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NCC, Starlink tariff feud rattles telecom industry

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By Sonny Aragba-Akpore

An imminent feud is underway between telecommunications regulator, Nigerian Communications Commission (NCC) on one hand and Starlink and Mobile Network Operators ( MNOS) on the other.

On October 1, 2024 ,Starlink, an internet service provider (ISP) via satellite owned by Elon Musk, the world’s richest man, announced an increase in its monthly subscription prices in Nigeria.

The company, blaming inflation, increased its standard package for residential housing, monthly subscription to N75,000, from N38,000 per month — an increase of 97.37 percent.

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The price for the mobile-regional roaming unlimited is now N167,000 while that of the mobile-global roaming service is N717,000.

The cost of the Starlink hardware was also increased from N440,000 to N590,000.

Sensing industry backlash, the Nigerian Communications Commission (NCC) came out with a statement on Tuesday, October 8,2024 saying Starlink had contravened sections 108 and 111 of the Nigerian Communications Act 2003 by unilaterally increasing tariffs without approval.

“The decision by Starlink to unilaterally review its subscription packages upwards did not receive the approval of the Nigerian Communications Commission (NCC),” NCC,s said in an initial original statement adding that “We were surprised that the company jumped the gun by announcing price changes after filing a request to the Commission seeking approval for price adjustment for which the Commission was yet to communicate a decision.”

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“The action of the company appears to be a contravention of Sections 108 and 111 of the Nigerian Communications Act (NCA) 2003, and Starlink’s Licence Conditions regarding tariffs.

“The Commission will, therefore, take appropriate enforcement measures against any action by a licensee that is capable of eroding the regulatory stability of the telecommunications industry.”

NCC statement said it was “surprised” when the company announced the price changes.

It said Starlink had filed a request with the commission for a price adjustment, but the regulator was yet to give approval adding that the commission would take enforcement measures against the satellite company.

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The NCC said Starlink contravened section 108 of the NCA 2003 which gives the NCC authority to regulate telecom tariffs, stating that no licensee can impose charges for services without obtaining tariff approval from the commission.

Section 111 of the Act empowers the telecoms regulator to impose financial penalties on any licensee that exceeds approved tariffs, regardless of other legal provisions.

“Notwithstanding any other provision of this Act, the commission shall prescribe and enforce appropriate financial penalties upon any holder of an individual licence who exceeds the tariff rates duly approved by the commission for the provision of any of its services,” the Act reads.

Mobile Network Operators (MNOS) in Nigeria have been agitating for tariff hikes based on rising inflation and several economic headwinds including high cost of diesel, rising cost of doing business, high foreign exchange rates among others saying their services were overdue for price increments as they have not raised rates in the last 11 years.

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Strangely, a few hours after the NCC statement on Starlink, and in what appeared to be a face-saving move, the NCC came out with another statement to withdraw the earlier one saying “it was sent in error “.

It is however not clear if the regulator has capitulated on its laws and guidelines because industry players who have clamored for tariff raise for so long citing economic headwinds and high foreign exchange including spiraling cost of doing business are worried that should the NCC keep mum over the Starlink unilateral tariff hike, then Mobile Network Operators (MNOs) May resort to self help.

Although no reason was given for the withdrawal of that statement, analysts think the commission may have been complacent as a result of regulatory inactivities especially now that there is a lull in the industry due to dwindling fortunes of operators some of whom have declared losses due to the economic downturn.

Industry players frown at what is happening and have begun to criticize the NCC against the backdrop of the regulator’s unyielding stance on the clamor for an increase in tariffs by local telecom operators, especially in the last two years whereas, Starlink, an internet service provider that entered the market officially in January 2023,has been allegedly allowed to increase its tariffs by almost 100%.

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An analyst quoted a major industry player as saying “Starlink only beams its satellite in Nigeria and acquired an ISP licence from the NCC to offer its service in the country. It currently has zero investment in the country.

“Many of us started since the liberalization of the telecom sector, putting in all our resources to deploy more infrastructure to get more Nigerians connected despite the various challenges in the operating environment.

“We have been appealing to the Commission to allow us to implement a tariff review for years now, but it said it had to carry out a cost-based study before any decision could be made. We are still waiting for the result of that study. Now, allowing Starlink to implement price increase in the same market shows the regulator’s double standard.”

