The Lagos court, presided over by Justice Ambrose Lewis-Allagoa, barred the commission from implementing key provisions of the regulations, imposing sanctions, or taking steps that could hinder service providers from continuing their operations pending the hearing of an interlocutory injunction.

The judge held,

“An Order of Interim Injunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant, whether by itself, officers, employees, agents, or such other persons howsoever named, from enforcing, implementing and/or otherwise giving effect to the enforcement and/or implementation of the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations 2025 (‘The DEON Consumer Lending Regulations’) or otherwise giving effect to the enforcement and/or implementation of paragraphs 3, 7, 10, 12, 13, 14, 15, 16, 24, 27, 29 and 32 of the said regulations.”

“That an Order of Interim Injunction is granted pending the hearing and final determination of the Motion for Interlocutory Injunction restraining the Defendant, whether by itself, officers, employees, agents, or such other persons howsoever named, from taking any steps towards interfering with or preventing the Plaintiff’s members from providing or continuing to provide or deploy any services or product governed by the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations 2025 (‘The DEON Consumer Lending Regulations’).”

Why?

Airtime credit services, including MTN’s XtraTime and Airtel’s data credit offerings, were suspended in mid-April after both operators cited compliance obligations under the new regulatory framework introduced by the Federal Competition and Consumer Protection Commission.

The disruption affected millions of prepaid subscribers who rely on airtime borrowing as a form of short-term credit, with the suspension occurring without prior notice or a clear timeline for restoration.

The commission had introduced the DEON Regulations in July 2025, extending a licensing regime to cover digital and non-traditional consumer lending, including airtime and data credit services. Compliance deadlines were extended twice before enforcement actions commenced in April, prompting operators to suspend services amid regulatory uncertainty.

However, industry stakeholders, including the association and the plaintiffs, contend that the commission exceeded its statutory mandate, arguing that services delivered over telecom infrastructure licensed by the Nigerian Communications Commission fall within the regulatory purview of the telecoms regulator under the Nigerian Communications Act 2003.

Industry estimates place the annual value of airtime lending transactions between N500 billion and N1.2 trillion, driven largely by informal sector demand. Analysts say the services function as a critical microcredit system supporting small businesses, artisans, and low-income earners dependent on mobile connectivity.

Amid the WASPAN-FCCPC dispute, the Commission has maintained that it did not ban airtime credit services, insisting the suspensions were commercial decisions by operators.

The association has, however, urged the commission to comply with subsisting court orders and engage stakeholders to resolve the regulatory impasse. Both matters have been adjourned for an interlocutory hearing.

In a press release issued on March 29, the Commission stated that subscribers should not bear the burden of service failures where operators fall short of prescribed Quality of Service (QoS) standards.

Under the new directive, telecom operators will be required to provide compensation directly to affected users for breaches of key performance indicators (KPIs).

The NCC explained that compensation will primarily come in the form of airtime credits. These will be calculated based on subscribers’ average spending patterns and their location, particularly in areas where service disruptions occur.

According to the regulator, the move is part of a broader strategy to place consumers at the center of Nigeria’s telecommunications ecosystem. It noted that poor network quality has far-reaching consequences, including reduced productivity, disrupted commercial activities, and declining public confidence in digital services.

“Subscribers should not be made to bear the full burden of service disruptions,” the Commission emphasized in a statement signed by Nnenna Ukoha, head of Public Affairs at the Commission, adding that erring operators must take responsibility for lapses in service delivery.

The directive also introduces stricter accountability measures, requiring operators to compensate users within specified timeframes whenever poor service is recorded.

In addition to targeting telecom operators, the NCC is extending oversight to tower companies responsible for critical infrastructure such as masts.

These companies are now mandated to reinvest fines imposed on them into infrastructure upgrades with measurable outcomes, alongside any additional penalties deemed necessary by the Commission.

The regulator noted that while fines have historically been used to deter poor service, the new approach adopts a more consumer-focused model aimed at strengthening accountability across the industry.

Furthermore, the NCC reaffirmed its commitment to enforcing continuous investment in network resilience, capacity expansion, and infrastructure upgrades to meet Nigeria’s growing demand for telecommunications services.

Historically, Cell C has been the primary enabler of MVNOs in this country, leveraging its own spectrum but also using the physical network infrastructure of MTN and Vodacom through roaming agreements.

But as the MVNO market expands, other mobile network operators (MNOs) like MTN, Vodacom and Telkom have also entered this space, debuting their own MVNO enablement platforms and actively seeking more brands to partner up with.

This makes sense when you consider that the local MVNO market, which had a subscriber base of 3.8 million in 2024, according to a report from Africa Analysis, is expected to more than triple, reaching between 12.3 million and 15.9 million, by 2030.

