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Editions 271 - 275

 CyberschuulNews 275

NDUSTRYWATCH
NiRA, Visafone,
potential vistas for growth in awareness, access and business


Africa has not had the best of numbers to show when it comes to Internet usage, but that picture is changing. Internet usage is on the rise. Even with the poor state of internet access on the continent, usage, in absolute numbers, has been highest in Nigeria.

Internetworldstats.com which rates internet usage world wide published that 8 million Nigerians were using the internet as at December 2007. Telecom Answers Associates which conducted an industry audit for Nigeria in 2006 reports that the figure for Nigeria was slightly above 7.7 million mid 2006.

In the Telecom Answers Associates report, awareness had been rated as very high in Nigeria. It was also reported that 115 Internet Service Providers, ISP’s, in Nigeria (representing only 20% of the total number of licenses issued for internet service provision) were operating and that significant access was derived from servers based outside Nigeria. 65 ISP’s had opened and closed shops within the four-year period between 2002 and 2006. The reports says ‘There is a huge gap between demand and supply of bandwidth. The gap is brought about by consumers’ inability to buy bandwidth and this inability is accentuated by an indescribable and worsening access to basic public electricity supply across the entire country...’

With these findings, what remains important, however, is the fact that while access has been low, more than 8 million users have been recorded in Nigeria and there is high potential for the figure to grow rapidly in the foreseeable future.

The reasons for this positive outlook include two industry events : revival of the Nigerian Internet Registration Association, NiRA, and a 2007 promising upstart, Visafone. NiRA, which was raised after a long wait, has now published a compass for its performance and it has mounted invitation for registration of registrars and partners. Hence, awareness which has been a high point for Nigeria may be on the rise again. In addition to this, Visafone is deploying a low-investment-high-yield technology option, and may sprout in 36 states with wireless access to voice and internet the way no one ever did. If Visafone, few years down the road, is then taken to the capital market (a very high probability considering the business temperament of its promoter), it may just be open sesame for Nigeria.

What do all these point to?

That there is business to do and there is potential for growth. Push that into the continent and consider the more than half a dozen private sector initiative projects which are broadband focused.

These come with potential challenges including the need to liberalize the energy sector. If government does not sincerely liberalize the energy industry but continues to throw money into the problem, poor public power supply may still taunt the economy and slow down the unstoppable march. What is more, if government does not truly divest itself from involvement in telecommunications business, wastes and market summersaults may continue. A clear example is NigComSat which presents a fine concept except that NigComSat should rightfully be competing with NASA, and not with PTO’s.

There is a choice to make between preferring a government that had a bad thrust and one that has no thrust.
 

Above text is excerpted from two recent presentations:
one to graduating students of electrical/ electronic engineering, Unilag,
and the other to Board of Directors of a telecom firm at Nicon Transcorp Hotel, Abuja.
The presentation were by Mr. Titi Omo-Ettu, a Lagos based telecommunications Consultant.

NiRA is shopping for Registrars

Board of Directors, the Nigeria Internet Registration Association, NiRA, has adopted the Registry/Registrar mode of operation in the Registration of the .ng ccTLD in the country. NiRA is therefore, calling for interested companies to send in applications to become accredited and certified Registrars.

Applicants for accreditation as Registrar must satisfy NiRA that:
The applicant possesses and can show adequate knowledge of the Domain Name System and NiRA's Policies, Procedures and Guidelines, Registration Policies and Operations sufficient in NIRA's view to provide good service to Registrants and potential Registrants;
The applicant has the capability to electronically interact with Registrants, NiRA and NiRA's systems in accordance with the Registrar Policies, Procedures and Guidelines;
The applicant is capable of providing Registrar Services in accordance with the Registrar Agreement and in compliance with the applicable Registrar Policies, Procedures and Guidelines; etc.
For the full details of the qualifications of Registrars please visit www.nira.org.ng  and read the NiRA Registrar Accreditation Policy.

AfriISPA says broadband will boom in Africa

AfriSPA’s executive Secretary Eric Osiakwan said a number of public-private partnerships are working on about a dozen credible broadband infrastructure projects on the continent.
Some of them Include Baharicom (Nepad's broadband infrastructure project), East Africa Submarine Cable System (Eassy), Infinity Telecom, Infraco's cable system, Main Street Technologies' Main One, Nigeria's Glo-1, and Seacom, . As time goes on, and very shortly too cost for broadband may move down in Africa.

