But over time, this began to evolve. As technologies advanced and consumer needs shifted, telecom operators introduced fixed-line data, SMS, mobile services, and eventually, mobile data; all of which revolutionised how people communicated and accessed information on the go.

And with the rise of smartphones and the internet, telcos were pushing to become more than just connectivity providers. And now, they’re expanding again.

Today, telcos have become platform businesses that provide a curated ecosystem of third-party products and services.

Think of the telcos of old as a single store located in a much bigger shopping mall that offered very niche solutions. But now, they’re in the entire mall, which brings together different sets of products and services into a bundle or package so that it’s easier for customers to get everything they need in one place.

These value-adds enrich the customer experience, deepen engagement and open strategic new revenue streams.

For example, a customer who wants to leverage the speed and reliability of their new fibre line could also subscribe to Netflix or EA Games via their current service provider and get charged for that service on their telecoms bill. Similarly, if an enterprise customer wanted Microsoft 365 memberships for their employees, they can now buy a bundle from an operator and then get billed for their enterprise telecommunications, as well as their Microsoft 365 subscriptions. 

Mobile operators, fibre providers, MVNOs, and others are all incredibly well-positioned to become an on-sell partner and distribute another business’s products and services.

By doing so, brands can instantly access new revenue streams. These service providers already have all the necessary information to send their customers a bill, so they can simply add whatever extras their customers are buying to their bill.

Additionally, these service providers have a wealth of information about their customers that they can use to target customers based on their data usage patterns.

How does it all work? APIs allow these different platforms and applications to communicate and exchange data with each other.

This essentially creates a digital bridge between the operator and third parties, making it possible to effectively and securely distribute a partner’s products and services.

By offering relevant, trusted third-party solutions alongside core connectivity, telcos can evolve into digital ecosystem partners.

Convenient for customers, profitable for service providers, this kind of approach can be the difference between a one-time buyer and a long-term loyal customer.

VAS-X serves as the technology provider and supports telcos with the central API connectivity and billing environment that allows them to offer a plethora of new billable services to their subscribers, opening up revenue streams and driving subscriber lifetime value. 

The telecommunications industry has undoubtedly witnessed tremendous growth and development in Nigeria. It is a sector that directly impacts every aspect of human life, business, education, governance, family, entertainment, etc. Growth in the industry was slow for several years after Nigerian Independence.

The total telephone subscriptions from Independence in 1960 to 2001 was a paltry 400,000 connected analogue lines, translating to a teledensity of 0.04%.

This number of telephone lines was considered inadequate for a population of 126.2 million in 2001, according to the World Bank, when the Nigerian Communications Commission (NCC) licensed the Digital Mobile Operators.

Before the advent of digital mobile service in the country, applicants for telephone lines waited for years to get a telephone line. The waiting time in some cases was up to ten years. Customers who needed to make international calls went to the international call centre at NECOM House Marina, Lagos, to make such international calls.

As a young Commercial officer in the Nigerian External Telecommunications (NET) Limited in 1982, I witnessed parents from different parts of the country come to NECOM House on Marina, Lagos, to make international calls to their wards overseas.

NET Limited Call centre was one of the few locations where customers could make international calls. The only exceptions were some embassies, oil companies and international banks, and a few individuals with International Direct Dialing (IDD) and Alternate Voice and Data (AVD) services.

Generation Zs (people born between 1981 – 1990) and Generation Alpha (born between 2010 – 2020) would find this amusing; it sounds more like a fairy tale. Yes, those were the days we were still in the dark. The situation persisted even after the emergence of the Nigerian Telecommunications Limited (NITEL) in 1985.

The military government formed NITEL through the merger of Posts and Telecommunications (P&T), responsible for domestic/national telecommunications services, with NET Limited, responsible for international telecommunications services.

I can vividly recall that at NITEL, Shomolu Exchange, where I was the Business office Manager, the organization processed applications under what was then known as “Capital contribution”, a scheme where applicants contributed various sums of money, depending on location, to get NITEL services extended to their homes and offices.

In realization of the challenges, and the inability of NITEL, as a monopoly, to provide enough telephone services in the country, the then Military government promulgated Decree 75 of 1992, establishing the Nigerian Communications Commission (NCC) as the industry regulator for telecommunications.

The establishment of the NCC set the pace for the deregulation of the sector—the then Minister of Communications ‘ Engr. Olawale Ige played a vital role in the deregulation exercise. Engr. Ige in the year 2000, eventually became a member of the Board of Commissioners at the NCC.

The Decree specified the following, among others, as the functions of the NCC. Facilitate investments in and entry into the Nigerian market, protect and promote the interest of consumers against unfair practices, and ensure that licensees implement and operate the most efficient and accurate billing system at all times.