For MNOs and Mobile Virtual Network Enablers (MVNEs) looking to capitalise on this massive market opportunity, it makes sense to offer potential MVNO partners a plug-and-play package that provides everything needed to launch a mobile network without building the technology from scratch.

Introducing MVNO-in-a-box

An “MVNO-in-a-box” is a pre-packaged, ready-to-deploy solution that brings together all the technology, tools, and operational components needed for a business to start and run an MVNO quickly and cost-effectively.

It’s essentially a turnkey MVNO platform, designed to simplify and speed up market entry.

When you consider that it can take up to two years to launch a traditional MVNO, a plug and play offering that can reduce this to a few months is essential for MNOs and MVNEs looking to sign and activate brands in less time..

So, what’s in the box?

A typical MVNO-in-a-box offering will bundle together all the core capabilities an operator needs, from OSS/BSS systems and integration frameworks to SIM provisioning interfaces and optional value-added services, and make everything available via a simple, self-service portal.

In an ideal scenario, a business wanting to launch an MVNO will be able to visit a web portal, plug in all the necessary details and their mobile network will be live the next day.

This approach makes strong strategic and commercial sense for both MNOs and MVNEs, especially in a market where MVNO competition is increasing. Below are three key benefits of MVNO-in-a-box.

Faster time-to-market

In a competitive landscape, speed is everything. Quite simply, more MVNO launches mean more wholesale revenue for MNOs and more platform fees for MVNEs.

Reduced operational burden for MNOs and MVNEs

Supporting MVNOs normally requires ongoing engineering work – think bespoke integrations, custom billing setups and system testing and provisioning.

With a plug-and-play MVNO platform, everything is standardised so MNOs and MVNEs no longer need to reinvent the wheel every time they onboard a new MVNO.

Lower setup costs, minimised risk

Traditionally, setting up an MVNO can be expensive for everyone involved. By offering things like prebuilt OSS/BSS, reusable APIs and automated provisioning, MVNO-in-a-box dramatically lowers the total cost per MVNO partner.

Additionally, MVNO-in-a-box offerings use proven, repeatable modules, which reduces risk. This makes it more viable for smaller, niche players to enter the market profitably.

An MVNO-in-a-box solution frees up new MVNOs so they don’t have to focus on backend complexity and can rather spend time ​​thinking about how to build their brand and grow their business.

At VAS-X, we want to help operators and brands to launch and run MVNO services without building the full stack themselves.

The goal is to help new entrants monetise connectivity as part of broader digital offerings as quickly and seamlessly as possible.

The Nigerian Communications Commission (NCC), the sector’s chief regulator, has formally engaged global consultancy PricewaterhouseCoopers (PwC) to conduct the first comprehensive, independent study of competition in the nation’s telecommunications industry in over a decade.

This is coming about 13 years after such a study was conducted and subsequent approval of a 50per cent tariff adjustment to mobile network operators (MNOs) by the regulator last year.

Mrs Omotayo Mohammed, head, Competition and Tariff at the NCC, in her opening remarks at the Stakeholders’ Forum on the Study on the Level of Competition in the Nigerian Telecom Industry, noted that the telecom market has evolved significantly over the past years.

According to her, revenue models have shifted, investment patterns have changed, and new forms of market interaction have emerged.

“We are witnessing rapid technological change, evolving consumer expectations and usage patterns, rising investment costs, and heightened competitive pressures.

Concurrently, concerns around barriers to entry, market concentration, sustainability of smaller players, and quality of service continue to warrant careful consideration. These dynamics highlight the importance of continuous validation of competition policy assumptions against current market evidence,” she said.

She underscored the need for commitment to a sector that has become the backbone of the nation’s digital economy, contributing about 9.1per cent to national GDP as at Q3 2025.

“The telecommunications sector serves as a critical enabler of growth, inclusion, innovation and service delivery across all sectors of the economy,” Mrs Mohammed said.

This development marks more than a policy exercise. It reflects an inflection point for an industry that has been pivotal to Nigeria’s digital transformation, from the early days of voice calls to the current era of mobile broadband, data services, and over-the-top platforms that challenge traditional revenue models.

Why Now? A Market in Transition

Over the years, Nigeria’s telecom sector has experienced explosive growth in subscribers and services.

But while subscriber numbers balloon, questions are emerging around how competition is functioning, especially in a market dominated by a handful of large players.

Smaller operators, industry observers and consumer groups have expressed concern that market dominance by major operators could stifle innovation, limit consumer choice, and ultimately weaken the dynamism that has defined the sector’s past growth.

In response, the NCC is turning to PwC to bring a data-driven lens to the sector’s competitive structure.

