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The MultiChoice (DStv, GOtv) Evolution, And Why Showmax Pro Mutes Nigerian Regulators

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DSTv court

I have called it Fish Bait Acquisition Construct: they give you something free, and you come for it, and in days, they swallow you. Netflix is using MultiChoice (operator of DStv and GOtv) as a distributor of its content in Africa. That makes sense, as not many Africans have the money to pay for bandwidth to binge. But while that redesign is happening, MultiChoice is plotting a huge offense: Showmax Pro, which will offer regular Showmax video-on-demand in addition to live TV like music, news and  sports from SuperSport. That means, you can get  all Premier League, Serie A, La Liga, boxing, IAAF Athletics, etc online. The product launched yesterday.

With this playbook, DStv takes it to Netflix, knowing that most people will come for live sports, and in the process provides viability in the boring Showmax. More so, by distributing live sports online, MultiChoice will reduce its marginal cost when compared to selling boxes for satellite TV with the associated human labour required for setting up the systems. 

This is an evolution for MultiChoice and can in principle leave Nigeria while still serving Nigeria! Yes, it does not need to be in Nigeria to sell online content since Netflix is growing its base in Nigeria with no physical presence in the nation. Yes, take it to the Nigerian regulators: we can run this from South Africa via Showmax Pro if you continue to clip us, and our customers will get all via the web.

Of course, MultiChoice is not leaving but with this online live sports, it can build a business of the future which no regulator can clip easily. Simply, pay for African TV rights license and leave a physical presence in any country that does not want to accommodate it, and serve the citizens via the web.  Forbes explains the pricing.

African video service Showmax is launching a live sports streaming service in Kenya and Nigeria that includes football matches from the UK, Italy and South Africa. Sports, especially soccer, is a major drawcard for television viewership globally, but especially in football-mad Africa.

Showmax already offers a streaming service of entertainment, music, and news; but is tapping into the soccer content from SuperSport, the sports arm of its parent company, MultiChoice.

Supersport is a decades-old sporting service, that is akin to Africa’s ESPN or Sky Sports, and is included MultiChoice’s DStv satellite service. Sports and news are seen as the strong remaining drawcards for subscription services, so it shows MultiChoice is thinking strategically. Including live sport in the offering, after live news started earlier this year, is a smart play to enhance the value of a Showmax Pro subscription while holding off Netflix.

Showmax Pro, which will cost from $8 a month in Nigeria and $10 in Kenya and offers a mobile option too, will start streaming on 7 July. The football offering will include all the games from the UK’s Premier League, Italy’s Serie A and La Liga, and South Africa’s Premier Soccer League.

Showmax Pro could see positive traction as Google Loon begins commercial operations in Kenya. Possibly, we will expect broadband costs to drop in Africa as a result of Google Loon as the service deploys across the continent.

Alphabet’s Loon division, which uses floating balloons to provide internet, has today launched its first commercial service in Kenya. In a blog post announcing the news, Loon’s CEO Alastair Westgarth said that the 4G LTE service will be provided to Telkom Kenya subscribers via a fleet of around 35 balloons, covering an area of around 50,000 square kilometers across western and central areas of the country, including its capital, Nairobi.

It’s a significant step for Loon, which started as a moonshot project in Alphabet’s X division before being spun out into its own company in 2018. The company’s balloons have already provided internet connectivity in the wake of disasters, like in Puerto Rico in 2017 after Hurricane Maria or in Peru after an earthquake in 2019, but never as part of a large-scale commercial deployment.

MultiChoice (DStv, GOtv) Challengers and the MTN Factor in Nigeria

Webinar – Saturday 11am Lagos, Capstone Guideline, 3rd Edition Video Intro

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We do think that we have created a management program which is a positive force for good. Some corporate training units are already folding into what we do; we customize things for them. In this video, I introduce the 3rd edition of Tekedia Mini-MBA (Aug 10 – Dec 3) and the capstone-based certificate programs. Register/tell your company/JOIN US.

  1. This is a friendly reminder that Tekedia Mini-MBA webinar will be held as scheduled – Saturday 11am Lagos time. The link will be posted by Friday on Week 3 board – https://www.tekedia.com/2week3/ . The webinar focuses exclusively on Q/As.
  2. Also, we have published guidelines for the Certificate program capstone. Tekedia capstone is a research paper or a case study exploring a topic, market, sector or a company. You must have attended, begun or about attending Tekedia Mini-MBA to qualify to register. Learn more and register if interested here – https://www.tekedia.com/capstone/
  3. We have a video introducing the Certificate program along with the unveiling of registration of the Tekedia Mini-MBA 3rd edition. Visit here – https://www.tekedia.com/mini-mba-3/
  4. We congratulate Symplifix (airbnb for warehouse & coldroom in Nigeria)  which used its Challenge Assignment of Week 1 to raise capital. We wish it a profitable voyage into markets.

