Saturday, April 25, 2015
Thursday, February 12, 2015
Poor Regulation Cripples Courier Business
"Business before now was booming for the private courier operators in the country, most whom left the big foreign names to start their own company after years of meritorious service. However the sub sector now faces serious challenges and operators blame NIPOST for their woes"
MANY local private courier services
operators in Nigeria are fast winding up their businesses due to the
unfavourable business environment and poor regulation from the government owned
Nigeria Postal service, NIPOST.
Investigation traced the genesis of the calamity that has
befallen the private courier operators to the improper regulation from NIPOST
following its battle for survival when the telecoms revolution started
affecting the business of NIPOST.
Business is no more booming for the
private courier operators who once were actually the drivers of the industry,
and the operators blame the dual personality of NIPOST as an operator and a regulator
for their predicament.
It was gathered that the present state
of regulation in the industry, as well as government’s unwillingness to respond
to their plight made the fortunes of the sector nose-dive.
For instance, sometime in 2013, NIPOST
introduced new regulations into the industry, which according to the small
courier firms was cleverly designed to push them out of business.
NIPOST through its Courier Regulatory
Department, CRD introduced new licensing and renewal fees under which, new
companies or individuals seeking to float courier firm would forward
application form to the Senior Assistant Postmaster General, CRD, with the
license fee of N2m for domestic or national operation, or N10m for
international courier operations together with a non-refundable fee of N20,
000.
An inspection team from CRD would visit
at least five branches and head office of the prospective courier operator and
the success of the inspection entitle the prospective operator to a new courier
license.
Also, under the new fee regime, renewal
fee was pegged at N500, 000 for domestic operators while their international
counterparts are to pay N2m.
Some of the information required from
the prospective companies include, but limited to Certified True copy of
Certificate of Incorporation; Memorandum/Articles of Association; Company’s Tax
Clearance for the last three years (originals to be sighted); Leasehold
Certificate or Tenancy Agreement in respect of the company’s registered office
and Evidence or information to show capacity to operate courier service
including but not limited to indemnity insurance policy of Five Hundred
Thousand Naira, capital base of Two Million Naira or a bond of that value,
among others.
General Secretary, Association of
Nigeria Courier Operators, ANCO, Mr. Okey Uba revealed that courier
business requires expertise to succeed but that government left the huge
industry in the hands of NIPOST, which later considered it as an income
generating business that resulted to the introduction of new fees.
The NIPOST regulation brought into the
courier business a lot of businessmen who lack the expertise to manage a
courier firm but had the money to pay for the fees.
Unfortunately, investigations revealed
that the regulation from ANCO has not been able to flush-out the quacks because
it lacks statutory responsibility to do so.
Uba further revealed that
regulation from NIPOST has also not been able to prevent local government
officials and inter-state revenue collectors that harass courier trucks on
delivery trips across the country.
Very often he said that the trucks were
detained by the revenue collectors who are unaware of the importance of the
content of the truck to the courier clients saying that the industry needs a
separate commission for proper regulation.
Such commission, he should be able
relate with the several government agencies that harass courier trucks on
transit across the country.
He said that if there is a proper
regulation from NIPOST, the revenue collectors across the country that harass
courier trucks would be able to appreciate the difference between courier truck
and other commercial trucks that ply the nations highway.
Presently, there are those who engage
in courier business in the country without operational license from NIPOST, and
the regulator has not been able to effectively address the situation, even ANCO
has not been able to address.
It was discovered that there are
corporate bodies across the country that operate dispatch services offering
courier services. Such organisations include banks, eateries, transport
companies, legal and telecoms firms as well as government agencies.
It was also discovered that the
regulator is aware that almost every companies in the country have courier
services department that ply the road engaging in courier services on
motorbike.
According to Uba the pricing structure
of these other bodies as well as that of the transport companies that engage in
courier services is major a drain on their profit from the business.
According him, these companies can
collect any amount from their clients noting that the business of the private
courier services lacks professionalism.
Investigations revealed that NIPOST has
been doing everything to ensure that the private courier companies are driven
out of business by the kind of policies that is churned out by NIPOST.
Unfortunately, it was also discovered
that the planned convergence championed by the Minister of Communications
Technology, Dr Omobola Johnson in the draft national draft policy on ICT in
2012 did not favour the courier operators.
While the other sectors in the industry
have an unbiased regulator, only the courier operators do not have such.
General Manager, Courier Services,
Cross Country, Toyin Adeojo, who works for Courier Master, one of the
indigenous courier companies said that the cry of the private operator is a
Commission that will effectively regulate the industry.
He said that a level playing field must
be created in the sector so that there will be a restructuring avoid of
overlapping interests saying that the present state where NIPOST is both a
regulator and operator is contentious.
