The Nation Newspaper

Category: e-Business

  • We’re not constrained by erratic power supply, says MDXI chief

    We’re not constrained by erratic power supply, says MDXI chief

    The General Manager, MDXI, Mr. Gbenga Adegbiji,  has said the operations of MDXI data centre is not constrained by the erratic power supply in the country, which many companies have blamed for their woes. Rather, he said, the data centre, which is a subsidiary of MainOne,  has been  achieving almost 100 per cent power uptime availability, with a surmountable over 90 per cent of that power coming directly from the national grid.

    Adegbiji spoke with IT Editors in Lagos at the weekend against the backdrop of a report which quoted another data centre operator that identified power as a key problem across Africa, adding that Nigeria’s power issue is on larger scale and worse than experienced globally.

    Adegbiji debunked the myth that power hungry industries such as data centers cannot successfully operate in the country, arguing that MDX has enjoyed over 90per cent power uptime since 2015. The firm, he said, is poised to achieve 95 per cent availability this year based on its growing partnership with a local power distribution company (DisCo).

    According to him, the MDXI facility was purpose-built to mitigate all challenges that global businesses may have in a Nigerian data centre. He said before constructing the data centre, the company realised 24×7 power supply was a critical challenge for businesses requiring high availability co-location infrastructure and invested in a direct private connection to the national grid through newly privatised Eko Electricity Distribution Plc.

    Adegbiji said: “We recognised the crippling impact of downtimes, the peculiarities of the Nigerian power environment as an albatross that had forced many companies to relocate outside Nigeria and ensured MDXI was established with the most robust electricity power and back-up arrangements, in line with the Telecoms Industry Association (TIA) ANSI/TIA-942, the leading Telecommunications Infrastructure Standard for Data Centers.

    “Though we made provision for the full complement of generators and diesel tanks with capacity of over 100,000 litres to secure the data centre’s operations and guarantee 99.995 per cent availability, we also partnered Eko DisCo and co-invested in a dedicated 33KV feeder and line connection to the national grid through the Ajah sub-station.

    “Connecting directly to the grid provides us access to multiple power generating plants and guarantees backup in the event that one power plant goes down. This was a capital investment of hundreds of millions in substation equipment and dedicated power lines, which bypass all ‘last-mile’ challenges encountered in electricity distribution. This has guaranteed an increase in power availability at the data center from 50 per cent average commercial power availability to between 95 per cent and 98 per cent.”

    Aside steady state of operation and the attendant reliability of equipment and systems that the public power provides, MDXI has been able to guarantee significant cost savings, which are passed on to its numerous customers, which include banks, government parastatals, international financial organisations and the large over-the-top (OTT) operators. The data center’s performance and service delivery has earned the company an Impact Award during the Presidential Enabling Business Environment Council (PEBEC) Awards for its contribution to improving Nigeria’s rank in the Ease of Doing Business index through its co-location of critical server infrastructure for the Federal Government.

    The Chief Executive Officer, Eko Disco, Mr. Adeoye Fadeyibi described MDXI as a shining example of how privatisation of the power sector is making a positive contribution to the economy by guaranteeing a higher level of power availability.

     

  • Accenture to CEOs: deploy intelligent technologies or die

    Accenture to CEOs: deploy intelligent technologies or die

    Businesses risk missing major growth opportunities unless their chief executive officers (CEOs) take immediate steps to pivot their workers and equip them to work with intelligent technologies, Accenture has warned.

    A new Accenture Strategy report titled: Reworking the revolution: Are you ready to compete as intelligent technology meets human ingenuity to create the future workforce? estimates that if businesses invest in Artificial Intelligence (AI) and human-machine collaboration at the same rate as top performing companies, they could boost revenue by 38 per cent by 2022 and raise employment levels by 10 per cent.

    Collectively, this would lift profits by $4.8 trillion globally over the same period. For the average S&P500 company, this equates to $7.5 billion of revenue and a $880 million lift to profitability.

