By Olabisi Olaleye
The novelty of the Global System for Mobile Communications has worn off in terms of voice and Short Messaging Services (SMS), while data is taking a premium edge in the country with many subscribers adopting data’s communication.
The revenue from voice and SMSes are no longer encouraging and the GSM companies are no longer smiling to the banks as they used to do because disruptive technologies have overtaken the telecoms space.
Today, these disruptive technologies like Watsapp, Skpe,Viber, Imo,Twitter, Snapchat, instagram,Youtube,Pinterest, Facebook are generating huge revenue and driving data because subscribers have experienced these newest addition and have seen the cost effectiveness of these handles.
According to a telecommunications subscriber, Ibrahim Dansol,I don’t remember when I sent a text message. I use more of Watsapp, Skpe and Viber to pass across my message.
“I am not paying more,I use the data on my phone and most Android phones can now use a 3. 5gigabyte blackberry bundle data for as low as N1,500 for a 30 -day period. It does not make economic sense to still use your recharge credit to make voice calls or send text messages that may hang owing to network when it can be done through other channels. Now, some telecom operators are trying to upgrade their networks because data is the real user’s experience”.
Commenting during an industry forum on the role of disruptive technologies in catapulting the African Continent’s gross domestic products (GDP),Director, Public Affairs of the Nigerian Communications Commission (NCC), Mr Tony Ojobo stated that these technologies would advance,transform life, business and the global economy.
“There are 12 listed in the gallery including mobile internet,internet of things (IoT),advanced robotics, renewable and energy storage autonomous and near autonomous vehicles, while some disruptive technologies fall under the genre of Over-the Top Services,which are carried over the networks, delivering value to customers, but without any carrier service provider being involved in planning, selling, provisioning, or servicing them, thereby implying that traditional telcos cannot directly earn revenue from such services. These over- the- top services (OTT) include internet protocol(IP)telephony, live streaming and other social media applications.
“Globally, there is a continuing surge in growth, which means that the industry must be heading somewhere for a positive reason. Why would Microsoft want to put in a mind blowing sum$26.2bn in Linkedin except there is something they have seen in an organisation that may not have as much physical facilities to warrant that amount?”
Ojobo further disclosed that that was the point of vexation by traditional operators who felt that organisations without tangible investments have created new big boys while the old telecoms providers are struggling to balance their books.
“Someone call it the story of the dodo and dinosaur that went into extinction at a point. These operators don’t want to go into extinction. The challenge is that they must listen to the new drunbeat,”he said.
A telecoms expert , Amos Udunze explained that major reason that telecoms operators revenue in voice is dwindling is because of their inability to charge over wifi.
According to him, telcos. all over the world are experiencing falling revenues, because of the inability to recognize mobile number when a customer is on a Wi-Fi network.
“Currently, they are unable to charge for content shared (e.g. Videos) on popular social network services like Facebook, Twitter and WhatsApp.
“Now, telecommunication operators are finally trying to reverse the trend and reclaim some of their lost revenue by charging for usage patterns that were previously free. Though a considerable number of users are on Wi-Fi, charging on Wi-Fi is a huge problem for them since mobile number is not visible.
He added that an increasing number of people are already using internet on their mobile phones because mobile network operators are now offering value based data plans and services to offset the revenue decline.
“ Mobile data users are also increasingly willing to pay more for a better Internet experience. And ability to do Wi-Fi charging for third party content offerings is a huge opportunity for the telecoms operators.While the need to innovate by is expedient in order to enable charging without changing the user experience”.
Digital broadcast: Firm renew capacity for satellites broadcast
With the deadline for digital broadcasting set for june 17, 2017 StarTimes and Eutelsat Communications have concluded new multi-year agreements that set the stage for accelerated roll-out of digital broadcasting services across Africa.
In a statement by the company,StarTimes has renewed capacity contracts on two Eutelsat satellites as well as agreements for uplinking services provided by a partner teleport operated by STN, in Slovenia. In anticipation of continued expansion of Africa’s TV market, StarTimes has also secured extra capacity and plans to scale up further by the end of the year. This expanded portfolio equips StarTimes to host more services, uplink channels from Europe and Africa and provide the highest levels of service continuity.
