This regulatory excellence is evident in the growth and success of the telecoms industry, which currently contributes over 16% to Nigeria’s GDP.

The telecoms industry in Nigeria is a source of pride for everyone; it’s arguably the only sector that can be considered a successful model of liberalization in the country.

Amidst all the successes, the industry is still faced with multiple challenges, including multiple taxation, vandalisation, and changing macro realities.

Noteworthy of mention is efforts by the NCC under the new Executive Vice Chairman, Dr Aminu Maida to further reposition the industry.

Whilst the focus in the past has always been quality of service (QoS) the direction under the new EVC has shifted to quality of experience (QoE) which is more customer-centric and places more demands on the telecoms operators.

The EVC has continued to emphasize this at various engagements with stakeholders in the industry.

Beyond advocacy, the visible steps taken so far by NCC under Dr Maida aimed at safeguarding telecom infrastructure deserve commendation.

The recent incident of multiple fibre cut, which resulted in widespread network disruptions for one of the major telecoms operators, prompted swift action from the EVC.

His advocacy for stricter penalties against perpetrators led to moves by the government to criminalize cable damages and vandalisation of telecoms infrastructure. This proactive stance not only deters future recklessness but also instils confidence among telecoms operators regarding the safety of their investments.

However, the long-term viability of the industry hinges on a multifaceted approach that will include protection of telecoms infrastructure, which the NCC is currently spearheading, and sustainable pricing mechanism.

The Nigerian economy is currently grappling with new economic realities that continue to threaten its stability.

These realities are not unique to Nigeria but rather a global phenomenon affecting countries around the world.

A complex set of factors are exerting considerable pressure on the global economy and causing a slowdown in global growth.

This is occurring alongside a marked increase in inflation. As a result, businesses are confronted with a range of challenges including rising costs of capital, a tight labour market, and geopolitical risks.

These challenges have been worsened by disruptions due to the COVID-19 pandemic, the war in Ukraine, Israel, and the tensions between the US and China.

Many countries are revisiting their policies and implementing new strategies to navigate the turbulent waters.

In Nigeria, the struggle to strengthen the value of the naira to the dollar has continued to gallop as the Central Bank of Nigeria (CBN) continues to pursue new approaches to address the situation.

However, challenges such as infrastructural deficit and security concerns continue to persist, further exacerbating the issue.

Yet, Nigeria continues to face a significant rise in food prices over the past few years, worsened by the removal of subsidies on petrol, amongst other things.

This has resulted in a weakened purchasing power for many citizens with attendant effects on businesses.

In recent times, Nigeria’s naira has tumbled across both official and unofficial markets due to increased forex demand, causing a significant spike in prices of goods and services across the country.

The National Bureau of Statistics (NBS) reported that items contributing to the inflation’s headline index on a year-on-year basis are food and non-alcoholic beverages (16.42%), housing, water, electricity, gas and other fuel (5.30%), clothing and footwear (2.24%), and transport (2.06%).

The NBS explained that the rise in food inflation on a month-on-month basis is due to an increase in the average prices of bread and cereals, potatoes, yams, and other tubers, fish, coffee, tea, and cocoa.

These developments paint a bleak picture of the current economic situation in Nigeria and amid all these, discourse around telecoms tariff review is beginning to take centre stage, drawing attention to the need for a delicate balance between economic realities, quality of experience, which impacts directly on customer satisfaction, and telecommunications industry sustainability.

For over a decade, major telecom operators like Airtel, MTN, and GLO have maintained their pricing structures, despite mounting challenges such as currency devaluation and inflation while other sectors have adjusted prices to cope with economic fluctuations.

For instance, entertainment giant, DStv, has increased its prices more than two times in the past year. Netflix has also reviewed its prices.

Nigerian Breweries have also adjusted their prices to reflect the current realities, but telecom operators have maintained their pricing despite economic fluctuations, grappling with a devalued currency and rising operational costs.

In Nigeria’s telecommunications sector, diesel consumption is a critical factor influencing service reliability and progression.

With numerous sites dispersed across the nation, a substantial portion operates on generators 24/7, necessitating continuous fuel supply.

This escalating cost of diesel not only directly impacts operational expenses but also cascades into broader challenges such as site accessibility and infrastructural maintenance.

As prices soar across various sectors, the telecom industry continues to grapple with the dilemma of maintaining quality services while operating within constrained pricing frameworks.

The prevailing reality suggests that the long-term viability of the telecoms sector now hinges on striking a delicate balance between affordability and quality of experience for consumers on the one hand, and profitability and survival for operators on the other hand.

Quality of experience stands at the forefront of consumer expectations in the telecom sector. However, the telecoms operators must continue to invest to maintain superior quality of experience. In the same vein, continuous and increased investment is a function of profitability.