    Impact of greater AI spending on revenue and employment growth, 2018-2022

    Both leaders and workers are optimistic about the potential of AI on business results and on work experiences, according to the study. Seventy-two per cent of the 1,200 senior executives surveyed said intelligent technology will be critical to their organisation’s market differentiation and 61 percent think the share of roles requiring collaboration with AI will rise in the next three years. More than two-thirds (69 per cent) of the 14,000 workers surveyed said it is important to develop skills to work with intelligent machines.

    Yet, disconnect between workers’ embrace of AI and their employers’efforts to prepare workers puts potential growth at risk. While a majority (54 per cent) of business leaders say that human-machine collaboration is important to their strategic priorities, only three percent say their organisation plans to significantly increase its investment in re-skilling their workers in the next three years.

    Group Chief Executive, Accenture Strategy, Mark Knickrehm, said: “To achieve higher rates of growth in the age of AI, companies need to invest more in equipping their people to work with machines in new ways. “Increasingly, businesses will be judged on their commitment to what we call Applied Intelligence – the ability to rapidly implement intelligent technology and human ingenuity across all parts of their core business to secure this growth.”

    The research suggests that there is a strong foundation on which to boost AI skills investment. Sixty-three per cent of senior executives think that their company will create net job gains in the next three years through AI. Meanwhile, the majority of workers (62 per cent) believe AI will have a positive impact on their work.

    The report shows how pioneers are using human-machine collaboration not just to improve efficiencies, but to drive growth through new customer experiences. An online clothing retailer’s AI helps its stylists learn more about customers’preferences so that they can offer a unique and highly personalsed service. And a sports shoe brand set a new bar in customisation and speed-to-market by aligning highly skilled tailors and process engineers with intelligent robots to design and manufacture in local markets.

    “Business leaders must take immediate steps to pivot their workforce to enter an entirely new world where human ingenuity meets intelligent technology to unlock new forms of growth,” said Ellyn Shook, Chief Leadership and Human Resources Officer, Accenture. “Workers are impatient to collaborate with AI, giving leaders the opportunity to demonstrate true Applied Intelligence within their organisation.”

    To help leaders shape the future workforce in the age of AI, Accenture urges CEOs to re-imagine work by reconfiguring work from the bottom up. Assess tasks, not jobs; then allocate tasks to machines and people, balancing the need to automate work and to elevate people’s capabilities. Nearly half (46 per cent) of business leaders agree that job descriptions are already obsolete; 29 per cent say they have redesigned jobs extensively.

    It seeks the pivot of the workforce to areas that unlock new forms of value. “Go beyond process efficiencies and prepare the workforce to create new customer experiences. Fuel new growth models by reinvesting the savings derived from automation into the future workforce. Foster a new leadership DNA that underpins the mindset, acumen and agility required to seize longer-term, transformational opportunities,” Accenture said.

    Scale up ‘new skilling.’ Measure the workforce’s level of skills and willingness to learn to work with AI. Using digital platforms, target programmes at these different segments of the workforce and personalise them to improve new skills adoption, it added. Accenture has developed a ‘new skilling’ framework based on a progression of skill level and using a suite of innovative digital learning methods that maximises training investment at speed and scale.

    Accenture combined quantitative and qualitative research techniques to analyse the attitudes and readiness of workers and business leaders with regards to collaborating with intelligent technologies. The research programme included a survey of 14,078 workers across skill levels and generations and a survey of 1,201 senior executives. These were carried out between September and November 2017 in 11 countries (Australia, Brazil, China, France, Germany, India, Italy, Japan, Spain, UK and the USA) and the following industry sectors: Automotive, Consumer Goods & Services; Health& Life Sciences; Infrastructure & Transportation; Energy; Media & Entertainment; Software & Platforms; Banking (Retail & Investment); Insurance; retail; telecoms; utilities.

    The research also included economic modelling to determine the correlation between AI investment.

  • Huawei seeks more funding for ICT sector’s education

    WITH fresh investments and improved standard of education in the Information and Communications Technology (ICT) sector, Nigeria’s economy can witness a major turnaround, Huawei Technologies has said.

