Technology
Airtel Nigeria to Acquire $70m Spectrum for Better LTE Services
By Modupe Gbadeyanka
The proposed acquisition of additional 10 MHz spectrum in the 900 MHZ band in Nigeria for a consideration of $70 million has been announced by Airtel Africa Plc, a leading pan-African provider of telecommunications and mobile money services, with a presence in 14 countries across Africa.
The deal was signed between Airtel Networks Limited (Airtel Nigeria), a subsidiary of Airtel Africa, and Intercellular Nigeria Limited, but is subject to regulatory approval by the Nigerian Communications Commission (NCC), the regulatory agency in Nigeria.
In a notice to the Nigerian Stock Exchange (NSE) today, Airtel Africa said the $70 million valuation for the spectrum excludes fees to be collected by the NCC in accordance with the NCC Spectrum Trading Guidelines.
Explaining one of the benefits of this deal, Airtel Africa said the acquisition of this additional spectrum will allow Airtel Nigeria to expand and strengthen its LTE network across the country.
“Data is a key pillar of our growth strategy, driven by increasing 4G networks and supported by the increased affordability and increasing penetration of smartphones.
“With an overall smartphone penetration of more than 35 percent and data consumption growing by 92 percent in the six months’ period ended September 30, 2019, Nigeria presents a significant growth opportunity in data.
“The acquisition of this spectrum will enable us to further deliver on this growth opportunity and continue to offer our Nigerian customers an enhanced user experience,” the CEO of Airtel Africa, Mr Raghunath Mandava, stated.
Nigeria is Airtel Africa’s largest market and in the first six months of this year, the revenue generated by Airtel Nigeria increased by 23 percent, with data growth being the largest contributor.
Data revenue increased by 76 percent during the period driven by the accelerated rollout of our 4G network, with increase in data customer base of 20.8 percent and an ARPU growth of 43 percent. During the period, 4G data usage increased by almost 20 times.
Airtel Africa, the second largest mobile operator in Africa by number of active subscribers, offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally.
The group has invested to expand its network footprint and number of 4G sites, to enhance network quality and experience.
Airtel Africa is well positioned to capture growth opportunities presented by promising underlying macroeconomic and demographic trends in a fast-growing region that is vastly underpenetrated in terms of mobile and banking services.
Its footprint is characterized by low but increasing levels of mobile connectivity, with a unique user penetration at 44 percent, highlighting the potential for growth across its footprint.
Technology
NCC, CBN Implement 30 Seconds Refunds for Failed Airtime, Data Purchases
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have introduced new rules that will ensure faster refunds for failed airtime and data purchases, following rising consumer complaints over debits without value.
Under the new rules, refunds are expected to be completed within 30 seconds, except where a transaction remains pending, in which case the resolution can take up to 24 hours.
The new framework, contained in a statement issued by NCC’s Head of Public Affairs, Ms Nnenna Ukoha, on Thursday, targets unsuccessful transactions linked to network downtime, system failures and human errors that affect subscribers nationwide.
According to the statement, the guideline was developed after months of joint engagements involving telecom operators, banks, value-added service providers and other industry stakeholders.
The NCC said the framework brings the financial and telecommunications sectors up to speed on how failed transactions are handled and resolved.
“These engagements were prompted by a rising incidence of failed airtime and data purchases, where subscribers were debited without receiving value and experienced delays in resolution.
“The framework represents a unified position by both the telecommunications and financial sectors on addressing such complaints.
“It identifies and tackles the root causes of failed airtime and data transactions, including instances where bank accounts are debited without successful delivery of services,” she said.
Under the framework, Ms Ukoha said mobile network operators and banks are bound by a service level agreement that clearly defines their roles in transaction processing and refunds.
She emphasised that operators are also required to notify customers by SMS on the status of every airtime or data transaction.
The rules also address erroneous recharges to ported lines, incorrect airtime or data purchases, and instances where transactions are made to the wrong phone number.
On her part, the Director of Consumer Affairs at the NCC, Mrs Freda Bruce-Bennett, said the framework also introduces a central monitoring system to improve oversight.