Adeojo who is also the Publicity
Secretary for ANCO revealed that there are certain things that the Courier
Regulatory Department, CRD of NIPOST should have been doing to protect their
interest but the officials of the department cannot do such because of what may
be the reaction of the top management of NIPOST.
Although Adeojo will not mention the
things, he however said that the annual renewal fee has since its introduction
affected the business of the operators.
He said that removing the sum of N500,
000 from their annual income at time when the fortune of the industry was
dwindling was a hard knock on the operators saying that in Ghana annual renewal
fee is in five years whereas for Nigeria it is once a year.
He disclosed that money bags make their
way into NIPOST and get the courier license without the required expertise
saying that their activities which are not checked by NIPOST is affecting the
survival of the private courier operator.
According to him, the present
unfavourable condition and the lack of proper regulation is responsible for the
non-payment of salaries of private courier staff.
He said that if the industry has a
regulator, individuals will not ply the road on motorbike as courier operators
noting that a situation where medical diagnostic centres do dispatch services
amounts to doing their job.
He explained that it is not the work of
medical diagnostic centres to use motorbike to carry blood sample from one part
of the city to another adding, “That is the work of courier operators. They are
not trained to do that. It is because no one is regulating them that is why it
is like that.”
He continued: “You can imagine Konga
that came into the country not too long ago, got registered as courier operator
because they can afford the N2 million”, saying that sometimes Cross
Country losses almost about N200.000 each week to the revenue collectors on the
highway due to improper regulation.
Investigation also revealed that the
failed privatisation plan of NIPOST is creating a major setback for the
industry as it is not allowing NIPOST to develop as an operator.
Some ANCO members believed that if
NIPPOST is privatised and a commission is established to regulate the industry,
NIPOST will not be able to churn out policies that will affect the private
operators.
For instance, in the regulation
guidelines of ANCO, anyone that wants to join must have studied a courier
related discipline in the university or worked in a courier firm for five years
in a senior management position.
Unfortunately, most those being
registered by NIPOST do not have such qualifications
He revealed that there is a Postal
Service Commission bill that was brought to the National Assemble during the
tenure of the later Minister of Information, Prof. Dora Akunyili noting that
efforts by ANCO to get the lawmaker to look at the bill have proved abortive.
While the crisis in the sector
continues and more private courier firms continue to close, ANCO said it has result
to counseling of its members on how to survival.
One of such measures, the ANCO scribe
said is the advice to its surviving members not to invest in opening of
branches across the country but instead they should form synergy with other
members that have business in other states of the Federation.
He said that the absence of an
independent regulator is preventing its members from considering merger options
adding that ANCO is working to protect its members from fraudulent clients.
He added that the complain that
telecoms revolution is affecting courier services was not true because in the
UK and America courier services is doing well despite the fact that the
telecoms revolution took place years ago in those countries stressing that “ours
is not doing well because courier services here is not organised.”
He said that while the foreign courier
companies get a single digit loan from the banks in Nigeria, the local private
operators get theirs at 30 per cent saying that that’s why we need a well
funded courier industry.
A business development manager in one
of the courier service company who do not want to be named revealed that
sometimes to survive they had to use NIPOST facility to do their job, saying
that that was why the industry needs the right kind of regulation.
When contact for comment on some of the
investigation discovered by our correspondent, Senior Assistant Postmaster
General and Head of the Courier Regulatory Department, CRD, Dr. Simeon Emeje
declined to give audience. Also questions send by text message to his mobile
phone were not responded to as at the time of filing this report.
However, Head of Enforcement, NIPOST,
Andrew Ibiloma disclosed that as a regulator, NIPOST is up to the task of
making sure that the environment is conducive for all operators to do business.
According to him, the enforcement team
was in Ilorin, capital of Kwara State last December for its oversight function
of the industry where six unregistered courier operators were clamped down on
adding that same month two others had their business shut down in Lagos.
Ibiloma revealed that very soon the
regulator will begin to address the issue of dispatch riders that do not
display stickers of the courier companies that they represent saying that
NIPOST is aware that there are some organisation that have logistic department
that engage in courier services and that it needs the support of the media to
tackle the menace.
He explained that if they are not
register with NIPOST to do courier service every courier job in that department
must be given to courier service companies warning that it is against the law
to engage in courier service without proper registration.
He said that there are banks like Union
Bank, Union Express, and Access Bank with registered courier company engage in courier
services adding that the Enforcement Team rely on the public for information
for us raid.
Mobile Data: 'Tools for Business Efficiency, Money Spinning for Operators'
Voice and data are the key tools in the mobile world, however for Nigeria the trend has been tilted more to favour voice but some operators have been keying into the pontentials of mobile data. Ahead of the Mobile World Congress 2015, the key drivers for mobile data were examined along the money spinning opportunities.