    It stressed that more emphasis on education from the basic level and opportunities for entrepreneurial youths to embrace ICT will keep the country moving after emerging from its first recession in more than two decades.

    Huawei Nigeria Managing Director, Frank Li, who spoke during media interaction, in Lagos, said: “As a foreign investor, my greatest fear in the ICT sector is not the devaluation or the scarcity of dollar, but it’s the uncertainties that cloud the economy. However, ICT has countless potential in developing Nigeria’s Gross Domestic Product (GDP.”

    According to him, during the recession, many foreign investors had the fear of shutting down and moving out of Nigeria. “But with increase in international oil price, Nigeria is gradually experiencing more economic fortunes in external reserves, sovereign weight fund and purchasing manager index (PMI), which have restored the confidence of foreign investors to invest in Nigeria,” Li added.

    The Huawei chief noted that the company has huge responsibilities in meeting the demands of over 90 million Internet users in Nigeria and also reaching over 200 communities, which house about 40 million people in rural areas, who still don’t have access to basic telecommunication service.

    Li further noted that the company has being supporting the government in its various methodologies with the aim of creating more jobs and increasing more revenue for government agencies.

     

  • How to drive digital, financial inclusion, by Sterling Bank, others

    How to drive digital, financial inclusion, by Sterling Bank, others

    Contractsmartphones package offering is one way to drive digital and financial inclusion policy of the Central Bank of Nigeria (CBN), Sterling Bank, 9mobile and Solo Phone have said.

    Speaking during the unveiling of a tripartite partnership of the firms in Lagos at the weekend, Sterling Bank Plc Executive Director Retail and Consumer Marketing, Grama Narasimhan, said the initiative, would allow more Nigerians to enjoy the benefits of the digital eco-system driven by mobile.

    He said the partnership reflects the bank’s commitment to delivering value to its customers, adding that the lender will continue to be in the business of making valuable partnerships with key stakeholders to deliver value to its customers as well as the banked and under banked Nigerians.

    “At Sterling Bank, we will always put the customers first, as they are the reason we continue to seek valuable partnerships that will translate into making the lives of our customers easier,” he said.

    He said the contract package allows the customer to enjoy a very attractive monthly mobile bundle plan (Voice +SMS+ Data plan + Social media+ recharge bonuses) in addition to a SOLO Aspire 4 smart mobile phone and the minimum period for the contract is 12 months.

    The bank’s Chief Marketing, Mr Henry Bassey, further noted that the bank will continue to be at the forefront of seeking valuable partnerships that will enrich the lives of customers. “At Sterling Bank, our customers will always come first, that is why we always design solutions that will translate into value for them.”

    Bassey further noted that this alliance with 9mobile and Solo Phone is a testament of the bank’s commitment to ensuring that every Nigerian is availed the opportunity to own a smart phone with all its attendant benefits, which include insurance cover, 90 minutes of call time, SMS, Social plans and free 1.5GB data.

    Solo founder/Chief Executive Officer, Tayo Ogundipe, said the absence of small loans to buy phones, lack credit history and lack of bank accounts, permanent jobs and fear of fraud, were some of the factors affecting mobile phone penetration. He said the partnership would address  these challenges.

    “Driving digital and financial inclusion remains critical to economic growth, especially in emerging market. Accelerating smartphone adoption is at the core of realising the growth potential. Our partnership with Sterling and 9mobile is designed to change the game by bringing to Nigeria, the same mechanism that has propelled smartphone adoption in developed markets. This will open the door to inclusion.

    “At a time of difficult economic conditions across Africa, making Smartphones affordable especially for the mass market requires fresh thinking and innovative ideas. That’s SOLO’s DNA and we are proud to be part of the team that’s delivering this unique solution in Nigeria,” Ogundipe said.

    9mobile Enterprise Segment Director, Mr. Plato Syrimis, expressed the delight of his organisation to be part of a partnership that would increase smartphone penetration and its benefits to Nigerians who could not afford to pay the lump sum that is required to acquire these devices.

