Opinion
Internal haemorrhage as threats to telecoms services
By Sonny Aragba-Akpore
Without sounding a death-knell,telecommunications service companies are troubled.
Although,the big players display glamour and pictures of “all is well” what you see is
nothing but a facade as the companies are grasping for breath as a result of the internal haemorhage plaguing their service provision.
And unless government rejigs its policy on foreign exchange as a quick intervention, to cushion importation of equipment to boost services,many of the so called A grade players may go into worst shapes.
Operating Expenditure (OPEX) has more than doubled since 2021 and with dwindling foreign inflows through Foreign Direct Investments(FDIs), some telcos are now holding on to straw to survive.
The operators see their biggest challenges in their inability to provide quality of service and a result of recurrent vandalism of their infrastructure.
Every operator has become its own electricity power provider as supplies from national grid are now a pipe dream.Added to this, the spiral costs of diesel and its alleged incessant theft of same by unnamed persons creates bigger problems.
The rising cost of diesel is very worrisome as a litre that sold between 1200/1400 at pump landing at site is now as high as NGN 2000 per litre on site in some parts of the country.
Confirming the internal haemorhage,in the sector,an official who wants to be anonymous said part of the haemorrhage stems from significant high interconnect debts between players. Telcos are being owed alot of money thereby leading to terminal struggles for survival.
The telcos also list Political incursions as a major drawback hindering survival.
On the issue of Forex sources : “willing seller, willing buyer on forex, problem is bills that are being settled now due to long wait for forext transactions when Forex was at 700N =US1 and now being paid at the prevailing rate of 1,400+
High OPEX remains a major issue coupled with Low FDIs leading to concerns in industry sustainability.
They claim that the regulator is in a dilemma especially on tariff hike issues.
So Telcos are now on bent knees scrapping to provide services below cost.
And the Government looks elsewhere inspite of manifest inflation on every single item especially now that Infrastructure are experiencing decay and to replace same is slow and painful as telcos lament their inability to deliver robust Services .
To underscore a picture of this haemorrhage,
MTN Nigeria and Airtel Africa (the only two telcos publicly traded) lost N479 billion to currency revaluation and recorded reduced profit margins in the first nine months of 2023.
In its financial report for Q1, 2024, for instance,MTN reported a second successive loss after declaring a loss after tax of N392.7 billion for the first quarter of 2024.
This is coming despite growing its service revenue by 32.0 per cent to N747.3 billion year-on-year, the telco recorded its second loss since it was listed on the Nigerian Exchange.
It noted that its net loss for the quarter further increased its accumulated losses and negative shareholders’ funds to N599.2 billion and N434.7 billion, respectively. It highlighted that its profit after tax adjusted for the net forex loss declined by 57.8 per cent to N47.1 billion.
“Further adjusting for the impact of the naira devaluation in OPEX, PAT would have been down by 5.3 per cent to N105.6 billion,” MTN said. The telco’s net foreign exchange loss stood at N656.37 billion.
MTN Nigeria’s chief executive officer, Karl Toriola, noted that severe macroeconomic headwinds overshadowed a solid operating performance. He said: “The operating environment in the first quarter remained very challenging, with rising inflation and continued naira depreciation off an already low base.” He stated that the naira’s devaluation and record-high inflation have impacted the operating environment for businesses in Nigeria.
The operators are agitating for tariff hikes as part of measures to sustain their operating expenditure.But that is half way through if all they get the regulator,s ,Nigerian Communications Commission (NCC)’s nod.
The operators are trying to justify the tariff increase because “Consumer prices in other sectors have seen a steep rise over the last six years as they adjust to reflect macroeconomic realities. However, telco prices have remained flat and even declined. Contrary to the price trends in other sectors, telcos have had to adjust for the macroeconomic headwinds caused by an increasing erosion of margins. Other highly regulated sectors such as power and insurance have implemented price increases over the last year. Insurance prices have risen 200 per cent with power raising prices by over 40 per cent.”
They also decry the strong macroeconomic headwinds which have occasioned tough operating conditions, leading to a decline in CAPEX (Domestic) and Foreign Direct (Capital Inflow) investments into the industry by 30.37 per cent and 46.9 per cent respectively between 2021 and 2022.
