TechPression

Category: Telecommunication

  • Why Globacom CEO Ahmad Farroukh resigned after one month

    Why Globacom CEO Ahmad Farroukh resigned after one month

    Ahmad Farroukh, who was named CEO of Globacom, a leading telecom company in Nigeria, in October 2024, has reportedly resigned after one month.

    Farroukh exited Glo due to unresolved challenges in the telecom company’s organisational structure, according to a report by TechCabal.

    Globacom as of Tuesday evening did not release any official statement to affirm or counter media reports regarding Farroukh’s exit.

    Read also: Gabon grants Airtel comprehensive fixed operator licence

    Difficulty in adapting to Glo’s centralised operating structure 

    The seasoned executive Farroukh, who had previously worked for MTN and Smile Communications, allegedly found it difficult to adapt his managerial style to Globacom’s centralised operating structure, which was greatly influenced by founder Mike Adenuga.

    Throughout Globacom’s history, Mike Adenuga has kept a close eye on operations with minimal separation between its business interests and Globacom’s management.

    Globacom’s regulatory challenges 

    A number of serious regulatory issues precede Globacom’s leadership upheaval. When the corporation registered more than 40 million users without legitimate National Identification Numbers (NINs), the Nigerian Communications Commission (NCC) penalised it in 2024.

    Due to non-compliance with this regulation, Globacom lost almost 40 million users.

    The consequences of this compliance violation caused Globacom’s market share to fall to 12 percent, a 60 percent decrease and raised concerns about its capacity to compete with rivals such as MTN and Airtel.

    The sudden departure of Farroukh is indicative of an increasing pattern of leadership changes in Africa’s telecom sector.

    Read also: Telecom Egypt named ‘Best Investor Relations -Telecom Company’ at International Finance Awards

    Needs to change governance structure

    For Globacom to stabilise its operations, it is now necessary to address its internal and external difficulties. Two of its key priorities are changing its governance structures to draw in top personnel and hiring a new CEO with the know-how to handle Nigeria’s cutthroat telecom market.

    Additionally, regaining its market share will require resolving regulatory issues and restoring consumer trust.

    As the telecom industry in Africa evolves, businesses such as Globacom are under increasing pressure to strike a balance between leadership stability and flexibility.

    The way the business handles this situation will determine how it operates going forward in Nigeria and the surrounding markets.

  • Telecom Egypt launches Wi-Fi Calling to enhance high-quality voice calls

    Telecom Egypt launches Wi-Fi Calling to enhance high-quality voice calls

    The CEO of Telecom Egypt, Mohamed Nasr, announced on Monday the debut of Wi-Fi Calling, a ground-breaking service that allows millions of Egyptians to make and receive crystal-clear voice conversations over Wi-Fi.

    This invention uses the user’s phone’s built-in dialler to provide crystal-clear indoor connectivity—no additional apps are needed—even in places with spotty mobile network coverage.

    Read also: Telecom Egypt named ‘Best Investor Relations -Telecom Company’ at International Finance Awards

    Close collaboration with the National Telecommunications Regulatory Authority (NTRA), which operates under the direction of H.E. Dr. Amr Talaat, Minister of Telecommunications and Information Technology, enabled this milestone.

    “It is a testament to our shared vision of advancing Egypt’s digital transformation and enhancing connectivity for all,” said the CEO.

    He continued, “At Telecom Egypt, we remain committed to providing cutting-edge solutions to bridge communication gaps and make everyone connected. This is just the beginning of an exciting journey to redefine connectivity for millions across the country.”

    Wi-Fi Calling is a game-changing service that guarantees flawless indoor phone calls with unparalleled quality via Wi-Fi. With this innovation, customers can now enjoy dependable connectivity even in places with spotty mobile network coverage.

    Read also: Telecom Egypt, China Mobile International partner to address global data needs of businesses and consumers

    Telecom Egypt’s goal to provide cutting-edge services to customers 

    This launch represents a further advancement in the telecom’s goal to provide clients with a wide variety of state-of-the-art solutions to satisfy their communication demands by expanding its services portfolio.

    “This launch marks another step forward in our mission to complete our services portfolio, offering customers a diverse range of cutting-edge solutions to meet their communication needs,” said Teresa Abdelrahman, Telecom Egypt’s Chief Sales and Marketing Officer.

    He adds, “From broadband to infrastructure and now Wi-Fi Calling, we are ensuring our 10 million broadband customers have access to the most comprehensive and innovative services in the market.”

