Monday, 29 August 2016

WeChat plans expansion strategy for Nigerian start-ups

By Bankole Orimisan


GLOBAL social media platform with mobile messaging communication services, WeChat, has sealed a partnership arrangement with two Nigerian start-up firms to help them grow and gain easy access to the platform’s growing audience with various offers and opportunities.
   In October 2015, WeChat partnered with one of the leading technology blogs, Techcabals for an ideathon titled WeChat Africabeta with the theme: CHAT 3.0. This was organized to select the most interesting ideas from Nigerian businesses and start-ups that can ride on the platform.
  This ideathon had 80 applications, out of which top 10 were chosen. Among these were Pass.NG and Traclist who represented the first set of newly launched services on WeChat. Having these services built on WeChat is an opportunity for the service providers to create a native mobile app that can be accessed on all smart phones (Android, Blackberry, Window’s phone and iphone) through WeChat.

Speaking at a press briefing in Lagos, WeChat Regional Manager for West Africa, Idemudia Dima-Okojie disclosed, “With the launch of these services, WeChat is creating a vibrant ecosystem with different services that are of value for users.
  “While messaging is at the heart of WeChat, we are creating a platform that goes beyond simply instant messaging, a platform that provides a set of functionality ranging from service delivery and transactions, product discovery, customer relationship management, ecommerce, media distribution and much more.
   “WeChat Official Account is an app inside an app that gives organizations, businesses and brands the opportunity to create a native experience within it. This reduces the cost to develop a native mobile app, reduces time to market and provides easy access to healthy base of smart phone users.”
  He further stated that the launch of these exclusive offers on WeChat is just the beginning, adding that in the next few weeks, WeChat will be launching two additional services that will take the Nigeria start-ups story to the next level.
  Idemudia noted that the partnership arrangement is just one of the many ways WeChat is helping to grow local businesses, while at the same time creating an added value to the chatting experience.
“We are determined to continually provide solutions to grow local businesses, and we will always look for ways to improve the experiences of our users through innovative thinking and features,” he concluded.

Yudala targets N500m daily transactions

By Bankole Orimisan


THE Chairman of Yudala, Nigeria’s first true composite online and offline retail chain, Sam Ojo has disclosed that the company is set to hit the N500 million  mark in its daily transactions by the second half of 2017, going by the huge expansion drive and multi-platform offerings being launched.
   

  Speaking to select journalists on the sidelines of the formal launch of Guild of Corporate Online Publishers (GOCOP), a non-governmental organization founded to promote credibility and accuracy in online journalism in Lagos, Ojo, a strategic technology consultant and one-time Chevron Nigeria Head of Management Information System, noted that Yudala strategy is a game-changer which is set to usher in unprecedented boom in the e-commerce and offline retail sector in Nigeria.
 
  
“By virtue of its model, Yudala is strategically positioned to dominate and re-define the retail sector in Nigeria and even beyond. Going by the turn-overs being recorded at the moment both from the online and offline divisions,
  I can confirm to you that Yudala will definitely hit a minimum daily transaction figure of N500 million by 2017. Ours is a business model that is being driven by cutting-edge technology, a pool of distinguished professionals who have proven themselves in various business lines as well as a core back-bone of investors who see Africa and Nigeria in particular as a prime investment destination.
   

  “As I speak with you, we are further expanding the pipeline of our offerings and putting in structures and processes which will see Yudala take its rightful place as the undisputed leader in the sector. We are yet to see even a quarter of what Yudala stands to offer in the market place and this is one of the reasons for the confidence in the business,” he stressed.
 

    When pressed on further details of how the company plans to achieve the target of N500 million in its daily transactions, Ojo affirmed that, at the moment, the management and board of Yudala are keeping the winning strategies close to the chest for obvious reasons. He, however, noted that the company’s road-map makes it a business to look out for.
 
“At Yudala, our road-map is crystal clear.
   Our mission is to continue to dictate the pace with innovative products and services which will offer the average Nigerian value for money while improving the quality of their lives. It is worth reiterating here that we are also a socially responsible organization.
   This informs the decision behind the setting up of the YUBOSS scheme which will go a long way in reducing the burden of unemployment in the country.”
   