She said the dashboard will be jointly managed by the NCC and the CBN to track failed transactions, refunds and breaches of service timelines in real time.
“We are grateful to all stakeholders, particularly the CBN and its leadership, for their tireless commitment to resolving this issue and arriving at this framework,” she said.
The official said failed top-ups are among the top three complaints received by the commission, adding that implementation of the framework is expected to begin on March 1, subject to final approvals and completion of technical integration by all operators and banks.
Technology
Nigeria, Google in Talks for New Undersea Cable
By Adedapo Adesanya
The Nigerian government is in advanced talks with Google for a new undersea cable to strengthen the country’s digital connectivity and resilience.
The country wants to augment existing undersea links with Europe, said the chief executive of National Information Technology Development Agency (NITDA), Mr Kashifu Inuwa Abdullahi, as per Bloomberg on Tuesday.
Mr Inuwa said this was necessary at this time, calling Nigeria’s current reliance on cables that follow the same path “a single point of failure.”
Google earlier this year said it plans to expand its digital presence significantly in Africa with the development of four new strategic subsea cable connectivity hubs in the north, south, east, and west regions of the continent.
Already, Google is investing $2.1 million to accelerate Nigeria’s artificial intelligence (AI) growth, aiming to create one million digital jobs and bolster the country’s expanding technology economy.
This is aligned with Nigeria’s National AI Strategy, which is expected to play a meaningful role in the nation’s broader digital transformation. Projections indicate that AI could contribute up to $15 billion to Nigeria’s economy by 2030.
The fund will support partnerships with local organisations. To achieve these aims, the funding will support partnerships with local organisations working in digital skills development and cyber security.
The investment further signals global trust in Nigeria’s technology sector and underlines the nation’s role as a leader in Africa’s digital transformation. As new opportunities emerge, Google believes it support is set to help shape Nigeria’s economy and its place on the global technology stage.
Technology
Airtel Africa, SpaceX to Launch Starlink Direct-to-Cell Connectivity
By Modupe Gbadeyanka
An agreement for a satellite-to-mobile service that will benefit millions of people in Africa has been entered into between Airtel Africa Plc and SpaceX.
This service is through the introduction of Starlink Direct-to-Cell satellite connectivity across all the 14 markets of Airtel Africa that serve 174 million customers.
Through this partnership, Airtel Africa customers with compatible smartphones in regions without terrestrial coverage can have network connectivity through Starlink, which is the world’s largest 4G connectivity provider (by geographic reach).
The satellite-to-mobile service will begin in 2026 with data for select applications and text messaging.
This agreement also includes support for Starlink’s first broadband Direct-to-Cell system, with next-generation satellites that will be capable of providing high-speed connectivity to smartphones with 20x improved data speed. The rollout will proceed in line with country-specific regulatory approvals.
Airtel Africa is the first mobile network operator in Africa to offer Starlink Direct-to-Cell service, powered by 650 satellites to provide seamless connectivity to its customers in remote areas.
The partnership reinforces Airtel Africa’s commitment to bridge digital divide and offer seamless connectivity to its customers.
Airtel Africa and Starlink will continue to explore additional collaboration opportunities to further advance digital inclusion across the continent.
“Airtel Africa remains committed to delivering great experience to our customers by improving access to reliable and contiguous mobile connectivity solutions.
“Starlink’s Direct-to-Cell technology complements the terrestrial infrastructure and even reaches areas where deploying terrestrial network solutions are challenging.
“We are very excited about the collaboration with Starlink, which will establish a new standard for service availability across all our 14 markets,” the chief executive of Airtel Africa, Mr Sunil Taldar, said.
Also commenting, the Vice President of Sales for Starlink, Ms Stephanie Bednarek, said, “For the first time, people across Africa will stay connected in remote areas where terrestrial coverage cannot reach, and we’re so thrilled that Starlink Direct-to-Cell can power this life-changing service.
“Through this agreement with Airtel Africa, we’ll also deliver our next-generation technology to offer high-speed broadband connectivity, which will offer faster access to many essential services.”
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