These headwinds include inability to source foreign exchange and attract foreign direct investment because investors have become uncomfortable because of the grave economic uncertainty in the country.
Without meaning to link the crisis to a flip flop economy,the operators think unless something urgent is done,providing quality of service will not be sustainable because of the multiple effects of operating costs.
Owing to the macroeconomic crisis , resulting in increased cost of operation and overheads, most telecom companies in Nigeria have been posting losses, making it difficult for them to pay their Annual Operating Levy (AOL) to the Commission as and when due.
The operators are worried about the restrictive regulatory approach which is unconducive for the highly needed innovation in this evolutionary era of newer communication technologies.
“We invite the EVC to note that the convergence of telecommunications with digital and multimedia services has greatly reduced the revenue streams from traditional telecommunications services (voice, SMS, etc.)and to survive this digital era, telecommunications operators have no choice but to quickly evolve into digital and platform service providers which enable newer and advanced means and uses of communications technology and this is only possible in a regulatory environment that enables the development of innovative products and services, with a flexible regulator that is well-informed on the latest technology developments/requisite regulatory frameworks, and an appreciation for the reverberating impact of derailing this progression.” they lamented.
In 2023,MTN declared its first loss after tax of N137 billion. and Its retained earnings and shareholders’ fund fell to negative N208.0 billion and N40.8 billion, respectively.
For Airtel, profit before taxes result for the half-year 2023 was much worse, it dropped by a staggering 97.7 per cent – from $516 million to $12 million – compared to the results from 2022.
The report showed that Airtel had consistently grown its revenue in Nigeria since Q2 2018. The only time there was a drop in revenue between quarters was in 2020 when revenue dropped from $377 million in Q1 2020 to $341 million in Q2 2020. This $36 million drop in revenue is nothing compared to the decline seen in 2023.
Its revenue for Q1 2023 was $543 million, a $2 million drop compared to the previous quarter – $545 million in Q4 2022. By Q2 2022, the drop in revenue increased by $15 million, from $543 million to $528 million.
Although figures of losses sustained by the other unquoted telcos are unavailable,there are strong indications that all is not well.
Several of them are owing interconnect fees and generally unable and or late in payment of AOL.
Consequently,the late and inability to pay AOL to the NCC tells one of the bad stories of the situation on ground.
In general terms,the sector is believed to be wobbling and In fits.
Deposit Money Banks are also part of the telcos headaches as they are believed to be indebted to the tune of about Two hundred billion naira (#200b) in unsettled Unstructured Supplementary Service Bus(USSD) services rendered by telcos to the banks.
The telcos also bemoan the fate of their equipment and infrastructure across the country.
They had canvassed for comprehensive protections for their infrastructure by suggesting to government to make telecommunications equipment Critical National Infrastructure (CNI) but government officials say this is “Work In Progress (WIP) as the telcos wait in limbo.
Apart from these,they have had to contend with multiple taxations whereby the Federal Government,states and council governments put immense pressure on telcos for various taxes at different levels.
Apart from the taxes,Right of Way is an albatross that had defied any solutions and so the telcos have had to live with it.
The telcos say that
“notwithstanding the much-touted resilience of the telecommunications sector and its commendable double-digit contribution to the GDP, we wish to strongly impress on the NCC the pressing need to avert the grave risk looming in the industry’s horizon by taking clinical and definitive action towards repositioning the industry for growth and increased investments, because ultimately , it is our considered view that a thriving telecommunications sector will have a far-reaching effect on:
o Mobile Network Operators as they will remain going concerns who can carry on sustainable operations with the overall intention of value creation and enabling connectedness;
o The maximization of consumer welfare for Nigerians who, as the the NCC rightly noted, are the most critical stakeholders in the telecommunications value chain; and
o The Government itself, given that the net effect of a sustainable communications industry is bolstered investor confidence, increased contribution to GDP and, by extension, revenue growth in the form of payment of increased direct/indirect taxes and Annual Operating Levies” in that regard.
Opinion
“Lessons from Lesotho: The Nexus Between High Literacy Rates, Contentment in Life and Lesser Involvement in Crimes”
By Dr. Tonye Clinton Jaja,
Executive Director, Nigerian Law Society (NLS)
This is my fifth week here in Lesotho. What I have noticed is that the average Mosotho (a citizen of Lesotho) is contented with their ability to obtain the basic necessities of life (food, clothing and shelter). For them, ability to obtain their staple food (papaa-made of corn meal), and grilled meat (with or without a bottle of “motoho”- local drink made of sorghum) is sufficient.