IN THE last few years across the global, mobile data has become the trend in the
telecoms industry following the evolution of several value added services in
the mobile services sector as well as the development of an electronic driven
financial services economy.
In
Nigeria, the trend just began in the early 2000 following the licensing of
mobile telephone operators to run the Global System for Mobile communication.
Since
then, the industry has been largely driven by voice with little attention being
paid to huge potentials of the mobile data for a country that has been captured
as the fastest growing in Africa.
The
pitiable result was recently reflected in a mobile money report, which rated
low, the adoption of mobile money by the Nigerians despite the growing
awareness in the economy.
The
report revealed that Nigeria has a huge addressable market and a large number
of mobile money deployments, but low levels of adoption and usage. And this is
just one aspect where mobile data is expected to play a key role.
The
report, which was published by Mondato, a mobile financial services industry research
and advisory company listed Nigeria among the countries in West Africa where
the adoption of mobile money is still at infancy.
Deployments
of mobile money have been on the increase of recent as several partnerships
between the financial services companies and the mobile operators have been
signed.
Access
Bank Plc recently entered into an agreement with Airtel Nigeria for the
deployment of its mobile money platform, Access Money.
In
July 2014, MTN Nigeria launched the MTN Diamond Yellow account, offering mobile
financial services in partnership with Diamond Bank.
Also
Globacom launched Glo Exchange, a mobile money super-agent network that
created
500,000 mobile money agent outlets in the country through the Glo Xchange,
Globacom in partnership with Firstmonie, a subsidiary of First Bank, Ecobank,
Stanbic IBTC and Zenith Bank.
A
study conducted by a Nigerian research company, NOI Polls, showed that only six
of 10 Nigerians know about the mobile money, which is 59 percent while only 13
percent use it.
The
responses showed that majority of the 93 per cent operate such accounts in
connection with their bank account, while only seven per cent operate their
mobile money account separately.
The
poll also revealed that 65 per cent use for funds transfer, 54 per cent for
bill payment, 36 per cent for money withdrawal and 25 per cent for payment of
purchased goods and services.
The
opinion poll, conducted between August 5 and 7, 2013, involved telephone
interviews of a random nationwide sample. 1004 randomly selected phone-owning
Nigerians aged 18 years and above, representing the six geopolitical zones in
the country,
While
the growth in terms of embrace mobile money still appears to be at its infancy
due to its challenges as reported by Mondato, critical apps to drive mobile
data is however also at its lowest ebb.
President
of the Association of Telecommunications Companies of Nigeria, Engr Lanre Ajayi
in an interview with National Mirror expressed worry over the lack of apps and
content to drive mobile data in the country when broadband access becomes
abundant in Nigeria.
According
to him, the country is in dire needs of local apps and content to drive mobile
data saying that the absence of such will amounts to waste of whatever
broadband access increase that the country will experience this year.
And
ahead of the Mobile World Congress 2015, which will be held on March 2-5 in
Barcelona, Gartner, the worlds renowned market intelligence revealed that there
are going to be key drivers of mobile data that will become money spinners for
operators to key into.
According
to Gartner, there are key factors that will drive the growth in mobile data
traffic adding that communications service providers, CSPs and mobile app
developers will lead the market.
Research
Director at Gartner, Jessica Ekholm said that mobile data traffic will continue
to show double-digit growth in 2015 noting that Gartner expects traffic to grow
by 59 percent this year.
Gartner
revealed that there will be newer and faster networks, a rise in the number of
users of these networks, and more affordable 3G and 4G handsets will help to
increase data traffic.
It
however, said that the key driver of data growth on a global scale is mobile
apps, particularly mobile video apps stressing that network speed and reliability
are priorities for many mobile customers, it
is really apps and content that are driving traffic volumes as people
increasingly chat to friends and family, watch videos on the move, and listen
to streamed music.
Gartner
predicted that although 4G service prices are likely to fall to 3G levels to
make them more affordable, 3G networks will continue to fuel worldwide data
growth during the next five years.
“We
predict that, in 2018, half of North American mobile connections will use 4G
networks, but in the Middle East and Africa 4G users will amount to only 3.5
percent of the region's total. We expect 3G connections to grow by 45.7 percent
globally in 2015. This double-digit growth shows the longevity and importance
of 3G networks”, the report said.
Gartner
further revealed that the availability of more affordable 4G handsets is also
fuelling growth in data traffic saying that the increase in affordable
4G-enabled handsets and 4G services, which are becoming priced on par with 3G
services, will collectively boost traffic.