    As an industry leader, Telecom Egypt is dedicated to providing Egyptians with value, convenience, and innovation while making sure they stay connected regardless of where they are.

  • Airtel Malawi expands network with new fiber partners

    Airtel Malawi expands network with new fiber partners

    On Monday, Airtel Malawi, in conjunction with Telekom Networks Malawi (TNM), one of the two predominant mobile service providers in Southeast Africa, announced its intention to enhance its network by incorporating additional data links and enhancing overall reliability.

    Airtel Malawi’s Acting Managing Director Abdul Shaik said last week that the company’s efforts to buy more international data link capacity and hire new local fibre suppliers are meant to reduce network disruptions.

    Read also: Airtel Gabon secures licence for first technology-neutral fixed network

    Addressing challenges to ensure connectivity

    Malawi has just under 22 million people and can only be reached by road. That’s why it depends on service companies in other countries for data services. However, extended power outages in Zambia, road work in Malawi, and vandalism have all caused problems with the fibre, affecting both data and voice services.

    ESCOM, a state-owned company in Malawi responsible for transmitting, distributing, and supplying energy, is said to have been added as an additional local fibre provider by the company. This move will make the company’s main routes safer for service. The company is also getting more protection for its fibre lines from Tanzania.

    Read also: Gabon grants Airtel comprehensive fixed operator licence

    According to Nyasa Times, Abdul Shaik said the current move will reduce disruptions caused by fibre failures in Mozambique, Zambia, and Malawi.

    According to a report by the Nyasa Times, Airtel Malawi expresses confidence that these initiatives will substantially enhance the reliability of its network. The company is committed to finalising the enhancements by the conclusion of this month; however, it has indicated that it will furnish updates as the project advances.

  • MTN Nigeria raises N42.2bn in series 15 and 16 commercial papers

    MTN Nigeria raises N42.2bn in series 15 and 16 commercial papers

    MTN Nigeria Communications PLC has announced to the NGX and the investing public that it has successfully raised N42.20 billion through the issue of its Series 15 and 16 Commercial Papers (CP).

    This comes after a previous statement that the Series 13 and 14 Commercial Papers had successfully raised N72.18 billion in total.

    MTN Nigeria announced the successful completion of the Series 15 and 16 issuances in a formal notification posted on the NGX disclosure platform on Friday and signed by Company Secretary Uto Ukpanah.

    These services were provided as part of MTN Nigeria’s N250 billion Commercial Paper Issuance Program, which saw an 84.4% subscription rate.

    With assistance from Joint Dealers such as CardinalStone, Chapel Hill Denham, Cordros, Coronation, FCMB, Meristem, Quantum Zenith, and Rand Merchant Bank, Stanbic IBTC was the Lead Arranger and Dealer.

    MTN Nigeria’s CEO expresses enthusiasm 

    Karl Toriola, the CEO of MTN Nigeria, expressed his excitement and gratitude for the most recent fundraising success.

    He stated, “We are grateful for the success of this transaction, which underscores investor confidence in MTN Nigeria’s business model and management team.”

    He further emphasized, “The Commercial Paper Issuance is a key component of our established funding strategy and could not have been accomplished without the steadfast support of the investor community and our advisors.”

    Read also: MTN South Sudan breaks ground with first-ever eSIM launch

    MTN Nigeria’s Commercial Papers significant milestone 

    To support its operational and business objectives, MTN Nigeria has been actively generating money through its N250 billion Commercial Paper Issuance Programme.

    A subscription rate of 84.4% was attained by the most recent Series 15 and 16 offerings, indicating continued investor interest.

    The business successfully introduced Series 13 and 14 Commercial Papers on November 29, 2024, with yields of 29.00% for the 270-day tenor and 27.50% for the 181-day tenor.

    These issuances were initially intended to raise N50 billion, but due to enormous demand, there was a 144% oversubscription, ultimately raising N72.18 billion.

    MTN Nigeria further proved its strong investor appeal on November 7 of the same month when it issued Series 11 and 12 Commercial Papers, raising N75.1 billion.

  • Gabon grants Airtel comprehensive fixed operator licence

    Gabon grants Airtel comprehensive fixed operator licence

    Airtel has been granted the first-ever fixed operator licence in Gabon in a historic signing deal on January 7, marking a significant advancement for the Gabonese telecom industry.

