Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Political war erupts over BEE in the ICT sector - Solly Malatsi

      Political war erupts over BEE in the ICT sector

      13 December 2025
      Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

      Icasa told to align on BEE in move that will favour Starlink

      12 December 2025
      South African solar industry faces a reality check

      South African solar industry faces a reality check

      12 December 2025
      OpenAI launches GPT-5.2 after 'code red' push to counter Google. Shelby Tauber/Reuters

      OpenAI launches GPT-5.2 after ‘code red’ push to counter Google

      12 December 2025

      A leaner BCX positions itself as market consolidator

      11 December 2025
    • World
      Oracle’s AI ambitions face scrutiny on earnings miss

      Oracle’s AI ambitions face scrutiny on earnings miss

      11 December 2025
      China will get Nvidia H200 chips - but not without paying Washington first

      China will get Nvidia H200 chips – but not without paying Washington first

      9 December 2025
      IBM reportedly close to $11-billion deal to buy Confluent - Arvind Krishna

      IBM reportedly close to $11-billion deal to buy Confluent

      8 December 2025
      Amazon and Google launch multi-cloud service for faster connectivity

      Amazon and Google launch multi-cloud service for faster connectivity

      1 December 2025
      Google makes final court plea to stop US breakup

      Google makes final court plea to stop US breakup

      21 November 2025
    • In-depth
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
      Canal+ plays hardball - and DStv viewers feel the pain

      Canal+ plays hardball – and DStv viewers feel the pain

      3 December 2025
      Jensen Huang Nvidia

      So, will China really win the AI race?

      14 November 2025
      Valve's Linux console takes aim at Microsoft's gaming empire

      Valve’s Linux console takes aim at Microsoft’s gaming empire

      13 November 2025
      iOCO's extraordinary comeback plan - Rhys Summerton

      iOCO’s extraordinary comeback plan

      28 October 2025
    • TCS
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
      TCS | MTN Group CEO Ralph Mupita on competition, AI and the future of mobile

      TCS | Ralph Mupita on competition, AI and the future of mobile

      28 November 2025
      TCS | Dominic Cull on fixing South Africa's ICT policy bottlenecks

      TCS | Dominic Cull on fixing South Africa’s ICT policy bottlenecks

      21 November 2025
      TCS | BMW CEO Peter van Binsbergen on the future of South Africa's automotive industry

      TCS | BMW CEO Peter van Binsbergen on the future of South Africa’s automotive industry

      6 November 2025
    • Opinion
      Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
      BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

      BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

      3 December 2025
      Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

      Your data, your hardware: the DIY AI revolution is coming

      20 November 2025
      Zero Carbon Charge founder Joubert Roux

      The energy revolution South Africa can’t afford to miss

      20 November 2025
      It's time for a new approach to government IT spend in South Africa - Richard Firth

      It’s time for a new approach to government IT spend in South Africa

      19 November 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Russell Southwood » Inside Medallion, Nigeria’s Teraco

    Inside Medallion, Nigeria’s Teraco

    By Russell Southwood26 September 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Russell-Southwood-180Liberalised markets create competition, and that means more operators. But the growing array of these voice and data providers can’t operate in isolation: they have to connect to each other. In Nigeria, Medallion Communications has stepped in to meet this need.

    The larger and more complex markets in sub-Saharan Africa have anything from 50 to several hundred companies providing voice and data services. If you draw what it would look like for each one to connect individually to the other, you’d end up with a very messy ball of spaghetti.

    In South Africa, independent data centre operator Teraco provides a “meet point” for operators, where traffic is exchanged in one central venue. Also, national Internet providers allow local data traffic to be exchanged between members, an increasingly important role as the volume of local African content grows. With cloud-based, value-added services on the rise, the situation will only get more complex.

    Ike Nnamani returned to Nigeria from abroad in 2003 and by 2006 had set up Medallion Communications with a couple of friends. He had seen what had happened elsewhere and knew such services would be needed in Nigeria.

