For Nigeria to achieve its growth forecast, the information and communication technology (ICT) sector will remain a key driver in the second half, Assistant Editor, Lucas Ajanaku reports

 

The World Bank said in its June 2021 Global Economic Prospects that the global economy is expected to expand 5.6 per cent this year, the fastest post-recession pace in 80 years, largely on strong rebounds from a few major economies.

The Bretton Woods Institution raised Nigeria’s Gross Domestic Product (GDP) growth forecast to 1.8 per cent having earlier predicted a 1.1 per cent growth for the country in January.

The Nigerian Communications Commission (NCC) said it generated N150 billion in spectrum revenue for the Federal Government between January and May this year. The revenue exceeded its N36 billion projected revenue from spectrum licence fees for the year and represented over 400 per cent increase in revenue budget performance in respect of spectrum fees generated within the period under review.

The second half of this year promises to be full of activities in the telecom sector as some of initiatives taken during the first half of the year would begin to take shape and impact on the economy.

 

Bracing for 5G, spectrum cash

Resistance from the literate, half literate and untutored to the deployment of 5G technology continued through the first half of this year but following the Senate investigative hearing which gave the technology a clean bill of health, the NCC took a major regulatory step by inaugurating a committee to develop the Information Memorandum (IM) for the auction of 3.5 gigahertz (GHz) spectrum band which will be used for early deployment of 5G services.

The Commission is expected to harvest cash from the sale of spectrum at the end of the works of the Committee on IM.

Its Executive Vice Chairman/CEO, Prof. Garba Danbatta, inaugurated the 18-member Committee in Abuja with NCC’s Executive Commissioner, Technical Services, Ubale Maska as Auction Adviser while the Director, Spectrum Administration at NCC, Oluwatoyin Asaju, is the Committee Chairman.

Danbatta said aside developing the IM for auctioning of C-band spectrum for 5G deployment, the Terms of Reference (ToR) of the committee included the development of an award process to be used pursuant to which the grant of spectrum licences may be made.

The IM defines the process that the Commission has decided to adopt for the auctioning of the 3.5GHz spectrum band. It will provide information on the telecoms market, details of the spectrum to be made available, the pre-qualification process, the auction process and indicative timetable.

Other ToRs for the committee included the auctioning of the C-band spectrum for 5G deployment in line with the award process as well as report regularly/fortnightly to the EVC through the Office of the Executive Commissioner, Technical Services of the Commission on the progress made by the Committee.

Expressing delight at the stage of 5G deployment in Nigeria, especially on the established mutual understanding among stakeholders that 5G service poses neither security nor health risk to users, Danbatta said the outcome of the work of the Committee is a major step towards the realisation of 5G services.

He said the NCC has committed enormous resources to ensure harmonised spectrum is secured and released timely for present and future deployment of services that will underpin the fourth industrial revolution, including International Mobile Telecommunication (IMT-2020) services in recognition of relevant provisions of the Nigerian Communication Act (NCA-2003) and its strategic plan for effective communications resource management, facilitating broadband penetration and improving Quality of Service (QoS) amongst others.

He said the Commission had ensured the participation of relevant workers in international fora, especially in the International Telecommunication Union Radio Telecommunication Sector (ITU-R) study groups, to enable the allocation of strategic spectrum to IMT services, especially IMT 2020, which, he said, had been in the front burner in the last two ITU-R study cycles towards World Radio Communication Conference (WRC-15 & WRC-19).

“Arising from these efforts, which include engagements with relevant governmental and non-governmental organisations during preparatory meetings at National, Regional and Continental level, we have been able to secure harmonised frequencies for 5G deployment in Nigeria,” he said.

He, however, stated where NCC desired premium spectrum such as the 3.5GHz with good propagation characteristics suitable for capacity and coverage with good device ecosystem but did not have sufficient allocation, “we put in extra efforts and secured additional 160MHz in the 3.5GHz band by making huge commitment of resources to secure additional Spectrum from Nigerian Communication Satellite Limited (NigComSat),” culminating in a recent Memorandum of Understanding (MoU) between NCC and NigComSat.

