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TSSF 2.0: Expert highlights ways MVNOs can be successful in Nigeria

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…Tasks License Operators on Rural Connectivity

By Idris Bakare

As Nigeria continue to gear towards the licensing of Mobile Virtual Network  Operation, a Mobile Network Infrastructure Provider expert, Mr Satya Mekala has disclosed ways and techniques that can be adopted for a successful operation of the virtual network in the country.

While applauding the Nigerian Communications  Commission (NCC) for announcing the licensing of MVNOs in the country, the Managing Director, Wireless Technology Labs, Satya Mekala said the definition of business aims, focus, analysis, planning and commitment from management to make the MVNO work are fundamental.

Mekala made this disclosure at the Business Remarks Telecom Sector Sustainability Forum (TSSF) held in Lagos with the theme ‘Creating Awareness and Ensuring Sustainability of Mobile Virtual Network Operators (MVNOs) in Nigeria’s 5G Ecosystem’.

As per the report by Fortune Business Insights, he said the global MVNO Market Size is projected to reach USD 67.54 billion in 2020 and USD 123.40 billion in 2028, at a CAGR of 7.9 per cent during the forecast period, 2021-2028.

Speaking under the sub-topic, “How to build a successful MVNO business in Nigeria,” Mekala posited that the success of an MVNO is heavily dependent on choosing the right strategy to acquire sufficient subscribers.

“To choose the right market segment to acquire a lot of subscribers quickly, the acquisition strategy must be well designed as this is one of the highest costs for an MVNO. Mekala also stated that it is about the means available to access the service offering as MVNOs offering data services only may want to subsidise smartphones. This can create huge debt in the beginning,” he highlighted.

While advising potential operators on choosing the right offerings wisely, he emphasised the need for operators to differentiate their offerings so that customers can see the benefits to take your service. According to him, MVNO is a volume business. More subscribers mean more revenue.

“Initially customers will come to you to get better pricing. The transparent and easy-to-understand pricing structure is important.”

Sharing more insights, he said the barrier to starting an MVNO is very low, and many fail to establish a sustainable business model. Worldwide, only 20 per cent of the conceived MVNOs survive. However, Mekala noted that effective voice and data bundles are key to customer acquisition. Bundling VAS services can help MVNOs to acquire a particular group of customers (mobile banking, online gaming etc). Also, Specialised MVNO who sells only IOT SIMS on 4G / 5G networks is very interesting.

According to him, it is important to assure that the economics of telecom are well understood and that the business plan is built up accordingly. What is the end game of an MVNO? What is the exit strategy?

Speaking further, he said forging a win-win agreement with a Mobile Network Operator (MNO) will play a key part in any MVNO’s success.

“The secret is having solid partnerships with the host operator and other partners. Having an experienced technical partner as well as a vendor is crucial. A good contract with a network operator that is easy to renegotiate if it becomes necessary to switch network hosts is essential. Ensure that the final contract is adaptable enough to meet new requirements, such as the need to accommodate data IoT offerings, and future opportunities with upcoming 5G networks,” he said.

Furthermore, Mekala advised MVNOs to include a rural connectivity strategy in their plan. While highlighting that over 45 million Nigerians are without connectivity, building rural networks MVNO can acquire a captive customer base that will make the company stable and achieve a faster return on Investment (ROI).

On her part in her welcome address, the Convener, Bukola Olanrewaju who also doubles as the Managing Editor of Business Remarks said the increasing number of mobile subscribers, technological advancements, and demand for connectivity has played an important role in creating a significant opportunity for MVNOs to thrive in the sector.

“By 2020, some estimates put the total number of MVNO subscribers on the continent at upwards of 110 million – not far off four times the total number in the USA.

“The introduction of Mobile Virtual Network Operators (MVNOs) is believed to add value for both operators and customers; for the operators by using their available excess capacity and for the customers by offering innovative and several niche value-added services that were not offered by Mobile Network Operators (MNOs).

“From the consumer side, MVNOs can provide more competitive offerings, which means lower costs without compromising on service. Utilizing network capacity without having to own it frees up costs that are then passed down to the consumer,” she said.