For
2018, Gartner predicted that 4G users will generate 46 percent of all mobile
data traffic explaining that this is because, by 2018, each 4G smartphone will
use nearly 5.5GB of data per month, which is three times more than a 3G smartphone.
On
what mobile apps will drive double-digit growth over the next few years, it was
revealed that mobile video is by far the biggest driver of mobile data.
According
to the global market intelligence group, data that was collected from various
mobile providers suggested that mobile video is generating 50 percent of all
mobile data saying that it expects video streaming to account for over 60
percent of mobile data traffic in 2018, as consumers increase the number of
videos they watch and upload.
Gartner
observed that fast, uninterrupted, video experiences encourage people to
increase their video usage stressing that the growth in the number of users of
video-calling services is also noteworthy.
In
terms of traffic, Gartner said five minutes of 3G FaceTime video calling uses
up to 15MB of data adding that there are many users, of which the collective
total amount can be large.
In
addition,
The
report further revealed that mobile music streaming can easily generate
hundreds of megabytes of data, but this varies greatly between mobile music apps
for example, a user actively listening to music may consume more than twice as
much data as a user of Pandora.
On
what should CSPs and mobile app developers do to harness this growth, Gartner
suggested that the amount of time consumers spend on the Internet, whether via
mobile phone, tablet or PC, will continue to increase.
And
as such CSPs will need to focus on creating new pricing with a focus on data
access, such as shared plans saying that they will also need to refine the
services they already provide, with a focus on creating richer, more immersive
and more personalised experiences, to increase their customer numbers.
“As
the mobile app market matures, app developers will have to sharpen their focus
on the marketing and transparency of their apps, in order to retain customers”,
the report.
Gartner's research indicated that although
affluent people and traditional early adopters are the leading users of new
technologies and devices, younger, less wealthy people make greater use of
mobile apps.
It
observed further that young people's greater acceptance of apps and mobile
content will require app developers to adjust their techniques to address the
differences between user groups saying that the future will be tough for CSPs
and mobile app developers that decide not to upgrade the user experiences they
deliver on their services and products while the winners will be those
providers best able to satisfy consumers' demand for high data use, while
maintaining their margins.
MTN
Nigeria became the first mobile operator in Nigeria to key into this unique
opportunity this year when it launched the BetterMe Apps, an all embracing apps
that explores the power and accessible via PCs and mobile devices.
Tuesday, February 10, 2015
2015 Elections: Study Suggests Social Media May Foretell Winners
It
is so hard to predict for now how much impact the social media, internet tools
may play in deciding winners of the 2015 elections, how there are suggest that
Nigeria is no longer far from a situation where both will foretell the winners.
LIKE never before in the history of electioneering in Nigeria, the social media has
suddenly become a beehive of activities. It now seems to offer the permutations
as to which candidate will eventually emerged as the winner of elections that
will be held few weeks to come across the country.
While
some political enthusiast are near jubilations that their candidate are now at
the threshold of claiming their mandate even when the vote is not cast, others
think that it is too early count chicks since the eggs are not yet hatch.
Google,
Communication and Public Affairs Manager, Anglophone West Africa,
Taiwo
Kola-Ogunlade in an interview with the National
Mirror debunks the claim that the social media has the capacity to
determine the winner of an election.
According
to him, “it is a bit hard to take one
medium as the voice of the people, particularly in this part of the country where
you have different views. The election is an activity that is coming up, while
the social media is just a tool used to promote it.”
Kola-Ogunlade
described the social media as one of the tools that Nigerians are using to
promote the coming elections stressing that “this election is one of the most
talked about in the country, and the reason is because the social media has
played and still playing a big role.
Refuting
further the claim that the current political discourse in the social media and
the heat that social media campaign has created in the polity, he said that
that the internet is a platform that enables democracy, stressing that “what
that means is that power and knowledge is no more in the hands of the few,
everyone now has access to power and knowledge meaning that everyone can talk.”
He
added, “Before now it used to be one newspaper or broadcast station talking to
everyone but now everyone, even there are Nigerians that have large followers
more than some stations that are now forcing their positions on national
issues.”
He
explained that “there is now social capital as people are building online
followers, so that is the advantage of the social media as it is making people
to have a voice. And I am particularly please about that because young people
are now speaking out, so it is no long all about age, experience or ideas.”
The Google spokesman said further that what is happening in the social media currently about the 2015 general elections is that ideas from sections of the society are being churned out through the social media.
The Google spokesman said further that what is happening in the social media currently about the 2015 general elections is that ideas from sections of the society are being churned out through the social media.
He
said, “the thing about ideas is that ideas can come from anywhere in the social
media, such as the #thebringbackourgirls campaign and such other movement that
have brought about changes that affect nations. The very recent one is the
Charlie Hebdo attack in Paris where people are unwilling to back down on
terrorism.”