“Having put in these efforts and resources to secure, among others, contiguous Spectrum in a premium band like the 3.5GHz band that is being adopted as the best Spectrum for early deployment of 5G with about 70 per cent of 5G global deployment so far, it has become imperative to immediately re-purpose the 3.5GHz band in Nigeria for auction in accordance with best practices.

“In view of this, Danbatta said NCC Management deemed it necessary to constitute the committee with clear ToRs, adding that  its members are expected to demonstrate strong commitment required to carry out these tasks and in a timely manner,” he said.

He said even though some successful auctions have been conducted by the Commission in the past, “extra effort is required of us to ensure the success of this particular exercise since the 5G technology is just being adopted around the globe”.

The EVC urged the committee to consider benchmarking its activities against other countries where 5G has been successfully deployed through successful auction of relevant spectrum band like 3.5GHz.

Asaju as the Chairman of the Committee, agreed with the EVC on the MoU with NigComSat. He  said the Commission had, in line with the NCA- 2003, filled request for bulk allocation of 380 MHz bandwidth (3.52-3.9) GHz in the 3.5 GHz band from National Frequency Management Council (NFMC).

Assuring the EVC of the Committee’s readiness to deliver on its ToR, Asaju said the outcome of the actions will, no doubt, form the basis and put NCC on right pedestal for 5G deployment in Nigeria.

The Executive Commissioner, Technical Services of the Commission, Engr Ubale Maska, who doubles as the Auction Adviser, assured the EVC that the Committee will deliver on its mandate, noting, however, that work of the Committee is without prejudice to the approval of the National Frequency Management Council (NFMC), which, he said, must be in place before 5G deployment can take commence in the country.

 

 Licence structure review

The NCC had during the first half of the year initiated the process for reviewing existing licensing structure in the telecoms industry, global trends and the dynamics in the global ICT ecosystem.

To this end, an in-house Standing Committee has been put in place to carry out the task.

Inaugurating the Committee, Danbatta, said the need for the review was informed by the wide range of technological advances, convergence of technologies and services which have characterised the global telecoms space over the years, and which impact is increasingly being experienced.

He said the licence structure is almost 20 years old, hence the need for an urgent review of existing licence patterns to reflect new licensing trends in line with international standards while providing opportunities for improved revenue for the government.

“Therefore, it is evidently clear that this Standing Committee, drawn up from competent hands in various departments of the Commission, is perfectly suited and capable of addressing the enormous task of reviewing the existing license structure of telecom licensees in Nigeria,” he said.

He said the work of the Standing Committee would be carried out in phases, adding that effective delivery of the Committee’s task will help the Commission to institute a process, which will culminate in the review of the terms and conditions of the various licence categories. These, he said, would include licensing fee, as well as identification of the limitations of the various licence categories, with a view to clearly determining licenses that should be phased out or amended.

Danbatta outlined management’s seven-point deliverables from the Committee to include a comprehensive review/report on existing licenses; report and recommendations on consultative fora; and report on recommended new license undertakings.

Others include a report on recommended amendment to licence fees and durations; a report on benchmarking of licence with similar jurisdictions, a report on the impact of certain licences on other licence holders. The Committee is also expected to recommend solutions as well as develop updated regulatory framework for new and amended licences as the case may be; and a final report on the project with all recommendations.

The Director, Licensing and Authorisation, NCC and Chairman of the Committee, Mohammad Babajika, gave assurance about the Committee’s resolve to deliver on the terms of their assignment.

At the end of the Committee’s assignment, and following due consultations with industry stakeholders, the Commission envisages a new draft framework for new and amended licenses.

 

MTN’s N640b cash for broadband

MTN Nigeria at the twilight of the first half of the year said it had set aside N640 billion, about $1.5 billion, over the next three years, to expand broadband access across the country.

It said the plan aligned with the Federal Government’s 2020-2025 National Broadband Plan (NBP) and in support of MTN Group’s strategy, Ambition 2025: Leading Digital Solutions for Africa’s Progress.