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NCC pledges support to Meta on digital economy initiatives

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By Blessing Emmanuel, Abuja

The Nigerian Communi cations Commission (NCC) has pledged its readiness to support digital economic initiatives of investors, including Meta (formerly Facebook), that align with Nigeria’s vision for a robust digital economy.

During a visit to the NCC’s headquarters in Abuja, a delegation from Meta, led by Kojo Boakye, the company’s Vice President for Africa, the Middle-East, and Turkey, met with Dr. Aminu Maida, the Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC).

The NCC EVC emphasised the importance of compliance with industry laws, regulations, and guidelines for creating a level-playing field that encourages healthy competition and sustainable growth in the Nigerian telecoms sector.

Boakye congratulating Dr. Maida on his appointment, shared Meta’s ongoing efforts to land the 2Africa submarine cable in Nigeria.

According to Boakye, “The 45,000-kilometer-long cable, scheduled to go live in 2023, will be one of the world’s largest subsea cable projects, interconnecting Europe (via Egypt), Asia (via Saudi Arabia), and Africa.

“With a design capacity of up to 180 terabytes per second (Tbps), the 2Africa cable aims to deliver much-needed Internet capacity and reliability across Africa, supporting the growth of 4G, 5G, and fixed broadband access.”

Boakye sought NCC’s support in navigating legal and regulatory processes for the cable’s landing in Nigeria, emphasising the positive impact it will have on connectivity and affordability.

The Meta delegation also outlined plans to simultaneously land the 2Africa cable in Lagos and Akwa-Ibom States through a consortium.

Boakye emphasised that this approach aims to connect those currently without access while enhancing and providing affordable access for those already connected.

Responding, Dr. Maida assured Meta of NCC’s commitment to supporting initiatives that align with Nigeria’s digital economy agenda and welcomed the potential benefits the 2Africa cable could bring to the country’s telecommunications landscape.

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Minister Tijani reels out 100 days achievement, hails Tinubu

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The Minister of Communications, Innovation and Digital Economy has reeled out his 100 days achievements as a Minister of the Federal Republic of Nigeria.

In a recent address, Minister Tijani expressed gratitude to President Bola Ahmed Tinubu GCFR for the unique honour bestowed upon him, and highlighted the collective accomplishments, outlining the path ahead for the Ministry.

Commending the unwavering support from directors, agency heads, and the entire team (NCC, NITDA, NigComSat, NDPC, NIPOST, GBB, etc), he emphasised the dynamic and cohesive force that has been shaped within the Ministry during this period.

Highlighting his achievements in office, Dr Tijani said, “The Ministry’s mandate, structured around five pillars – Knowledge, Policy, Infrastructure, Innovation, Entrepreneurship & Capital, and Trade – forms the core of the Strategic Blueprint. This blueprint guides the Ministry’s role in realizing the President’s Renewed Hope Agenda.

“In the first 100 days, the Knowledge pillar has been instrumental in driving initiatives, most notably the Three Million Technical Talent (3MTT) program. With over 1.6 million talented Nigerians applying in a month, partnerships, including a N1 Billion commitment from IHS Nigeria and UNDP’s funding for 3,000 internships, have significantly amplified the impact.

“The National AI Research Scheme received 2,118 proposals, showcasing the depth of talent in applying technology to critical sectors. Collaborations with the Raspberry Pi Foundation led to the establishment of Code Clubs in 17 locations, fostering technological talent from a young age.

“Under the Policy pillar, collaboration with NITDA resulted in the launch of the Startup Support and Engagement Portal, aligning with the Startup Act. White Papers on top AI talent of Nigerian descent and the 1:10:100 Implementation approach outline strategic directions.

“The Infrastructure pillar achieved milestones, including mapping over 2,500 innovation spaces and revamping NigComSat’s platforms. Extending coverage to underserved locations aligns with the commitment to providing digital opportunities. Engagements at global forums such as the Mobile World Congress and ITU-World Radio Conference underscore Nigeria’s global presence.”

On innovation, entrepreneurship and capital, Dr Tijani noted that “significant partnerships were forged under the Innovation, Entrepreneurship & Capital (IEC) pillar, including the $116 million financing for AFD’s I-DICE program and a $100 million Global AI partnership.”