He
however noted that the thought or ideas of people from the social media cannot
decide who wins an election because of the present number of Nigerians on the
internet, and the fact that not all of the will eventually cast their vote.
He
stressed that “In this part of the world the internet is just growing, as at
today, there are 49 million Nigerians online, and we are about 170 million. Let
us assume that 60 per cent of that is of the voting age and that figure is
still bigger than the number of people that use the internet but the internet
does help to form and build opinion.”
Nevertheless,
he said, “The potentials of the social media is a major reason why the
presidential candidates have social media campaign strategy doing a lot stuff
using all sorts of social media platform like Tweeter, Google+, Google hangout
and Facebook.”
He
stated that that was the governorship candidate of the People’s Democratic
Party, Jim Agbaja recently hand a Google hangout where he was discussing with
people about his campaign promises noting that “since you don’t know what
particular time people will be looking for content, it therefore becomes a
multiple kind approach and it’s so good that we are seeing it at this time of
our existence.”
According
Kola-Ogunlade, recent studies showed that people are most receptive when they
are online than when they are watching television or looking at billboard
saying that “if It was strong enough to engender people to come out and protest
during the fuel crisis, it could affect their decision.”
While
assessing the performance of the two presidential candidates, Muhammadu Buhari
and President Goodluck Jonathan in the use of the social media to drive their
campaign, he said that both of them have done very well stating, “I cannot say
which has done better but it can only get better.
However,
social media rating analysis result recently obtained using Tweet Archivist
revealed that the People’s Democratic Party,PDP, candidate, President Goodluck Ebele Jonathan, GEJ, was
far ahead of his opponent of the All Progressive Congress, APC, Muhammadu
Buhari.
The
tweet analysis for GEJ showed that he had 67 tweets with 483,128 impressions in
the period between January 19 and 26 while his opponent had 2 tweets with 494
impressions for just January 25 meaning that Buhari was absence from tweeter
between January 19 to 24 and 26.
The
only Tweet on Buhari which had a message reads: #Muhammadu Buhari is only an
agent 4 Change to reclaim Nigeria so that our country can rise again & be a
source of our hope & pride.
While
tweets on GEJ were mostly those confirming the authenticity of the GEJ which
members of the opposition camp had being drumming during the period in other
social media.
An
internet tool but not a social media platform was also used to assess the
presidential declaration speech so as to find out possible issues that their party
will address if or when voted into power.
Known
as Wordle, it is a tool for generating “word clouds” from text provided. The
clouds give greater prominence to words that appear more frequently in the
source text.
The
prominent words, that feature in the
speech of contesting candidate tells a
lot about the direction of the candidate, and can tell what to expect from the
candidate when voted into power.
And
because the apps also make it possible for the result of the Wordle to be
shared online, it therefore makes it possible for it to be used as a tool to
form voter’s opinion. Wordle uses the number of times a word appears in a text
to determine its relative size. And so if you look at the Wordle image, it
pictures some text larger than the others indicating the frequency of
occurrence of the word in the text.
The
declaration speech of the APC candidate, in Wordle format has been labelled
Figure A while that of the PDP presidential candidate is labelled Figure B.
As
seen in the Wordle of the APC candidate are in the order of the sizes are:
Nigeria, PDP, Government, Employment, Corruption Economy, Growth, Injustice,
Challenges and Community while some key issues based words that do not feature
prominently in the speech are: Oil,
Integrity, Rights, Elections, Tracks, Development, Farming
For
the PDP presidential candidate words that feature prominently in his speech
are: Nigeria, Opportunities, People, Young, National, Nigerians, Expanding, Initiative,
Children, Forward, Years, School, Naira, Hydro-Power and Support.
However,
some key issues base words do not feature prominently in the speech such as: Peace,
Daughters, Food, Hungry, Rural, Projects, Education, Constitutional and APC.
According
to Kola-Ogunlade although these social media platform and internet tools have
great role to play in forming the opinion as per the choice of candidate that
the electorate may vote for but the fact that the numbers of Nigerians on the
internet is not large enough to pull a vote for a candidate, it is obviously
not likely to decide a winner.
He
said that once the cost of internet access drops, there is a reliable internet access
and more Nigerians that vote are aware of the potentials then we see social
media and internet tools deciding the winning candidate in the country.
Monday, January 12, 2015
Google to Empower Nigeria Media With Election Reporting Tool
AS PART of its
plan to ensure that the 2015 general election becomes a success, Google Nigeria
said that it will empower Nigerian journalist with the required ICT^ tools to
that will enable them to report the elections credibly.
