The Nigerian National Telecommunications Policy provides a mandate for universal access to telecommunications services for economic, social and political development.  The Communications act requires a Universal Service Provision Fund (USPE) that will promote the widespread availability of ICT network services to underserved areas.
The USPE is a platform for Government to encourage the development of telecommunications services in the rural areas and promote rapid social-economic development that will eventually minimize the access gap by providing public telephony and internet point of presence within 5kilometers.
Telecommunications in Nigeria has contributed to the creation and sustenance of jobs through employment of direct and indirect labour at various levels. Mobile telephony currently account for over 95% of the total telephone connection in Nigeria with mobile GSM and CDMA operators contributing in excess of 74 million subscribers out of the total industry figure of 76 million reported in first quarter of this year.
Recent efforts
The Nigeria Communication Commission (NCC) has so far released about N30billion for the executions of variety of programmes through Universal Service Provision Fund (USPF) in the six geo-political areas of the country.
Mr. Funso Fayomi, executive director/ Secretary of the USPF, disclosed recently at the North West stakeholders’ forum organized by the NCC in collaboration with USPF, that already over 550 secondary schools under the schools access programme and 133 tertiary institutions under the tertiary institution access programmes across the nation have been provided with computers and necessary ICT facilities.
According to him, under the 5years strategic programme of the USPF, over 70 percent of Nigeria communities in the rural areas where the provision of network services are either unserved or underserved will be provided with community communication centres (CCC).
“Each of the community communication centres will provide a public calling centre, a cybercafé and ICT training centre as well as serve as flat form of extending wireless internet access to the neighboring communities,” he said.
He further stressed that the CCC will enable the private operator/ implementing counter part to install and run a wireless broadband internet point, adding that services will enable access to the internet for individuals, businesses, government offices and other community based organizations.
Enumerating other achievements of USPF, the executive director/ secretary of USPF said the USPF is ready to provide funds to assist schools and unserved and underserved communities nationwide, but quickly added that various state government should provided necessary facility and security for selected schools in the targeted areas.
‘We cannot deny any community or school ICT facilities because they don’t have classrooms or electricity, which is why we take time to meet with state government and appeal to them to provided any such select areas with necessary basic infrastructures".
Mr Fayomi said the USPF don’t implement or won any projects, adding that they only provided the fund and ensure that the contractor handling the projects are properly mobilized to execute the projects in the selected areas.
Engr. Stephen Adebayo Bello, acting executive vice chairman of Nigerian communication commission (NCC), said one of the basic objective of the USPF is to contribute to national economic and social development through enhancing ICT infrastructures and services.
Engineer Bello explained that the USPF strategic plans cannot be actualized without the participation of the beneficiaries of the projects in terms of design and deployment, and charged CBO’s in various regions in the country to take up the challenges for the development of their respective locations by becoming aware and get more involved.
Explaining the school access programme, SAP, Fayomi noted that the project provides computer, accessories and high speed internet connection to selected schools, including laptops for teachers. “Each school will have a wireless mesh that will connect all the computers and the teacher’s laptop and the project which adapts the school’s curriculum for computer training includes a training module for teachers.
Giving what seems to be a report card of the entire project, Fayomi pointed out: "As we all gather here today to commission a few of the completed USPF projects; we want to also inform you that, we have rolled out similar projects in each of the geo_political Zones of the nation.
On the whole, we have 218 Community Communication Centers (CCC) and 240 USPF subsidized Base Transceiver Station (BTS) spread across the federation in different stages of completion. We have also provided 476 government secondary schools with 100 computers, a 5KVA generator and broadband connectivity (per school) under the School Access Project SAP, 133 tertiary institutions with 100 desktops and broadband connectivity (per school) under the TIAP Project. In Cross River State we have also provided facilities for the University of Calabar."
He promised that USPF will always team with relevant stakeholders to bring ICT facilities to the various ends of the country, adding that the overall plan is to be able to reach every school in the country.
Stakeholder/Private sector participation
There is need for harmonization of current uncoordinated effort by government to provide practical support for the USPF, such as; NCC’s wire Nigeria project (WIN) and Sate Accelerated Broad band Initiative (SABI) NCC Universal Service Pilot project Funded by the World Bank and Ministry of Communication’s National Rural Telephone Project (NRTP) as well as Ministry of Science and Technology’s Galaxy Backbone Project.