    “This partnership has made it possible and affordable for anyone to go into a Sterling Bank branch, pay a deposit of N10,000 and walk out with the latest smartphone device. Furthermore, the customer will enjoy monthly voice minutes, data and freebies pre-bundled into the 9mobile SIM attached to these devices,” he said.

    He said the increase in smartphone penetration is a stimulus for development as more people are able to access the vast knowledge stream available on the internet and mobile application developers could provide easy access to services, such as education, health, logistics and transport via the smartphone. This is the beginning of a great journey for our customers as we continue to deliver the benefits of a digital environment either directly or through our partners.

  • Skye Bank’s website ‘best in content, accessibility’

    Skye Bank’s website ‘best in content, accessibility’

    Skye Bank’s website www.skyebankng.com has emerged the overall winner in two categories namely, Web content and Accessibility in the 2017 edition of the yearly website Web Jurist Award conducted by Philips Consulting.

    Also, in the Technical aspect, Skye Bank ranked among top contenders, such as Access Bank, Zenith Bank and United Bank for Africa, an improvement on the previous year’s performance.

    The bank’s website ranked overall fourth best from eight position in 2016, and 18th in 2015, owing to the bank’s investment in the upgrade of its website and the robust real-time content strategy it deployed. The result shows the bank’s website is one of the most improved, beating other lenders in that space. This is a validation of Skye Bank’s dedication to continuous improvement and service quality, steeped in the use of information and communication technology.

    The Web-Jurist rating and awards is an initiative of Phillips Consulting Limited, aimed at measuring the effectiveness of websites in the private sector, to ensure continuous enhancement of e-business activities and encourage better web communications practice.

    The consulting giant carried out a detailed evaluation of the websites of 20 commercial banks, 103 Federal Government parastatals, 29 state governments, 47 insurance companies, four telecoms companies and seven indigenous airlines.

    The lender’s performance is an improvement from last year’s when it was rated eighth behind Ecobank’s who emerged overall winner at the time. Similarly, this feat is a validation of Skye Bank’s industry leadership in e-payment and compliance with best practice, which requires provision of accurate, relevant and timely information on organisational websites at all times.

    The awards which started in 2001, evaluates the effectiveness and performance of Nigerian websites based on criteria agreed by e-business experts from Philips Consulting.

    Winners are selected in categories that include: aesthetics, technical aspects, website content, e-financial services, customer experience and performance. The award also recognises other organisations across banks, discount houses, telecommunication and insurance firms.

    “Winning the best web content and accessibility award is a significant accomplishment and demonstration of the bank’s commitment to provide its online stakeholders with accurate, relevant and timely information at all times and eliminate barriers that prevent interaction with the website,” the lender said in its reaction.

  • NIMC eyes 78m for registration

    The National Identity Management Commission (NIMC) has set a new target of registering 78 million Nigerians into its data base before the end of the year.

    So far, it has enrolled over 28 million Nigerians and legal residents into the National Identity Database (NID) and issued them the National Identification Number (NIN). The milestone was attained last January 10.

    NIMC Director-General/CEO, Aliyu A. Aziz, said more 50 million Nigerians and legal residents would be registered and issued with NIN by December.

    In December 2016, when the enrolment stood at only 14 million, the NIMC chief promised to double the figure to capture 28 million Nigerians and legal residents into the database by last December, a target that was met few days after the end of December.

    NIMC Head, Corporate Communication, Loveday Chika Ogbonna, quoted  the CEO as saying that the achievement could not have been possible, but for the dedication, commitment and sacrifices made by the commission’s workers on the one hand and the unalloyed support of the government, despite the economic meltdown.

    He also acknowledged the push for the mandatory use of the NIN from stakeholders and partners of the commission in the private and public sectors, especially members of the Harmonisation Committee set up by the Federal Government.

    “Indeed, their commitment towards the harmonisation contributed to the growth of the database, as well as increase in the public’s awareness about the NIN and its benefits,” Aziz said.

