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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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OpenAI CTO Mira Murati Announces Departure After 6 Years

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OpenAI CTO Mira Murati Announces Departure After 6 Years

OpenAI’s Chief Technology Officer, Mira Murati, has announced her departure from the company after six and a half years. In a memo shared on X, Murati expressed that she had made the “difficult decision” to step away from OpenAI, citing her desire for personal exploration and reflection.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” Murati wrote, emphasizing her commitment to ensuring a smooth transition for the company during this critical time.

Her exit follows other high-profile departures from the company, including co-founder Ilya Sutskever and former safety leader Jan Leike in May, as well as co-founder John Schulman, who left last month to join rival company Anthropic.

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Murati’s departure comes at a time when OpenAI is pursuing a new funding round, potentially valuing the company at over $150 billion, with significant investments anticipated from major players like Thrive Capital, Microsoft, and Nvidia. OpenAI, the company behind ChatGPT, has seen rapid growth since 2022 but has also faced internal controversies and employee turnover, sparking concerns about its ability to scale safely.

Murati became a public figure when she was appointed interim CEO last November after the abrupt ousting of CEO Sam Altman. Despite her departure, she remains focused on supporting OpenAI’s momentum in the coming months.

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

During a congressional hearing, CrowdStrike executive Adam Meyers issued a formal apology for the massive IT outage in July, which affected millions of computers globally. In his opening remarks, Meyers expressed deep regret, stating, “On behalf of everyone at CrowdStrike, I want to apologize. We are deeply sorry this happened and are determined to prevent it from happening again.”

Meyers assured lawmakers that the company is committed to learning from the incident and making significant improvements. This includes enhancing testing and checks on updates, as well as altering how future updates are issued to avoid similar disruptions.

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

Caroline Ellison, the former CEO of Alameda Research and key witness in the criminal case against FTX founder Sam Bankman-Fried, faces sentencing this Tuesday. Despite her involvement in the massive fraud that led to FTX’s collapse, Ellison may avoid significant jail time due to her cooperation with federal authorities.

Ellison admitted to defrauding investors and misappropriating billions of dollars from FTX customers, redirecting funds to Alameda’s speculative trading and debt repayment. Both Ellison and Bankman-Fried face the same serious charges, which carry a potential maximum sentence of 110 years. However, her cooperation with prosecutors has been deemed “extraordinary,” leading the federal Probation Department to recommend “time served” with three years of supervised release.

Her testimony was crucial in portraying Bankman-Fried’s role in the collapse, particularly due to their close personal relationship. This unique insight into his operations helped strengthen the government’s case. While Ellison was involved in fraudulent activities, legal experts believe her lesser control compared to Bankman-Fried will likely result in a lighter sentence, potentially no more than 18 months in prison.

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