Demand, Supply Forces Redefine Telecoms Operators’ Market Shares

DESPITE placing ban on two mobile network operators, MNO, over allegations that they used their market dominance to compete unfairly in the telecoms market, recent investigations showed that the market had actually created the environment that put them in the advantage position as dominant operator.

The National Mirror uncovered in a report obtained from the NCC that patronage of mobile subscribers across the country between 2013 and 2014 indicated that each of the four MNOs actually battled fiercely to become the leading oper

ator in the rapidly changing, innovation-driven market.

The former Executive Vice Chairman, Dr. Eugene Juwah had in April 25, 2013 pronounced South Africa’s MTN and Globacom, second national carrier as dominant mobile operators in critical segments of the nation’s telecoms market.

Our latest investigation showed that only one MNO continued to lead the market of the GSM while the others struggle to claim the same position, which it was gathered the operator may have ascribe to it.

For instance, reports from the NCC showed that mobile market segment figure as at

December, 2014 recorded a total of 136,772,475 active voice subscriptions indicating that it accounted for 97.83 percent of the entire market.

However, 44 percent of the 97.83 percent mobile market segment share went to Mobile Telephone Network, MTN, with a whopping figure of 59,893,093 leaving the other three operators to scramble for the remaining 53.83 percent.

While MTN took that chunk of the market share, national carrier, Globacom snatched 21 percent of the 53.83 percent thereby placing second with a lead figure of 28,219,089 but Airtel Nigeria was quick to trail behind with less than one percent scuttling with 20 percent of the active voice subscription of the market share with a figure of 27,556,544 such hat later comer into the industry and Arab owned operator trail far way with 14 percent share of the mobile GSM market, which is 21,103,749.

Although the dominant operator quest did not look the direction of the Mobile CDMA and the Fixed Wired/ Wireless market segments operators due to the crisis in the segment, which analysis have blamed on the superior technology of the mobile GSM, statistics revealed that there had indeed been a dominant operator without a pronouncement from the operator.

While each accounted for 1.57 percent and 0.13 percent share of the entire market, the NCC which appears silent on the state of that segment indicated Visafone has consistently dominate that market segment.

Investigation revealed a different outlook of market dominance as reflected by the cumulative total numbers ported incoming and outgoing across the all network particular reference to the mobile GSM segment.

The porting trend report from inception between May, 2013 and December, 2014 for the four major GSM operators revealed that Etisalat, which trails behind the three other MNO as the least dominant operator had the highest number of ported subscribers of 92946 from other networks.

On the other, MTN Nigeria, which has consistently occupied the position of dominancy in the last two years, recorded the least ported numbers of with 16,434 followed by Globacom and Airtel with 85,918 and 38,156 respectively.

Under the same, it was gathered that MTN Nigeria suffered a massive exit of subscribers out of its network as 96,496 subscribers moved their numbers to other network.

However, the Etisalat, which industry analyst have classified as the least growing network in the GSM segment suffered the least porting disadvantage with just only 28,164 of its subscribers leaving its network while growing network Airtel Nigeria and Globacom lost 51,902 and 42,091 their subscribers respectively to other network.

According to a Lagos based Consumer Rights Advocate, Mr. Damian Eze, blamed the regulator for the current trend of growth in the industry saying that the MNO have been urging NCC to review the 30 per cent differential it recently granted to MTN Nigeria for off-net and on-net retail mobile voice tariffs as it is a threat to their business.

He made reference to the MTN’s “Family and Friends” promo, which he said was is in violation of NCC’s regulation noting that “it remains a puzzle why the regulator would change the rule of the game midway without informing stakeholders of its intention and explain why it should favour a player at the detriment of others.”

According to him, the Commission has an obligation to promote fair competition and prevent the misuse of market power or anti-competitive practices by any licensee stressing that investors who desire regulatory certainty to guide their decisions will be disturbed where the industry regulator undertakes far reaching decisions without transparently seeking the input of stakeholders.

Eze called for on the NCC and the supervising Ministry of Communications Technology to put in place policies to address challenges affecting broadband development in Nigeria saying that in spite of its huge resources and market potential, the country continued to underperform in the area of broadband development in comparison to its peers.

“While Nigeria’s mobile broadband penetration stands at 10.1 per cent, the average for peer countries in Africa is 30 per cent. Again, peer countries have an average Smartphone penetration of 26 per cent, as against Nigeria’s dismal averages 12 per cent”, he said.

The spokesman for the NCC, Mr. Tony Ojobo said that the regulator is committed to providing a level playing field for all operators noting that its concern as a regulator is to ensure that the industry performance meets the expectation of all stakeholders.

According to him, all polices of the NCC foster the growth of the industry and the development of the economy as well as ensuring that subscribers get value for their money.

We Shifted NIN Usage to Allow MDAs Harmonise Their Database –NIMC

THE National Identity Management Commission (NIMC), has said that it shifted the mandatory use of the National Identification Number (NIN), to enable Ministries, Departments and Agencies, MDAs, to harmonise their data base.

The Commission had last Tuesday disclosed that it shifted the date for the commencement of the mandatory use across the country from September 1, 2015 to January 9, 2016.