The NBP is designed to deliver data download speeds across Nigeria, a minimum of 25megabytes per second (Mbps) in urban areas, and 10Mbps in rural areas, with effective coverage available to at least 90 per cent of the population by 2025 at a price not more than N390 per 1GB of data (two per cent of median income or one per cent of minimum wage. About $5billion would be required to finance the ambitious project.

Group President, Ralph Mupita, who spoke after a visit to Abuja and Lagos after meeting a number of key stakeholders, said Nigeria is one of the group’s most important markets.

“We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation,” Mupita said.

He said MTN Group’s plans to sell 14 per cent of MTN Nigeria to Nigerian investors were well advanced and that this would happen as soon as conditions were conducive. MTN Nigeria, in which MTN Group has a 78.8 per cent stake, sought to have the largest retail shareholder base on the Nigerian Exchange (NGX), where it has a market capitalisation of N3.4 trillion (S$8.2 billion).

 

Infrastructure expansion

With quality of service (QoS) sinking at the beginning of the first half of the year, it is obvious that more investment is needed in the sector despite local and foreign direct investment (FDI) in the sector reaching about $80billion.

Though infrastructure spend has led to increase in the number of base transceiver stations (BTS) deployment from 30,000 to 54,460, the figure is still a far cry the 80,000 BTS required for effective coverage of the country’s huge population and land mass.

The BTS consist of third generation (3G) and fourth generation (4G) while Fibre Optic Transmission cables expanded from 47,000km to 54,725km in the last five years, resulting in improved broadband/telecoms service delivery.

Danbatta  said the effective regulatory regime put in place by the leadership of the Commission has resulted in increased deployment of  infrastructure by telecoms operators, which in turn, helped to improve broadband penetration and other related service delivery in the telecoms industry.

“The BTS, fibre optic cables and other related infrastructure are central to the provision of improved service experience for Nigerians by their respective telecoms service providers,” he said, adding that the licensed Infrastructure Companies (InfraCos) are also expected to add 38,296km to optic fibre cables when they commence full operations.

In recognition of the tremendous economic growth opportunities afforded by the deployment of broadband and its associated technologies, Danbatta said the Commission has positioned itself in government’s drive for a digital Nigeria, as contained in the NBP, the National Digital Economy Policy and Strategy (2020-2030) and the Strategic Management Plan (2020-2024) of the Commission.

“The Commission will continue to put in its best in the discharge of its mandates, especially in facilitating the deployment of broadband, which is central to diversifying the Nigerian economy and national development. Also, it is our belief that the communications industry, under the leadership of the Ministry of Communications and Digital Economy, will experience more quantum leaps and retain its current leadership role in the telecommunications space,” he said.

 

 Twitter, Facebook, others for registration

During this second half of the year, the  Federal Government is expected to enforce its directive to the National Broadcasting Commission (NBC) to register over the top (OTT) service providers.

The Federal Government had descended on the micro blogging platform, Twitter, suspending its operation indefinitely. Though the government’s decision was said to be controversial, the government had argued that the platform had turned itself to the megaphone of secessionist agitators.

The suspension came days after Twitter pulled down the tweet of President Muhammadu Buhari threatening to speak the language criminals understand to them.

Though the ban still subsists, people desperate to use the platform have sought and got relief from Virtual Private Network (VPN) to do so.

Micro, small and medium enterprises (MSMEs) have taken a great hit from the ban while Twitter, with over 40 million users in the country, may have also incurred losses too.

 

 

 

Twitter has extended the olive branch to the Federal Government in response of which the government has constituted its team to meet with Twitter.

With the olive branch from Twitter, the Federal Government has assembled a team to meet with its management to resolve the issue amicably but the government has not backed down on its resolve to register OTTs.

 

In response to the olive branch extended to the Federal Government by Twitter, the government has assembled a team to meet with its team while several groups are lobbying President Muhammadu Buhari to rescind the suspension. The government has not backed down licensing over the top (OTT) players. LUCAS AJANAKU writes on these developments and moves by the NCC to review licences structure.

 

Internet freedom lobby group Paradigm Initiative has submitted an open letter to President Muhammadu Buhari and his administration seeking to rescind the ban on Twitter.