    “The idea came from my experience in Canada and the US. All over the world, there are telehouses, which are the ‘meet points’ for the industry. For example, you have Telehouse in London and similar ones in the US.”

    Mediallion provides four core services: interconnection between operators; a clearinghouse for interconnected calls; co-location in either private or ‘meet-me’ rooms; and an aggregation of value-added service providers (including bulk SMS aggregators, mobile money service providers, .ng servers, the Nigerian Internet Exchange and Google). It has almost every Nigerian carrier or operator of any significance as a customer.

    All international fibre capacity is distributed through its facilities. It has two facilities, one on Victoria Island in Lagos and the other in Abuja. It has plans to set up facilities in other cities, including Port Harcourt, Enugu, Ibadan and Kano. These will be completed before the end of the year.

    Its clearinghouse service creates independent call records for interconnected calls. Therefore, if there is a dispute between carriers, it can be settled on the basis of these records. “We charge per minute of the call and it’s at a cost base plus a rate agreed with the companies. It’s the same with data, but it’s megabytes instead of minutes.”

    data-centre-640

    Voice traffic has increased by more than 1000% as more operators have come in and seen the need to share infrastructure.

    This kind of facility is essential for the emerging online space in Nigeria using smartphones: “What we’ve done is make it cheaper and more efficient for them to operate. Firstly, Internet service providers can interface with the local Google cache and this saves a lot of money on international bandwidth, which is a major advantage.”

    Also, Medallion has put in infrastructure to serve content to local carriers — and there’s lots of it. There’s also plenty of opportunities around the commercialisation of e-commerce.

    These kind of “meet points” are essential for any market where operators need to interconnect. They will become essential hubs for serving local content and offering e-commerce services. A transition will take place in more mature African markets from individual “meet points” between operators to the creation of independent, trusted facilities of this kind. It’s another form of privately run, shared infrastructure that will save costs and time.

    • Russell Southwood is head of Balancing Act Africa


    Ike Nnamani Medallion Communications Teraco
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSita a place of exile for unwanted DGs
    Next Article Vodacom places first VoLTE call

    Related Posts

    Teraco flips the switch on 50MW Cape Town data centre

    Teraco flips the switch on 50MW Cape Town data centre

    10 November 2025
    South Africa's AI data centre boom risks overloading a fragile grid - Paul Colmer

    South Africa’s AI data centre boom risks overloading a fragile grid

    30 October 2025
    South Africa's biggest data centres - Teraco JB5

    South Africa’s biggest data centres, ranked

    24 October 2025
    Company News
    When the physical world goes online: the new front line of cyber risk - Snode Technologies

    When the physical world goes online: the new front line of cyber risk

    12 December 2025
    Endless possibilities with Adapt IT Telecoms' unified VAS platform - Matthew Seabrook

    Endless possibilities with Adapt IT Telecoms’ unified VAS platform

    11 December 2025
    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    Securing IoT connectivity: how MSB Micro Systems keeps devices in check

    11 December 2025
    Opinion
    Netflix, Warner Bros deal raises fresh headaches for MultiChoice - Duncan McLeod

    Netflix, Warner Bros deal raises fresh headaches for MultiChoice

    5 December 2025
    BIN scans, DDoS and the next cybercrime wave hitting South Africa's banks - Entersekt Gerhard Oosthuizen

    BIN scans, DDoS and the next cybercrime wave hitting South Africa’s banks

    3 December 2025
    Your data, your hardware: the DIY AI revolution is coming - Duncan McLeod

    Your data, your hardware: the DIY AI revolution is coming

    20 November 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Political war erupts over BEE in the ICT sector - Solly Malatsi

    Political war erupts over BEE in the ICT sector

    13 December 2025
    Icasa told to align on BEE in move that will favour Starlink - Solly Malatsi

    Icasa told to align on BEE in move that will favour Starlink

    12 December 2025
    South African solar industry faces a reality check

    South African solar industry faces a reality check

    12 December 2025
    TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

    TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

    12 December 2025
    © 2009 - 2025 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}