Mandated under Section 92 of the Nigerian Communications Act (NCA) 2003 and the Competition Practices Regulations (CPR) 2007, the study will use rigorous analytics to diagnose the current competitive dynamics, identify barriers to entry, and assess whether the regulatory framework is fit for today’s technological realities.

From Voice to Data: A New Competitive Frontier

The telecommunications industry in Nigeria has evolved well beyond voice services. Data now drives value, underpinning e-commerce, digital banking, enterprise services, and the nation’s fast-expanding digital economy. That evolution has also blurred traditional competitive lines.

Global trends, including slowing revenue growth from legacy services and the rise of digital platforms, are reshaping how operators compete.

Against that backdrop, this PwC review is more than regulatory housekeeping: it is a strategic calibration aimed at ensuring competition remains fair, sustainable, and future-ready.

A Fair and Inclusive Process

What stands out about this initiative is the participatory approach. PwC’s engagement includes broad stakeholder consultations, bringing together established mobile network operators, new entrants, industry associations, consumer advocates and civil society, to ensure the study captures the diversity of market experiences and perspectives.

This is critical because the outcomes of the study will inform the NCC’s regulatory roadmap, potentially shaping decisions that could impact pricing behaviour, market entry conditions, and investment incentives for years to come.

What’s at Stake for Investors

For the investment community, the implications are significant. Telecoms is not just one of Nigeria’s largest industries, contributing approximately 9.1 per cent to the country’s Gross Domestic Product, it is also a linchpin of digital growth across sectors.

Here’s what investors should watch:

• Regulatory predictability: A robust competition framework can reduce uncertainty, bolster investor confidence, and unlock capital for network expansion, service innovation, and new business models.
• Market dynamics: By spotlighting how competition has evolved, the study may influence how operators allocate resources between voice, data, enterprise solutions, and digital services.
• Consumer outcomes: Fair competition typically leads to better pricing, improved service quality, and wider access, all of which drive higher adoption and usage, expanding the sector’s revenue base.
• Policy direction: The findings could trigger regulatory reforms with implications for licensing, pricing, spectrum allocation, and consumer protections.

Turning the Page

Telecoms has long been a success story in Nigeria’s economic narrative. But success breeds complexity, and complexity demands clarity.

With this PwC-guided study, the NCC is signalling that it is ready to confront new challenges with evidence rather than intuition.

In doing so, the regulator is not merely evaluating competition, it is shaping the competitive architecture of Nigeria’s digital economy.

For investors, operators and consumers alike, this moment is less about today’s market share figures and more about where the sector is headed next.

As regulators, industry players and analysts await the study’s findings, one thing is clear: the performance of Nigeria’s telecom sector, and the depth of competition within it, will continue to be a defining factor in the nation’s digital transformation.

The outage follows a directive from the National Identity Management Commission (NIMC) mandating telecom operators to transition to a new identity verification platform.

According to the statement by ALTON, the migration has resulted in technical challenges that have affected key services such as:

1. SIM registration
2. SIM replacement
3. SIM swaps
4. Mobile Number Portability (MNP)
5. Activation of new subscribers

ALTON clarified that while the goal of the new platform is to strengthen Nigeria’s identity management system, the transition has disrupted real-time verification processes, rendering SIM services temporarily unavailable nationwide.

Industry stakeholders, including ALTON and member Mobile Network Operators (MNOs), are working with regulatory bodies like the Nigerian Communications Commission (NCC) and NIMC to resolve the integration hurdles.

The association apologized to subscribers for the inconvenience, urging customers to postpone visits to service centers for SIM-related requests until further notice.

Despite the setback, ALTON reaffirmed its commitment to delivering secure, compliant, and high-quality telecom services, promising regular updates as efforts progress.

New data from the Nigerian Communications Commission (NCC) shows that 38 ISPs lost over 18,000 customers between Q3 2024 and Q1 2025, revealing the high cost pressures on households and businesses.

Starlink, the second-largest ISP in Nigeria and widely considered a premium option, suffered a significant drop. Its customer base fell by over 6,000; from 65,564 to 59,509. 

Spectranet, the oldest and largest in the sector, shed 2,189 subscribers, while FibreOne, once the third-biggest ISP by user count, recorded the steepest fall, losing more than 14,000 customers.

These numbers may look small in isolation, but in the bigger market space, they reveal a shrinking space for ISPs. 

While ISPs serve fewer than 300,000 users collectively, Nigeria’s mobile network operators (MNOs), MTN, Airtel, Globacom, and 9mobile, command over 141 million active internet subscriptions. That’s more than 99.8% of the market, and the gap is widening.

Why are users walking away? One clear reason is expenses. In February, the NCC approved a 50% increase in voice and data tariffs across all operators. Starlink soon followed, raising its monthly price from ₦38,000 to ₦57,000 by April. 