    The Harmonisation Committee is made up of the about 23 Federal Government agencies who are stakeholders in the identity sector.

    Explaining that the NIN bequeaths citizens with privileges and benefits, the DG listed some benefits to include one-person-one identity, ability to verify and authenticate individual’s identity, access to services, claims and entitlement and benefit from the government social interventions.

    Urging Nigerians to take advantage of the over 900 enrolment centres across the 36 states and the Federal Capital Territory to enrol for the NIN, the NIMC DG said the commission is set to start the enforcement of the mandatory use of the NIN for identity-based transactions as enshrined in the NIMC Act No 23 of 2007.

    The DG also stated that the commission recently gazetted and published supplementary regulations, which consist of principles, practices, policies, processes and procedures that would be used to achieve the desired objectives of enforcing the NIN.

    He urged on Nigerians to be patient, saying the commission would  ensure that they get their National Identity cards. He thanked the  public for their feedback, adding that it has helped to improve the commission’s service delivery.

  • Samsung: Nigeria plant not feasible

    Samsung Electronics West Africa (SEWA) has said establishing a manufacturing plant in Nigeria is not being considered for now. The South Korean tech giant said it would rather refocus its vision and strategy for Nigeria, the West African sub-region and the continent in general.

    Samsung Electronics Africa Chief Executive Officer, Mr Sung Yoon, who spoke with reporters on the sidelines at a meeting with its dealers in Lagos, said the economy of scale prevalent in the country will not make the manufacturing of mobile phones in the country profitable for the firm.

    Yoon said the refocusing was geared towards stimulating a higher level of operational efficiency, with the objective of providing customers with the highest quality products, sales and services. Through this process, the company will shore up its market leadership position across the continent.

    “We wish to reiterate our commitment to this market and our focus on delivering the highest quality products, service and support, for which our customers have come to admire us. We can assure all our stakeholders that as an organisation, we have gained useful insights from events of our recent past, both positive and negative, and are confident that the lessons learned will help propel us into our next phase of growth,” he said.

    Yoon said since Samsung began operations in Nigeria in 2005, it has carved a niche for itself by offering high quality products, which have impacted positively on the economy in various ways, such as fostering knowledge/technology transfer and creating employment directly and indirectly for millions of Nigerians. The company has also been investing heavily in corporate social responsibility (CSR) in areas such as education, environmental sustainability and economic empowerment.

    In Nigeria, Samsung has invested significantly in its partnership with the Lagos State Technical and Vocational Education Board, where it is helping to equip the country’s youth with the technical skills they need to transform their lives and contribute to the development of the country.

    The Samsung Engineering Academy enrolls over 1000 students yearly across various countries in Africa with the aim of closing the gap between skills and demand in the job market. Graduates have a 40 per cent job placement track record, while others go on to pursue further higher education, training or start their own businesses.

    “Samsung’s aim is to build successful partnerships in Nigeria to equip the country’s youth with the technical skills they need to transform their lives and contribute to the development of the country,” Yoon said, adding that the Samsung Engineering Academy has revolutionised traditional education by providing technical and vocational training for school leavers, tertiary students and unemployed youth.

     

     

     

     

     