Mr. Osiakwam was speaking at the completion of Broadband Summit, in Sandton, last week. He did a detailed analysis of almost all the projects and concluded that the progress is good for Africa's development.

AfriSPA is African Internet Service Providers Association.

For Telecommunications,
President Yar ‘Adua’s visit to China is rated low on content


The joint communiqué which Presidents of Nigeria and China [Umar Yar 'Adua/Hu Jintao] endorsed last week shows the visit to be a mere stow away trip with very little to show. That is if diplomatic niceties count little. Although major meat was made of President Yar ‘Adua's invitation to his host on telecommunications and energy, the fact that not much is known to have been thought through at home on energy explains why no concrete issues could be discussed. Senior officials who were on the trip and who laboured to justify the President’s invitation to the Chinese on telecommunications support also did not display evidence of any useful input to the President's thought process.

Yes, China was given the Railway to restore, with little to show. Yes, China launched a satellite on behalf of Nigeria 2007 on an agenda that is very low on putting Nigeria properly in cyberspace. Yes, China has built some hydroelectric dams which Nigerians cannot point at to have solved any problem. Telecom projects in which Nigerian government and Chinese have joint hands have all failed to deliver. Others are those that provide something for Chinese and nothing for Nigerians. So what else is there to gain from all these junketing which add no value to standard of living? Ok if things are being refashioned to make Nigerians truly benefit from such bilateral relationships.

Please click here for the Communiqué
 

 

CyberschuulNews 274

Now that the digital future is here
Broadcasters must play lead role in Digitisation and Convergence

 Dr Ekwow Spio-Garbrah, CEO of the Commonwealth Telecommunications Organisation, a few weeks ago, invited Commonwealth broadcasting professionals to play their part in preparing for convergence in the information and communications technology industry by promoting various public-private partnerships.

 He counselled that broadcasting corporations in the developing world must prepare to enter into other industries, such as telecommunications and the Internet, just as companies in those fields in the industrialised world are already acquiring and/or merging with broadcasting companies in an era of increasing policy, regulatory and technological convergence. He noted that advances, in particular in mobile and Internet technology and access, as well as in computer software, and the increasing desire of consumers to enjoy the benefits of television and broadcasting on mobile platforms and terminals, should make it imperative for broadcasters to monitor more intensely what was going on in those fields and deepen their engagement with institutions such as the CTO.

OPINION
Nigeria, NITEL/MTel, Transcorp and the rest of us:
Commencement of a wild-goose chase

One unique thing about us, Nigerians is our smartness at turning every problem into business. When Mr. John Odeh, Federal Minister of information and communications announced the adjustment in NITEl’s sale to Transcorp, the issue quickly rose to become business. The guy probably made a mistake to have thought that his message would sale through smoothly since all the events leading to the decision were already very widely reported  and therefore in the public domain. He probably goofed to have thought that he did not need to repeat the story that there had been several and long discussions between government, the National Assembly, Transcorp executives, NITEL’s workers since all these had been widely reported in newspapers, on radio, on TV and widely on the internet. He also, rightly or wrongly, must have thought he as minister should not  go restating the ugly stories of how Transcorp was established by baba  and all the zigzag stories relating to the issue since all these had been widely reported. He probably left all that to analysts to worry their heads about and get something to analyse especially now that not much is happening in the telecom industry.

 But no sooner than he made the announcement than business began. Predictably so. And some were bizarre. A newspaper whose reporters had constantly fed the public with closeup stories on the various discussions and the fact that both Government and Transcorp had virtually agreed to trim the shareholding of Transcorp downwards to safe face wrote an editorial to say the decision of government was arbitrary.  

Arbitrary?

Taken along with Mr. President’s understandable unstable mind in these days when judgment in his matter with Atiku/Buhari election challenge was just few days away and knowing that the judiciary of today is not the type we had yesterday, the confusion that the reactions generated almost extracted a reversal of the decision but somehow things coasted home safely and several writers and TV analysts who had invited and invented one-way [the other way] opinions to feed to the public eventually said ‘Transcorp, Government agree on sale of NITEL’ as if that was news. Nobody reported the amount of business that had been done across Nigeria.

An editorial downplayed all the persistent and widely reported cry of NITEL's workers since Transcorp took over the affairs of the companies that their companies were dieing fast calling for a decisive action. Rather the editorial said NITEL's workers position was unimportant since, after all, workers nowhere would ever agree to privatisation of their companies. Haba!