In contrast, broadband plans from mobile networks remained relatively affordable, making it a no-brainer for many to switch.

Jide Awe, a technology policy expert and founder of Jidaw.com, links the decline directly to the economic challenges. He told Nairametrics that “The rising costs of data, equipment, and power supply mean many families and small businesses have to cut costs and focus strictly on essentials. Maintaining subscriptions isn’t as much of a priority for many. Starlink, in particular, is more expensive in terms of device and subscription costs.”

Beyond price, MNOs have now muscled into the fibre broadband space, once a core domain for fixed-line ISPs. MTN and Airtel, for instance, are aggressively rolling out Fibre to the Home (FTTH) services, directly competing with traditional ISPs, and with more resources and deeper infrastructure reach.

“I don’t think this is fair to the smaller operators (the ISPs),” said Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON). He also pointed to the tariff hike and the massive disparity in market share as additional issues.

It’s not just competition or cost. Operational realities are difficult for ISPs. Running diesel-powered infrastructure in a country with unstable power supply eats into profits. International bandwidth is so expensive, Right of Way (RoW) fees and multiple taxes in different states further drain resources. Urban areas suffer frequent cable vandalism and theft, slowing down service and customer confidence.

Of the 234 licensed ISPs in Nigeria, only 127 had any active users in Q1 2025. Many operate in survival mode, with no clear path to scale. Meanwhile, mobile networks are doing better, buoyed by reach, convenience, and price flexibility.

So what’s next for ISPs?

Awe believes the current model has run its course. “The ISPs should explore the provision of tailored services for SMEs, real estate, health, and education. With strategic planning, they can further digital transformation within sectors and across industries. In this regard, it is advisable to collaborate with agile, tech-savvy SMEs and startups to drive innovation.”

He also advises them to adopt bundled service models and reduce operating costs by investing in solar energy and local alternatives. Improving customer service, reliability, and delivering niche solutions could also help claw back market relevance.

But beyond business tweaks, many operators say the rules of the game need to change. NCC and policymakers need to create a level playing field that doesn’t leave fixed ISPs to fend for themselves against the Goliaths of the telecom industry.

Without regulatory support and an updated broadband strategy, Nigeria could end up with fewer ISPs, and even fewer real broadband choices.

This milestone signifies a major leap forward in developing Nigeria’s internet infrastructure and underscores the critical role of local internet infrastructure in driving economic growth, innovation, and connectivity for millions of Nigerians.

“This milestone is more than just a number. It’s a symbol of Nigeria’s digital maturity and our united strides towards becoming a tech-driven nation. By keeping local internet traffic within Nigeria, we reduce costs, improve speeds, and ensure our digital economy thrives with homegrown infrastructure.” said Muhammed Rudman the CEO of IXPN. “Achieving 1 Tbps is a significant victory for Nigeria’s ICT ecosystem, a breakthrough for domestic internet traffic. It serves as a catalyst, enabling millions of Nigerians to enjoy faster, more affordable, and resilient internet connectivity.”

What it means for Nigeria 

1 Terabit per second is a game-changer for Africa’s most populous country. To put it in perspective:

• Mega Video Calls: A speed of 1 Tbps can support over 1 million concurrent Zoom calls, allowing students, entrepreneurs, and professionals to connect and drive Nigeria’s digital revolution.

• Streaming Frenzy: With 1 Tbps, more than 200,000 people can stream HD Nollywood films or movies on Netflix simultaneously without any buffering or interruptions.

• Data Superpower: This speed enables the transfer of the entire contents of 50,000 smartphones—including photos, apps, and videos—in just one second.

For Nigeria, hitting this milestone means reducing reliance on international bandwidth, decreasing latency for local services, and strengthening our position as Africa’s digital heartbeat.

This milestone is a testament to the power of collaboration, innovation, and the relentless pursuit of a faster, more connected Nigeria.

This accomplishment goes beyond technical advancements; it has significant economic implications.

By encouraging local traffic exchange, IXPN reduces dependency on international bandwidth, leading to:

• Significant Cost Savings: By utilizing local data exchange, Nigerian businesses can save millions of dollars annually on international bandwidth fees.
• Enhanced Speed and Connectivity: With reduced latency, users experience smoother streaming, gaming, and real-time services, enhancing their overall online experience.
• Increased Resilience: Strengthening Nigeria’s internet infrastructure protects against global disruptions, ensuring consistent access to vital services such as healthcare and education.
• Improved Efficiency: Optimizes digital services like fintech, edtech, e-commerce, and e-health, propelling innovation and growth in these sectors.

Surveys conducted among IXPN members over the years have shown a growing percentage of local internet traffic in Nigeria. A recent report indicates that some connected members can localize or domesticate up to 70% of their internet traffic through IXPN.

