators to comply with number portability mandates by creating a centralised system for porting all number types which would thus ensure a smooth and trouble-free process.

The NCC had earlier explained that these MNP firms would have only six months to build out requisite infrastructure to implement the scheme. In addition, an extra two months, according to the commission would be given to the MNP operators to carry out testing before rolling out the scheme in the country. However, Business Day also gathered that the scope of the ongoing consultations from a technical perspective revolves around how MNP firms can integrate with telecom provider’s Operations Support Systems (QSSs) and internal business processes, such as customer care, billing and order management.

It is critical that network element systems are integrated so the network can obtain the correct routing information for calls to ported numbers. “Fundamentally, telecoms operators and number portability providers will be discussing systems integration and interoperability of their systems. And of course, there will also negotiate on interconnect charges and network handshake. There will also be legal issues to discuss as it is critical to the success of the scheme. Discussions will also revolve around terms of billing, terms of porting, etc”, Gbenga Adebayo, chairman, of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) told Business Day in a telephone interview.

“I am not aware of this development. But I believe telcos and MNP firms will have lengthy discussions on technical issues relating to interface of systems initially before commercial issues. “There certainly has to be an interface between telcos and MNP providers if the scheme is to be successful”, Lanre Ajayi, past president, Nigerian Internet Group (NIG) told Business Day in an interview. From a commercial perspective, Business Day further learnt that discussions will border on the service charges levied on a subscriber who is moving from one network to the other and the sharing arrangements of such charges.

Business Day also gathered MNP firms and telcos are also negotiating on commercial agreements relating to the ability of a subscriber to pay his bill generated from the last telco. This is in the case of post paid subscribers. Other pertinent issues are the time it takes to port which at some point will became a subject of focus by the both telcos and MNP providers. Prior to March 2008, it took a minimum of 5 working days to port a number in the UK compared to only 2 hours in the US, as low as 20 minutes in the Republic of Ireland, 3 minutes in Australia and even a matter of seconds in New Zealand.

Published on Business Day, Thursday 23 February 2012

Econet demands $3.1 billion damages from Bharti Airtel


Ben Uzor Jr, with agency reports

Econet is seeking at least $3.1 billion in damages from Bharti Airtel in a dispute over ownership of its subsidiary Airtel Nigeria, according to a law suit filed on Wednesday. The move follows a federal high court ruling on January 30 that Bharti Airtel's ownership of its subsidiary Airtel Nigeria is "null and void" because co-founder and 5 percent shareholder Econet was not consulted on the transfer. South Africa-based Econet Wireless is disputing the Indian company's ownership of one of its top Africa operations. In 2003 Econet Wireless Limited, attempted to resist a takeover bid by Vodacom of Econet Wireless Nigeria (EWN) in which it owned 5 percent.

The sale to Vodacom however went through but Vodacom pulled out after citing irregularities in the takeover process. Besides, EWN was renamed V-Mobile and eventually a 65 percent stake was sold to Celtel, a division of Zain in 2006. Econet disputed the sale arguing that its pre-emption rights had been breached. Econet pursued the matter in the Nigerian courts in a bid to overturn the sale. In 2010, Zain sold its African mobile operations including Nigeria to Bharti Airtel for $10.7 billion.

Again, Econet sought to overturn this sale. The court has ruled that all actions and resolutions taken by the firm since October 2003, at which EWL was entitled to be notified and to participate in, as a shareholder, but was prohibited, are null and void. Bharti said last month that its stake in its Nigerian unit was "completely safe" and that the world's fifth-biggest mobile phone carrier by subscribers had appealed against the verdict."The claim for damages and equitable compensation against the Applicant and some of the Respondents might be in excess of $3 Billion," the document filed to the court said.

"The above estimated damages might also be in addition to a claim for $100 Million received by the Applicant as fees for the management of VNL (Vee Networks Limited, a former name of Airtel) for a period of 6 years which sum should have accrued." Bharti Airtel inherited the legal case as part of a $9 billion acquisition of Zain's Africa operations in 2010, including 65 percent of Zain Nigeria. The basis of Econet's claim is that its 5 percent stake was unfairly cancelled when Zain took control, so any decision made since then without it, including the transfer to Bharti, is void.

The Nigerian court upheld that claim. Nigeria contributes about 9.5 percent to Bharti's consolidated operational profits, the company says. Econet disputed the buyout of Airtel's stake from Zain Nigeria in 2010 because its right of first refusal over the stake was denied, in a dispute that had been ongoing since 2003, when the same assets were first sold to Vee Networks.

Published on Business Day, Tuesday 23 February 2012