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‘Broadband Access in Nigeria’ Not Broad Enough, Not Qualitative Enough- Report

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By peter oluka

Despite Nigeria’s 5+ submarine cables, carrying a combined capacity of 10+ TBPS, Nigeria still suffers from low broadband penetration.

In an attempt to increase penetration, the Federal Government’s Presidential on Broadband drafted a Broadband plan which was eventually enacted into a policy with goal of increasing fixed broadband penetration to 30% by 2018.

Meanwhile, with a reported Broadband penetration of approximately 21%, Nigeria seems to have met her National Broadband Plan target of reaching “by the end of 2017, a fivefold increase in broadband penetration over the 2012 penetration rate (of between 4-6%)”.

However, in its Policy Brief dated June 2017, titled: ‘Broadband Access in Nigeria: Not Broad Enough, Not Qualitative Enough’ Paradigm Initiative Nigeria (PIN) passed a damning verdict on the state of ‘Broadband Nigeria’; although the International Telecommunications Union (ITU) putting fixed broadband penetration in Nigeria at 0.01%, admittedly, the bulk of this broadband access has been through mobile broadband.

Internet penetration in Nigeria is put at 47%, according to the ITU.

According to the Nigerian Communications Commission (NCC), there were just over 90 million active mobile internet subscriptions on GSM and CDMA networks as of April 20175.

The report by PIN continues: Although Nigeria’s broadband plan envisaged that mobile broadband would be the most popular medium for the actualization of the plan, perhaps it was overly optimistic in its plans for the rollout of Terrestrial wireless networks, Fibre, Cable, Digital Subscriber lines and Satellite Networks, given Nigeria’s historic challenges with infrastructure development.

As earlier noted, fixed broadband penetration is 0.01% and infrastructural and policy challenges has limited the effectiveness of Nigeria’s only real claim to a national broadband network – mainly 3G and lately 4G Mobile broadband, resulting in resulting in poor quality of service.

Nigeria’s Systemic Infrastructure Obstacle

Speaking on the backdrop of the report, Babatunde Okunoye, research assistant at Paradigm Initiative, said that Nigeria’s low fixed broadband penetration must be set against the background of the Terabytes of broadband capacity which lay underutilized at landing points of International submarine cable on the Lagos coast.

The successful outlay inland of this capacity, the report observed, has been hindered by factors including unfavourable government policies such as multiple taxation and Right of Way requirements.

“In a country that could only boast 200,000 telephone lines 40 years after independence for a population of over 120 million, Nigeria had always had challenges delivering infrastructural dividends to its citizens.

“The now rested state monopoly Nitel, despite not having to contend with the limiting factors earlier mentioned, and empowered by the biggest spender in the economy (the Federal Government), could only deliver fixed telephone lines to a privileged few (200,000 or 0.001% of the population) over 4 decades”, the report said.

This infrastructure challenge was not peculiar to Telecoms alone, but was also seen in the poor state of critical infrastructure in Nigeria.

Against this background of historical poor infrastructure delivery outcomes in Nigeria, it can be argued that the National Broadband Plan (2013-2018), in its far-reaching plans for an elaborate broadband infrastructure deployment across the nation was overly optimistic in its timeframe.

This is particularly true in its plan for city-wide fibre deployment, which can be as involved as providing fixed telephone line access.

As envisaged by the National Broadband Plan, the best hope of delivering on Nigeria’s broadband plan is by ensuring that the spread of Nigeria’s 3G and relatively new 4G mobile networks which has largely helped broadband penetration to reach 21% is widened and the Quality of Service (QoS) improved.

The Nigerian government is already taking steps to deepen broadband penetration through the licensing of six slots of the 2.6 GHz spectrum for the deployment of 4G services in 2016 and the planned licensing of broadband services on the 5.4 GHz spectrum bank and allocation of 70/80 GHz band (E-band), amongst other plans.