The telcos can only invest from their profits. There can be no investment without profitability. One way to guarantee profitability and sustainability of the industry is a review of the existing pricing structure.

Pricing autonomy is a linchpin for industry sustainability. The ability to set cost-reflective tariffs is indispensable for ensuring adequate returns on investment and fostering long-term viability.

Telecom operators require a more transparent and collaborative approach to tariff adjustments, emphasizing the importance of a pricing framework aligned with operational realities.

The current pricing window, sanctioned by regulators, is a foundation, but the industry needs greater flexibility to navigate cost fluctuations while ensuring service quality and accessibility remain uncompromised.

The clamour for cost-reflective tariffs is not merely about short-term gains but a strategic imperative to sustain the sector’s growth trajectory.

The transition from 2G to 5G and with 6G on the way symbolizes the industry’s evolution, made possible by substantial investments that fuel innovation and expand service capabilities.

However, without conducive regulatory frameworks that incentivize investment, the industry risks stagnation, jeopardizing future advancements and undermining service availability.

The telecommunications industry in Nigeria is currently at a crossroads where infrastructural challenges, pricing dynamics, and regulatory frameworks intersect, offering a unique opportunity for swift and collective action.

A thriving and resilient telecommunications ecosystem has the potential to empower individuals, drive economic growth and enrich lives across the nation of Nigeria.

Whilst the industry regulator has delivered commendably, prevailing realities demand a new approach to ensure continued viability of the sector.

*Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.

Dr. Maida, the executive vice chairman of the Nigerian Communications Commission (NCC), made the remark at the Telecoms Industry Risk Management Conference held in Lagos, recently.

Speaking on the conference theme: ‘Evolution and Future Risk Management in the Telecoms Industry: Harnessing Emerging Technologies and Trends’, the EVC said that in an era marked by rapid technological advancements, the telecommunications industry finds itself at the forefront of innovation, shaping the way people communicate, connect, and conduct business.

“As we navigate this dynamic environment, the need for effective risk management becomes increasingly paramount. Today, we stand at the crossroads of tradition and transformation, where emerging technologies and trends present both unprecedented opportunities and challenges.

“While we discuss the current landscape of 5G networks, which boast of wider attack surface due to the increased number of connected devices and denser network infrastructure, it is imperative to even cast our gaze into the future.

“We are witnessing the dawn of 6G technology, the next frontier in wireless communication. With promises of even faster speeds, lower latency, and groundbreaking applications, 6G has the potential to revolutionize the way we experience connectivity.

According to Statista:

The 6G user-experienced data rate is expected to reach 1,000 Mbps, ten times faster than the user-experienced data rate of 5G.

While higher-band spectrum brings faster speeds it also poses problems that need to be solved, including difficulties in penetrating walls and water.

However, with this advancement comes the responsibility to address new risks, from cybersecurity threats to ethical considerations, ensuring that we pave the way for a secure and inclusive digital future.

7G: Intelligent Technology of the Inevitable

Looking beyond, the prospect of 7G technology also looms on the horizon.

To this end, the EVC said “As we contemplate the possibilities, we must acknowledge that with each generational leap, we face not only technological advancements but also a fresh set of challenges.

“Anticipating and managing risks associated with 7G will require collaboration, innovation, and a proactive approach to ensure the seamless integration of this technology into our interconnected world.

“In addition to the evolution of connectivity, we must consider the implications of emerging technologies such as quantum technologies (computing, sensing, and communications), advanced artificial intelligence, and Block Chain (distributed ledger) technologies. These trends, when harnessed effectively, hold the potential to transform our industry positively. However, they also introduce complexities that demand careful consideration in our risk management strategies.

The Nigerian Communications Commission (NCC) remains committed to fostering an environment that encourages innovation while prioritising the security and stability of our telecom infrastructure. As we navigate through 5G and the uncharted territory of the next generations of wireless technologies, collaborative efforts among regulators, industry players, and other stakeholders become even more crucial for sharing best practices, threat intelligence, resources and implementing robust risk management strategies.

“We should therefore move beyond mere compliance and reactive measures, and instead, harness the power of these new technologies and trends to build a resilient and future-proof industry.

Dr.  Aminu Maida, the EVC, stressed the attendant risks that could come with the introduction of 6G and 7G in the country, while challenging the Mobile Network Operators (MNOs) to brace up.

The Opportunities of adoption 6G in Nigeria, include but not limited to the following:

• Faster speed,
• Reduced latency,
• Innovative applications,
• Dramatic change,  
• Connectivity experience, 
• Technological breakthroughs,  
• Quantum computing,
• Advanced Artificial intelligence, and
• Blockchain technologies.