  • 9mobile, Bango to launch payment solution

    9mobile has partnered Bango, a leading global mobile payments company, to launch operator-billed payments for Google Play users. With this, customers can through 9pay, pay for an array of media, games, apps and digital content on Google Play store.
    Customers can open and fund a 9pay account by dialing *500# or visiting 9pay.com.ng. All funds are securely warehoused and monitored by UBA plc. Alternatively, they can complete this process while they are in the play store.
    9pay customers will also be able to use their accounts to pay for an exciting array of services online such as lottery, collect change digitally and pay for web services. This great new step also ensures that local developers of apps and games will find it infinitely easier to monetise their offerings.
    Chief Product and Information Officer, 9mobile, Otuyemi Otule, said 9mobile was happy to expand its mobile payment solutions in Nigeria, which has a combination of a highly unbanked and highly mobile-first population. He added that 9mobile’s 9pay offers millions of consumers means of making important financial transactions, including sending and receiving money, receiving change from merchants, topping up air-time and much more.
    “We are delighted to enable customers place the charge for content and services from Google Play on their 9pay account. This launch is a significant addition to the value of mobile payments for our customers,” Otule said.
    Also speaking, Bango CEO, Ray Anderson, said it is instructive to note that 76 per cent of all online traffic in Nigeria is from mobile devices. Smartphone adoption is growing rapidly, with Android accounting for over 60 per cent of the mobile operating systems market share in Nigeria as at 2016. 9mobile and Bango target a high impact in Nigeria – approximately 150 million subscribers, which will be more than any other African country.
    Anderson said:“With a high Android device penetration and low banked population, Africa has become a prime market for transformative mobile payment solutions. Direct Carrier Billing and stored value systems such as 9pay provide a safe, simple mechanism for increasing access to digital content and services.
    “Enabling 9mobile to launch 9pay as a payment option on Google Play is an important milestone for Bango to further increase our footprint in Africa and give millions of consumers access to the digital revolution.”

    He added that the Google Play store pre-installed on all Android devices will enable millions of Nigerian consumers to participate in the m-commerce experience.

  • Yudala eyes profits by 2020

    The Vice President of Yudala, pioneer online and offline e-commerce outfit, Prince Nnamdi Ekeh, has said the firm has set 2020 as the year to hit profitability, making it the first e-commerce  platform in Africa to return profits within its first five years of operations.

    Ekeh, who spoke on the sideline of Unusual Praise 2017, a gospel concert hosted by the Catholic Church of Divine Mercy in Lekki, Lagos, said the facts and figures on ground showed that Yudala is on track to set another record in what has been a ground-breaking journey in the e-commerce industry.

    He said: “At Yudala, our strategy is clear and distinct from anything else on offer in the market today. Our fusion of online and offline is not only futuristic, but one that has being copied by other global e-commerce giants. On the back of this, we have seen a consistent growth trajectory that will see Yudala emerge as the first profitable Nigerian e-commerce company by 2020.

    “Furthermore, we are renowned as arguably the most credible source of genuine products in the e-commerce sub-sector today. Every item on the Yudala platform, online or offline, is sourced directly from the manufacturers and this has clearly distinguished the Yudala brand in the market place.

    “In addition, we possess superior logistics and delivery timelines that have endeared us to shoppers. As a result, we have consistently seen repeat purchases from our customers. In most cases, we have also been able to win over new shoppers, the majority of whom, having patronised other platforms, have not looked back since their first experience of Yudala. Aligned to the foregoing is the passionate, committed and highly professional team we have in the company, all of whom have continuously displayed the hunger and capacity to deliver on our mandate.”

    Yudala is a platform for all and we respect the diversity of faith we have in the country,” he said.

    Launched a little over two years ago, Yudala has more than held its own in Nigeria’s keenly-competitive e-commerce sector, with the company’s futuristic fusion of an online platform with a chain of brick-and-mortar stores located nationwide instantly setting it apart from inception.

    And despite the well-known struggles of other established players in the sector, Yudala has continued to post impressive results, a trend that has seen optimism of the company soon turning the corner of profitability.

    Continuing, he noted: “We are aware of the challenges faced by players in the e-commerce sector. Research at our disposal indicates that less than 30 per cent of African e-commerce startups are profitable, with many of them hampered by lack of trust, shortage of financing, logistical difficulties and the largely-traditional approach to shopping still in play among these economies.

    “Here in Nigeria, the case is hardly different as we have seen many e-commerce start-ups exit the scene prematurely while the older ones have also consistently posted huge losses.

    “However, the story is different at Yudala. This is down mainly to our sound business model and approach. Indeed, while our investors expect us to deliver profits by 2022, our ambition is to surprise them by achieving this milestone earlier,” he said.