  
According to him, through YUBOSS, Yudala is offering millions of Nigerians a platform to create and sustain wealth with no form of investment on their part.

‘Web address explosion aiding cyber-criminals’

By Bankole Orimisan

An explosion in the number of new Internet addresses has created a wealth of opportunities for criminals exploiting shady domains such as .zip, .kim or .party, according to an industry study published this week.
  Attackers are constantly in search of new domains for links to lead users to download malware, divulge personal data or spam their friends, and a liberalization of the Web has expanded the number of top-level domains tenfold in the past two years.
An analysis of tens of millions of websites by enterprise security company Blue Coat found the most dangerous top-level domains (TLDs) were .zip,. review and country, while the safest new ones were .london, .tel and .church.
  “Ideally, TLDs would all be run by security-conscious operators who diligently review new domain name applications, and reject those that don’t meet a stringent set of criteria,” Blue Coat wrote in its study.
“The reality for many of these new neighborhoods is that this is not happening.”
   ICANN, the body that manages Web identifiers, launched an initiative to expand the number of TLDs to promote competition and choice online. Originally, there were just six not including country codes: .com, .edu, .gov, .mil, .net and. org.
  Organizations who want to sell new TLDs have had to pay a $185,000 fee to ICANN and demonstrate that they are capable of running a registry.
The size of the global Web domain name sales market is hard to determine because so many sales are private. Sought-after domains can change hands for millions of dollars but more obscure ones can be had for as little as 99 cents.
  Go Daddy, the world’s largest accredited registrar of domain names, made sales of $1.4 billion last year and was valued at $3 billion in an initial public offering this year.

SES hits rural communities with affordable, limitless connectivity

Bankole Orimisan


In line with its target to connect the unconnected and bridge the digital divide in Nigeria, SES has extended its tentacles to rural communities in the country.
  In order to actualise this, the Luxembourg-based satellite operator is leveraging partnerships with a number of local tech operators by introducing low-cost wireless and internet solutions in line with Nigeria’s Broadband Plan.
“We want to leverage existing partnerships and make sure we support users within the country to have access to the internet wherever they are,”Joy Nma Emenike, sales manager for West Africa, SES, said in an interview in Lagos.
  “We have tailored our solutions in such a way that all classes of people can buy them. We have our Ku-band solution, which is very effective. We have the Ultra Low Cost Site. We have designed a secure and reliable solution based on our Ku-band platform for this group of people living in under-served and un-served areas so that they can enjoy the benefits that come with connectivity within these places,” Emenike said.
  SES provides secure satellite communications solutions to broadcast, telecom, corporate and government customers globally. It has global presence across Europe, America, Asia and Africa.
It has three strategic offices in Africa, with a view bringing the rest of the world to Africa and taking Africa to the rest of the world. The company has an established presence in Africa’s largest economy, with partnerships with Computer Warehouse and Startimes, targeted at buoying the digital TV platform and distributing direct-to-home signals.
 
“In Lagos, we have Computer Warehouse as our teleport partner. We also have a number of other partnerships. With the synergy and strategy we have with these partners, we have been able to deploy many of our projects with regard to e-learning, e-commerce, e-health and data services. The telecoms are also partnering with us to provide quality and better data and port services across West Africa and Nigeria,” the SES sales manager for West Africa said, adding that the firm has partnered with a number of broadcasters to push its products across the country and the region.
The Nigeria Broadband Plan (2013-2018) says that less than 10 percent of households and individual users in un-served areas have internet access.  It further says that less that 50 percent of households and individual users in under-served areas have broadband access.
  To close this gap, SES has mapped out a clear-cut strategy to help the country realise its broadband targets in three years’, the company says.
The firm has keyed into the low-cost wireless solutions and satellite, while ensuring that it offers efficient and quality services to consumers.