The lobby group, representing a list of 36 local and international organisations such as Access Now, Africa Internet Rights Alliance, Internet Society Nigeria, Kathleen Ndongmo, Open Internet for Democracy Fellow (Member, Netrights Africa Coalition and the Africa Digital Rights Network – ADRN) and Witness Africa, asked that the government lift the suspension enforced on June 4, 2021.

“The directive by the Nigerian government is at its core, an abuse of the rights of Nigerians not just to freedom of expression. But many other rights guaranteed in the Nigerian 1999 Constitution (as amended), the African Charter on Human and People’s Rights and the International Covenant on Civil and Political Rights,” the group said.

An excerpt from the latest open correspondence to authorities reads: “Twitter, just like many other digital and social media platforms, has become a space for Nigerians to communicate, seek and disseminate information, engage in public debates and legitimate businesses. Like many other governments across the globe, the Nigerian government has leveraged social media platforms to issue critical public information. A recent demonstration of this is the use of Twitter by the Nigeria Centre for Disease Control (NCDC) to issue information related to the COVID-19 pandemic. Currently, the NCDC Twitter account has a following of 1.1 million. This is an acknowledgement of the importance of social media in reaching a significant proportion of the Nigerian population.”

The lobbyists argue that, according to research by Netblocks, the Nigerian economy loses at least N2,177,089,051 ($6,014,390)  daily, since the indefinite suspension was announced.

“First, there is no clear and sufficiently precise law in Nigeria that provides for such action by the government. Second, the government is yet to demonstrate how the suspension protects the rights of others. Third, the government is yet to show that it has used the ‘least intrusive means’ of addressing the harm purported caused before the suspension. Fourth, the Nigerian government has failed to demonstrate that its action to suspend Twitter’s operations was not excessive and over-reaching,” the group added.

Read Also: Twitter ban was in national interest – Malami

 

They want the government to restore access to Twitter for all Nigerians; ensure that the internet, including social media platforms like Twitter are open, free, and accessible; engage stakeholders, including the civil society, academics, human rights institutions, the private sector on the best approach to social media regulation and put measurable and specific processes in place to promote, protect and fulfill all human rights online and offline.

The Nigerian Communications Commission (NCC) said it has started the reviewing the licencing structures in the country.

Though the Federal Government has ordered the National Broadcasting Commission (NBC) to register OTTs in the country, telecoms operators had faulted the directive because the NCC, they argued was best placed to licence the OTT players.

Nigeria National Coordinator, Alliance for Affordable Internet, Olusola Teniola, said the licensing regime did not take into consideration the fast and evolving nature of Internet Protocols (IP) and the advent of the convergence of voice, broadcasting and multimedia technologies under the same technological building blocks.

“The licence structure of the industry is very relevant to the infrastructure required to build from the ground up the basic elements of a carrier grade voice network and this has also provided a platform for data services and access to the internet where we now have broadband deployed across the country. ‘’

However, it is noteworthy that the licensing regime did not take into consideration the fast and evolving nature of Internet Protocols (IP) and the advent of the convergence of voice, broadcasting and multimedia technologies under the same technological building blocks. So in order for NCC to remain relevant its regulatory tools needs to be updated and brought in line with advances made in the digital realm.

“The Nigerian National Broadband Plan 2020-25 recommends that spectrum prices should be reviewed to allow for wider affordability of services delivery and this is certainly an area that should be of focus. Also 5G & 6G will bring with it tremendous opportunities to leap-frog the classical supplementary services that have been widely adopted and used in more advanced jurisdictions. In the case of Africa and in particular Nigeria, it is well recognised the national regulatory authorities may have to develop regulation that aligns complex data streams alongside ‘voice’ that will be viewed as just another data application as opposed to what it was in the past,” he said, adding that in order to ensure ubiquitous broadband and relevant use cases, the  NCC will need to introduce innovative regulation in line with the Nigerian Digital Economy Policy and Strategy 2020-2030 aspirations.

In early June the Federal Government indefinitely suspended Twitter’s activities in the country days after the micro blogging social network removed a post from Buhari which had threatened to punish regional secessionist groups.

In the June 1, 2021 post, Buhari had referred to the 1967 to 1970 civil war and promised to treat those misbehaving today “in the language they understand.”

