Operating cell sites in Nigeria is notoriously challenging. The challenges of an unreliable grid, compounded by a rampant diesel mafia, put real pressure on opex and on margins. But AIO Systems has delivered opex savings of 40% across 7,000 Nigerian cell sites, offering return on investment in their RMS and Hybrid solution in less than a year and a half. TowerXchange spoke to CEO Asher Avissar to learn more about AIO’s Nigerian success story.
TowerXchange: Please re-introduce AIO Systems for readers who are unfamiliar with your company.
Asher Avissar, CEO, AIO Systems:
AIO Systems develops, produces and markets advanced solutions for the management of remote networks tailored specifically for tower management. AIO Systems is renowned for our cutting edge technologies that are based on robust turnkey platforms for hardware, software and management services, and which are customised to suit the individual needs of our clients.
Under our “All-In-One” umbrella we tackle towerco operations from A-Z. For example, just for energy we supply equipment for providing electrical power to the sites, advanced site hardware controller systems, and site detector equipment that is backed up by our CMS management system aimed at significantly reducing energy costs. The list simply goes on and on.
TowerXchange: What is the scale of your activities in Nigeria - what project management and support resources do you have deployed locally?
Asher Avissar, CEO, AIO Systems:
AIO’s largest subsidiary is based in Nigeria, which has consistently and diligently served our clients for the past four years. The success of this team is testimonial to the scale of our operations that includes thousands of sites, featuring some of the most prominent towercos in Nigeria.
Our team of experts handpicked for their local knowledge and skills, include a sales and marketing unit, specialised project managers, deployment and installation staff, a NOC dedicated only to provide services to our clients in Nigeria, and a financial and logistics department.
Customers/Suppliers via our portals have privileged access to our BI engine, which allows them to focus in on specific network information (HR performance, site components, equipment, impact of environment, price fluctuations, et cetera) from a global scale to a single site. AIO’s BI engine empowers them to take remediate steps which includes financial analyses enabling them to optimise their network operations even further.
TowerXchange: What operational challenges and KPIs come to the fore in the Nigerian market?
Asher Avissar, CEO, AIO Systems:
It is our experience that Nigerian towerco operations redefine the term KPI. Characteristics such as the poor maintenance of electrical networks, leading to the instability of these networks, and subsequent high costs of fuel due to the use of generators, are not necessary unique only to Nigeria. What makes Nigeria stand out from the rest of Africa is the dynamics of the market.
I will give one good example. We found that the power from the utility (when available) is still cheaper than the costs of generators and diesel. Towercos don’t usually take into account unforeseen generator maintenance costs and their product life due its high usage. AIO Systems have found a way to make full use of power from the utility. Electrical networks for sites in Nigeria are based on three phase networks. Almost 36% of grid failures fail when one of the phases in the network falls. As a consequence the site’s power will automatically switch to generator power. AIO’s solutions are based on two or single phases. Therefore the site is able to remain on grid power should one of the phases fall, and our systems will also bypass the automatic switch to generator power.
Another good example is what to expect during a “regular maintenance stop”. To effectively manage our sub-contractors and what they are doing during their site visits, AIO Systems has developed our Mobile inSite application for technicians. Our NOC team could ensure that they are actually in the site’s vicinity when logging in at the site, how they respond to alarms/tickets, and of course what maintenance procedures are being carried out during their stop with actual pictures of equipment. Just with this simple measure, equipment write-off for our client towerco was reduced by 14% for 400 sites alone.
TowerXchange: The Nigerian tower market is unfortunately notorious for high levels of diesel and equipment theft from cell sites - how have you been able to combat this problem?
Asher Avissar, CEO, AIO Systems:
As with any challenge, we design, redesign and implement our solutions to resolve the issue. As I mentioned these challenges are dynamic that needs a dynamic solution.
Yes, diesel theft is not any different. Now instead of just monitoring the situation, AIO Systems can manage the challenge in full. Immediately when inconsistencies are detected, we can remotely switch the generator on/off, set off a full security procedure including locking the site’s access and of course monitor and record everything on camera. Our solutions also control the diesel’s flow, quality, close/seal off the tank and of course filter out any water in the diesel that may have been “accidently” added to the diesel. AIO’s saver-logic algorithm enables towercos to manage everything from the cost of diesel, refueling to minimising its use with our hybrid solution. Measurements are based on duplicated measurements and verification systems, making it almost impossible to tamper with any measurements/data.