 What is important for now is that Government has set itself on another wild goose chase for a core investor to buy into NITEL. That, bet you, has started another round of business. Those Nigerians who ingeniously assembled the letters P E N T A S C O P  and E to make it sound like something that was real should be on the field now doing business and since no one had ever unmasked them, it is going to be business as usual. 

When will all these jokes stop? Someone should tell these guys upstairs that Nigeria wont succeed with the chase of core investor in the mode of how ‘core’ is being defined. What will save NITEL is that Government should sell it 100% and a buyer will come.  Selling 99% of it and government retaining 1 % will not attract a good so-called core investor.

 No consultant who knows the track record of Nigeria will advise his client to put money into 99% of NITEL.  

100%, Yes.

 SUMMIT
Technology Times Outlook 2008 looks ahead ICT Nigeriana 

The management of Skylark Communications Limited, publishers of Technology Times, has announced it would hold the maiden edition of Technology Times Outlook 2008, its flagship business summit that will appraise ICT developments that will shape and define the Nigerian economy in 2008 and beyond.  

The Event is scheduled for Wednesday February 27, 2008 at the MUSON Centre, Onikan Lagos.

A key highlight of the event will also be the unveiling of the new-look edition of Technology Times Newspaper, the weekly newspaper on the Nigerian ICT sector as well as announcement of the proposed launch of Technology Times Annual.

 

CyberschuulNews 273

Work Progresses on ICT’s in Motor Vehicles

For the third year running, a major event focusing on information and communication technologies (ICT) in motor vehicles is being organized jointly by International Telecommunications Union, ITU, International Organization for Standardization, ISO and International Electrotechnical Commission, IEC, working together as the World Standards Cooperation (WSC).
The event will be The Fully Networked Car, the name given to a workshop and Expo scheduled for between 5 and 7 March 2008 in Geneva.
What delegates will be engaging their minds on are: What are the right business models in linking the automotive and telecoms sectors? What are the legal, policy, engineering, environment constraints and challenges?

Nigeria Internet Registration Association announces its Institutional structures

President of Nigeria Internet Registration Association, NiRA, Ndukwe Kalu, recently announced the major framework under which the Association would operate. The structures for the Association would be on four institutional elements, namely, The Secretariat, Its Policies & Procedures, Technical infrastructure and Service provider Partners. 

Several draft documents  which seek to map the way forward are currently being reviewed by interested parties in the hope that final decision would be made within the first quarter of this year.

CyberschuulNews 272

NCC announces a ban on promotions by GSM Operators

A ban has been placed on products promotion of GSM Mobile telephone services in Nigeria as the regulatory authorities say recent measurement of phone quality revealed unsatisfactory performance of all GSM operating networks. The Nigerian Communications Commission, NCC, appears set to discourage operators even from placing advertisements that are capable of adding more subscribers or result in additional airtime usage on their networks.

In all honesty, Mobile operators may have overdone themselves in their bombardment of airwaves and newspaper pages in promoting products which really never did well. Nigerians love hype and the operators have merely cashed in on this to fill themselves.

Matters reached terrible levels long ago when industry feelers gave incontrovertible indication of rapid deterioration of quality, and CyberschuulNews in its edition  236, June 2007 burst up with CAMPAIGNS are now PRODUCTS  which  warned on the looming excesses of the campaigners.

Reproduced herewith, unedited, the piece said:
 

 

CyberschuulNews  110607-236


'..CAMPAIGNS are now PRODUCTS
Nigeria’s big players in the telecom sector, Mobile [GSM] operators, are monopolizing space in product marketing. Celtel, formerly VMobile, whose 65% acquisition by Celtel forced its change of name celebrated one year of the name change by throwing 200 million Naira of airtime up for grabs. Its image maker, Emeka Oparah, said after achieving their core objective of making life better for Nigerians, the next level was to make N200million of airtime free for buyers of Celtel’s airtime. MTN on the other hand is throwing BlackBerry Pearl and BlackBerry 8700g into the market. Campaign managers, XLR8 are out with full literature on the high-end strengths of the products. Powerful technical features, multimedia capabilities, complete with USB cable for message transfer. Infact BlackBery became an object of fine comments at the recent Tinapa Summit.

Fine. Except that all these are happening at a time when 2 out of every three calls made across the networks are failing and money gets paid even for calls that fail. Information is short on what operators are doing to improve quality and reduce cost which appears to be the dream of consumers. ALTON, Association of Licensed Telecom Operators in Nigeria, in an advertorial admitted the problems and gave promises which experts say are actually low on facts and figures...'