StarTimes uses satellites to deliver its multi-channel TV platform to over seven million homes in 13 Sub-Saharan African countries and is gearing up to expand into DRC Congo and Zambia in August. The platform transmits over 200 channels, including international channels, regional and country-focused channels as well as StarTimes’ own branded content. Content is offered both on a Free-to-View and pay-TV basis, with exclusive programming including frontline events such as the Bundesliga and the 2016 Copa America.
Telecoms adverts spend top with N16.7bn – Reports
Facts have emerged that Nigeria’s telecommunications adverts have topped the charts with N16.7bn in 2015. According to a report by the mediaReach OMD, a specialist media company that provides media planning, buying, control and inventory management services,the telecommunications sector retained its lead position as the highest advertiser in Nigeria in 2015 with a combined total expenditure of N16.7 billion.
The figure represents 17% of the total advertising spend in Nigeria of N97.9 billion in the same year.
The report also identified Personal Paid (N12.2 billion), Corporate Communications (N6.3 billion), Banking & Finance (N5.8 billion), Lager Beer (N4.6 billion), Public Service (N3.8 billion), Soft Drinks (N2.8 billion), Cable TV (N2.5 billion), Milk & Diary (N2.2 billion) and Broadcast (N2.2 billion) as part of other top advertising product categories that contributed to the total ad spend. Others are: Noodles (N2.1 billion), Cocoa Beverages (2.0 billion), Skin Cleansing (N1.8 billion), Nutritional Drinks (1.8 billion), Dental care (N1.6 billion), Seasonings (N1.5 billion), Online mall/Education imparting knowledge & Skill/Malt (N1.4 billion), NSD Powder (N1.3 billion and others (N22.4 billion). Mediafacts stated that these are the top 20 advertising product categories in 2015.
“The top 10 advertisers in Communication and Telecommunications sector in 2015 include: Sundry Ad (other Inform. Service) – N13.5 billion, MTN – N4.7 billion, Airtel – N4.1 billion, Etisalat N3.7 billion and Globacom N3.7 billion. Others are: Nigerian Breweies N3.7 billion, State Government N3.1 billion, Sundry Advertisers (Services) N3 billion, Reckit Benkiser Nigeria N2.7 billion and Procter & Gamble – N2.1 billion.
The report also stated that the top 20 advertisers contributed 64 per cent of total spend and the top four telecom players contributed 17 per cent of the total spend in 2015.” Adding that the total advertising spend recorded in 2015 represented an increase of N4.8 billion above the N93.1 billion documented in 2014.
The report also revealed that, “the 2014/2015 electioneering campaigns and the successful change in government may have positively impacted on the advertising spends in 2015 as it records a positive growth of about 4.8 per cent over 2014 total media spend.”
Cyber security confab holds in Lagos
By Tosin Akinola
The Nigerian information technology community would welcome the international community to the Insight Cyber Security Conference, on August 4, 2016 in Lagos.
The event would be hosted byWanostar Nigeria, a cyber security event outfit dedicated to security education, training and awareness (SETA), research, and cyber forensics.
According to the Chief Executive Officer, Wanostar Nigeria, Chris Nwanosike, the objective of the event is to create awareness, protect system resources, and develop skills and knowledge required by computer users to perform their jobs.
“The conference is an annual trademark event aimed at bringing together numerous cyber security experts and policy makers from across the public and private sector of the economy to inspire a secure and safe cyber space, discuss the ever changing threats posed by cyber-crime, and share best practice strategies to effectively combat threats,” he said.
The theme of this year’s conference is “Cyber-security, the Constitution and the Path Forward.” Participating organisations include the Nigeria Communications Commission (NCC), FlexiP Group, Infodata limited, Soft Solution Ltd, Kropmann Group, Interswitch, Smile, Onpos ISACA and ISC2 Nigeria.
Keynote speakers are Minister of Communications, Abdur-Raheem Adebayo Shittu; Founding Dean, School of Media and Communication, Pan-Atlantic University, Lagos, Prof. E. Biakolo; and Ibrahim Shehu Gusau, former Chairman, House Committee on ICT and champion of the Bill on Cyber Security at the National Assembly.