While the threats associated with 6G technology are;  

• Cybersecurity threats,
• Ethical issues,
• A broader attack surface due to the increased number of connected devices, and   
• A denser network infrastructure   

Maida hinted on these on Tuesday during a two-day Telecoms Industry Risk Management conference in Lagos.

The conference, themed “Evolution and Future Risk Management in the Telecoms Industry: Harnessing Emerging Technologies and Trends,” aimed to address the new challenges that come with technological advancements.

The EVC of NCC emphasized that the shift towards more advanced technologies introduces a variety of risks for telecom operators, ranging from cybersecurity threats to ethical issues.

Dr. Maida, represented at the conference by Ubale Maska, the Commission’s Executive Commissioner for Technical Services, highlighted the technological advancements from the current 5G to the anticipated 7G, stating:

He noted that “As we navigate the landscape of 5G networks, which feature a broader attack surface due to the increased number of connected devices and denser network infrastructure, it is crucial to also consider the future.

“The advent of 6G technology marks the next milestone in wireless communication. With its potential for faster speeds, reduced latency, and innovative applications, 6G could dramatically change our connectivity experience. Nonetheless, this advancement also requires us to tackle new risks, from cybersecurity threats to ethical challenges, to ensure a secure and equitable digital future.

“Furthermore, the possibility of 7G technology beckons. With each generational leap, we encounter not just technological breakthroughs but also new challenges.

“Preparing for and managing the risks associated with 7G will demand collaboration, innovation, and a forward-thinking approach to integrate this technology seamlessly into our global network.”

He stressed further that, In addition to connectivity evolution, Dr. Maida pointed out the need for telecom operators to consider the implications of emerging technologies like quantum computing, advanced artificial intelligence, and blockchain technologies.

He noted that these advancements offer significant opportunities to transform the industry but also introduce complex challenges that must be integrated into the operators’ risk management strategies.

The NCC boss said the regulator on its part remains committed to fostering an environment that encourages innovation while prioritising the security and stability of telecom infrastructure.

“As we navigate through 5G and the uncharted territory of the next generations of wireless technologies, collaborative efforts among regulators, industry players, and other stakeholders become even more crucial for sharing best practices, threat intelligence, resources and implementing robust risk management strategies.

“We should therefore move beyond mere compliance and reactive measures, and instead, harness the power of these new technologies and trends to build a resilient and future-proof industry,” he added.

Also speaking at the event, Kelechi Nwankwo, the head of corporate strategy and risk management at the NCC, hailed the conference as a testament to the industry’s dedication to identifying evolving risks and challenges while seizing the vast opportunities provided by emerging technologies and trends.

“From 5G networks and the Internet of Things (IoT) to Artificial Intelligence (AI), Cloud Computing, and beyond, the potential is unlimited. Yet, with significant opportunities come substantial risks, and it is our shared duty to mitigate these risks to ensure the industry’s growth and sustainability,” he remarked.

The partnership between Samsung and Princeton University will facilitate the sustainable future of communication technology, bringing together industry leadership and academic excellence.

The NextG Initiative, launched in 2023 by Princeton’s School of Engineering and Applied Science, aims to accelerate the adoption of new technologies in areas like cloud and edge networks, intelligent sensing, and network resilience. 

Through the establishment of a corporate affiliates program, the initiative stimulates essential collaborations between academia, industry giants like Samsung and policymakers to drive cutting-edge innovation and ensure global leadership in an era of rapid technological advancements.

“The best academic research thrives on close interaction with industry leaders,” explained Dean Andrea Goldsmith of Princeton’s School of Engineering and Applied Science. “Our NextG program fosters such deep collaborations in wireless technology and policy, ultimately leading to meaningful innovations and global leadership in a time of rapid change.”

Joining forces with other industry giants like Ericsson, Intel, and Qualcomm Technologies, SRA will help in bridging the gap between academic research and real-world applications. 

As Dr. Charlie Zhang, Senior Vice President at SRA, emphasized, “The wireless industry has greatly benefited from fundamental research in the past decades. We encourage Princeton’s researchers to continue their innovative spirit and develop disruptive technologies that could bring major breakthroughs in 6G.”

Samsung’s target for 6G development stretches back further, with the establishment of the Advanced Communications Research Center (ACRC) in 2019.

Through publications like the 6G white paper and the 6G spectrum white paper, ACRC has established itself as a leader in shaping the 6G innovation. The company further cemented its position by chairing both the 6G Framework Group of the ITU-R and the Spectrum Group of the GSA.

The inaugural Samsung 6G Forum in May 2022 reiterated the company’s dedication to research and development in this key area.