Equipment theft can be just as damaging for the site’s operations, and yes this has also evolved in recent years. We’ve found that adding measures such as detecting and videoing the “displacement” of equipment is not enough. Yes you need to know that it is being moved, but you also need to track it while it is being moved. Our RFID tracking and identification solutions for assets is an effective measure to track and map in real-time when, where and what is being moved.
AIO’s solutions are backed by a comprehensive alarm and ticketing system. We pre-programme thresholds for inconsistencies, which sets off the aforementioned security procedures. Not to mention the fact that one of AIO Nigeria’s partners is KingsGuard, is one of the biggest local security companies. Kingsguard offer physical security services fully backing network site security day and night.
TowerXchange: For similar reasons, one would imagine tamper proofing of RMS is critical in Nigeria - how has this been achieved?
Asher Avissar, CEO, AIO Systems:
Yes, unfortunately many of the culprits are well-familiar and have wide technical experience. The destruction of controllers, cutting wires and vandalism have forced AIO to implement drastic measures such as our SMART-Tampering components. We adapt a military-standard policy for our hardware. Components placed in a durable, tamper proof housing that is equipped with a micro-switch that sets off alarms once it is being tampered with. Wiring is replaced by wireless communication.
It is also necessary to secure data with backup software which incorporates control systems that pre-emptively manage user levels and will automatically detect inconsistent data entries. AIO protects the aforementioned wireless communication with effective firewalls, SSL protocols and data verification systems.
TowerXchange: I recall learning that MTN was the second largest power generator in Nigeria! That was of course before they sold their towers. How have you been able to improve energy efficiency at Nigerian cell sites?
Asher Avissar, CEO, AIO Systems:
Yes, of course energy efficiency is top priority for any towerco. That is why RMS vendors fashion their sales packages around this issue. Nigeria is notorious for their unstable grid, accounting for the wide use of diesel generators. There is no Time of Use billing system in place, and as mentioned previously it is important for towercos to make optimal use of the grid as the most cost-effective energy source. Unfortunately, power has to run 24/7 for companies like MTN to guarantee their service.
Our “Know your opex” policy, coupled with our Hybrid solutions, have been very effective to tackle this problem in Nigeria. AIO’s Hybrid solution addresses the grid instability in three ways. The Hybrid solution automatically switches the power to the cheapest power source available. When the grid becomes unavailable, power is switched to the lithium battery bank. Should the battery bank become unavailable, power is switched to next available source generator/grid. We’ve found that the grid is usually available during the late hours of the night until early morning, at which stage we use the grid to recharge the battery bank, of course at the cheapest rate.
Delivering this opex knowledge to the right people within the towerco has proven to be very effective. On average we were able to reduce these expenditures by 40% for 7,000 sites. Savings that amounted to over a million dollars per annum.
TowerXchange: Can you give us a sense of some of the operating performance parameters of a Nigerian cell site before and after the installation of your solutions?
Asher Avissar, CEO, AIO Systems:
AIO Systems has conservatively calculated that by adapting our solutions, a typical cell site in Nigeria can make a return on investment within 17.6 months of operation. Our Hybrid solution alone contributes to 65% of these savings, with fuel at 15%.
In addition to the direct savings , AIO systems introduces a set of “soft savings”, which indirectly add to the cost benefit of the system, and reduce even further the period for return on investment.
BI machine learning wisdom increases the monetary worth of the network
Prolonged life-span of equipment
Prevent unnecessary run-time of equipment and reduced rate of failure
Efficient use of equipment when put in operation
Reduced site visits for real maintenance
Reduced site visits for false alarms
Reduced down-time
Preventive maintenance
Cost control
TowerXchange: Please sum up your experiences in Nigeria and how they prove AIO’s credentials to monitor and optimise performance of other large tower portfolios in emerging markets.
Asher Avissar, CEO, AIO Systems:
The large scale and continuity of AIO’s operations within Nigeria is testimonial in itself. Our ability to adapt ou