 

Uber Reaches a $2.65 Billion Deal to Acquire Postmates

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Uber has found itself in the acquisition market once again after a botched deal with GrubHub a month ago. The company announced Monday it has agreed to acquire startup Postmates, a development that, like in the past, has prompted anti-monopoly concerns.

The two companies, Uber Technologies, Inc. (NYSE: UBER) and Postmates Inc. announced that they have reached a definitive agreement under which Uber will acquire Postmates for approximately $2.65 billion in an all-stock transaction.

This transaction brings together Uber’s global Rides and Eats platform with Postmates’ distinctive delivery business in the U.S. Postmates is highly complementary to Uber Eats, with differentiated geographic focus areas and customer demographics, and Postmates’ strong relationships with small- and medium-sized restaurants, particularly local favorites that draw customers to the Postmates brand. Additionally, Postmates has been an early pioneer of “delivery-as-a-service,” which complements Uber’s growing efforts in the delivery of groceries, essentials, and other goods.

“For restaurants and merchants, Postmates and Uber Eats will together offer more tools and technology to more easily and cost-effectively connect with a bigger consumer base,” statement from Uber said. “Consumers will benefit from expanded choice across a wider range of restaurants and other merchants. And delivery people will enjoy more opportunities to earn income, with increased batching of orders to make better use of their time.”

Following the closing of the transaction, Uber intends to keep the consumer-facing Postmates app running separately, supported by a more efficient, combined merchant and delivery network.

“Uber and Postmates have long shared a belief that platforms like ours can power much more than just food delivery—they can be a hugely important part of local commerce and communities, all the more important during crises like COVID-19.

“As more people and more restaurants have come to use our services, Q2 bookings on Uber Eats are up more than 100 percent year on year. We’re thrilled to welcome Postmates to the Uber family as we innovate together to deliver better experiences for consumers, delivery people, and merchants across the country,” said Uber CEO Dara Khosrowshahi.

Postmates Co-Founder and CEO Bastian Lehmann said the acquisition will help fulfill their on-demand mission to their customers.

“Over the past eight years we have been focused on a single mission: enable anyone to have anything delivered to them on-demand. Joining forces with Uber will continue that mission as we continue to build Postmates while creating an even stronger platform that brings this mission to life for our customers.

“Uber and Postmates have been strong allies working together to advocate and create the best practices across our industry, especially for our couriers. Together we can ensure that as our industry continues to grow, it will do so for the benefit of everyone in the communities we serve,” he said

Uber currently estimates that it will issue approximately 84 million shares of common stock for 100% of the fully diluted equity of Postmates.

The boards of directors of both companies have approved the transaction, and stockholders representing a majority of Postmates’ outstanding shares have committed to support the transaction.

The transaction is subject to the approval of Postmates stockholders, regulatory approval and other customary closing conditions and is expected to close in Q1 2021. Wachtell, Lipton, Rosen & Katz served as legal counsel to Uber. J.P. Morgan Securities LLC served as financial advisor and Latham & Watkins LLP as legal counsel to Postmates.

However, the concern of monopoly that quashed Uber’s deal with GrubHub has resurfaced. The Uber-Postmates joint venture, if approved, would control a 37% share of food delivery sales in the US, placing behind first place DoorDash at 45% and ahead of GrubHub at 17% share.

That playing field drew concern from the Open Markets Institute, which said ‘an oligopoly’ of UberEats/Postmates, GrubHub, and DoorDash would control 99% of the food delivery app market. The Institute said the companies have engaged in predatory behavior.

The Institute said the prospective merger raises Clayton Act concerns, referring to the legislation that bars acquisitions that stand to “substantially lessen completion, or to tend to create a monopoly.”

Uber has been trying to augment its ride-hailing business that has been on hold following the outbreak of COVID-19 that has stifled movement around the world. Alas, its efforts to use the eatery side of its investment to make up for the loss has repeatedly been met with stiff opposition as it is perceived as bullying for monopoly.