According to the Commission, the extension of the September date follows the recent directive by President Muhammadu Buhari, saying that the extension will enable the Commission progress further on the harmonisation database of ministries, departments and agencies of government with that of NIMC.

The Commission’s General Manager, Corporate Communications, Mr. Abdulhamid Umar, said that the shift was meant to avoid the situation similar to what was experienced when the CBN wanted to enforce the deadline date for the BVN, which eventually led to a late rush and a massive turn out of citizens and the attendant struggles they had to go through.

It explained that the shift would ensure that double enrollment was reduced to the barest minimum during the transition period when the harmonisation is being implemented.

He said that NIMC management has taken into consideration the deadline for the completion of the Bank Verification Number (BVN) exercise thus extending the time frame for the completion of the harmonisation it has begun with the CBN on the BVN programme.

Umar disclosed that with the planned harmonisation citizens will not be required to have their biometrics taken every time by government institutions in the near future noting the MDAs will invariably act as valid agents to the NIMC, collecting their own data as well as providing data required for the issuance of the NIN by the NIMC based on the minimum national standards for biometric and demographic data capture already set by the MDAs.

NIMC disclosed that it has concluded plans to provide pre-enrollment services on smartphones to ensure that citizens do their enrolment using their smart phones, adding that it would ensure that more citizens completed their demographic enrolment before they proceed to NIMC Enrollment Centres for their biometric data capture to complete their enrollment.

The Commission said that the method will help to decongest the Enrollment Centres as well as ensure that citizens enroll at their convenience to beat the deadline.

The NIN is an 11 digit number assigned to an individual upon

successful enrollment into the National Identity Database (NIDB) is what represents the unique entry of individual’s personal information in the National Identity Database.

Huawei Deploys 200 Commercial Networks

GLOBAL Information and Communications Technology (ICT) solutions provider, Huawei said its Agile Network has been deployed in nearly 200 networks for commercial use in seven industries including government, finance, medical services, large enterprise, transport, education, and broadcast media.

President of Huawei West Africa Region, Mr. Shi Weiliang who made disclosure during the launch of the Huawei Agile Network in Lagos, said that Huawei’s Agile Network is the industry’s first network centered on services, users, and experiences.

The launch of the Huawei Agile Network was part of event meant to declare open the Huawei Network Congress (HNC) West Africa 2015, which was held in Lagos with the theme: “From Agility to Imagination” focusing on “introducing SDN technology” and “upgrading customer experience”.

More than 200 stakeholders from Banks, Power DisCos, Government and channel partners were at the event attended by chief executive officers, chief technical officers and analysts.

Weiliang said that Huawei’s Agile Network has helped customers build multiple high-profile solutions such as intelligent transport, wireless cities, smart shopping malls, and smart travel noting that the HNC 2015 is the forum being used to share and discuss with industry partners the practices and future of the Agile Network, with the aim of helping enterprises to quickly enter the age of agility.

“We are now in a fast-changing era where Cloud computing, Big Data, and Software-defined networking (SDN) are no strangers to us. As mobility, Bring your own device (BYOD) , and digital social networking become terms commonly used in our work and life, the rapid changes of this era are more and more evident. In such an era, IT capability is becoming an extremely important core competency for an enterprise”, said Weiliang.

MTN Hinges Internet Penetration on LTE-Smartphone Technology

THE massive roll-out of LTE broadband technology, coupled with the increased rollout of smartphones at affordable rates in Nigeria, would further drive broadband penetration in the country, beginning from 2017.

Senior Manager, Transmission Access Planning Network Group at MTN, Mr. Olusegun Salami, who disclosed that at the quarterly industry agenda setting seminar organised by the Nigeria Information Technology Reporters’ Association, NITRA, disclosed that the actual journey of broadband penetration started in 2007, with the launch of the third generation technology called the 3G, which he said, put an end to the narrow band service being provided through the 2G networks.

In a paper presentation titled: ‘Foreign Direct Investment-An Impetus To Achieving Ubiquitous Broadband Penetration,’ he said Nigerians were beginning to see significant improvement in broadband penetration, but explained that by 2017, when more service providers must have launched their LTE services the broadband landscape would change.

According to him, Nigerians would experience faster browsing speed and navigation, while on the internet stressing that smartphone, which would help drive the use of broadband internet, must come cheap.

“It is for this reason that MTN decided to come with low pricing smartphone that will enhance increased use of the internet, through mobile devices,” Salami said.

He disclosed that fibre system remains the best way to achieve broadband penetration in an economy with population like Nigeria, adding that MTN is appreciative of Government efforts in employing policies to further open up the economy in a manner that the economy will be able to attract more FDI noting that further devaluation of Naira will attract FDI.

Salami lauded Government for moving in the direction of increasing its investment in the development of the nation’s infrastructure particularly in the areas of electricity power supply, roads, telecommunication saying that such would reduce the cost of doing business thereby wooing more FDI.

He called on the Government to encourage production activity via production incentives and/or subsidies in order to increase the nation’s GDP.

Chairman of the event and Group Chairman, Teledom Group, Dr. Emmanuel Ekuwem kicked against the devaluation of the naira in order to encourage FDIs noting that it place indigenous investors at disadvantage.