Other functions include:

• Promoting fair competition in the communications industry.
• Protecting communications services facilities.
• Preventing service providers from misusing market power or anti-competitive and unfair practices, among others.

The Decree further stated the objectives of the Commission to include the promotion and implementation of the national telecommunications policy, establish the regulatory framework for the Nigerian Communications industry and promote the provision of modern, universal, efficient, reliable, affordable, and easily accessible communication services.

Some other objectives mandate the Commission to encourage local and foreign investments in the Nigerian communications industry, introduce innovative services and practices in the sector, encourage fair competition, and promote Nigerian participation in the ownership, control, and management of communication companies and organizations.

The Nigerian Communications Act set the above objectives to ensure a vibrant communications sector, with functions and purposes necessary for a potent independent regulator. Industry watchers believe that the Commission’s performance in regulating the industry depends on its ability to align actions with the objectives.

At the return of democratic governance in 1999, the government of President Olusegun Obasanjo was keen on transforming the communications sector. President Obasanjo personally invited investors to invest in the industry during his diplomatic shuttles.

Nigeria was smarting from the effect of military governance. The developed countries were still uncertain of the safety of investments in the country due to prolonged military rule.

Some major global telecommunications companies, like Vodafone and others, spurned the invitation, showing a lack of interest in the Nigerian telecommunications market. The international community still viewed the country as a pariah at that time.

Despite the lukewarm attitude received from some international investors, the government was determined to confront these challenges.

In a demonstration of its commitment, a Board of Commissioners was constituted for the Nigerian Communications Commission, Chaired by a renowned technocrat, Alhaji Ahmed Joda, and the former President of the Association of Telecommunications Companies of Nigeria (ATCON), a technocrat, an astute engineer, Dr Ernest Ndukwe, FNSE, as the Executive Vice-Chairman and Chief Executive of the Commission.

The other members of the Board were Engr. Olawale Ige, former Minister of Communications, Austine Otiji, former MD of NITEL, Engr. Patrick Kentebe, Engr. Shola Taylor, Engr. Isaiah Mohammed, Engr. Zimit, Engr. Don. Udeh, among others.

Ahmed Joda’s Board understood the enormity of the responsibility placed on them and set out to build one of the most respected regulatory bodies in the world.

The Board embarked on extensive consultations worldwide with regulators such as the Federal Communications Commission (FCC) in the United States of America and other regulatory bodies worldwide.

The Commission also approached the World Bank for assistance and support. It engaged the services of consultants such as Deloitte & Touché, Detecon GmB of Germany, USAID, and Growing Businesses Foundation, among others, to assist with building a strong, independent regulatory body for the communications sector.

Two critical objectives to address were;

• the need for institutional strengthening through the adoption of an appropriate organizational structure and
• the engagement of the proper fit of professionals to implement the organizational objectives.

 The Board enjoyed the government’s support, which allowed it to operate freely without interference. President Obasanjo’s government respected the regulator’s Independence and did not interfere directly in its regulatory functions.

The government of the day had the political will to build a solid and vibrant communications industry.

It neither interfered with the Commission’s recruitment processes nor the regulatory functions of the Commission. The Communications Committees in the National Assembly were very professional and thorough with their oversight functions. All these contributed to the birth of a potent, vibrant, independent regulator.

Topmost on the agenda of the Commission was the licensing of operators to provide services to Nigerians, who long desired communication services.

The Board engaged the services Spectrum International Consulting Limited of UK as the Consultant to advise on the appropriate auction method for the spectrum licenses. Simultaneously the Commission was addressing the institutional strengthening, spectrum auction methodology, and engagement of competent human capital to deliver on the mandate.

Some of the factors that contributed to the success of the various exercises in the Commission include the political will on the part of the federal government to transform the sector, the professionalism of the Board of Commissioners, focused leadership, clarity of vision, and an understanding of the assignment, selfless leadership, a commitment to hiring the best hands, and desire to succeed. To remain a professional regulatory body, the Commission should maintain these tested virtues in its regulatory processes.

 The organization must ensure that responsibilities are clear and competence is recognized. The Commission should maintain the six core values of integrity, excellence, professionalism, responsiveness, innovation, and commitment in its oversight of the communications sector.

There is a need to underscore the point that recruitment processes should take cognizance of people who possess the required fit for the job. When regulators compromise on getting the right persons for the job, it leads to a decline in standards and effectiveness.

The actions of the supervising Ministry should not in any way undermine the Independence of the regulator. The Commission should be professional in handling matters that could compromise its Independence and thus weaken the organization’s ability to regulate the sector effectively.

 The current data from the communications regulator shows the sector’s growth level. The subscriber base for mobile services as of June 2023 is 223,338,215. Fixed wired/wireless services, 96,913, VoIP 228,553, bringing the total number of subscribers to 223,663,521.

