Communication
Nigeria set to cut down mobile phone prices
ABUJA – The federal government of Nigeria is planning to reduce the cost of internet enabled mobile phone so as to get more Nigerians connected to the internet. Omobola Johnson, minister of communications technology, dropped the hint at an International Forum
On Accelerating Nationwide Broadband Access in Nigeria organised by OpenMedia Group in conjunction with Atlantic Telecoms and Media in Lagos. Speaking during a Ministerial Platform anchored by Esther Ugbodaga of CNBC Africa, the minister said that government is passionate about increasing internet penetration in the country.
The minister disclosed also that Goodluck Jonathan is backing the move by the ministry to de-gazette a law by the Nigerian Copyright Commission (NCC) to impose a two per cent tax on mobile devices in case they are used to infringe on copyright laws in the future and that they will need the money to regulate that.
The minister however urged the private sector to come out with plans on how to manufacture low cost devices that will enable more Nigerians have access to the internet stressing that “reduction in taxes on devices will not increase internet penetration.” She explained, “Penetration goes up when there is relevant content and people see the need to get on the internet and so people will buy a N2000.00 phone if it will get them onto the internet.” The minister assured that she will not advocate for the imposition of taxes on devices while pushing for affordable broadband internet access for Nigerians at same time adding that the Federal Government is poised towards tackling the challenges of broadband access in the country.
According to her, what she sees as challenges are the surmountable issues of policy and cost in the broadband access for the country saying that the four fold broadband plan for the country is achievable, “if all stakeholders work together as a team.” She noted that policy issues are not a challenge to the broadband because the industry has a reliable regulator, the Nigerian Communications Commission, which concerned about the growth of the industry. Johnson however observed that what she sees as challenge is the size of the country and getting governments in enter country to implement Federal policies on broadband explaining that it becomes difficult to implement a policy when we have to work with different state governors from different political parties and with different agenda as well as different players in the 36 states of the country.
On the challenges of cost she noted that the National Economic Council (NEC), which include the state governors, have agreed to crash the cost for the Right of Way (ROW) but that when it comes to implementation there is no commitment from the states. The minister noted that in the case of Lagos state where the ministry has recorded a landmark achievement for Right of Way, it had to work with the Ministry of Work, Science and Technology and urban regulatory authority. She disclosed that all states have agreed to crash the cost of ROW and in exchange get access for schools in their domain.
Describing as huge the task of getting all 36 states governor to key into the broadband plan for the nation, she stated that none of the governors are unaware of the great importance of broadband to the growth of the national economy noting however, that what most states are concern about is the need to increase the revenue base of their states.
– BUSINESS DAY
In a significant market projection, Mordor Intelligence predicts that the Nigerian telecom sector is set to surge to a value of $11.43 billion by 2029.
The report anticipates a steady growth trajectory with a cumulative average growth rate (CAGR) of 4.70% between 2024 and 2029, based on the current market value of $9.09 billion.
The transformation of Nigeria’s telecom landscape, fueled by government initiatives to boost internet infrastructure and broadband connectivity, coupled with rising data consumption, 5G deployments, and innovative strategies from major telecom players, is expected to drive this substantial market expansion.
The report underscores additional factors propelling the growth of Nigeria’s telecom sector, emphasizing the surge in smartphone adoption.
the report said “Increased smartphone adoption in Nigeria has fueled the development of a dynamic digital services sector. Currently, millions of Nigerians use mobile apps, including social networking sites, e-commerce, and financial services.
“These apps could leverage smartphones’ capabilities to offer speed, convenience, and efficiency, encouraging more people to invest in smartphones.
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
“In addition to these expansions and collaborations, the growing adoption of digital technologies and government support in aiding the same alongside the 5G technology implementation across the country is analyzed to boost the demand for telecom towers significantly.”
Mordor Intelligence highlights that the flourishing e-commerce and digital service platforms in Nigeria are significant drivers behind the escalating demand for dependable telecom services in the country.
The Nigerian Communications Commission (NCC) has granted MTN’s request to partially disconnect Globacom (Glo) from its network owing to unsettled interconnect charges.
Reuben Muoka, the NCC’s Director of Public Affairs, disclosed this in a document named ‘Pre-Disconnection Notice’ on Monday.
The move follows Glo’s persistent failure to clear its outstanding debts despite multiple attempts to resolve the issue.
Under this partial disconnection, Globacom subscribers will solely receive calls from MTN users, while retaining access to other network services like outgoing calls to other networks and data services.
However, they won’t be able to initiate calls to MTN users during this period.
The statement read, “All subscribers are, therefore requested to take notice that the Commission has approved the Partial Disconnection of Globacom to MTN in accordance with Section 100 of the Nigerian Communications Act, 2003 and Paragraph 9 of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
“At the expiration of 10 days from January 8, 2024, subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls.
“The Partial Disconnection, however, will allow in-bound calls to the Globacom network,” it added
Nigerian telecommunication users, along with others within the country, expended a total of N3.33 trillion on various telecom services such as calls, data, SMS, and more throughout 2022, according to the Nigerian Communications Commission (NCC).
This information comes from the recently published ‘2022 Subscriber/Network Data Annual Report’ by the NCC, which also revealed that telecom companies generated N3.33 trillion in overall revenue for that year.
The report further highlights a noteworthy growth of active voice subscriptions, rising from 195,463,898 subscriptions in 2021 to 222,571,568 by December 2022, marking a 13.86% year-on-year increase.
Commenting on the increase, it said, “The increase in the Operators’ subscriber base was attributed to a number of reasons which includes subscriber loyalty, promos, seasonal effects, aggressive consumer acquisition drive, and competitive product offerings across all the networks.”
It noted that the growth in active subscriptions impacted positively on other derived telecom indicators such as teledensity, Internet penetration as well as broadband penetration.
Data usage also continued its surge in 2022. It increased by 46.77 per cent to 518,381.78TB as of the end of the year.
The NCC stated, “There was an increase in the volume of data consumed at the year-end December 2022 when compared with the year-end December 2021.
“The total volume of data consumed by subscribers increased to 518,381.78TB as of December 2022 from 353,118.89TB as of December 2021. This represents an increase of 46.77 per cent in data consumption within the period.”
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