There is no made insistence on designer clothes, clothes is clothes to the average Mosotho.
I have racked my brain to pinpoint where exactly they have gotten this attitude from.
My research points me to the direction of the high literacy rate of the average citizen of Lesotho.
According to an online report” Lesotho has one of the highest literacy rates in Africa, with 82.01% of the population aged 15 and older able to read and write with comprehension in 2022…Lesotho’s literacy rate has increased since 2014, but it declined from 2000 to 2009.
Lesotho’s education system faces some challenges, including:
Language
The language spoken at home and the language of instruction can affect a child’s ability to read and do math. For example, children who speak English at home and have an English-speaking teacher are more likely to have foundational reading and numeracy skills than children who speak Sesotho at home and have a Sesotho-speaking teacher.
Adult literacy rate is the percentage of people ages 15 and above who can both read and write with understanding a short simple statement about their everyday life. Lesotho literacy rate for 2022 was 82.01%, a 5.37% increase from 2014.”
In Nigeria on the other hand, “Of course, Nigeria’s literacy landscape is nothing to write home about, compared to some African countries. That is why this piece largely focuses on the poor reading culture among the educated population. Alarmingly, recent figures from the National Commission for Mass Literacy, Adult and Non-Formal Education reveal that 38% of Nigerians lack formal education, while a staggering 40% of primary school pupils struggle with reading and comprehension.
Also, a survey conducted by the Nigerian Educational Research and Development Council (NERDC) in 2021 indicated that only 56% of Nigerian adults read at least one book per year. According to a report by the National Bureau of Statistics (NBS) in 2020, Nigeria had an adult literacy rate of approximately 62%, with reading frequency being much lower. The same report highlighted that an average Nigerian reads less than one book a year, which starkly contrasts with other African nations like South Africa and Kenya, where the reading rate is significantly higher.”
Opinion
PDP NAT’L CHAIRMANSHIP & THE DELUGE OF ENGR UTAAN’S ENDORSEMENTS
By Sunday Bamidele
The race for who emerges as the next National Chairman of Peoples Democratic Party (PDP) is gradually reaching a crescendo as the party is getting ready for its National Executive Committee (NEC) this month. Since the substantive PDP National Chairman, Senator Iyorchia Ayu was suspended by his ward officials and the court subsequently upheld his removal, the Deputy Chairman North of the party, Umar Damagum has been acting in that capacity.
The North Central region of the country, particularly Benue State has made a strong and convincing case that the seat of National Chairman of the PDP should be retained in the area where Dr. Ayu hails from. This argument is backed by relevant sections of the PDP constitution.
The position of the Benue State chapter of the party is incontestable! Ayu’s term has to be completed by someone from his place.
In Benue State, a competent, proactive and dynamic young leader has emerged as the popular choice and has made a bold and irresistible bid for the job. He is Engineer Conrad Terhide Utaan, a seasoned professional Engineer, administrator and politician with a bent of integrity and excellence.
Utaan, 47, is not only competent but has youth and energy as attributes to help the PDP connect with the country’s largest voting demographic—those aged 18 to 50, who make up over 72% of the electorate.
Utaan recently held favourable consultations with the PDP Zonal Executive Committee of the North Central who appeared to have positioned him as the right candidate for the party’s national chairmanship. And what is more? – zoning and micro-zoning principles within the party also favour Utaan, thereby making him the right candidate for the role, as Benue State’s North West District deserves representation.
Utaan’s candidacy has garnered significant support, with many party faithful hoping and believing that he has what it takes to bring unity and progress to the PDP, close its ranks and return the party to the pathway of election victories.
The last few months have witnessed a flood of endorsements of Engr Utaan by different blocs in the PDP across the land. The wide acceptance of the former State Focal Person of Social Investments Programme (SIP) in Benue State began with chairmen of the PDP in the 23 Local Government Areas (LGAs) of Benue State who unanimously endorsed Utaan as the sole nominee to replace Dr Ayu as the National Chairman of the party.