The one day,
workshop with the theme: data Tools for Election reporting is expected to avail
journalist with the online tools for elections story telling.
Communications
and Public Affairs Manager, Anglophone West Africa, Google, Mr. Taiwo
Kola-Ogunlade said that in the last decade, social media and online journalism
have played an important role in helping to build stable democracies resulting
from informed voting.
He noted that as
more people get online, this impact grows saying that the weeks leading to the
Nigerian 2015 elections present great opportunities for media people to
innovate on their story telling abilities through the use of online tools and
social media.
“The Google for
Elections workshop is a one-day, hands-on Certificate program focused on using
Social Media tools, Visualisation and Citizen Reporting tools in 'unearthing'
and telling elections-based stories. Participants will learn to use online
tools like Fusion Tables, Polls, Trends and Tables to result and develop
stories”, he said.
He added: “This
program is ideal for editors, journalists, social media/digital reporters
interested in becoming proficient in learning to leverage online/digital tools
for better elections reporting.”
Kola-Ogunlade
said that the training, which comes up Friday, 16, 2015 is for the first 100
journalist who register http://goo.gl/tjVwM3
adding that upon completion, participants will have the knowledge and tools
necessary to apply their new skill set immediately and will also be issued with
certificates from the Google Media Academy.
Shun Substandard Mobile Phones, Experts Warn Consumers
The ICT
revolution kicked off a lot of business opportunities in the country making the
Nigeria market to be referred to as the largest in Africa. Unfortunately, it
opened up the nation to all forms of dubious business activities; one of such
is the thriving trade of fake and substandard mobile phones.
THE MOBILE phone industry growth in Nigeria, which was kicked off following the revolution
of the ICT opened the country to several business opportunity benefiting everyone but the nation is unfortunately likely to pay for it unless some key
regulation ideas are urgently addressed.
One of such is
the volume of unregistered mobile phones that are brought into the country by brief
case carrying mobile phone dealers and mobile manufacturers who are taking
advantage of the corruption in the Nigerian society.
Recently,
a Chinese man identified as Lin Tian Huan, was arrested at the popular
Computer village, home of ICT products in the country by the task force of the
Phone and Allied Products' Dealers Association of Nigeria, PAPDAN, an
association of traders in the computer village for being in possession of
10,000 substandard mobile phones.
He was found
with fake and substandard mobile phones which passed for Nokia and Samsung
brands.
Upon
questioning by the police at the Computer Village, Huan said he illegally
imported over 10,000 pieces of different models of mobile phones products into
the country.
Standards
Organisation of Nigeria, SON, recently sealed a Chinese warehouse stocked with
suspected substandard phones during its enforcement exercise in Ikeja.
SON discovered
that the warehouse had mobile phones that were not registered with it and could
not be linked with neither registered manufacturer nor importer.
According to
the director-general of the Standards Organisation of Nigeria, SON, Dr.
Joseph Odumodu, more than 80 percent of the mobile phones and other related
computer accessories at the market are not genuine.
In China, where
most of the fake and substandard mobile phones were said to originate, a mobile
phone recently exploded and caught fire in a bus.
Reported by the
Guardian UK, CCTV footage from the bus in Nanchong city, in South-West China,
showed the phone battery exploded in its owner's hand and caught fire. The
incident happened as the passenger was changing her phone batteries.
The Daily Mail
UK also reported that a shop worker died after his mobile phone exploded,
severing a major artery in his neck.
It was believed
that the 20-year-old man just finished charging the phone’s battery before
placing it in his breast pocket. Alarmingly, local reports claimed the incident
was the ninth recorded mobile phone explosion in China since 2002.
In June 2007, a
welder Xiao Jinpeng, 22, died from chest wounds when his mobile phone exploded
while at work at a mill.
Although there
are no record yet of mobile phones exploding and killing people yet the large
number of mobiles that enter the country including the fairly used ones worries
stakeholders.
And indeed, that worries the NCC too compelling it host on its website warning on the danger of fake or substandard mobile phones saying that beyond technical issues, it also has its health hazard.
And indeed, that worries the NCC too compelling it host on its website warning on the danger of fake or substandard mobile phones saying that beyond technical issues, it also has its health hazard.
The NCC said
that before mobile phones are sold in each market all models of genuine phones
are tested to ensure they are safe for users, including testing to make sure
they meet national and international standards for exposure to radiofrequency
emissions.
All mobile
phone batteries and chargers must undergo the same stringent testing to ensure
they meet all levels of safety. Genuine mobile phone batteries are tested under
intense conditions to ensure they can handle varying conditions of use.
Counterfeit and
substandard mobile phones, batteries and chargers on the other hand are not
subject to such comprehensive testing and therefore the safety of fake phones
cannot be verified or guaranteed.