Recently the Commission licensed 25 Mobile Virtual Network Operators (MVNO) to provide services in the country.

These new licenses issued by the regulator further underscore the maturity of the sector and the opportunities that abound.

The revolution in the Fintech space, education, commerce, agriculture, health, security, and entertainment, all enabled by internet technology, cannot be over-emphasized. The e-enablement in these sectors requires that the regulator should not be hindered from performing its functions.

The telecommunications sector, a sub-sector of the ICT sector, which contributed 14.13% to GDP, out of the 17.47% for the entire ICT sector collectively in Q1 2023, should be given its flowers.

The imperative of sustaining these significant milestones in the communication industry is critical. The 22 years of mobile communications in Nigeria have improved the quality of life in commerce, education, security, health, entertainment etc.

Digital technology’s impact on Nigerians’ standard of living cannot be over-emphasized. Imagine banking without the internet, the services of online stores such as Konga, Jumia and others.

The introduction of hailing services like Uber, Bolt, and others. What of payment platforms for online transactions, mobile banking, and e-enabled services? There are just too many businesses piggybacking on digital technology.

These have happened because the organization’s Board, management and staff laid a solid foundation 22 years ago.

The subsequent Boards, management and staff of the Nigerian Communications Commission should continue to build on the labour of these heroes of digital Nigeria. Sustaining the gains made so far in the sector is the responsibility of all stakeholders, especially the regulator.

The revolution in the digital technology space must continue unabated.

Tony Ojobo, PhD., former Director of Public Affairs, Nigerian Communications Commission, and President African ICT Foundation, wrote from Abuja.

These are amongst the major trends Enea has highlighted in a new report entitled: 7 Trends That Will Shape the Mobile Industry In 2022.

Each year, Enea surveys a cross-section of mobile industry thought leaders and experts to identify the key trends for the next 12 months.

For 2022, those thought leaders included ABI Research, Analysys Mason and Strategy Analytics.

The trends in 2022 include:

1. State-sponsored cyber-attacks accelerate and evolve: 

2022 will undoubtedly bring an increase in the number and sophistication of nation state cyber-attacks on mobile telecom infrastructure.

As tensions between global power brokers intensifies in hotspots such as Taiwan, Ukraine and Kazakhstan, mobile networks’ value as a target for espionage and disruption will soar.

Furthermore, IT/OT/telco convergence and 5G’s expanded attack surface including 2G, 3G and 4G weaknesses will all provide ripe terrain for achieving geopolitical ends via cyber warfare.

2. Hyperscaler protocols dictate terms to operators: 

Complex encryption protocols, such as Google’s QUIC, based on UDP, were meant to keep subscribers safe and improve web and video performance. And they have.

But they’ve left operators scrambling to maintain the traffic visibility they need to stay in the game.

Expect more trouble ahead as UDP dominates traffic, and newer encryption protocols like eSNI and DoH/DoT become the norm.

3. Video delivery shifts to new edge clouds:

According to analysts, the edge cloud market for mobile operators is set to grow significantly in 2022. Ultra-low latency applications like live multi-angle sports streaming and cloud gaming will be at the forefront of this growth.

While Content Delivery Networks (CDNs) have been bringing content and users closer together for many years, the nature of the edge cloud tilts the game in favor of mobile operators, who have ready-to-go locations across thousands of towns and cities.

4. Sustain the environment AND the bottom line: 

Driven by the disruptive impact of climate change, consumer pressure, and a need to cut costs, “greenwashing” is out.

Impactful earth-friendly strategies are in – but operators need to go beyond the straightforward savings of virtualization. For example, Subscriber Data Management systems with flexible capacity expansion and smart synchronization between servers can deliver TCO reductions of up to 50 percent.

What’s more, RAN congestion management can increase cell site capacity by 15 percent also reducing hardware footprint.

5. Wi-Fi ties the knot with 5G: 

As mobile operators deploy 5G, they’re struggling with in-building penetration that is up to 100x worse than 3G/4G.

This undermines their ability to displace the residential broadband market and support indoor enterprise IoT use cases.

With Wi-Fi 6 tripling the available spectrum of earlier WiFi specifications, 2022 will see operators building their own Wi-Fi 6 capacity in public locations combining Wi-Fi 6 and 5G.

Jan Häglund, CEO of Enea said: “For mobile operators, 2022 will usher in both opportunities and threats that deeply impact their bottom line. In the past, network providers had to grapple with encroaching hyperscalers, now a plethora of attack vectors make security in particular a critical consideration. We trust that the trends highlighted in this year’s report provide a roadmap for mobile operators to navigate our post-pandemic world.”

The Full Report Can be Found HERE.