Soon after the suspension was announced, Paradigm Initiative and six foreign missions expressed concern over the move and said it was tantamount to the abuse of citizens’ rights to freedom of expression.

The conversations continued in the telecom sector but in varied tones clarity and pitch. Assistant Editor, Lucas Ajanaku reports

 

The year began with the exit of the country from recession in the last quarter of last year. The telecoms industry, regulated by the Nigerian Communications Commission (NCC), was identified as one of the sectors whose performance lifted the country out of recession in the fourth quarter of 2020, contributing 12.45 per cent to the country’s Gross Domestic Product (GDP).

According to the latest data released by the National Bureau of Statistics (NBS), telecommunications & Information Services under Information and Communication grew by 17.64 per cent in Q4 2020 from 17.36 per cent in Q3 2020 and 10.26 per cent in Q4 2019.

The report said agriculture, industries, and services sector, under which telecoms is categorised, contributed 26.95 per cent, 18.77 per cent, and 54.28 per cent. This is a pointer to the fact that telecoms, trade, services and crop production were the main drivers of Nigeria’s exit from recession.

Specifically, the report showed that largest sub-sectors in Q4 2020 are crop production at 3.68 per cent, crude petroleum and natural gas at 8.2 percent, trade at 14.9 per cent, telecoms & information services at 12.45 per cent, and real estate at 5.7 per cent, the report says.

The sector has, in the last five years, been a major driver of the digital economy agenda of the Federal Government, as it has continued to provide the needed digital sinews that support the economy, especially during the COVID-19 pandemic and its attendant restriction period.

Since the outbreak of the pandemic, government institutions, businesses and individuals have relied heavily on telecoms services to carry out their operations and official routines. In response to the increased demand, the Commission put some regulatory measures in place to ensure seamless access by Nigerians to telecommunication services and protect against any adverse impact on the quality of service enjoyed by consumers.

The steady growth of the sector over the years with its pervasive positive impact on  other sectors in terms of increased automation of processes and digital transformation in service delivery has been remarkable. The growth trend since 2015 has reawakened hope that the diversification dreams of the country may finally be a reality as the sector continues to energise significant economic activities in the services sector of the economy.

Through an effective regulatory regime put in place by the Commission, under its Executive Vice Chairman (EVC), Prof. Umar Garba Danbatta, telecoms investment grew from about $38 billion in 2015 to over $70 billion.

Also, broadband penetration increased from six per cent in 2015 to 45.02 per cent at last December, indicating that 85.9 million Nigerians are connected on 3G and 4G networks which provide enhanced high-speed Internet that has continued to boost efficiency and increase productivity across the economic spectrum.

Recent statistics also indicate that between 2015 and last December, active voice subscriptions have increased from 151 million to 204.6 million, with teledensity standing at 107.18 per cent. Basic active internet subscriptions grew from 90 million to 154.3 million during the period.

The Commission is committed to its culture of quality regulation of the telecommunications industry that ensures a stable and robust sector, which drives the digital economy agenda of the Federal Government and, ultimately, leads in the growth of the country’s GDP.

 

Infrastructure

Sustained local and foreign direct investment (FDI) in the sector grew to about $80billion while huge infrastructure spend increased the number of base transceiver stations (BTS) deployment in the country from 30,000 to 54,460.

Though the figure is still a far cry from the 80,000 BTS required for effective coverage of the country’s huge land mass, it, nonetheless, an improvement because its impact on quality of service cannot be over-emphasised.

The BTS consists of third generation (3G) and fourth generation (4G) while Fibre Optic Transmission cables expanded from 47,000km to 54,725km in the last five years, resulting in improved broadband/telecoms service delivery.

Danbatta  said the effective regulatory regime put in place by the leadership of the Commission had resulted in increased deployment of infrastructure by telecoms operators, which in turn, helped to improve broadband penetration and other related service delivery in the telecoms industry.

“The BTS, fibre optic cables and other related infrastructure are central to the provision of improved service experience for Nigerians by their respective telecoms service providers,” he said, adding that the licensed Infrastructure Companies (InfraCos) are also expected to add 38,296km to optic fibre cables when they commence full operations.