According to
the Commission, around the world, there are incidents where mobile phone
batteries have exploded and injured people. Upon investigation these incidents
have been linked to the use of counterfeit or sub-standard batteries.
Counterfeit and some third party manufactured batteries do not meet all of the
safety requirements that prevent these incidents. Non-genuine batteries may not
have safety circuits which regulate voltage, current and heat within the
battery, without these the battery can short circuit and explode or heat up and
burn people.
The NCC stated
that fake phones, batteries and chargers are made from cheap, substandard
components and may contain chemicals, which are dangerous to the environment
and human health.
It added that
the cheap and low quality components used to manufacture fake phones and
accessories are untested, uncertified and can be a safety hazard for users
saying that the substandard components in fake phones often malfunction with
the potential to injure users and damage property.
It said further
that fake phones can also contain dangerous chemicals and metals, such as lead and
mercury noting that these are associated with a range of adverse health
effects.
Fake phones,
the NCC observed have been known to cause a drain on mobile phone
networks thereby reducing network speed and reception for users stressing that
some of them have unpredictably short lives.
The Commission
said that they are not registered or certified to operate on cellular networks
because they are produced from cheap and substandard components that can damage
service in a network area adding that testing has shown that counterfeit and
substandard phones experience high levels of dropped calls and failed
connections.
Recently, the
Nigerian Communications Commission, NCC, said that the task of checking the in
flock of fake and standard mobile phones into the country was beyond its power
because several loopholes in the nation’s boarder make it possible for all
kinds of phones to come into the country.
According
to the Secretary General of the Mobile Manufacturers Forum, MMF,
Mr. Michael Milligan some of the tell tale signs of counterfeit
mobile phone products are the price and the poor quality saying
consumers should look for inaccurate printing, misspelled words, crooked label
placement and signs of defective workmanship.
He added that
they do not come with warranty saying that all
genuine mobile phone manufacturers offer a limited warranty that covers the
handset, software and accessories.
He said:“Look
out for words like ‘Replacement battery for…’ or ‘Charger compatible with…’..
Genuine products tend to only state which model handset the product is for”
saying that to avoid fakes, consumers should always buy mobile phone products
made by registered manufacturers and sold by trusted retailers.
“If you are
looking to replace a battery or charger then you should refer to the original
manufacturer’s information to make sure you purchase the appropriate battery or
charger for your model of phone,” Milligan said.
According to
the International Telecommunications Union, ITU, One out of every five mobile
phones sold in the world are illegal or unlicensed copycats saying that the
Middle East and Africa which include Nigeria, Turkey, Egypt, Iran account for
38.2 million units.
Also shipments
of gray-market China-made mobile phones reached their peak in 2011 with a total
of 250.4 million according to IHS iSuppli report.
On the effects,
the ITU said that it results to loss of revenue due to non-payment of
customs duties and sales taxes saying that the danger it posses to public
security is the absence of valid IMEI or “no IMEI” number which are potentially
attractive for criminal activity and terrorism.
Also on
security and privacy issues, ITU said in cases of theft or stolen phone,
it is difficult to track the phone with invalid IMEI or “no IMEI” number while
the operator experiences lowering of QoS of mobile telecommunication services
such as loss in voice and data capacities, data transmit speeds, reduced
coverage
Thursday, December 11, 2014
DEVALUED NAIRA: Telecoms Services, Product May Cost More
AS
mixed reactions trail the devaluation of the Naira last Tuesday, the ICT
sector, a money spinner is tipped to experience some hiccups when some key
elements in the industry play, and the results suggests a possible increase in
cost of services and devices, writes Isaiah Erhiawarien.
Reactions
from stakeholders in the ICT industry suggestions that Nigerians may need to
pay for telecoms services next year when the effect of the devalued Naira
begins to affect the economy.
Last
Tuesday, the Naira was devalued by the Central Bank of Nigeria, CBN, by N13,
from N155 to N168 to one dollar in order to strengthen the economy. The
implication is that while more Naira will be need to buy dollar for import,
local goods that are produced using imported raw materials will become
expensive meaning that if earnings from income of Nigerians do not increase,
they have to look more sources of income to survive.
Following
the telecoms revolution over a decade ago, which kicked the national economy
into a new dimension; the economy and the life of Nigerians now depend heavily
on telecoms, and more recently the mobile money bug which is gradually eating
deeper into social and economic fabric of national life.
Investigations
show that the economy is now heavily depending on telecoms infrastructure such
as telecoms mast and devices such as phones, tablets, PCs, POS gadgets as well
as recharge cards.
In
the last ten years, since the explosion of the telecoms growth, which is widely
celebrated at telecoms forum, no efforts so far has been made to produce the
devices locally, with exception of the recharge card.