During a press conference held in Makurdi, the PDP LGA chairmen declared their collective decision to support Utaan, emphasizing that their choice reflects their commitment to ensuring that the laws of the party are upheld above individual and group interests.
“It is our considered opinion that in continuation of, and fulfillment of the decision for equity, fairness and justice, a candidate from Zone ‘B’ of Benue State be the one to replace Dr. Iyorchia Ayu as National Chairman.
“And having considered the fact that there is only one aspirant from the Benue Zone ‘B’ Senatorial District in the race to replace Dr. Ayu, we take the stand that the candidate be accorded the privilege of being the SOLE NOMINEE of the PDP from Benue State to replace Dr. Iyorchia Ayu as National Chairman.
“Therefore, in fulfillment of our civic duty as Chairmen of the PDP in the 23 Local Government Areas of Benue State, we individually and collectively openly and publicly today, Wednesday, 9th October, 2024, endorse that sole candidate from Benue Zone ‘B’ in the person of Engr. Conrad Terhide Utaan as the SOLE NOMINEE of the PDP in Benue State to replace Dr. Iyorchia Ayu as National Chairman of the Peoples Democratic Party (PDP).
“We have taken this decision today to add force to the agitations from Benue State and from the North-Central Region for the replacement of Dr. Ayu as National Chairman”, the PDP party chairmen declared.
Similarly, the elected officials of the Peoples Democratic Party (PDP) in the Benue North-West (Zone ‘B’) Senatorial District, rising from their Zonal Meeting held on 21st October, 2024 at the PDP State Secretariat located along Abdullahi Shelleng Road, High Level, Makurdi, issued a communique which read in parts thus:
“As provided in Section 47(6) of the PDP Constitution 2017 (as amended) the replacement for Dr. Iyorchia Ayu should be made from the North-Central Geo-political Region of Nigeria, in general, and Benue State, in particular, to maintain our great party’s commitment to equity, justice, and fairness as the core principles upon which the party is founded.
“Since equity, fairness and justice cannot be fulfilled halfway, even in Benue State, the replacement of Dr. Ayu should come from the Senatorial District he hails from, which is the Benue North-West (Zone ‘B’).
“This decision of ours taken today is communicated to the State Working Committee (SWC) of the party in Benue State for necessary action and upward transmission to the appropriate organs of the party at the appropriate levels.
“It is our conviction that the National Executive Committee (NEC) of our great party, the PDP, in upholding the principles of equity, fairness and justice, will decide in favour of Benue State and the SOLE NOMINEE from the state, Engr. Conrad Terhide Utaan, to replace Dr. Iyorchia Ayu as National Chairman of the PDP”, the party officials submitted.
Another solid endorsement of Engr Utaan’s candidacy came from the Benue PDP Youth Forum (BPDPYF). The group stated unequivocally that:
“Our party needs a de-tribalized, tireless, vibrant, young, energetic, hardworking and committed member of the party from the North Central geopolitical zone of the country to pilot the affairs of the party so as to unite men and women , young and the elderly to set aside their differences, diverse interests and come together to reclaim the lost glory of our party.
“After a thorough search and retrospect, we have found a grassroot mobilizer , a man of the people, a charismatic Leader, Hon. Engr. Utaan Terhide Conrad with the desired qualities and we make bold at this juncture to endorse his candidature for the exalted position of the National Chairman of our party, the PDP .
“The decision is predicated on the fact that Engineer Utaan is well schooled, he is an all rounder, he is both the man of the youth and the elderly. He has what it takes to bring together all aggrieved members of the party to resolve all differences on a round table. He represents a true Nigerian without tribal and religious sentiments, he is humble and easy going and above all, he is loved by all”, the group concluded.
Engr Utaan’s candidacy has received a favourable appeal across the country. Only last week, a group of like-minded people wrote from Jos, Plateau State through their coordinator, Andrew Longyem, endorsing Utaan as the next PDP National Chairman. The group raised a number of strong points on why the PDP needs Utaan as the next Chairman.
Engineer Terhide Utaan is a beacon of hope and progressive change, which accounts for why he is garnering widespread support from various groups across different states. His aspiration to become the next National Chairman of the PDP is not merely a personal ambition; it is a reflection of the collective desire for a leader who embodies integrity, innovation, and inclusivity.