“As more content providers, ISPs, banks, and public institutions localize their traffic through the IXP, end users benefit directly,” added Raphael Iloka, marketing manager. “We’re not just routing data — we’re building the foundation for Nigeria’s digital economy.”

The 1 Tbps peak highlights the remarkable impact of collaboration among all stakeholders. This milestone is a significant achievement not only for IXPN, but for the entire ICT ecosystem.  IXPN deeply appreciates the vital contributions of all stakeholders involved.

He thanked members and partners of IXPN, saying, “Your trust and participation have been essential to our growth. Together, we have established a hub where networks can interconnect, innovate, and thrive”.

“To the government and regulators, we express our sincere appreciation to the Nigerian Communications Commission (NCC) for all its support over the years and its vision of a digitally inclusive Nigeria”.

“We are grateful to partner organizations like the Internet Society (ISOC). Your support and advocacy in domestic peering empower us all.

Earlier in his presentation, Raphael Iloka, technical sales & marketing manager at IXPN said that reaching 1 Tbps is just the beginning.

“As data demands skyrocket with AI, IoT, 5G, and immersive technologies, IXPN is committed to staying ahead of the curve.

Here’s how:

Scaling Infrastructure:

“We are investing in advanced hardware and software to support multi-terabit capacities.

Enhancing Resilience:

“We are strengthening our network to ensure uptime, security, and adaptability in an ever-changing digital landscape.

Empowering Underserved Communities:

“We aim to expand our reach to rural areas, bridging the digital divide, and supporting agritech, edtech, and telehealth.

Strengthening Africa’s Digital Sovereignty:

“Partnering with regional IXPs to keep Africa’s data on the continent”.

On his part, Uchechukwu Ugwuanyi, assistant general manager at IXPN said that as Nigeria’s largest Internet Exchange Point, a non-profit and membership-based organization, they are serving as a critical hub for interconnection between ISPs, content networks, enterprises, and digital platforms.

“Through its neutral and high-capacity infrastructure, IXPN facilitates the efficient exchange of internet traffic within Nigeria, promoting faster and more reliable connectivity across Nigeria and the wider West African region”.

IXPN serves as West Africa’s premier Regional Internet Exchange Point (RIXP), boasting an impressive network of over 130 interconnected active members.

This includes industry giants such as Google, Meta (Facebook), Microsoft, TikTok, Amazon, and all Nigerian Mobile Network Operators (MNOs), among others.

By establishing a single connection to any of the 13 IXPN sites across Nigeria, members gain unparalleled access to one another, fostering collaboration and innovation.

IXPN’s infrastructure includes seven strategically located sites in Lagos, supplemented by locations in Abuja, Port Harcourt, Enugu, Kano, Delta, and Gombe.

The Lagos Points of Presence (POPs) are all interconnected through high-capacity links, ensuring robust connectivity that extends to other cities.

This initiative is crucial for bridging the digital divide, bringing essential internet services to unserved and underserved areas.

By harnessing machine learning, natural language processing, and real-time data analytics, telecom companies are collaborating with cloud communication platforms, evolving from traditional service providers into tech-driven innovators—often referred to as “techcos.”

This shift opens up new revenue streams, positioning telecom operators as key players in the digital economy.

AI enhances customer experience

At the forefront of AI’s influence is the way it improves customer interactions. By analysing vast amounts of data, AI personalises engagements through tailored recommendations and promotions, predicts maintenance needs such as customer interactions and feedback to identify trends or potential issues, and proactively manages services.

AI-powered virtual assistants and chatbots offer customers quicker resolutions and a more reliable service, provide 24/7 support, and improve customer satisfaction and loyalty.

Optimising network operations

AI-driven network solutions are reducing congestion and enhancing operational efficiency. Advanced AI algorithms monitor large volumes of real-time network data, enabling telcos to identify potential issues, predict failures, and optimise traffic flow.

For example, AI can automatically adjust network settings to redirect traffic during periods of congestion or equipment failure, minimising disruptions. AI-driven network optimisation extends to energy management as well, where it adjusts power consumption based on predicted peak usage times, contributing to more sustainable operations.

Driving innovation

AI is also driving innovation within telecoms, fostering new services and business models. With the integration of AI and 5G networks, telcos are expanding into industries like healthcare, agriculture, and logistics, offering smart IoT applications that manage resources in sectors such as smart cities and energy grids.

This creates opportunities for telcos to venture into new markets and provide cutting-edge services, like smart home solutions and AI-based IoT integrations that meet the evolving demands of the digital economy.

Improving decision-making

AI’s ability to process and analyse customer data in real time enables telcos to make informed strategic decisions.

The data-driven insights from AI allow operators to anticipate customer needs and market trends.