For
instance, the telecoms infrastructure companies, most them which are foreign
required huge dollar to import every materials that they need to build telecoms
mast, a very critical infrastructure for the effective delivery of telecoms
services.
Recent
development indicated that the mobile telephone operators opted for
infrastructure sharing due to the high cost deployment of telecoms mast across
the country to meet the growing depending of expanding subscriber’s base that
all operators are experiencing.
Investigations
revealed that telecoms operators in Nigeria currently have close 30, 000 base
stations or telecom towers scattered all over the country which are build by
local and foreign companies with materials that are imported a huge cost and
high customers charges, and some cases the foreign companies have expatriate
that are paid in dollars.
Speaking
the National Mirror, the President of the Association Telecommunications
Companies of Nigeria, ATCON, Engr. Lanre Ajayi said that the cost of the
procurement of telecoms equipment and delivery of services by the telecos will
go up saying that the impact of the increased cost will eventually be
transferred to the final consumer.
His
fears borders on the fact the telecoms industry is largely depended on import,
even including personals. For instance, there are call centres that are
currently owned by foreigners.
Reacting
to the new Naira devaluation policy, a recharge card dealer, Biodun Ishola noted that some may take advantage of the new
policy to add a few kobo to it saying that presently some sellers are adding
N10.00 to even the value of the N100, 200, even N500 denomination card.
Ishola
who also runs a blog: http://rechargecardsmillionaires.blogspot.com/ aid that
the virtual top may for sometime make it impossible for those who trade on the
virtual platform to add money to it.
He
dismissed fears about the possibility of the new CBN policy affecting the unit
cost of producing a recharge card stating that if it does affect it will be so
minimal not to necessitate an increase in the price of the airtime voucher.
Although
it is not yet clear if operators may want to make a case for tariff increase
bearing in mind the current trend at the nations seaport as well as the
increasing electricity power failure across the country, which has made
operators to be investing huge money in other power source, it is however remains
unclear if the regulatory body, the Nigerian Communications Commission will
grant such request.
The
operators and the NCC as at the time of writing report are yet to make
statement on how the new policy will affect their businesses.
However,
the President of the Nigerian Internet Group, NIG, Engr. Bayo Banjo said that
there will be a sense of insecurity of investment from investors adding that
they will be nervous in bringing their fund into the economy.
He
however said that the operators may not feel much of the impact of the
devaluation of the Naira on their equipment since what they sell is services.
The
telecos has however of recent been experiencing dwindling returns on their
investment thereby resulting to the sale of towers by operators.
Last
week, Airtel signed an agreement to sell 4,000 of its towers to American Tower
Company, ATC so as to Etisalat Nigeria has also sold 2,136 of its towers to IHS Holding Limited and
MTN Nigeria is also in the league of tower seller with its figure standing at
about 9,183.
A
major reason for this is huge cost building and managing these towers.
Statistics
indicated that the cost of building one mobile phone tower in Nigeria is
about $150,000-$200,000.
The telecoms industry has for long been
groaning under the huge burden of the increasing cost of doing business in
Nigeria.
For
instance, in a memorandum submitted by ATCON to the Senate House Committee on
Communication, the association highlighted that the industry was yet find a
conducive ground to operate.
ATCON
in the MO expressed surprise that the destruction of telecoms infrastructure remains
a regular occurrence for all telecomm operators in Nigeria adding that it costs about N24, 750,000 to install a
single base station together with its tower, special antennas and two
generators to power the station.
On
power, ATCON laments that over N5 billion spent monthly by operators on power
generation could be reinvested in further coverage expansion to address the
congestion on the network which resulted to poor quality of service.
More
worrisome, ATCON observed is the heavy taxes imposed on telecom companies at
the federal, state and local government levels have placed major obstacles,
which slows down network expansion thereby compromising quality of service.
Association
noted that another problem in the industry is the challenge of conflict of
roles and responsibilities amongst government adding that it has become a
common phenomenon in the Nigerian Telecom Industry as there are overlapping and
duplications of duties by federal and state agencies.
Reacting
to the new policy, Africa's
largest telecoms operator, MTN, put a positive gloss on the devaluation of the
naira, saying the weaker Nigerian currency would also reduce costs in its
biggest African market.
MTN
is one of many South African companies tapping Africa's largest economy and
most populous market.
In
statement, MTN declined to quantify the impact on its revenues of the
devaluation, which was triggered by a sharply weaker interbank naira rate over
the last two months. However, it noted that the currency movement would also
reduce its costs.
"We
endeavour to have as large a portion as possible of our costs in each operation
denominated in local currency, which would in turn offer some protection
against the currency movement," it said in a statement.
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