Conrad Utaan’s extensive background in engineering and management equips him with a unique skill set that is essential for effective political leadership. His professional journey is marked by significant achievements in both the public and private sectors, showcasing his ability to implement complex projects and navigate challenging environments. This experience translates into a profound understanding of party administration, general governance, resource management, and strategic planning—skills that are vital for steering the PDP in a direction that aligns with the aspirations of its members and the Nigerian populace.
The momentum behind Utaan’s candidacy is underscored by the endorsements he has received from various PDP groups across the country. These endorsements are not mere formalities; they signify a deep-rooted confidence in his capability to lead the party effectively. Grassroots support is crucial in politics, and Utaan’s ability to connect with party members at all levels indicates his commitment to inclusive governance. He understands the challenges faced by different demographics within the party and is poised to address their concerns through comprehensive policies that resonate with the electorate.
The Vision
I have perused Utaan’s vision for the PDP and found it quite fascinating. His blueprint for the party revolves around unity, reform, and revitalization. He recognizes the need for the party to adapt to the evolving political landscape and to re-establish its position as a formidable force in Nigerian politics. His strategy includes fostering collaboration among party members, promoting transparency, and creating a more democratic process within the party’s decision-making structures. By prioritizing these values, Utaan aims to restore public trust and encourage broader participation in the political process.
Embracing Elders’ Wisdom
Engr Utaan’s recognizes the need for a leadership approach that not only revitalizes the party but also honours its foundational values, particularly respect for elders and inclusion of party stakeholders.
One of the cornerstones of Utaan’s leadership philosophy is his profound respect for elders. He understands that the experience and insights of senior party members are invaluable.
If given the opportunity to serve, Utaan will actively seek the counsel of party elders on critical issues, thereby fostering a culture of collaboration. Utaan will not only honour their legacy but also enhance the party’s credibility and unity.
Youth Empowerment
One of Utaan’s standout qualities is his uncommon commitment to empowering the youth and women within the party and the broader society. He understands that the future of Nigeria lies in the hands of its young people, and he is dedicated to providing them with the opportunities and platforms they need to thrive. Utaan’s policies will prioritize education, entrepreneurship, and mentorship programs, ensuring that the next generation of leaders is well-equipped to tackle the challenges ahead. Additionally, his focus on women’s empowerment aligns with the PDP’s goals of promoting gender equality and inclusivity within the political arena.
A Champion of Unity
As Utaan embarks on this journey to become the National Chairman of the PDP, he has been calling for unity among party members. He believes that the strength of the PDP lies in its diversity and the collective efforts of its members. His leadership will focus on bridging gaps, resolving internal conflicts, and fostering a sense of belonging among all stakeholders. This approach is essential for building a resilient party capable of facing the challenges posed by the current political climate in Nigeria.
Utaan understands that the strength of the PDP lies in its diversity of voices. His administration will prioritize stakeholder engagement, ensuring that every member—be it at the state, local government, or ward level—feels represented and heard. He plans to implement regular town hall meetings and feedback sessions, creating a transparent dialogue between the leadership and party members.
By utilizing digital platforms and social media, Utaan will expand outreach, allowing for broader participation in discussions about the party’s direction. This inclusive approach will empower stakeholders to contribute ideas and solutions, fostering a sense of ownership and commitment to the party’s goals.
Utaan is committed to healing any divisions within the party. He believes that a united front is essential for electoral success and effective governance. To this end, he will initiate reconciliation programmes that bring together various factions within the PDP. By promoting a culture of forgiveness and collaboration, Utaan aims to build a cohesive team that works towards common objectives.
Engineer Conrad Terhide Utaan stands out as the best candidate for the role of National Chairman of the Peoples Democratic Party. His impressive background, broad-based support, and clear vision for the future position him as the leader the party needs during this pivotal time. By choosing Utaan, the PDP can embark on a transformative journey towards unity, progress, and renewed relevance in Nigerian politics. His candidacy is not just about a leadership position; it is about a commitment to the ideals of democracy, development, and dignity for all Nigerians.
● Bamidele writes from Ibadan, Oyo State.
Opinion
Satellite to mobile services and connectivity disruption
Sonny Aragba-Akpore
Elon Musk’s ambition to conquer technology and everyday living got a boost early in January 2024 when his SpaceX which owns Starlink satellite communications announced that it was introducing satellite to mobile communications services across the world.