“These destructive delivery apps were not built to help restaurants, provide secure jobs, or even properly deliver food – they were built to monopolize an essential service and reap profits for investors,” said Claire Kelloway, food researcher at Open Markets.

Symplifix, An On-Demand Warehouse, Coldroom, etc Aggregator Raises Capital

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Today, I am happy to announce that one of the startups participating in our Tekedia Mini-MBA has raised half of the early stage capital it needs. Symplifix is a digital marketplace which uses data and technology to aggregate grain dryers, silos, cold rooms and warehouses. It will begin operations in Nigeria in September.

The company’s goal is to offer these facilities to farmers, small and big enterprises, manufacturers, importers, exporters, freight companies, logistics services providers, etc, on an on demand pay as you use basis at pocket friendly rates.

In a note to Tekedia Institute, the company noted that food security sustenance in the communities is extremely important to it. To that end, it is paying special attention to small holder farmers who run a greater risk of losing their produce due to poor, inadequate and unavailable preservation and storage amenities.

Symplifix users will be able to save time, more money and also retain a larger percentage of the earnings from their businesses without having to shell out large sums of money to pay for renting warehouses on a long term basis, or to buy any of the equipment it will offer them to use.

Manufacturers can enlarge and reduce their distribution networks faster and get their products closer to their customers.

Our community of users will also be able to add warehouse capacity swiftly to manage the challenges of surplus inventory especially during peak seasons.

We are happy to announce that we have raised an undisclosed amount of funds from a family office.

We invite you to partner with us to unlock value for all the operators in the real sector and look forward to working with you.

Let’s join hands to grow businesses and change lives.

 

According to the CEO of Symplifix, Ejike Ekwenibe, Week 1 Challenge Assignment in Tekedia Mini-MBA was helpful for this raise. We certainly do not take any credit than to continue to work harder to help our members. Yes, at Tekedia, we will continue to provide practical education to the community of innovators, project champions and entrepreneurs. 

Please click and drop your contact so that Symplifix will tell you when it launches. And it is hiring!

If you are interested in our offerings and wish to be informed when we launch, please contact us

via info@symplifix.com

07041000710 sms only.

Remote Work: Security Implications for enterprise infrastructures

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Virtual event or meeting has gone mainstream, benefiting Zoom

Thanks to coronavirus, many organizations that hitherto did not give remote work any significant consideration are seriously considering the possibility of a post-covid world where remote working is the norm among members of staff. Others are now considering large scale remote working (Work-From-Home, WFH) on a more permanent basis, as a cost cutting measure. 

Traditionally, security architectures are designed to have all (or most) trusted users within the high trust zone (internal company network) while VPNs, firewalls etc. are used to control and protect access from zones of lower trust. This paradigm has influenced how we approach security in very many ways -be it in security governance (policy controls), physical controls, technical controls and complimentary controls i.e. the use of one type of control to mitigate weakness linked to another type of control (e.g. physical access control to protect a system that is vulnerable to a JTAG memory extraction). Permanent, wholesale remote working will cause a shift in the tectonic plates of the threat landscape, altering known attack paths and thereby rendering known vulnerability mitigation strategies inadequate for the challenge. Companies must re-think, re-strategize and re-tool for the new realities that await. To get this conversation going, here are interesting points on some vulnerabilities that need to be re-assessed as companies adapt to this new reality. 

Legacy Systems

Legacy technology is like that old pair of jeans you wore as a teenager. “They are comfortable” was always your answer to any inquiry. In a world of exponential change, legacy technology is trouble. Continuing to use outdated technology of all sorts is costly beyond the financial spectrum.
In continuing reluctance to change, companies often justify continuous use of these legacy systems by using compensating measures like preventing internet access to such systems, thus reducing the attack surface of these systems. 

In the WFH workplace, some legacy systems will have to be put on the internet to allow for remote employee access. This action will widen the attack surface of the legacy systems and increase overall likelihood of an attacker infiltrating your entire infrastructure. For companies that must use legacy systems, (if you can avoid it, you should) there is a need to re-think and possibly re-design the compensating security measures to address this new reality. Examples include placing legacy devices in a separate network segment, hardening access control requirements for legacy systems, turning them on only during working hours, etc.

Network Availability

As WFH continues to gather steam, resilience of the enterprise network infrastructure becomes increasingly paramount as well. Managing load on the network will become an increasing challenge for CTOs. As they rapidly roll out enterprise VPNs and remote desktop solutions to give employees access to sensitive resources and internal applications, CTOs must find ways to balance the volume on the network. Plus, they need to keep it secure. 