 

Things have not improved since then.

Only a few of industry observers would not predict that the operators may head for the courts to challenge the ban. In fact a notable pastime of the operators has been their recourse to the courts, even if only to play for time, each time the regulator sought to keep them under check. Although they have always lost in the court, or withdrawn their cases after embarking on such fruitless journeys, thanks to the professional manner in which the Commission adheres to the laws of the land in industry management. But for the tact and professional adherence to the laws on the part of the Commission, the behaviour of the operators were capable of destroying not just the industry but the economy.

Laudable as the Communications Act 2003 had served its purpose in the improving evolution of the industry, its weak points remain the various timelines under which  evocation of sanctions were to be managed. That has been one of the several areas which industry analysts expected federal legislators to train their mind in their oversight functions. Regrettably, those who were charged to do that went about chasing the few among us who have proved to the world that Nigerians are capable. And they went, at the same time, promoting a recourse to using the civil service to provide telecommunication, a journey which has failed over and over in our history.

It is not clear if the House Committee on Poor quality of telecom services identified solid ground for a slight review of the Communications Act since their report merely rabble-roused without hitting at any respectable analysis of the issues at stake.

SCIENTISTS' REPORT
Mobile phones do not cause brain cancer, finds radiation study


Scientists at Tokyo Women's Medical University compared phone use in 322 brain cancer patients with 683 healthy people and found that regularly using a mobile did not significantly affect the likelihood of getting brain cancer. They also studied the radiation emitted from different types of phones to assess the effect on different areas of the brain.

"Using our newly developed and more accurate techniques, we found no association between mobile phone use and cancer, providing more evidence to suggest they don't cause brain cancer," Naohito Yamaguchi, who led the research, said.

His team's findings were published in the British Journal of Cancer recently.

The study looked at radiation emitted from different types of phones to assess the effect on different areas of the brain and concluded that. ‘Using a mobile phone does not increase your risk of brain cancer’ ..the finding adds to the growing body of evidence that mobile phones are safe.

Scientists around the world have been monitoring the effects of radio-frequency fields on human health for around 60 years.

Public concern over the safety of mobile phones has grown as more and more adults and children rely on them for everyday communication, although the evidence to date has given the technology a clean bill of health. Despite an explosion in mobile phone use around the world since the 1980s, the number of cases of brain cancer has hardly changed.

A few studies have shown an association between mobile phones and cancer but the majority have found no link. The largest study to date, involving 420,000 people, showed no association with any type of cancer, even after 10 years of use.

In 1995, Messers Telecom Answers Associates which carried out the first local study into Prospects of Cellular Mobile Telecommunications Market in Nigeria said in its report that 'there were earlier worries that mobile phones might adversely affect people with impaired hearing just as some also feared it might create cancer of the brain. These fears were however dismissed by studies which were published in world class journals'.

Public concern about the harmful effect of mobile phones again became heightened in 2006 and the Nigerian Communications Commission, NCC, on May 4, 2006 issued a statement to dispel such fears saying ‘The Nigerian Communications Commission has reiterated that there is no known conclusive scientific evidence at present to indicate that radiation from telecommunication masts or handsets could cause such dangerous diseases as cancer among humans’
 

TRENDS in Telecommunications: Nigeria
Consolidation; Universal Access (Voice, Internet); Competition; Capacity building; etc


CONSOLIDATION
Good! The industry is self-consolidating.


History of the early days of liberalization in Nigeria reveals that considerable input went into how the industry should evolve. To be guided, or to allow it free evolution? It was considered dangerous to adopt a guided approach in an economy that was prone to corruption as officials were likely to exploit it for selfish interest. They did it before; and industry eggheads felt once beaten, twice shy.

By 2005, it was clear that 24 operators was an overkill and that the clamour for consolidation was real.

The carpet raiser was in December 2006 when MTN bought VGCCL, a thriving fixed-wired service provider, wholesale. Since then things happened slowly but it now appears it shall be on the fast lane. 2007 forecasts went close to reality as 4 operators went over to bigger players. Three others might have closed shop since no one could locate their subscribers.

Information is in the system now that Visafone has already signed for 100% stakes in Bourdex Telecom which is operating in the East. By the time it is all over, going by the trend, 10 operators would have either closed shop or be bought over while 14 will soldier on. Reading from the performance table, chances are that 7 operators may be running satisfactorily, 6 ailing, and 4 expressly desirous of buyers.