The NCC may have lost steam over its regulatory oversight and demonstrate lack of capacity especially in addressing the issue of tariff increases by local players.

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The operators believe the Commission simply woke up from its slumbers by announcing a statement it could not sustain let alone justify.

“This is certainly not the NCC of our founding fathers “ one veteran player who would rather be addressed as one of the “ancestors “ of the industry lamented.

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.

It obtained six licenses from the NCC and got various permits and approvals to flag off the business of internet services via satellite and equally signed 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.

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Starlink didn’t stop there ,it has decided to take services to even the unserved and under served communities in Nigeria and parts of Africa for which TD boasts it’s ready for the long haul partnership.

Space Exploration Technology Corporation (Space X ) owners of Starlink got six licenses in a roll from the NCC and is expected to 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.

But is the government just desperate to achieve this at the expense of low purchasing powers of subscribers? Time will tell.

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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.

SpaceX’s Starlink satellite internet service has more than four million global subscribers, achieving rapid growth despite mounting competition.

SpaceX confirmed the news recently after company President Gwynne Shotwell hinted earlier that the service would reach the mark within days. This represents a remarkable achievement for Starlink, which only crossed three million subscribers in May, highlighting the company’s accelerating growth in the satellite internet market.

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Since its beta launch in October 2020, Starlink has rapidly scaled, growing from one million subscribers by December 2022, to two million by September 2023, and now four million just months later. The service operates through a vast constellation of nearly 6,000 satellites, providing satellite internet to users in almost 100 countries, including expanding into previously underserved regions like Africa and the Pacific islands. Starlink’s rapid growth reflects both its market dominance and the rising demand for satellite internet services, which offer coverage in areas lacking traditional broadband infrastructure.

While cable cuts remain a nightmare,Starlink’s boasts of bridging the gap, with its potential impact extending far beyond addressing temporary outages. These include reaching Underserved Areas where Traditional ISPs often struggle to reach remote regions due to the high cost of infrastructure deployment.

Starlink’s satellite-based approach can effectively bridge this gap, offering high-speed internet access to previously underserved communities by unlocking educational and economic opportunities for millions of Nigerians currently excluded from the digital world.

Starlink boosts Business Continuity by avoiding Frequent internet disruptions that can be detrimental to businesses, especially those reliant on online operations.

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Starlink claims to be reliable with independent internet access that can provide much-needed resilience, ensuring business continuity even during cable outages.

The recent cable cuts hampered online learning and remote work arrangements. Starlink’s stable internet connection may have facilitated smoother online learning experiences for students and enable seamless remote work for professionals across the country.