    Apart from its ambitious retail roll-out strategy and network of physical stores which has helped the company reach many unserved and under-served members of Nigeria’s over 190 million population, Yudala has also been bold in making a statement of intent with its emphasis on genuine products and best prices, aligned to a number of landmark innovations and eye-catching strategies which has endeared it to an ever-growing audience.

    In addition to pulling off the first recorded instance of a product delivery via drone in 2015 – a feat which captured the imagination of the e-commerce world – Yudala has succeeded in building up a steadily growing database of loyal customers, many of whom have come to rely on the company for the assurance of genuine products and unmatched best prices in the market-place which it stands for.

    Earlier in 2017, the company acquired Yes Mobile, a cosmopolitan high-value retail outfit with a multiplicity of stores in Lagos in what industry watchers described as a strategic duplex acquisition; one which went a long way in showing the level of ambition and determination to lead in the retail space currently driving the company.

     

  • Predatory pricing hurts telecoms sector, says Dambatta

    Predatory pricing hurts telecoms sector, says Dambatta

    The Nigerian Communications Commission (NCC) has said predatory, discriminatory and excessive pricing will hamper the development of the telecoms sector. It warned that margin squeeze and price fixing among others, will also stultify growth of the telecoms sector.

    Its Chief Executive Officer, Prof Umar Dambatta, who spoke at the Digital Bridge Institute (DBI) Lagos Campus, Cappa, Oshodi, at a forum organised by the commission on Cost-based Pricing for Retail Broadband and Data Services, said the Commission was happy with the phenomenal growth recorded in the industry, especially in active voice subscriptions, stressing that the next critical phase is to ensure  that  everyone  –  wherever  they  live  and  whatever  their  circumstances – have access to the benefits of broadband.

    He said this could only happen with the pervasive deployment of broadband infrastructure and services across the country considering the potential of broadband as a key enabler of national productivity, economic growth and development, social inclusion and cultural enrichment.

    “The  affordability  and  accessibility  of  broadband  services, however, is largely  determined  by  the  prices  that  are  charged  for  those  services.  Therefore, ensuring that prices charged for retail broadband and data services are cost based in line with international best practices is critical to the deployment and uptake of broadband and data services in Nigeria.

    “While addressing  market  dominance  issues  in  the  upstream,  wholesale  markets  is one of the ways to facilitate competitive price levels in retail broadband access  and service markets, it is possible that such action may not be a sufficient constraint on pricing in all segments of a retail broadband market, as such some form of ex-ante regulation of retail prices is appropriate or even necessary,” he said.

    Prof Dambatta said in line with the Commission’s mandate of creating an enabling environment and promoting fair competition in the telecoms industry and in line with the strategic objectives of the National Broadband Plan (NBP), it has therefore, become imperative to develop a proper pricing structure for broadband in Nigeria.

    According to him, this will not only ensure the affordability and availability of broadband, but also ensure fair competition by checking price discrimination, excessive pricing, predatory pricing, margin squeeze and price fixing among other things.

    He said this has therefore, necessitated the conduct of the study on the determination of cost based pricing for retail broadband and data services in Nigeria.

    The Commission, he said, carried out a thorough selection process and appointed Messrs’ KPMG to, among other things, set guidelines for the regulation of the pricing of retail broadband and data services in Nigeria and specifically determine price cap and floor where necessary; develop a regulatory pricing model based on the peculiarity of the Nigerian broadband and data services market coupled with international best practices; design the framework for collation of data that will be used for the determination; determine the appropriate cost modeling technique and methodology to be adopted and determine the appropriate pricing regulatory measures to be adopted.

    Others are to determine the need for ex-ante and ex-post regulation with respect to pricing in the retail broadband and data market segments; develop a suitable definition of big and new entrant/small operators, if necessary;  conduct a general assessment of the retail broadband/data market segment with a view of determining the appropriate methodology to be adopted and design a cost model that is suitable for determining retail prices for broadband and data services, taking into cognisance the macro-economic, technology and technical relevant factors.