With 65% of customers reporting higher satisfaction from AI-powered interactions, telcos can create more engaging and predictive CX journeys, resulting in increased Average Revenue Per User (ARPU) through smarter upselling and cross-selling initiatives.

Addressing key challenges

AI is also instrumental in solving some of the persistent challenges faced by Mobile Network Operators (MNOs):

• Network Congestion: AI predicts and manages traffic patterns, dynamically adjusting resources to prevent congestion and ensure efficient network performance.
• Competition: Predictive analytics help MNOs understand market trends and customer preferences, enabling them to offer personalised services that stay ahead of competitors.
• Churn: By analysing customer behaviour, AI identifies potential churn risks, allowing operators to implement targeted promotions and improve customer support, thereby retaining customers.
• Fraud: AI’s sophisticated algorithms detect and prevent fraudulent activities in real time, protecting the network and its users. AI’s fraud detection is already highly successful, with over 90% of companies reporting real-time fraud prevention.
• Sustainability: AI contributes to sustainable practices by optimising energy use in network operations, adjusting power consumption based on anticipated peak usage times.

Monetising AI in telecommunications

The integration of AI presents a wealth of monetisation opportunities for telecommunications companies.

AI-driven services such as advanced analytics, network management tools, and personalised customer experiences not only attract new customers but also enhance retention among existing users.

Internally, AI-powered tools streamline processes, reduce operational costs, boost efficiency, and drive profitability.

For instance, conversational AI chatbots automate routine enquiries, such as balance checks, top-ups, and FAQs, significantly lowering customer service costs.

These tools handle high volumes of interactions simultaneously, ensuring faster response times and freeing agents to address complex issues.

Predictive AI analytics further drive revenue by enabling precise upselling and cross-selling opportunities, such as recommending data plan upgrades to customers approaching their limits.

Telecom leaders around the world have harnessed AI through Communication Platforms as a Service (CPaaS) solutions.

These innovations allow customers to perform actions like bill payments, subscription management, and support queries via messaging platforms like WhatsApp and RCS, simplifying customer interactions and driving engagement.

Notably, McKinsey’s research highlights the financial advantages of AI adoption, with AI-leading companies achieving a five-year revenue CAGR 2.1 times higher than their peers and delivering a total return to shareholders 2.5 times greater.

This underscores the transformative potential of AI for telcos striving to remain competitive and profitable.

Preparing for AI integration

Before integrating AI, MNOs need to carefully consider several critical factors:

1. Data Privacy and Security: Compliance with data protection regulations is essential, ensuring customer data is handled securely.
2. Technical Expertise: Telecom companies need to either build or acquire expertise in AI and data science to manage AI integration effectively.
3. Infrastructure Compatibility: Assessing and upgrading existing infrastructure is crucial to support AI technologies.
4. Change Management: As AI becomes integral to operations, staff training, process adaptation, and alignment of business strategies with AI capabilities are necessary.

Overcoming barriers to AI adoption

Despite the benefits, several factors hold back some MNOs from adopting AI. The investment required for AI technology, including infrastructure upgrades and skilled personnel, can be prohibitive due to high initial costs.

Integrating AI into existing systems and processes presents complex implementation challenges. Managing the vast amounts of data generated by telecom networks, particularly with legacy systems, can be daunting.

Additionally, navigating the regulatory landscape concerning data privacy and AI ethics adds to the complexity.

Organisational inertia and resistance to change further slow-down the adoption of new technologies.

By addressing these challenges, telecom operators can effectively leverage AI to transform their operations, enhance customer experiences, and unlock new revenue opportunities while boosting efficiency and fostering customer loyalty.

The future of telecommunications is undeniably intertwined with AI, promising a more efficient, innovative, and customer-centric industry.

Core inflation touched 33.2% in March with food inflation now an eye-watering 40% – the highest in post-1999 democratic Nigerian history.

It may sound a bit apocalyptic but we are heading towards our all-time high of 47.6% recorded in January 1996.

We have already burst past March 1996’s reading of 31.7%. In a note on future inflationary trends in Nigeria, Aaron O’Neill at Statista made two salient points:

Our inflation has been higher than the African average for more than a decade now and a significant decrease is unlikely for quite some time.

The International Monetary Fund’s expectation that annual inflation this year will average out at 22.96% is increasingly looking a tad too optimistic.

The bigger challenge though, in his view, is our inflation’s unsteadiness. Food inflation is now at levels not seen since August 2005.

Plantain prices have increased by 129%, rice by 98%, onion prices by 97%, bread by 71% and beans by 64% – between January 2023 and January 2024 alone according to the National Bureau of Statistics.

An inflation rate that is all over the place is usually a sign of an economy that is huffing and puffing, causing prices to fluctuate, and unemployment and poverty to increase.

Nigeria’s economy – a mixed economy where state participation in economic life is higher than most free-market economies – is not entirely in bad shape.