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Opinion

5G,IoT and AI to boost global GDP by 2030

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By Sonny Aragba-Akpore

With Mobile technologies and services now generating around 5.8% of global Gross Domestic Product (GDP) a contribution that amounts to about $6.5 trillion of economic value, there are strong projections that by 2030, this figure will rise to almost $11 trillion, or 8.4% of GDP.
Global System of Mobile Communications Association (GSMA) says much of this will be driven by countries around the world increasingly benefiting from the improvements in productivity and efficiency brought about by the increased take-up of mobile services and digital technologies, including 5G, Internet of Things (IoT) and Artificial Intelligence (AI).
The GSMA recently introduced the 5G Connectivity Index to provide insights into 5G performance in 39 markets in order to encourage informed decision-making.
In terms of Economic Impact,
the GSMA emphasizes the economic benefits of mobile technologies and services, including 5G, projecting that they will contribute significantly to GDP growth by 2030.
“The GSMA provides specific reports and analyses on 5G in different regions, such as Sub-Saharan Africa, Asia ,Middle East among others highlighting the progress and challenges of 5G deployment in specific areas.”
In Sub Saharan Africa for instance with particular attention on Nigeria,South Africa,Egypt,Kenya and Botswana among others some measure of progress in deployment has been recorded.
The rollout of 5G has brought immense benefits across multiple industry sectors, particularly those involving internet of things (IoT) and artificial intelligence (AI) applications in which the real-time transfer of data is crucial.
More broadly, the adoption of 5G is expected to accompany increased data use across the globe, with forecasts anticipating mobile data traffic of over 300 exabytes per month by 2030, more than twice the volume consumed in 2024 according to Statista.
And with a third of global population expected to be covered by this fifth generation (5G) networks ,a technology that has defined new ways of communication by 2025 ,GSMA
says the technology has surpassed growth projections of all times.
“5G subscriptions increased by 163 million during the third quarter 2024 to total 2.1 billion. 5G subscriptions reached close to 2.3 billion by the end of 2024 accounting for more than 25 percent of all global mobile subscriptions.
“4G subscriptions continue to decline as subscribers migrate to 5G” according to GSMA.
As of the first quarter of 2024, there were nearly two billion 5G connections worldwide, with 185 million new additions. This is expected to grow to 7.7 billion by 2028.”
Statistics show that 5G is the fastest-growing mobile broadband technology, reaching 1.5 billion connections by the end of 2023.
It only took four years to reach this number, compared to 10 years for 3G and more than five years for 4G.
“5G is more than a new generation of technologies; it denotes a new era in which connectivity will become increasingly fluid and flexible.5G Networks will adapt to applications and performance will be tailored precisely to the needs of the user” GSMA submits.
By covering one-third of the world’s population , impact on the mobile industry and its customers will be profound according to GSMA.
To deepen the spread of 5G ,GSMA is working closely with the mobile operators pioneering 5G, “by engaging with governments, vertical industries including automotive, financial services, healthcare providers, transport operators, utilities and other industry sectors to develop business cases for 5G.”
And In order to accelerate the growth and spread, many operators are said to be deploying
AI technology as part of an integral part of telecoms operators’ strategic and operational plans.
“Operators are making important advancements in the deployment of AI technology, which is serving as a transformative force shaping the telecoms industry. By deploying autonomous AI-based systems, operators can enhance operational efficiency, customer satisfaction and security, while also creating new revenue opportunities”.
China, South Korea, the United Kingdom, Germany, and the United States are the leading countries with robust 5G coverage in the world.
Since the first commercial launches of the fifth generation of mobile networks in late 2018, these five countries have emerged as leaders because multiple companies in these countries have deployed networks and are selling compatible devices. Countries including Switzerland and Finland are up and comers in 5G development, though they have limited deployment.
In China there are three Companies leading in deployment.
The world’s largest 5G network was launched by the three largest Chinese network operators Oct 31, 2019, according to the state-run news agency Xinhua. These are China Mobile, China Unicom, and China Telecom which all activated their networks in less than five months after they were issued 5G licenses.
Each of the network operators offered their 5G services at $18 per month in 50 Chinese cities at the beginning of the launch.
GSMA expects 36% of China’s mobile users to be using 5G by 2025. That’s about 600 million subscribers, who would also make up 40% of the entire global 5G market by this year.
This is all despite efforts made by the United States government to hamper the progress of Chinese vendors, though those efforts may affect how Chinese companies may expand into the global market.
In South Korea,SK Telecom and Korea Telecom run as the main competitors for the South Korean 5G market.
