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Nigeria’s ISP Market Shrinks as Operators Struggle with License Renewals

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Nigeria’s ISP Market Shrinks as Operators Struggle with License Renewals

The number of active Internet Service Providers (ISPs) in Nigeria has fallen to 242 as of July, a decrease from 252 in May. This drop results from several operators failing to renew their licenses. Despite new licenses being issued to Sulfman Consulting Ltd. and NGCOM Lastmile Solution Ltd. on July 1, 12 ISPs exited the market in June.

Key Points:

  • Decline in ISP Numbers: The Nigerian Communications Commission (NCC) reported that many ISPs are not renewing their licenses, which cost N500,000 for a five-year term. As a result, the number of active ISPs continues to decrease.
  • Militating Factors: Former NCC Executive Vice Chairman Prof. Umar Danbatta identified several challenges facing ISPs, including anti-competitive practices, inadequate spectrum, high bandwidth prices, costly Right of Way, and poor corporate governance. These issues have contributed to the inactivity of 568 licensed ISPs as of March 2022.
  • Competition with Mobile Operators: ISPs face stiff competition from mobile network operators (MNOs) like MTN, Airtel, Globacom, and 9mobile, who offer internet services alongside their voice services. The launch of 5G by MTN and Airtel has exacerbated this competition, leading some enterprise customers to switch to 5G services.
  • ISP Customer Data: As of Q1 2024, the leading 106 ISPs had a cumulative 262,206 active customers. In contrast, the four major MNOs had 163.8 million active internet subscriptions, highlighting the dominance of MNOs in the market.

Call for Government Intervention:

David Omoniyi, CEO of VDT Communications Limited, a leading ISP, has urged the government to support ISPs. He emphasized the critical role ISPs play in achieving ubiquitous broadband and the success of the National Broadband Plan 2020-2025. Omoniyi noted that ISPs, often classified as SMEs, are struggling and require government assistance to continue providing last-mile services.

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As Nigeria aims to improve its broadband infrastructure, the challenges faced by ISPs and the need for government intervention remain crucial topics for ensuring equitable and widespread internet access across the country.

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Microsoft Unveils AI Tools to Support Doctors and Nurses and Ease Workload

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Microsoft Unveils AI Tools to Support Doctors and Nurses and Ease Workload

Microsoft announced on Thursday a range of new AI tools designed to help health-care professionals manage administrative tasks and improve patient care. Among the innovations are medical imaging models, a healthcare agent service, and a documentation solution aimed at nurses. These tools are intended to streamline workflows, saving valuable time that clinicians often spend on paperwork, a known factor in industry burnout. According to the Office of the Surgeon General, nurses spend up to 41% of their time on documentation.

Mary Varghese Presti, Microsoft’s vice president of portfolio evolution and incubation at Health and Life Sciences, emphasized the impact of AI on healthcare systems. She highlighted its potential to “reduce the strain on medical staff, foster collective health team collaboration, and enhance the overall efficiency of healthcare systems across the country.”

This move follows Microsoft’s ongoing efforts to expand its presence in healthcare AI. Last year, the company introduced health-related features across its Azure cloud and Fabric analytics platform and completed its $16 billion acquisition of Nuance Communications, known for its speech-to-text AI solutions.

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While many of the new tools are still in development or available only in preview, they promise significant improvements. The collection of AI models can analyze various data types, including medical images, clinical records, and genomic data. Microsoft aims to empower healthcare organizations to develop innovative applications based on these models, helping doctors and nurses provide better care while reducing their administrative burden.

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Escalating Tensions Between Banks and Tech Companies Over Online Fraud Liability in the UK

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Escalating Tensions Between Banks and Tech Companies Over Online Fraud Liability in the UK

Tensions are mounting between banks, payment firms, and social media platforms in the U.K. over the responsibility for compensating victims of online fraud. Starting from October 7, banks will be required to compensate individuals up to £85,000 if they fall victim to authorized push payment (APP) fraud—a type of scam where criminals manipulate people into transferring money to them.

Although the £85,000 limit is lower than the £415,000 initially proposed by the U.K.’s Payment Systems Regulator (PSR), it still represents a significant burden for banks and payment companies. Industry groups, such as the Payments Association, argued that the higher compensation figure would have been too costly for financial institutions to bear.

As mandatory fraud compensation takes effect, concerns are growing within the banking sector about whether they are being unfairly saddled with the financial cost of protecting consumers from fraud. The issue has sparked criticism from financial institutions like digital bank Revolut, which recently accused Meta, the parent company of Facebook, of not doing enough to combat fraud on its platforms.

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Revolut’s head of financial crime, Woody Malouf, argued that social media companies should share the financial burden of reimbursing fraud victims. Malouf said that by avoiding financial responsibility, platforms like Meta lack the incentive to implement stronger anti-fraud measures.

This conflict over fraud liability highlights the growing pressure on both financial institutions and tech companies to find solutions to the rising tide of online scams, as consumers continue to fall victim to fraud through digital channels.

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Judge Orders Google to Open Android App Store in Epic Games Case

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Judge Orders Google to Open Android App Store in Epic Games Case

A U.S. judge has issued a permanent injunction forcing Google to offer alternatives to its Google Play store on Android devices. This landmark ruling, part of Epic Games’ antitrust lawsuit against Google, means that the tech giant must allow other app stores to compete and access its Play Store catalog.

The decision comes as a major win for Epic Games, which initially sued Google in 2020, accusing the company of anti-competitive practices such as paying phone manufacturers to avoid developing rival app stores. Under the ruling, starting in November, Google will be restricted from:

  • Paying companies to launch apps exclusively on Google Play.
  • Preventing companies from creating competing app stores.
  • Requiring app makers to use Google Play Billing or preventing them from promoting cheaper pricing options on their websites.

The ruling could reshape the app market by allowing developers to bypass Google’s fees, which typically range from 15% to 30% of sales. This could result in developers keeping a larger share of the revenue from the estimated $124 billion consumers spent on apps in 2023.

In addition to these restrictions, a three-person committee will be established to monitor Google’s compliance with the order. This ruling sets a new precedent in app market competition, paving the way for more choices for consumers and app developers alike.

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