“Initiatives like the 4IRTA platform and the Young Innovative Builders program demonstrate dedication to leveraging technology for sustainable development,” he narrated.

The Minister explained further that the achievements of his 100 days in office were a result of collective efforts that have shaped the first 100 days.

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ONDI receives 11,183 applications for third cohort of Ihatch

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The Office for Nigerian Digital Innovation (ONDI) has disclosed that it received 11,183 applications for the third cohort of the Ihatch programme.

The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa made this known at the Ihatch startup incubation programme 2nd cohort demo day and 3rd cohort opening ceremony organised by the subsidiary of the agency, Office for Nigerian Digital Innovation (ONDI), in partnership with Japan International Corporation Agency (JICA) in Abuja.

Inuwa noted that the ihatch five-month free intensive incubation programme executed by the ONDI and hosted within the National Centre for Artificial Intelligence and Robotics (NCAIR) is designed to help Nigerian tech entrepreneurs refine their business ideas through a series of coaching, lectures, and booth camps to develop scalable and adaptable business models that will focus on youth, innovation, entrepreneurship, and technology.

He added that the incubation programme will be held simultaneously in Abuja, Lagos, Port Harcourt, Gombe, and Kano and JICA has agreed to extend the Fourth Cohort across each of the 36 States and the FCT. This is to enable wider reach and to stimulate the startup ecosystems across the States.

The DG stated that not fewer than 1,218 applications were received for the Second Cohort and the number was pruned down to 8 startups, comprising 16 persons, a Founder and Co-Founder for each startup, after undergoing levels of rigorous selection process conducted by a panel of judges, comprising experts in diverse areas of technology and innovative entrepreneurship.

He explained that the selection process assessed the startups’ ideas based on the criteria of profitability, scalability, social impact, idea technique, competitive advantage, experience, and a clearly defined future roadmap.

Inuwa further revealed that a total of 11,183 applications were received from across the 6 geopolitical zones for the Third Cohort. This culminated in the selection of the top 8 startups, comprising 16 founders in total that will participate in the Third Cohort that was launched.

He added that 16 startups that participated in the first and second cohorts of the iHatch incubation programme have moved on to achieve remarkable success in the areas of job creation, funding, participation in events, and valuable partnerships which have created a combined total of 179 direct jobs in the span of agriculture, health, education, and e-commerce sectors.

The DG further asserted that apart from the total grant of US$45,000 (US$15,000 each) for Proof of Concept (POC) to the top 3 startups in the first cohort, some of the startups have raised some funding through other sources. Xolani Health (a health tech startup from the first cohort) secured a grant worth US$155,000, BetaLife (a health tech startup from the first cohort) secured an angel investment of US$60,000, Gifty (an e-commerce startup from the second cohort) got a grant of USD$8,000 while two other startups from the first and second cohorts respectively, raised a combined total grant of US$6,000.

Inuwa affirmed the agency’s commitment to working with relevant stakeholders and partners towards the successful implementation of the Nigeria Startup Act (NSA) which will accelerate innovation and provide much-needed jobs for our teeming youths. Leaving nothing to chance in our resolve to nurture the entrepreneurial spirit in our youth to catalyze the Nigerian digital economy to the next level.

The Honourable Minister, Federal Ministry of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite, represented by National Coordinator, National Talent Export Programme, Dr Femi Adeluyi, applauded NITDA for the various initiatives and programs put in place for the advancement of the tech ecosystem in the country.

Anite noted that the NITDA DG at the Digital Nigeria International Conference 2023 edition harped on the need for Nigeria to become the talent destination of the world where countries will come to seek a workforce that will work with them towards achieving their goals and objectives.

She added that “technology is a pivotal tool in all aspects of life which cannot be overemphasised and the green transition scoreboard global total has reached about $7.13 trillion for export and about $6.6 trillion for importation, the important aspect is that 54 percent of these activities is digitally edible and prepares people to be effective and efficient in the different sector of the economy is laudable.”

The Minister also appreciated JICA for its relentless efforts toward the advancement of the tech ecosystem in the area of automobile, development, training, scholarships, interventions and a lot more which has impacted the citizens directly or indirectly.

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