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
      Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

      Nedbank hires MTN’s former tech chief as group CIO

      31 July 2026
      Eskom's diesel bill falls 86% as breakdowns hit eight-year low

      Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

      31 July 2026
      Ramaphosa signs off on taking the grid away from Eskom

      Ramaphosa signs off on taking the grid away from Eskom

      31 July 2026
      Microsoft just had the biggest day in stock market history

      Microsoft just had the biggest day in stock market history

      31 July 2026
      MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

      MTN Nigeria’s growth engine stalled in second quarter

      31 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Ike Nnamani Medallion Communications Teraco
    WhatsApp YouTube
    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

    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Green light for massive new Cape Town data centres

    Green light for massive new Cape Town data centres

    29 July 2026
    Communications minister Solly Malatsi. Image: DCDT

    Malatsi pitches Reit overhaul to channel capital into digital infrastructure

    15 May 2026
    Company News
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Huawei launches 12 intelligent transport solutions in South Africa - Sam Tang

    Huawei launches 12 intelligent transport solutions in South Africa

    30 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

    Nedbank hires MTN’s former tech chief as group CIO

    31 July 2026
    Eskom's diesel bill falls 86% as breakdowns hit eight-year low

    Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

    31 July 2026
    Ramaphosa signs off on taking the grid away from Eskom

    Ramaphosa signs off on taking the grid away from Eskom

    31 July 2026
    TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

    TCS+ | Why South African workers must become supervisors of digital labour

    31 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}