> Its plan primarily was to provide ubiquitous services around the globe and give a run for money to other mobile network operators and telecommunications companies (telcos).
With its communication satellites,Starlink introduced disruptive technologies and with satellite to mobile,the company creates further disruption in telecommunications ecosystem.
> Musk’s foray into Nigeria fetched him six licences with a full bouquet capable of operating in many spheres and first received two licences, out of the six in May 2022 .
These were for International Gateway and the Internet service provider (ISP) licences, and began to trade as Starlink Internet Services Nigeria Ltd.
> According to the Nigerian Communications Commission (NCC), the International Gateway licence has a 10-year tenure, while the ISP licence runs for five years. Both licenses took effect from May 2022 and may be renewed after the expiration.
Starlink came with disruptive technologies that are already making a world of difference for consumers and we looked on as if nothing was happening. The company came prepared.
> With a total of six licenses from the NCC and various permits and approvals to flag off the business of internet services via satellite and equally signing Memorandum of Understanding (MoU) and distribution agreements with Nigerian companies including, Technology Distribution Africa (TD),a big distributor of major technology brands and promoted by a restless technology czar ,Leo Stan Ekeh, Starlink showed it meant business.
The company didn’t stop there ,it decided to take services to even the unserved and under served communities in Nigeria and parts of Africa .
With its technology it said it will deploy nearly $30b over time for the Nigerian operations alone.
> The government is excited that with the entry of Starlink,it may achieve 70% broadband connectivity by 2025 as enshrined in the National Broadband Plan (NBP) 2020–2025.
> Starlink,s six licenses include that for ISP, Gateway Service Provider,international Data Access (IDA),Sales and Installation Major,Gateway Earth Station and Very Small Aperture Terminal (VSAT) thus making it a mega player and a big threat to other players in the industry.
Starlink officially announced its presence in Nigeria in January 2023. The company, which initially quoted its prices in dollars at $600 for the hardware and $43 for the subscription, changed to naira upon its official announcement.
> “Starlink satellites provide Direct to Cell capabilities and ubiquitous access to texting, calling, and browsing wherever subscribers may be on land, lakes, or coastal waters,” it said.
“Direct to Cell works with existing long term evolution ( LTE) or fourth generation (4G ) phones wherever you can see the sky. No changes to hardware, firmware, or special apps are required, providing seamless access to text, voice, and data,” the company added.
In January 2024,Elon Musk’s SpaceX launched its first set of Starlink satellites to provide cell phone service anywhere in the world.
The company announced a milestone the billionaire warned can’t compete with terrestrial networks but will help plug cellular dead zones and boost global mobile connectivity.
> Six of the 21 Starlink satellites launched in January 2024 are capable of connecting directly to cell phones, SpaceX said.
“They are the firm’s first ever direct-to-cell satellites and are designed to function as “a cellphone tower in space,” according to Starlink’s website.
SpaceX said the satellites were first used to test its Direct to Cell service in the United States, where the company has partnered with T-Mobile.
Once activated, the service began to connect with ordinary, unmodified phones without the need for extra equipment so long as they are 4G LTE-compatible, a standard T-Mobile covered the “vast majority of smartphones” already on its network back in 2022.
Starlink said it plans to roll out a text messaging service using the technology later this year and broader voice, data and IoT—the network of connected devices called the internet of things—services in 2025.
Musk celebrated the successful launch and said the satellites “will allow for mobile phone connectivity anywhere on Earth.” However, he noted there are limitations to the technology.
“While this is a great solution for locations with no cellular connectivity, it is not meaningfully competitive with existing terrestrial cellular networks,” Musk said, pointing to the relatively limited bandwidth that is spread over a large area.
Starlink also notes the satellites will let users connect “wherever you can see the sky.”
It has entered a working arrangement with Africa Mobile Networks (AMN) ,a mobile network operator that has deployed services in Nigeria and other countries in Sub-Saharan Africa.
AMN has been deploying rural base stations in Nigeria since 2018.
In 2023, AMN signed a deal with SpaceX to use Starlink’s satellite backhaul connectivity for its remote base stations in Africa.
AMN has connected over 100 rural base stations in Nigeria to Starlink’s Low Earth Orbit (LEO) satellite network. This has resulted in a 45% increase in traffic across these sites.