    With the licence, Airtel consumers in Gabon will be able to have access to better services, such as fibre optic high-speed internet and enhanced connection in distant locations.

    Additionally, by closing the digital divide and improving telecommunications services across the country, this accomplishment will be crucial in advancing digital integration in Gabon.

    Read also: Airtel Gabon secures licence for first technology-neutral fixed network

    Closing the digital gaps

    These developments put Airtel Gabon at the forefront of a movement to close digital gaps and enhance telecom offerings, greatly advancing the digital integration of all inhabitants.

    “Our ambition is to connect Gabonese people wherever they are and provide them with tools to fully participate in the global digital economy,” the company stated.

    This development also demonstrates the Gabonese government’s steadfast commitment to fostering open and healthy competition among operators, which is a crucial tool for bringing down the price of telecom services.

    By incorporating these goals into the national strategy to address the exorbitant cost of living, the government exhibits its unwavering commitment to fostering an environment that promotes the welfare of the populace. Airtel Gabon, a vibrant and strategic partner in the country’s digital development, is essential to realising this common goal.

    Read also: MTN Uganda secures $100 million debt financing from five banks for network expansion

    Airtel Gabon’s role in Gabon’s digital transformation agenda 

    To assist the nation’s digital transformation, the organisation has been investing in human resources, technology, and infrastructure for a number of years.

    With the newly-acquired licence, Airtel is demonstrating its dedication to closing the digital divide by providing services that are sustainable, creative, and easily accessible.

    The company stated, “We welcome the decisive impetus given by the authorities, and renew our commitment to be a leading partner in building a connected, competitive and inclusive Gabon.”

    “Together, we are convinced that this dynamic contributes not only to the modernization of the telecommunications sector, but also to improving the lives of all Gabonese, thereby reducing inequalities and promoting equitable economic development.”

    With the help of the Ministry of the Digital Economy, as well as the strategic vision of His Excellency the President of the Republic, this significant advancement represents a sea change for the Gabonese populace.

  • Zenith Bank, UBA, FCMB, others to be disconnected from telcos over unpaid USSD debt

    Zenith Bank, UBA, FCMB, others to be disconnected from telcos over unpaid USSD debt

    The Nigerian Communications Commission (NCC) has authorised Mobile Network Operators – MTN, Airtel, Globacom, and 9mobile to disconnect Zenith Bank, UBA and other commercial banks’ Unstructured Supplementary Service Data (USSD) codes from their networks from January 27.

    The telecom operators have been complaining for years about the banks’ failure to pay them for the USSD service, which they nonetheless charge their customers.

    Read also: Airtel Gabon secures licence for first technology-neutral fixed network

    The affected banks 

    The banks that would be disconnected include First City Monument Bank (FCMB), Zenith Bank, Sterling Bank, Jaiz Bank, UBA, Polaris Bank, Unity Bank, Fidelity Bank, and Wema Bank, the NCC announced in a notice on Wednesday.

    The disconnection will prevent millions of Nigerians from accessing USSD to perform transactions. There is a two-week grace period for banks to pay their telecom obligations; if they don’t, their codes will be disconnected and can be reassigned.

    “The Commission will thereafter recover such Codes and may reassign them to other applicants in accordance with the applicable instruments.

    “In fulfilment of its consumer protection mandate, the Commission wishes to inform consumers that they may be unable to access the USSD platform of the affected financial institutions from January 27, 2025,” the Commission said in the notice signed by its Director of Public Affairs, Reuben Muoka.

    Non-compliance of CBN-NCC’s December 20, 2024 joint directives

    According to the telecom regulator, as of Tuesday, January 14, 2025, out of a total of 18 financial institutions, only the nine institutions aforementioned had yet to comply with the CBN-NCC directive dated December 20, 2024, for the settlement of outstanding invoices owed to MNOs, some of which date back to 2020.

    The financial institutions’ non-compliance with the CBN-NCC Joint Circular also means that they are unable to meet the Good Standing requirements for the renewal of the USSD Codes that the Commission has assigned to them.

    “The financial institutions have been duly notified of the need for immediate compliance in accordance with the Commission’s Guidelines on Short Code Operation in Nigeria, 2023,” the NCC added.

    Read also: NGX Group invests in Ethiopia’s new Securities Exchange, boosting Africa’s financial growth

    The December 2024 CBN-NCC’s joint directive 

    The CBN and NCC released a circular in December 2024 ordering banks to pay their USSD debt. The circular required banks to agree to payment plans and reimburse a portion of unpaid invoices.