Federal Government Computer for all Nigerians (CANI) amongst other Industry bodies should be represented on the USPF and its committees to promote greater collaboration between the USPF and stakeholders. Increase transparency in management of USFE and increase stakeholder participation in the collection, administration Management of USP Funds Need to appropriate adequate incentive to ensure that ICT rollout in the rural and underserved communities is not hampered by the inadequacy of requite incentives.
USPF to ensure that the NTP and Universal Access policies are reviewed constantly and those stakeholders are duly consulted throughout the review process. This is critical as it will promote greater confidence of stakeholders and contribution in the management of the USPF. USPF should adopt best practice to suite local environment conditions had peculiarities of the Nigeria Market.
USPF should priorities build out of backbone infrastructure by private operators aimed at accelerating the build out of backbone transmission infrastructure into un-served and under-served rural and urban communities.
The NCC through the USPF should allocate frequencies in the 2.4,3.5,4.5 900 MHz free of charge to operators providing communications services to rural areas.
There is need for USPF to continue stakeholder consultation on regular basis. USPF projects should be implemented on a wide scale and robust basis.
Barrier to Universal Access
Extremely high operating costs in rural communities. High maintenance cost due to non availability of infrastructure such as Power roads, and High License/spectrum numbering fees without regards to unserved areas that should benefit from universal access policies.
Comments on Contribution to USPF Funding:
Further to provisions in the regulations giving NCC discretion to increase or decrease the percentage of AOL contributions already set at 2.5% to be paid into the USPF and to set the amount of the “USP levy” from time to time. In the light of multiple taxation and regulatory issues, that any additional onerous, that any administrative burdens on operators should be avoided.  
The USPF should always make clear references to the percentage of the AOL to be paid into the USPF by the NCC. Any further changes to UA policies that will impose additional financial obligations on operators should only be undertaken after extensive consultations with stakeholders i.e. Operators.
Incentives for Operators Under the USPF
Engr. Gbenga Adebayo, chairman Association of Liccensed Telecommunications Operators of Nigeria (Alton) said proper coordination of varied Universal Access initiatives is required to avoid duplication and ensure optimal utilization of resources, there is the need to streamline the national rural telephony programme sponsored and coordinated by the Ministry of Communications and any other similar initiative by Government currently running parallel with the USPF along the policy objectives of USPF.
He highlighted some of the incentives as investment in infrastructure which would have ordinarily been provided by Government such as access roads, pipe borne water, electricity supply. Investment in economically disadvantaged areas – 100% tax holiday for seven years and an additional 5% capital depreciation allowance. Subsidies and tax allowances on capital investment incurred rolling out in underserved and un-served areas that would be unprofitable in the short and medium term.
Others are total exemption of towers and masts from any form of levies, charges or other taxes by any level or arm of Government. Duty exemption on Network rollout equipment – fiber optic cables, terminal equipment, and specialized telecom equipment. USPF/NCC should ensure that Spectrum fees for frequencies required for rural roll-out are not expensive both in cost of allocation and renewals. Encourage rural entrepreneurs to co-invest in telecom network with operators which give mutual benefit both to local partners and entrepreneur local operators and local communities.
Benefits currently offered by Operators
Adebayo explained that operators offer low cost handsets both GSM and CDMA Operators. Service affordability (SIM costs as low as N100) Operators retention of subscribers on the networks irrespective of income/dormancy level, and availability of rechargeable cards in low denominations. Free on-net calls on some networks, and co-location and co sharing of infrastructure among operators. The National Rural Telephony Programme and other similar Government Rural access initiatives should be subsumed under the USPF. This industry bodies should be represented on the USP board and be better positioned to influence decisions of the USPB. Each stakeholder should perceive the other as an equal partner in the Universal Access Project Operators should contribute to the USF by duly paying Annual operating Levies. 
Subsidies should only be granted to efficient and tested operators.
USPF administrative costs should be kept at a minimum to ensure funds are not eroded. Regulatory fees (numbers, spectrum, AOL) and State/Local Government levies paid by operators should be reviewed downwards to reflect only the administrative cost of issuance.