According to the EVC, as at last November, active telephony subscribers stood at 208 million with teledensity standing at 108.92 per cent while active Internet subscriptions were 154.9 million and a broadband penetration of 45.07 per cent, among others.

He spoke on various initiatives undertaken by the Commission to ensure consumer protection and empowerment. These, according to him, include the Declaration of 2017 as Year of the Telecom Consumer, introduction of the 622 Toll Free Line for lodging and resolving consumer complaints and the provision of the 112 Emergency number and activation of 19 Emergency Communications Centre (ECCs).

Other consumer-centric regulatory measures intervention, according to the EVC, include the issuance of various directions to mobile network operators (MNOs) to protect the consumers from being short-changed, ensuring smooth transition of Etisalat to 9mobile, consumer outreach programmes, introduction and enforcement of mobile number portability (MNP) as well as introduction of the Do-Not-Disturb (DND) 2442 to check cases of unsolicited text messages.

The EVC disclosed that the number of subscriptions to DND service had hit over 30 million as the service empowers Nigerians  to protect themselves from the menace of unsolicited text messages.

In recognition of the tremendous economic growth opportunities afforded by the deployment of broadband and its technologies, Danbatta said the Commission has positioned itself in government’s drive for a digital Nigeria, as contained in the Nigerian National Broadband Plan (2020 – 2025), the National Digital Economy Policy and Strategy (2020–2030) and the Strategic Management Plan (2020–2024) of the Commission.

“The Commission will continue to put its best in the discharge of its mandates, especially in facilitating the deployment of broadband, which is central to diversifying the economy and national development. Also, it is our belief that the communications industry, under the leadership of the Ministry of Communications and Digital Economy, will experience more quantum leaps and retain its current leadership role in the telecommunications space,” he said.

 

Siege for NIN

The relative peace enjoyed by the populace after the COVID-19 lockdown was upturned by the panic rush to link mobile phone users Subscriber Identity Module (SIM) with the National Identity Number (NIN).

Thousands of frustrated telephone subscribers besieged the offices of the National Identity Management Commission (NIMC) to do the biometric data capturing and get the NIN to sync with their SIMs.

The Federal Government had given mobile network operators (MNOs) and subscribers two weeks to link their SIMs with NIN. The government ordered that SIMs not linked should be deactivated while MNOs not cooperating risked operating licence withdrawal. The two weeks had ended last December 30. Due to wide condemnation, the timeline was extended by three weeks for subscribers with NIN from December 30, 2020 to January 19 and six weeks extension for subscribers without NIN from December 30, 2020 to February 9, 2021.

The Federal Government granted a further extension of the deadline from January 19 to February 9 to allow subscribers yet to sync their SIMs with their NINs to do so.

They also promised to enroll citizens to the National Identity Database (NIDB) of the National Identity Management Commission (NIMC) to ease the frustration, desperation and extortion of people by desiring to get enrolled and get their NINs by unscrupulous elements.

The MNOs, acting under the aegis of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), in a statement, said it had received confirmation of the deadline extension from the Nigerian Communications Commission (NCC).

The Federal Government continued to extend the timeline for the exercise. The last was June 30 before another July 26 extension was granted.

NCC Director, Public Affairs Dr Ikechukwu Adinde and the Head, Corporate Communications, NIMC, Kayode Adegoke, made this public through a statement entitled: ‘FG approves July 26 as NIN-SIM verification deadline as enrolment systems increase to 5,410’

The Federal Government said the decision to further extend the deadline was made based on a request by stakeholders.

 

Brouhaha over 5G

During the period under review, there was a lot of rancour over the deployment of 5G technology. The arguments were from the literate, half literate and untutored. But following the Senate investigative hearing, which gave the technology a clean bill of health, the NCC took a major proactive regulatory step by inaugurating a committee to develop the Information Memorandum (IM) for the auction of 3.5 gigahertz (GHz) spectrum band which will be used for early deployment of 5G services.