As at April 2024, AMN owned and operated more than 1,600 base stations nationwide. They increased that number to 2,000 by the end of June.
AMN’s ARN technology allows base stations to support up to five simultaneous carriers.
The combination of AMN’s ARN technology and Starlink backhaul has increased the capacity of Base Transceiver Stations (BTS) without requiring changes to the BTS software.
AMN is privately owned by 18 shareholders, including founders, angel investors, a VC fund, and one strategic investor.
Starlink’s constellation is now providing satellite backhaul to over 100 of Africa Mobile Networks’ rural base stations in Nigeria.
AMN also expects to double the number of base stations plugged into Starlink’s constellation in the country by the end of the year. The operator says on average traffic has increased by 45% across all sites that have been migrated to use Low Earth Orbit (LEO) backhaul.
AMN and Starlink signed a commercial agreement to use the satellites to connect the operator’s mobile network base stations with broadband services in 2023, and in April this year the first base station to do so went live in Yebu, Nigeria.
Since then more than 100 terminals to other rural villages across the country have been hooked up, and AMN says that this means it is ‘able to unlock the full capability of the AMN Radio Node (ARN) to support the ever-increasing amounts of bandwidth and data volumes demanded by subscribers.’
The ARN is a multi-carrier and multi-technology (2G/3G/4G) radio node which can operate up to 5 simultaneous carriers in either 2G+ 3G or 2G+4G configuration, we’re told, and by using LEO backhaul in conjunction with it, AMN says it has been able to increase the BTS capacity remotely with no change to the existing BTS hardware on site.
“These numbers are particularly impressive given that prior to the installation of AMN’s base station, communities did not have access to any mobile network,” explains the release.
“The mobile connectivity AMN provides changes lives. Farmers can find information about market prices, a healthcare provider can consult with doctors in a larger town, money can be sent safely and securely into the village, and businesses can expand beyond their own community.”
Starlink aims to provide satellite internet connectivity to underserved and remote areas worldwide, where internet access has traditionally been limited or non-existent. The global network of Starlink satellites in Low Earth Orbit (LEO) is already providing a new ‘Direct to Cell‘ service to deliver a 4G mobile service to standard Smartphones.
Once the Direct To Cell service is fully up and running, the number of satellites will have increased significantly, and more powerful SpaceX V2 satellites will have been deployed. In essence, users can always access satellite internet service directly from anywhere on earth (if you’re on land, at least – for internet on the ocean, Starlink says it’s offering a dedicated separate maritime service).
The full ‘Direct to Cell’ satellite phone service is set for launch soon and should be compatible with 4G handsets by 2025.
Direct to Cell works with existing LTE phones as well as IoT devices using common LTE standards. Apps and changes to phone hardware or firmware aren’t necessary to access 4G mobile text, voice, and data.
In 2024, only texting will be supported, and a year later voice and data services, as well as IoT functionality, will be added.
The technology aims to extend mobile coverage to areas where traditional cell towers are not present or are ineffective. Unlike traditional mobile networks that rely on a network of cell towers, Direct to Cell connects mobile phones directly to Starlink’s satellites in orbit.
This eliminates the need for ground infrastructure like cell towers in remote areas. It can significantly expand the coverage area of mobile networks, providing connectivity in places that were previously unreachable by standard cellular services. Mobile operators can partner with Starlink to extend coverage without having to build new infrastructure.
Starlink’s satellite network covers the entire globe, which means this technology has the potential to provide universal mobile connectivity, even in the most isolated regions. Starlink satellites with Direct to Cell capability have an advanced eNodeB modem onboard. This acts like a cell phone tower in space, allowing network integration comparable to what a standard roaming partner might provide.
Compared to previous satellite telephone networks, Starlink offers two big advantages: the satellites operate closer to Earth (around 550 km as opposed to as much as 1,400 km) and SpaceX can launch larger satellites. This makes it easier for phones to connect.
However, the precise extent of the service offering and coverage in each region depends on variable such as local regulations, carrier partnerships, and ground stations. SpaceX is looking for cell phone companies to work with on selling the services and is currently already working with T-Mobile (USA), Rogers (Canada), KDDI (Japan), Optus (Australia), One NZ (New Zealand), and Salt (Switzerland).
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