'Why Internet Cost Is High, Access Difficult in Nigeria'



Paul Jaikaran is Chief Technical Officer (CTO) of MainOne Cables. Prior to his appointment at MainOne, Jaikaran was the CTO of GSTelecom, Vodacom Business Africa and ipNX. He started his career in networking with the Shell Petroleum Group some 23 years ago. As the CTO, Paul is responsible for all technical activities for MainOne. He recently gave audience to some ICT journalists on some germane industry issues.
Bankole Orimisan was there. Excerpts...
How will you access the clamour for nationwide broadband penetration in Nigeria?
I think there is a significant improvement if we look at the historical data from the days when we had the NITEL network (when you had to pay an arm and a leg for a single telephone and you hear a lot of cracking on the line). Now we have moved from 400,000 lines from 2001 and 138 million phones in 2013 and a leapfrog effect in form of technology.
The Ministry of Communications Technology is a key driver with various initiatives such as the Smart State initiative. The aim of the Smart State initiative is to convince the governors, state officials and federal officials to ensure that operators don't get taxed over the top and provide ways and means to get them building broadband infrastructure.
One of the main things is to ensure that the right incentives are put in place for the right providers who are willing to roll out fibre networks. It's not easy, I think Lagos State led the way by dropping their own Right of Way cost but that's only one thing, there are a lot of other things that needs to be addressed so that all providers, MainOne inclusive, can continue to grow and provide quality broadband services in the state.
How can the Broadband Council encourage other states to adopt the 'Smart States' initiatives?
I am not so sure that the governors and their advisers can see the benefits. I think you need to be able to see the benefits that broadband will give you. If you don't see that benefit initially then it's going to be hard to convince someone that broadband expansion in his state will actually do something in terms of revenue, but they have to be convinced.
One of the things that we did is work with the government of Lagos State to get some certain areas in Lagos connected and it's something the state can see tangible benefits from with respect to connectivity; talking about job creation, connecting schools, hospitals among others. If you can get the major government MDAs connected; communications, agriculture, health, trade and investment, they will be far more efficient and able to work well together.
With Nigeria estimated to have over nine terabytes bandwidth capacity, accessing the Internet is still very very costly and tough. As an operator, why is this so?
From a cost perspective, bringing the cable to the shores of Nigeria is one thing, but how do you get the services (e.g. Internet) out to the other states? One of the things that we need to look at is cheap national long distance service. If we can do that, then there is no stopping the submarine pipe that is sitting at the Lagos shores from getting to any state in the country. However the cost from the telecoms operators going from Lagos to Abuja and further up is very high; it's higher than the cost for MainOne to take the capacity from Lagos to London. This does not really help the broadband initiative.
The second issue is what I call the access network. Imagine I have taken the pipe all the way to Gombe, one of the big problems when you think about those locations is how much money you are going to invest to roll out a broadband fibre network versus how much revenue you will get back. It's a small population there in the rural setting then the amount of money you are going to get back is not going to be enough to cover your cost. That's where subsidy will come in, if the government really wants the rural areas to be connected then they would have to subsidize.
That's the only way it's going to work because the telecoms operators will look at it from a capital investment and they'll say 'I am not going to invest a whole lot of base stations to cover the entire area. What I am going to do is put up base stations in specific areas where I know there is a significant population who will use my service.
Similarly, when you are building a fibre network you typically focus on the central business districts, install your fibre in the ground and wait for customer to come and request a connection. It is capital intensive, costs a lot of money and most of the costs come from the civil side of it; digging up the street, installing ducts, manholes, fibre cabinets, among others. I would say perhaps 70 per cent of your cost comes down to civil infrastructure and the rest of it is in electronics, the fibre and so on.
Still on Internet access, the Nigerian Communications Commission (NCC) will soon license Infrastructure Companies (InfraCoS), what is the level of MainOne involvement?
For InfraCoS, NCC has requested operators to come up with detailed technical solution on broadband deployment and we have decided to bid for the Lagos region. There are a number of initiatives that we started long before this InfraCoS thing came about, that justify our commitment here. We have about 300km of fibre already laid, so it makes sense for us to say what else can we do to become an InfraCo. Also of note is the Yaba i-HQ pilot project because we worked with the Lagos state government to connect institutions, schools, businesses, in and around the Yaba area. I think it's a function of making sure that you have the right solution provider because you don't want a situation whereby you give InfraCo status to somebody and they cannot utilize the license and roll out the network or provide quality service. We have done this for years and so it's not something new to us.