Danbatta inaugurated the 18-member Committee in Abuja with NCC’s Executive Commissioner, Technical Services, Ubale Maska as Auction Adviser while the Director, Spectrum Administration, NCC, Oluwatoyin Asaju, is the Committee Chairman.

Danbatta said aside developing the IM for auctioning of C-band spectrum for 5G deployment, the Terms of Reference (ToR) of the committee include the development of an award process to be used pursuant to which the grant of spectrum licenses may be made.

The IM defines the process that the Commission has decided to adopt for the auctioning of the 3.5GHz spectrum band. It will provide information on the Nigerian telecommunications market, details of the Spectrum to be made available, the pre-qualification process, the Auction process and indicative timetable.

Other ToRs reeled out for the committee by Danbatta included the auctioning of the C-band spectrum for 5G deployment in Nigeria in line with the award process; as well as report regularly/fortnightly to the EVC through the Office of the Executive Commissioner, Technical Services of the Commission on the progress made by the Committee.

Expressing delight with the stage of the 5G deployment in Nigeria, especially  with the mutual understanding among stakeholders that 5G service poses neither security nor health risk to users, Danbatta said the outcome of the work of the Committee is a major step towards realisation of 5G services in Nigeria.

According to him, the NCC has committed enormous resources to ensure harmonised spectrum is secured and released  timely for the deployment of services that will underpin the fourth industrial revolution, including International Mobile Telecommunication (IMT-2020) services.

This, according to him, is in recognition of relevant provisions of the Nigerian Communication Act (NCA-2003) and its strategic plan for effective communications resource management, facilitating broadband penetration and improving Quality of Service (QoS), among others.

He said the Commission had ensured the participation of relevant staff in international fora, especially in the International Telecommunication Union Radio Telecommunication Sector (ITU-R) study groups, to enable the allocation of strategic Spectrum to IMT services, for example IMT 2020, which, he said, has been in the front burner in the last two ITU-R study cycles towards World Radio Communication Conference (WRC-15 & WRC-19).

“Arising from these efforts, which include engagements with relevant governmental and non-governmental organisations during preparatory meetings at National, Regional and Continental level, we have been able to secure harmonised frequencies for 5G deployment in Nigeria,” he said.

He, however, stated where NCC desired premium spectrum like the 3.5GHz with good propagation characteristics suitable for capacity and coverage with good device ecosystem but did not have sufficient allocation, “we put in extra efforts and secured additional 160MHz in the 3.5GHz band by making huge commitment of resources to secure additional Spectrum from Nigerian Communication Satellite Limited (NigComSat),” culminating in a recent Memorandum of Understanding (MoU) between NCC and NigComSat.

“Having put in these efforts and resources to secure, among others, contiguous Spectrum in a premium band like the 3.5GHz band that is being adopted as the best Spectrum for early deployment of 5G with about 70 per cent of 5G global deployment so far, it has become imperative to immediately re-purpose the 3.5GHz band in Nigeria for auction in accordance with best practices.’

“In view of this, Danbatta said NCC Management deemed it necessary to constitute the committee with clear ToRs, adding that the committee members are expected to demonstrate strong commitment required to carry out these tasks and in a timely manner,” he said.

Meanwhile, Danbatta stated that even though some successful auctions have been conducted by the Commission in the past, “extra effort is required of us to ensure the success of this particular exercise since the 5G technology is just being adopted around the globe.”

The EVC tasked the committee to consider benchmarking its activities against other countries where 5G has been successfully deployed through successful auction of relevant spectrum band like 3.5GHz.

Asaju as the Chairman of the Committee, agreed with the EVC on the MoU with NigComSat. He  said the Commission had, in line with the NCA- 2003, filled request for bulk allocation of 380 MHz bandwidth (3.52 – 3.9) GHz in the 3.5 GHz band from National Frequency Management Council (NFMC).

While assuring the EVC of the Committee’s readiness to deliver on its ToR, Asaju said the outcome of the actions will, no doubt, form the basis and put NCC on the right pedestal for 5G deployment in the country.