    Additionally, it ordered banks to halt lawsuits pertaining to the debt. Due to the outstanding debt, which was estimated to be N120 billion as of 2023, the mobile network carriers have threatened to cut off the banks for years.

    The telcos held off on disconnecting the banks because that action required NCC approval until last year when the NCC and CBN reached a joint decision that paved the way for Monday’s disconnection order.

  • Vodacom, Orange collaborate to launch 1,000 solar base stations to enhance Internet connectivity

    Vodacom, Orange collaborate to launch 1,000 solar base stations to enhance Internet connectivity

    Vodacom and Orange have announced a groundbreaking partnership to enhance rural connectivity in the Democratic Republic of Congo (DRC).

    This program unveiled on Tuesday is the first rural TowerCo partnership in Africa and targets underprivileged areas.

    Read also: Vodacom South Africa leads Corporate Social Impact rankings for a record eighth year

    Expanding access to connectivity

    The joint venture first intends to install 1,000 solar-powered mobile base stations, with plans to add another 1,000 over six years.

    This initiative would greatly increase access to mobile financial services and telecommunications in rural areas by providing 2 G and 4 G services to over 19 million people.

    Vodacom Group CEO Shameel Joosub emphasised the potential impact of this initiative: “With a footprint serving over 210 million customers across Africa, we have the opportunity to significantly contribute to the continent’s socio-economic development by building a digital society and fostering inclusivity for all.”

    Orange Middle East and Africa CEO Jérôme Hénique highlighted the partnership’s environmental benefits, stating that sharing infrastructure minimises their ecological footprint while enhancing connectivity.

    Read also: Congo seeks Qatar’s expertise to accelerate digital transformation efforts

    With 32.3 percent mobile Internet penetration in the DRC, Orange and Vodacom’s announcement to build new base stations corresponds with the country’s 2019 National Digital Plan Horizon 2025 ambition for the digital economy.

    It also encourages digital transformation across all sectors to boost public services, economic growth, and digital access.

    This effort, which will focus on e-citizenship, e-government, and e-commerce, is anticipated to generate employment, close the digital divide, and increase the nation’s GDP.

  • MTN South Sudan breaks ground with first-ever eSIM launch

    MTN South Sudan breaks ground with first-ever eSIM launch

    MTN South Sudan officially launched eSIM technology on January 10, 2025, marking a significant advancement in the nation’s telecommunications sector. 

    This makes MTN the first operator in South Sudan to offer eSIMs, improving user ease and security.

    Read also: MTN Uganda secures $100 million debt financing from five banks for network expansion

    During a press conference with the National Communications Authority (NCA), CEO Monzer Ali stated, “Today marks another milestone in South Sudan’s telecommunications journey. 

    As MTN, we are proud to be the first operator in the country to launch eSIM technology. This is not just about innovation; it’s about simplifying connectivity and delivering convenience to our customers”.

    Benefits of eSIM technology

    The eSIM, or embedded SIM, eliminates the need for physical SIM cards, allowing users to activate mobile plans digitally. This technology streamlines switching network providers and lets consumers manage many lines on one device.

    NCA Director General Napoleon Adok Gai praised this initiative, emphasising its potential to enhance customer experiences while urging MTN to focus on user education and support.

    Read also: MTN Nigeria seeks to raise N50 billion in Series 15, 16 commercial papers

    The advent of eSIM technology is anticipated to promote inclusivity by enhancing the accessibility of compatible devices.

    Gai noted, “We are ready to assist MTN and other mobile operators in innovating and making eSIM-enabled smartphones available”. 

    The NCA’s commitment to supporting this transition highlights the collaborative effort needed to improve telecommunications in South Sudan.

    MTN’s upgrading does more than improve technology—it connects society.

    Ali remarked, “The eSIM will open up a world of possibilities and do away with the necessity for traditional SIM cards”.

  • Ethiopian Securities Exchange, raising $234 million in IPO

    Ethiopian Securities Exchange, raising $234 million in IPO

    Ethio Telecom, the biggest telecom provider in Ethiopia is the first company to list on the Ethiopian Securities Exchange (ESX) barely 24 hours after its inauguration by selling 100 million shares for $2.54 each.

    Inaugurated by Prime Minister Abiy Ahmed on Friday at the Science Museum, the Ethiopian Securities Exchange (ESX) is a “cornerstone of the government’s Home-Grown Economic Reform II (HGER II) and aims to transform the country’s financial system.”