More than half of its Gross Domestic Product (GDP) is generated by the services sector – chiefly telecommunications and finances, typically a feature of advanced economies.

Notwithstanding, the private sector is teetering. The Financial Times reports that Nigerian Breweries (NB), which is part-owned by Heineken, has increased prices three times this year.

“So dire is the economic distress in Africa’s most populous nation that the brewer’s chief executive, Hans Essaadi, complained on an investor call that “customers can no longer afford Goldberg, a cheap and well-loved lager,” the London-based publication highlighted this as illustrative of the travails of some of the country’s biggest corporates.

Fixed foreign currency-denominated costs, import restrictions, uncertain policy-setting, a weak Naira and insecurity in many operating areas have forced most like NB to raise prices; some like Procter & Gamble to quit manufacturing in-country or others like GSK and Bayer to contract third parties to distribute their products.

There is one sector, however, that has seen little action in this direction.

The Imperative of Telecom Tariff Revision

At the nexus of connectivity and commerce, the telecommunications industry in Nigeria plays a dual role: as an economic engine and a societal enabler.

The sector’s investment profile in the country stood at $75.6 billion as of 2021, according to the Nigerian Communications Commission (NCC).

Nigeria’s 221.7 million active voice subscriptions and 160.2 million data subscriptions now support a substantial 14% of GDP.

The country’s rising teledensity is such a critical linchpin for economic growth and infrastructural development that any disruptions exact a heavy price.

A 2021 SBM Intelligence survey found that 53% of respondents were “very” negatively impacted by an NCC-mandated shutdown of telecom services in the North-West due to regional security operations.

Moreover, the sector stands as a significant employer, empowering millions of Nigerians with opportunities for livelihood and advancement.

As such, the industry’s health is not merely a matter of corporate profit margins but a national imperative intertwined with the fabric of its progress.

Central to the sustenance of any industry is a conducive economic environment that allows for sustainable growth and innovation. However, the existing regulatory framework, which shackles tariff adjustments, undermines this fundamental principle.

While other sectors have adeptly responded to economic fluctuations by revising prices, the telecom industry remains bound by regulatory constraints, impeding its ability to adapt to changing market dynamics.

A Perfect Storm: Challenges Hinder Growth

While Nigeria’s four Mobile Network Operators (MNOs) relentlessly strive for service excellence through consistent network upgrades, their efforts are stymied by environmental and infrastructural obstacles.

Frequent fibre optic cable cuts due to road construction and vandalism; multiple taxation, coupled with the ever-present challenge of acquiring rights-of-way including charges related thereto, act as significant impediments.

These issues, further compounded by exploitative rent-seeking practices, have long plagued the industry, defying resolution despite concerted efforts.

These challenges are not lost on key stakeholders like the Nigerian Communications Commission (NCC), the Ministry of Communication, Innovation & Digital Economy, and a well-informed consortium of governmental and media entities. MNOs have proactively engaged through media platforms, highlighting these issues and advocating for urgent government intervention.

The industry’s push for Critical Infrastructure Protection for ICT/Telecommunications and the reduction of exorbitant right-of-way (RoW) charges exemplify this proactive approach.

Katsina, Nasarawa and Zamfara now lead the country in eliminating RoW charges but much of the country remains an operational nightmare for MNOs.

The Unsustainable Squeeze: Rising Costs, Stagnant Tariffs

Despite the advent of GSM technology 23 years ago, a disquieting public perception persists – that of consistently poor Quality of Service (QoS).

While this perception may have elements of truth, it’s crucial to recognise the mitigating factors beyond the control of the operators.

Economic hardship has led to an exponential increase in the cost of all consumer goods and services, with a glaring exception: telecommunication services.

The reason? Price regulation by the NCC.

This price stagnation stands in stark contrast to the reality faced by MNOs. The industry is heavily reliant on foreign exchange (FX) for crucial equipment and services.

Most telecommunication equipment are imported with the absence of local alternatives as there are primarily four to five core manufacturers of telecommunications equipment and none is situated in Nigeria, or even Africa.

The depreciation of the Naira has significantly inflated operational costs, further straining already tight profit margins. It is unsustainable to expect ever-increasing network investments in the face of frozen tariffs.

The Current State of Play

Nigeria’s approach to setting tariffs in the telecoms sector has evolved through a combination of regulatory frameworks, market dynamics, and economic considerations.

During the industry’s transformation in the early 2000s with the issuance of licenses to private operators, tariff regulation was crucial in ensuring consumer protection and promoting fair competition.

The NCC implemented tariff guidelines to prevent anti-competitive practices and safeguard consumers from excessive charges.

Tariff regulation also aimed to balance the interests of consumers with the need for MNOs to generate revenue for network expansion and improvement.