Can you shed more light on the ICT entrepreneurship support programme in Yaba you talked about earlier?
Yaba is something we are trying to build on. In fact one of the things we are doing is work with entrepreneurial technology companies and specifically the Co-creation Hub in Yaba. They work with start-up businesses and offer assistance where necessary to grow their businesses. We have been with them since inception and given them free Internet support.
We also sponsor competitions like the Institute of Software Practitioners of Nigeria (ISPON) competition, Microsoft Imagine Cup among others. The aim is really to see how we can get small companies working on ICT projects to develop and deploy their ideas as businesses. How do you do a business case?, how do you push your product from a piece of paper to something that actually works?; you need people to give you advice and that's where these hubs are very useful because they can assist these entrepreneurs.
Why is MainOne investing in a Tier III Data Centre in Lagos?
We don't want to be able to box ourselves in just for Internet services. Our plan is to be able to offer different services to our customers. One of these Data Centre Services is collocation and that is why we are building this facility to meet the Tier III data centre standard. We are talking about really good power, cooling, high security systems etc so that the customer is 100 per cent confident when they put their servers in our data centre, it will function as expected. We are looking at November to wrap up the build and start the commissioning process, once that is done, we will be in a position to let people bring in their equipment.
In addition, we will offer cloud based services such as Infrastructure as a Service (IaaS), Storage as a Service (SaaS) and Disaster Recovery (DR).
Looking at the Data Centre project, how safe will customers' data be?
We have implemented both physical and electronic access controls to prevent unauthorized access into the Data centre. Customers must have prior approval based on access lists. We have biometric security to access the Data Centre space where the racks are located. For the banking customers who want to have a higher grade of security, we have caged services, to provide additional biometric access into the cage environment. In terms of the networking, we intend to be certified by PCIDSS, and then ISO 27001 standard, to ensure people have confidence in the network and the security of their data that is stored on our servers.
With Africa's investment profile on the increase, is MainOne eyeing investments in other African countries, especially in building cross border networks, among others?
Yes. We already have connectivity in quite a number of West African countries, Ghana is a major location for us because the submarine cable actually connects to Accra, but from Accra we have connectivity into Republic of Benin, Togo, Burkina Faso. The West African countries are our focus. In order to connect, we have to talk and work with the telecoms operators in those countries and sometimes we find that it is a bit of a challenge because the SLA in the country might be less than what we expect. We are going to expand more into other Africa countries.
We do have a connectivity agreement in East Africa via Seacom, the biggest wholesale operator there. Our agreement with SEACOM enables us to offer connections to many of those countries on the East Coast.
How did Kenya, others get theirs right because Nigeria started the race with them?
Kenya was a lot more focused in terms of getting the government, local/state, to fast-track broadband rollout in the country.
You talked about the financial constraints of deploying services across the country; do you think VSAT can come into play here, especially in landlocked areas?
I think VSAT has its place particularly in rural areas. The major issues are how to get cheap VSAT terminals and low cost satellite transponder bandwidth to provide a low cost service. Typically spectrum in terms of megahertz on the international satellites is still quite expensive, so the only way of getting around that is to try and get NigComSat to utilize the transponders better and lower costs. The problem is how much it's going to cost to deploy for rural areas. Its possible if you have cheap satellite bandwidth coupled with a low-cost terminal and you distribute with respect to WIFI in a particular area. You also have to look at how much you would charge each customer; you have to ensure a billing system is in place as well but it's quite feasible to use VSAT.
What happened to WIMAX technology?
WIMAX is still alive and kicking; there are companies that are still running with it in Nigeria. However, the issue with WIMAX is not that the technology is bad, it's the fact that the license that has been given is not enough to deliver high speed services as compared to LTE. For example, the LTE guys are running 20/30/40 megahertz in terms of spectrum and you can compare this to WIMAX operators who have chunks of 5 megahertz. Then there is also the issue of efficiency; the LTE technology is more efficient in terms of bandwidth per MegaHertz. So that's why you actually get more throughputs out of it. WIMAX been overtaken by the LTE technology. The advanced LTE technology is similar to 5G and it is the next step in the evolution of wireless technology.