On secure communications, companies now rely on VPN technology for secure remote access. VPN services are either locally hosted by the companies or paid for as a service. However, it is not the silver bullet that solves all network security issues. Firstly, a badly configured VPN will leave you as exposed to attacks as one with no VPN. Secondly, if service availability is not carefully considered in VPN installation, you could have a serious vulnerability of a “single point of failure”.

Vulnerability to service disruptions in WFH could practically ground the entire organizations’ activities. In a scenario where all users are dependent on some server(s) to access official tools & resources while working remotely, then anything going wrong to that server(s) (e.g. DOS) means everyone loses access and work grinds to a halt. The popular D/DOS attacks create large volumes of ‘garbage’ traffic to saturate the network, but there are others such as attacking the intricacies of the VPN protocol. A flow as little as 1Mbps can knock a VPN service offline. Sadly, in D/DOS circumstances (whatever the type), reverting to paper-based activities as a backup is not practicable due to geographical separation between WFH workers. Thus, in a WFH world, the impact of availability-linked attacks is significantly higher. 

Companies must re-evaluate their threat scenarios considering these new possibilities and respond appropriately with the right tools and enterprise infrastructure to mitigate this threat. Consider efficient bandwidth management, load balancing, cloud infrastructure, and prioritizing the use of trusted-vendor applications that are tested and certified to a certain degree of assurance.

(Un)Authorized Device Use 

It is often said that “our true self, is who we are when no one is watching”. This statement is no less true when people work from home. People tend to default to habits, including those they would not indulge in publicly. This ranges from benign habits like working in a pyjama to less agreeable ones like using official devices for viewing pornographic content. It is well known that pornographic sites are notorious for social engineering, drive-by and watering hole attacks. Thus, such employee actions should be worrying for employers. A recent study conducted by Kaspersky indicates that “51% of workers who admit they have started watching more adult content, since working from home, say they have done so on devices they use for work-related purposes. Nearly a fifth (18%) of workers even do this on devices provided to them by their employers, with 33% admitting to watching adult content on their personal devices that they also use to do their work.

Companies must critically reconsider what constitutes “acceptable use” policy of the organization and deploy appropriate tools that enforce these policies.

Shadow IT

The line between personal and official devices blurs for a significant number of users in a WFH setup. For example, the company’s computers are connected to home devices like printers, scanners etc. and connect to the internet via the home network. Sadly, most of these consumer-grade devices are notoriously insecure and have very serious security design flaws. In the name of usability (ease of use), they are simplistically designed, focusing only on the device’s core functionality. Most of them do not come with security-enhancing functionalities that may be found in enterprise versions of the same device. An example is a home device that fails to notify users when firmware updates become available, even though those updates are essential to patch security holes, some other devices will not accept long or complex passwords. On the other hand, consumer-devices that come with good security features tend to be too difficult to configure for the ordinary user and as such those features are left untouched. 

Thus, a vast majority of these devices are not properly maintained, not securely configured or their software might be unpatched, hence vulnerable. The increasing adoption of connected home automation (smart home) devices to the home network, further heightens the intractability of properly managing the attack vectors.

From an enterprise perspective, it is important to rethink the difference in context that WFH involves and how it impacts organizational risk posture. This should reflect on the choice of enterprise tools that must be deployed to protect devices and network communications. Such tools include endpoint protection software, secure routers/MODEMS, VPN software, etc.

Remote Access Policy

As people adopt WFH, traditional office centred security policies will serve increasingly smaller audience. Thus, policy regarding remote working environment should include prevention of eavesdropping by encouraging staff members to stay in secluded areas when participating in (sensitive) meetings where strategic company matters are discussed.

Policies regarding remote login should also be hardened. As much as possible prioritize multifactor authentication for user authentication.

Incident Response Turnaround

In the event of a cyber incident, responsiveness/turnaround time between when information is shared, to when it is acted upon becomes very difficult to predict and control. Hence a minimum responsiveness time should be defined for all WFH users to encourage active engagement and faster responsiveness. 

CONCLUSION

The vulnerabilities mentioned above are by no means exhaustive but should serve as a catalyst in starting the conversations around the long-term security implications of WFH and what changes must be done to equip the enterprise of the future.

Finally, changes to the threat landscape means that companies will need to be adaptable in taking preventive steps to mitigate risks and stay ahead in the game.