SK Telecom acquired spectrum in the 3.5 GHz and 28 GHz frequencies to prepare for deploying 5G.
In April of 2019, the Enterprise claimed to be the first mobile carrier in the world to launch 5G services to work on 5G smartphones. SK Telecom asserted an edge over rival Verizon, as the former launched 5G services available at the same time as Samsung Galaxy S10 5G smartphone launched in South Korea. Verizon launched mobile 5G services in the U.S. before a 5G enabled smartphone was available to U.S. consumers.
SK Telecom also conducted tests with a 5G Standalone (SA) Core (a core not reliant on the 4G network) for their 5G network in cooperation with Samsung Electronics.
The world’s largest 5G network was launched by the three largest Chinese network operators Oct 31, 2019, according to the state-run news agency Xinhua. These are China Mobile, China Unicom, and China Telecom which all activated their networks in less than five months after they were issued 5G licenses. Each of the network operators offered their 5G services at $18 per month in 50 Chinese cities at the beginning of the launch.
“What we are seeing is a concerted effort by the Chinese — the operators, vendors, and government regulators — to deploy 5G as quickly as possible,” Chris Nicoll, principal analyst at ACG Research, pointed this out in a November 1, 2019 SDxCentral article.
With all of these players working together, the three network operators had collectively deployed nearly 86,000 5G base stations peaked over 130,000 by the end of 2019. The latter number breaks down into China Unicom and China telecom, with each planning to install 40,000 base stations, and the market leader China Mobile to install 50,000.This was the projection by 2019 but they have since overshot this by the beginning of 2024.
The International Telecommunication Union (ITU), says 5G coverage reached 40% of the world’s population in 2023 with an uneven coverage and distribution with developed countries having more coverage than low-income countries:
In Europe ,68% of the population is covered and
Americas had 59% of the population covered while
Asia-Pacific has 42% of the population covered as at 2023.
Arab States have 12% of the population covered.
Commonwealth Independent of States (CIS) had 8% of the population covered.
ITU figures show Africa,s coverage rose to 10 % of the population by 2023 .
The ITU also notes that 90% of the world’s population is covered by 4G, but 55% of people without access to 4G live in low-income countries because In low-income countries, 3G is often the only technology available to connect to the Internet.
The ITU develops and adopts international regulations and global standards to enable the harmonization and implementation of broadband mobile networks.
In Africa, around a dozen nations have launched services including Botswana, Kenya, Mauritius, Madagascar, Nigeria, Seychelles, South Africa, Tanzania, Togo, Zimbabwe, and Zambia but Africa is a patchwork of 54 countries.
And penetration is predicted to be slow.
By 2027, Ericsson predicts that 80 percent of phone users in Europe will have 5G service.
At the same time, 5G subscriptions in Africa, home to 1.4 billion people, May stagnate at a little over 10 percent. Why will so few people in Africa get access to 5G services?
China, South Korea, the United Kingdom, Germany, and the United States remain the leading countries with robust 5G coverage in the world.
While many countries are already providing robust services,Africa remains on the outskirts of 5G services.
The countries in Africa that have launched 5G networks, include South Africa with its roll out
In March 2022, when the Independent Communications Authority of South Africa (ICASA) sold spectrum across several bands.
In Nigeria,MTN rolled out commercial 5G services in Lagos in 2022, with other roll out in Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri among others.
MTN Congo announced that it was the first country in Central Africa to deploy 5G.
In Botswana Orange deployed 5G technology to provide new services in the Gaborone and Francistown regions.
Other countries in Africa that have launched 5G Fixed Wireless Access (FWA) services include: Angola, Kenya, Zambia, and Zimbabwe.
Analysts say “5G’s potential is growing due to its ability to deliver fiber-like speeds. However, there are still challenges in the region, such as:
Urban areas are reaching their maximum capacity whereas a large portion of the population lives in rural areas.
This explains why 5G adoption in the sub-Saharan region is currently below six percent “
Analysts report that 5G deployment in Africa faces many challenges, including Spectrum assignment,regulatory issues,infrastructure,security,financial resources among others.
“Spectrum is a limited resource that is already in use by other services, such as TV broadcasters and satellite operators. Governments need to open up frequencies and grant 5G licenses at reasonable prices. “
Infrastructure is another major challenge.
“5G networks require a large initial investment, including expensive devices, antennas, and Radio Access Network (RAN) hardware. The infrastructure needs to be fiberized to support 5G services.
Regulatory conditions also serve as challenges to deployment.
For instance “regulatory authorities may not have started the process for licensing and granting frequencies in the right portion “
“Most of the equipment and devices required for 5G deployment need to be imported.”
There are also security challenges that make
5G technology vulnerable to cyber security threats, such as tracking calls and exposing user locations.