    The government, which controls a large portion of the telco, would generate 30 billion birr ($234 million) through the Initial Public Offering (IPO).

    Read also: Ethiopian Securities Exchange begins operations

    The establishment of the ESX is part of the government’s strategy to bring capital into Ethiopia’s underdeveloped market and free up industries that were previously under state control.

    ESX process ETB 135 billion in trades 

    Since its October 2024 pilot, the new exchange’s cutting-edge Electronic Trading Platform has conducted more than ETB 135 billion (USD 1.1 billion) in trades, already increasing credit flow in the banking system. Businesses can now obtain credit more easily due to the platform’s improved price transparency and lower transaction costs. It will also facilitate more effective issuance and trading of financial instruments like corporate bonds, Treasury Bills, and commercial papers.

    Offering a vast array of financial products to corporations, governments, and institutions, the ESX will function in three segments: the Equity Market, Fixed Income Market, and Money Market.

    The ESX intends to establish itself as a pioneer in Shariah-compliant financial products, such as Sukuk bonds, in addition to its objectives of listing 90 businesses and offering substitute financing choices for Ethiopia’s quickly expanding economy.

    “We see the new securities exchange as a multi-faceted financial infrastructure, providing multiple markets and a variety of products, catering for different types of issuers and investors,” said Tilahun Esmael Kassahun, CEO of the exchange.

    Read also: Ethio Telecom, Ministry of Innovation partner to enhance access to digital services for all Ethiopians

    Ethiopia’s economic reforms 

    The launch of the ESX is part of Ethiopia’s economic reforms, which include privatising state-owned businesses, opening up the economy, and lowering reliance on traditional banking for business finance.

    The ESX will support development in what is already one of the fastest-growing economies in the world by facilitating fair access to finance and improving liquidity, both of which are critical for propelling private sector expansion.

    This milestone comes after a year of major economic reforms, such as floating the birr, allowing international competition in the banking industry, and promoting the growth of the capital market.

  • Bismarck Rewane defends telecom tariff increase, says it will boost productivity and reduce inflation

    Bismarck Rewane defends telecom tariff increase, says it will boost productivity and reduce inflation

    Bismarck Rewane, CEO of Financial Derivatives, has defended the proposed telecom tariff increase, arguing that it could boost economic output and help reduce inflation.

    During his appearance on Channels Television’s Business Morning on Thursday, Rewane highlighted the potential benefits of the rate adjustment, which telecom operators have suggested and the Nigerian Communications Commission (NCC) is currently reviewing.

    Rewane explained that the tariff increase would help reduce inflation by boosting productivity. “Yes, it helps to reduce inflation because it increases productivity,” he said.

    Read also: Nigerians should brace for hike in telecom tariffs, but not by 100%: Minister Tijani

    Telecom operators have proposed a 100 percent tariff hike to cover rising operating costs, including inflation and service delivery charges. The proposal follows an earlier announcement by Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani. The NCC is expected to finalise the details soon.

    The proposed rate increase, according to Rewane, is a reflection of investor confidence in the industry.

    “Yesterday, the price of MTN shares went up by 10 per cent to N220. Investors have already factored that in and are expecting a lot of good goodies,” he said.

    “Telecom tariff hike will make the sector viable”

    He underlined that the rise, together with further investments, would help make the telecom sector viable, which would indirectly raise output and productivity.

    “Any increase in productivity and output is likely to allow inflation to moderate, which is the goal,” Rewane added.

    He recognised the consensus among regulators, operators, and policymakers around the necessity of sustainability in the telecom industry.

    “We heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.”

    Rewane, however, predicted a more mild adjustment of between 40 and 50 per cent, dismissing the possibility of a 100 per cent hike.

    “Will they get 100 percent? No, they will definitely not. We suspect that we are likely to see something between 40 per cent and 50 per cent, which is fair after so many years of static changes,” he said.

    Read also: Airtel Nigeria CEO pushes for tariff increase to ensure telecom sector’s sustainability

    Meeting to discuss telcos’ sustainability and consumers’ affordability 

    A meeting with telecom consumer groups has been arranged by the Nigerian Communications Commission to discuss the proposed pricing increase.

    The discussions aim to find a balance between ensuring the sector’s sustainability and addressing consumers’ affordability concerns.

    After the talks, the NCC will announce its final decision on the tariff adjustment, weighing both consumer protection and the sector’s long-term viability.