In 14 years of deregulation, the industry attracted a little over $10billion, most of which came in the past eight years. Government during the eight years frittered $10billion on a chase of elusive good public power system. The new government had said it would confront energy crisis as war but six months into the journey it almost reversed itself when it announced that it would detour to find out how $10billion went into thin air. President Yar 'Adua must have waited for Oby Ezekwesili, a Nigerian who now works for the World Bank before making the announcement. Ezekwesili served as Minister in the last regime and she was one of the reform choristers of the government. For inappropriate temperament in reform implementation, she was virtually eased out of the education Ministry into the waiting hands of her former employers. Now she was visiting and the President told her that his predecessor's reform in the power sector was nothing more than a squandering of the riches.

Had the $10billion inward investment from telecommunications been better deployed, Nigerians would have been paying less for telecommunication services.

Next: Universal Access

 

 

TRENDS: NIGERIA: Who was doing what, December 2007

21st Century

Lagos, Fixed Wired Voice, Internet

Discom

Lagos, Fixed Wired Voice, Internet

Celtel

Nationwide GSM

Globacom  

Nationwide GSM, SNOP

Intercellular   

Lagos, Abuja, Port Harcourt Fixed Wireless. Mobile, Internet

Megatech

Kano Fixed Wireless Voice, Internet

Mtel

Nationwide GSM

Mtn

Nationwide GSM
VGC by acquisition

Mts

Nationwide fixed Voice, Internet

Multilinks   

Telkom-Multilinks by buying into

Nitel

Nationwide Fixed Wired Services + Fixed Wireless, FNO, Internet.

Oduatel   

South West Fixed Wired + Fixed Wireless Voice, Internet

Prestel      

Benin, Wireless Voice, Internet

Rainbownet

Enugu, Aba, Fixed wireless Voice

Reltel

Lagos, Ibadan, Fixed Wireless Voice Internet

Starcomms

Abuja, Ibadan, Kaduna, Kano, Lagos, Maiduguri, PHC, Fixed Wireless Voice, Mobile, Internet,

Startech

Abuja, Fixed wireless

Visafone

Bourdex by acquisition
Cellcom by acquisition
ITN by acquisition

This data is from private source. Not government authorised. Informed comments will be appreciated. Source : TAA

TRENDS: Nigeria: Who was doing What, December 2005

21st Century

Lagos, Fixed Wired Voice, Internet

Bourdex Telecom

East, Fixed Wireless Voice

Cellcom

Lagos, Kano, M'guri F/Wireless Voice

Discom

Lagos, Fixed Wired Voice, Internet

Celtel [F'mly VMobile]

Nationwide GSM

Emis

Lagos Fixed Wireless Voice

Globacom  

Nationwide GSM, SNOP

Gte

Lagos Fixed Wired Voice, Internet

Intercellular   

Lagos, Abuja, PHC, F/Wireless. Ltd Mobile, Internet

Itn

Lagos, Fixed Wireless Voice, Internet

Megatech

Kano Fixed Wireless Voice, Internet

Mobitel  

Lagos, Warri, PHC F/Wired,F/ Wireless

Mtel

Nationwide GSM

Mtn

Nationwide GSM

Mts

Nationwide fixed Voice, Internet

Multilinks   

Lagos F/Wireless Voice, Internet, Ltd Mobile

Nitel

FNO, Nationwide F/Wired, F/Wireless, Internet.

Oduatel   

South West F/Wired + F/Wireless Voice, Internet

Prestel      

Benin, F/Wireless Voice, Internet

Rainbownet

East, F/wireless Voice, Internet

Reltel

Lagos Fixed Wireless Voice, Internet

Starcomms

Lagos, Kano, M'guri, F/Wireless Voice, Internet,

Startech

Abuja, Fixed wireless

Vgc               

Lagos, PHC Fixed Wired Fibre, Fibre to St. copper to premises, Internet, ADSL, DSL

Xpt

        Lagos, Fixed Wired Voice, Internet

This data is from private source. Not government authorised. Informed comments will be appreciated. Source : TAA

 

Graphics of Consolidation : Nigeria

 Deal Partner A

 Deal Partner Z

 Service Type

% Share Deal Partner A

 Approximate Deal Date

 Deal Value

MTN

VGC

Fixed Telephony

100

Dec 2006

 

Telkom SA

Multilinks

Wireless Telephony

75

March 2007

Linkserve

Infoweb

Internet

100

2006