For an industry in its infancy striving to offer Nigerians access to new forms of technology and communications, it was necessary to guide pricing to enhance market adoption. Competition added extra pressure on prices, a wealth of choices ultimately benefiting the consumer. Through it all, the margins were sufficient to incentivise operators to carry out the most extensive investment rollout in Nigerian history.

The market is more mature now and the booming economy of the 2000s is a fading memory. Mobile phone, and broadband penetration are now at over 100 and 40% respectively, while the entire country is practically covered by 3G and 2G.

The digital economy with the immense success of content creators, e-commerce, software education, financial inclusion, cross-border freelancing and social connectedness has been built on the back of the telecom industry’s investment priorities.

The cost of providing existing services, the competitiveness required to sustain the continued rollout of 4G and eventually 5G technology and wider market dynamics have meant the current tariff structure is less a cushion for customers and more a shackle for operators.

The Path Forward: Rethinking Tariffs 

In advocating for tariff revision, it is imperative to contextualise the industry’s plight within the broader narrative of economic sustainability and national progress. Urgent measures must be taken to safeguard an industry that serves as a catalyst for economic growth and societal empowerment.

Tariff revision is not merely a corporate prerogative but a strategic imperative essential for the industry’s survival and a calculated investment in Nigeria’s future.

The additional revenue generated will directly translate into network infrastructure upgrades and modernisation. This translates to tangible benefits for all stakeholders.

A conducive regulatory environment is important in fostering the telecom industry’s resilience and vitality.

Responsible government policies that prioritise infrastructure protection and investment incentives are indispensable in fortifying the industry’s foundations. Moreover, enhancing the operating environment for telecoms is not only in the national interest but also a catalyst for attracting Foreign Direct Investment (FDI) essential for sustainable growth.

Many may argue that reviewing tariffs at a time of stagnant wages, decreasing investments and rising prices is unreasonable but ensuring the long-term viability of a critical industry requires a collaborative effort.

Regulators need to consider a data-driven and transparent tariff review that reflects the economic realities faced by the sector. Aminu Maida, the NCC’s Executive Vice-Chairman rightly told the Nigerian Information Technology Reporters Association (NITRA) in February that customers expect excellent quality of service and operators will be held accountable for poor service delivery.

Indeed, customers deserve the best possible service, and operators, going by the billions of dollars in present and future investment commitments, appear dedicated to delivering it. A sustainable and well-regulated telecoms sector is the cornerstone of achieving this shared vision. It starts with rethinking how much operators are allowed to charge their clients.

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The Writer: Ikemesit Effiong is a legal practitioner, Partner and Head of Research at SBM Intelligence and Chairman of the Technology Committee of the Nigerian Bar Association Section on Business Law.

This was even as it said the same codes were introduced for mobile lines in order to authenticate and protect the identities of users.

This was disclosed by Dr. Aminu Maida, the executive vice chairman of the Nigerian Communications Communication (NCC), at the NCC special day during the 45th Kaduna International Trade Fair held in Kaduna.

Represented by Mr Reuben Mouka, director Public Affairs at NCC, Maida, said that NCC is an independent national regulatory authority that oversees telecommunication services in Nigeria.

“Our vision at NCC is to create a dynamic regulatory environment that ensures universal access to affordable and equitable service and supports the nation’s economic growth, he said.

“As a regulator of the telecommunications sector in the country, the Commission carries out its functions to ensure service availability, accessibility, affordability, and sustainability for all categories of consumers who are leveraging on ICT and telecoms to drive personal and business activities.

He said “In 2023, the telecoms industry contributed to the nation’s GDP, which stood at 13.5%, saying that “as we promote economic growth through the development of local content, we must also address the challenges faced by consumers, and NCC is committed to protecting their rights while ensuring their satisfaction.

“We therefore encourage businesses and service providers to prioritise customer satisfaction and uphold the highest standards of service delivery. With our keen interest in and commitment to consumer protection, the NCC has implemented measures to safeguard the interests of consumers and businesses alike.

“We have established a robust regulatory framework that promotes transparency, quality of service, and fair competition. Additionally, we have set up channels for consumer redress, ensuring that consumers can resolve disputes in a timely and efficient manner.

“The Nigerian Communications Commission (NCC) had, on May 17, 2023, directed all licenced Mobile Network Operators (MNOs) to commence implementation of approved Harmonised Short Codes (HSC) for providing services to Nigerian telecom consumers The measure initiated by the Commission is a bid to improve the quality of experience (QoE) of consumers across all mobile networks.

“The new initiative is enabling consumers using the over 224 million active mobile telephone lines in Nigeria to use the same codes to access services across all networks. For instance, the same code *310# will be used for checking airtime balance across all the networks.