The success of Nigeria’s GSM network is itself quite a story because in some respects, it defied Nigeria’s infrastructure challenges, partly being because it did not require the same level of elaborate layout of infrastructure house to house and street to street as required in fibre deployment for instance; a number of Telco Towers sufficing for each coverage area – plus backhaul infrastructure.

With exactly two years of the Broadband Plan left (2017-2018) and the fixed broadband penetration rate at 0.01%, there is an urgent need to revise the National Broadband Plan for fixed broadband, the report recommended.

“The remaining 2 years also provides the opportunity to solidify the gains of the national spread of mobile broadband.

“A key metric which captures the quality of Internet access in Nigeria is the Average Connection speed, put at 3.9 Mbps (compared to a global average of 7.2 Mbps), according to Akamai’s ‘State of the Internet’ Q1 2017 report”.

“This cannot be divorced from the state of Network infrastructure in the country. In the United States and the United Kingdom for instance, there is an average of 1 Telecommunications base station for 2,300 and 2,100 customers respectively”, the PIN report suggests.

In Nigeria however, there are about 39,000 Telecommunications base stations for a population of over 180 million, an average of 1 for 4,600 consumers7.

The state of Network infrastructure is centrally linked to the poor Quality of Service (QoS) in mobile broadband delivery in Nigeria.

According to the Customer satisfaction survey conducted by the Nigerian Communications Commission (NCC) in 2012, nationally, there were marginally more respondents reporting that their connection speed was “slow or very slow” than those reporting it as “fast or very fast”.

This policy brief, which follows Paradigm Initiative’s first policy brief on broadband9, stresses that the years 2017-2018 provides another opportunity to revise the National Broadband Plan, perhaps extending the target year beyond 2018 in respect of fixed Broadband (fibre), while rallying to meet the targets for mobile broadband in terms of Quality of Service (QoS) as also noted in the plan.

A major hindrance to the scheduled outlay of terabytes of fibre broadband from the Nigerian coast to the Nigerian interior has been the policy bottlenecks of multiple taxation and right of way requirements which have burdened ISPs. In this regard, it is important to call on the Federal Government to get its priorities right.

“The proposed plan for second and third national satellites, in our opinion, is wasteful, because resources allocated for this project can be used to broaden Internet access. We are of the opinion that the government can do with 1 or 2 satellites for now – there is no empirical evidence the current satellite (NigComSat-1) has given a good return on investment and financing planned for a third satellite can be channelled instead to funding tax breaks and right of way abstentions for ISPs. A nation that cannot in the 21st century provide reliable broadband access to the majority of its citizens has no business in space in the first place.

“Another immediate priority for the government will be to formulate policies that will prioritize a marked increase in the spread of 3G/4G networks – given they are the only realistic route for achieving some of the goals of the Broadband Plan within the current timetable.

“The licensing of six slots of the 2.6 GHz spectrum for the deployment of 4G services in 2016 was therefore a step in the right direction. Indeed, the Broadband plan notes that, At this juncture 3G (or HSPA) mobile broadband technology provides the fastest way for the delivery of universal mobile broadband access in Nigeria now and in the near future, while targeting LTE technology for future high capacity networks.

“3G and LTE are indeed the most ideal solutions for leapfrogging Nigeria to high speed broadband delivery

“Therefore all hands must be on deck to ensure that the worthy goal of connecting every Nigerian to a superfast and reliable broadband network is realized.

“Nigeria’s 47% and 21% Internet penetration and broadband penetration rates respectively can be partly explained by the concentration of telecom signals in highly populated urban areas and the neglect of the rural countryside where broadband affordability and consequently demand is a challenge. [Source: OpenSignal 3G and 4G LTE Cell Coverage Map]

“The figure above shows gaps between the National Planned and National Existing Broadband Fibre Infrastructure (37,104 km) in Nigeria. This challenge has been identified by the National Broadband Plan as critical to achieving broadband penetration target of 30% by 2018. [Source: Universal Services Provision Fund/Nigerian Communications Commission]”.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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