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Opinion

Right of Reply: THE  PUNCH AND BUSYBODY BUSINESS 

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The recent declaration of a State of Emergency in Rivers State has triggered diverse commentaries from a wide range of Nigerians.

 Almost everyone hailed the presidential proclamation because of the visible threat to law and order in the state at the time the action was taken. Of course, there were a few naysayers who read political meanings into an otherwise sincere and prompt intervention.

One such negative interpretation is the position taken by the Editorial Board of The Punch newspaper. In one of its editorials published on the matter, the  national daily  claimed that the entire crisis was caused by  what it described as “the needless meddlesomeness in the governance of the state by its former governor and Tinubu’s Federal Capital Territory Minister, Nyesom Wike….”  It is unfortunate that this narrative and others like it have become commonplace in the media space. 

How did the Editorial Board of a reputable newspaper arrive at such a conclusion?  Their claim that the Sole Administrator, Admiral Ibok Ete Ibas (rtd), has been acting a script purportedly written by the Minister of the Federal Capital Territory, Nyesom Wike, is also faulty and has no iota of truth.

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 They also faulted the sacking of all political appointees who served in Governor Siminalayi Fubara’s administration, insinuating that their replacements were drawn from Wike’s political camp. Again, nothing can be further from the truth.

Since his appointment as the Sole Administrator of Rivers State, Admiral Ibok Ete Ibas has been running the state with the abundant human resources available in the state and has not imported anybody from outside the state. Did the Editors of The Punch really expect him to run the administration with the politicians loyal to the suspended governor?

 Do they not know that the crop of political appointees who served Fubara would have found it difficult to work with the Sole Administrator? 

 Certainly, they know the truth, but they have chosen to stoke the fire to generate more tensions in Rivers State.
Certain interests might have commissioned this editorial to cast aspersions on the Sole Administrator and raise doubts about his capacity to run the state.

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 It may also have been the handiwork of Wike’s political detractors, the man whom many politicians love to hate for no other reason than envy and jealousy. 

We urge the Punch newspapers to seek a better mode of intervention in the political situation and not dwell on innuendos and unsubstantiated allegations against certain political actors in order to blackmail them.

Dr Ike Odogwu

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Opinion

“Chief. Dr. Ekuogbe Akpodiete; A Philanthropist, Lawyer, and Statesman”

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In a life of achievement, Chief Ekuogbe Akpodiete popularly called the Duke by his contemporaries in the UK was an assessment clerk, post office clerk, a court interpreter, an educationist, a business man, a political party chieftain, a Barrister and Solicitor, a Magistrate, the Otota (the Prime Minister) of Ughelli kingdom which is the highest traditional chieftaincy office that underpin the royal office of the Ovie of Ughelli Kingdom.

He was a trail blazer, a strict disciplinarian, a lover of people, and a philantropist. He saw to it that people lived in peace and happiness.

Born on the 4th of April, 1924, to parents cut from an industrious mould, Chief Ekuogbe Rowland Gregory Akpodiete took zealously to education that neither his mother Ughweriaka who was a trader, nor his father Akpodiete who was a farmer had.

He attended the Native Authority Primary School, Ughelli, and Enitona High School, Port Harcourt, for his secondary school education.

He thereafter had a brief teaching career in primary schools in Ofuoma near Ughelli, he worked as a process clerk in the then Sapele Township Department between 1950 and 1953, serving at the same time as an interpreter in the local courts.

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He proceeded to the United Kingdom to seek the proverbial Golden Fleece where he worked and paid his way through, studying Law. He was admitted into the Honourable society of Gray’s Inn, England, in 1965, and shortly after, he returned home to Nigeria and attended the Nigerian Law School. He was called to the Nigerian Bar in 1966. He immediately started practice in Lagos. However, his practice in Lagos was regrettably abridged by the Nigerian Civil War, which drove him to his hometown Ughelli in 1967, where he continued to practise among his kith and kin as the first Legal Practitioner.

Chief Ekuogbe Akpodiete established himself in Ughelli. After the civil war, he served in the now defunct Mid-western State Judiciary from 1972 to 1975 as a Magistrate.

He was conferred with the chieftaincy title of Urhukperovie of Ughelli kingdom (the light of the King) by the then reigning Ovie of Ughelli, His Royal Highness Oharisi II of blessed memory in 1977.

In the quest for more knowledge, he went back to England for his Master’s degree in law (LL.M) and later a Ph.D. at the University of Warwick.

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He was awarded an honourary doctorate degree (Ph.D) by Tenesse Christian University from the United States of America in 1991.

He became the Otota (the Prime Minister) of Ughelli Kingdom in 1986, an office he occupied until his demise on 9th April 1995.

Chief Ekuogbe Akpodiete was also politically involved. In the heady days of the Awolowo-led Unity Party of Nigeria, he was the party’s legal adviser in Ughelli and was on hand to assist during Chief Obafemi Awolowo’s campaign hosting in Ughelli and its environs.

In view of his love for people and entertainment, he established a popular cinema house, one of the first in Ughelli, known as REGA cinema, coined from his names, alongside an entertainment place called Unutakunu (people talk to people).

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Chief Ekuogbe Akpodiete was blessed with wives and many children, grandchildren, and great grand children.

Mr. Olotu Akpodiete, PhD
Executive Director
Olotu & Ekuogbe Rowland Akpodiete foundation

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