The Executive Commissioner, Technical Services of the Commission, Engr Ubale Maska, who doubles as the Auction Adviser, assured the EVC that the Committee will deliver on its mandate, noting, however, that work of the Committee is without prejudice to the approval of the National Frequency Management Council (NFMC), which, he said, must be in place before 5G deployment can take commence in the country.

 

Telecom license structure review

In response to global trends and the dynamics in the global ICT ecosystem, the NCC initiated the process for reviewing existing licensing structure in the telecoms industry.

An in-house Standing Committee has been put in place to carry out the task.

Danbatta, while inaugurating the Committee, said the need for the review was informed by the wide range of technological advances, convergence of technologies and services which have characterized the global telecoms space over the years, and whose impact is increasingly being experienced in Nigeria.

According to him, the current licence structure is almost 20 years old, hence the need for an urgent review of the existing license pattern to reflect new licensing trends in line with international standards while providing opportunities for improved revenue for the government.

“Therefore, it is evidently clear that this Standing Committee, drawn up from competent hands in various departments of the Commission, is perfectly suited and capable of addressing the enormous task of reviewing the existing license structure of telecom licensees in Nigeria,” he said.

While noting that the work of the Standing Committee will be carried out in phases, Danbatta said effective delivery of the Committee’s task will help the Commission to institute a process, which will culminate in the review of the terms and conditions of the various license categories. These, he said, will include licensing fee, as well as identification of the limitations of the various license categories, with a view to clearly determining licenses that should be phased out or amended.

Specifically, Danbatta outlined Management’s seven-point deliverables from the Committee to include a comprehensive review/report on existing licenses; report and recommendations on consultative fora; and report on recommended new license undertakings.

Others include a report on recommended amendment to license fees and durations; a report on benchmarking of license with similar jurisdictions, a report on the impact of certain licenses on other license holders. The Committee is also expected to recommend solutions as well as the develop updated regulatory framework for new and amended licenses as the case may be; and a final report on the project with all recommendations.

Also speaking during the inauguration of the Committee, the Director, Licensing and Authorisation, NCC and Chairman of the Committee, Mohammad Babajika, assured the Commission’s Management of the Committee’s resolve to deliver on the terms of their assignment.

At the end of the Committee’s assignment, and following due consultations with industry stakeholders, the Commission envisages a new draft framework for new and amended licenses.

 

Twitter ban

The Federal Government descended heavily on micro blogging platform, Twitter, by indefinitely suspending its operations in the country. A controversial decision though, the government had argued that the platform had turned itself to the megaphone of secessionist agitators in the country.

The suspension came days after Twitter pulled down the twit of President Muhammadu Buhari threatening to speak the language criminals understand to them.

Though the ban still subsists, people desperate to use the platform have sought and got relief from Virtual Private Network (VPN) to do so.

Micro, small and medium enterprises (MSMEs) have taken a great hit from the ban while Twitter, with over 40 million users in the country, may have also incurred losses too.

Twitter has extended the olive branch to the federal Government in response of which the government has constituted its team to meet with Twitter.

 

International termination rate determination

During the period under review, the NCC concluded the process for determining the cost-based price of Mobile International Termination Rate (ITR) to ensure healthy competition on traffic handling for voice services between local and international operators.

 

The ITR study was done by Messrs Payday Advance and Support Services Limited.

Prof. Danbatta said the cost-based study became imperative, following previous efforts at finding an optimum price for the termination of international voice services that will be beneficial to all relevant industry stakeholders.

Danbatta said the “overriding need for regulatory options and intervention in relation to the international termination rate in the voice market segment is predicated on some intractable challenges, most common with economies with severe macroeconomic volatility such as ours.”

Going down memory lane with respect to MTR determination in Nigeria’s telecom industry, the EVC said, in 2013, the Commission issued a Determination stating that mobile Termination Rates (MTR) are the same irrespective of where the call originated. He, however, stated that this was misconstrued by operators at that time to mean that ITR should be the same rate as the MTR, consequently ignoring the international cost portion.

“Arising from these is the persistent fact that Nigeria’s ITR is below that of most countries with which it makes and receives the most calls, making Nigerian operators perpetual net payers. The obvious implication of this is seen in the attendant undue pressure on the nation’s foreign reserves, which continue to get depleted by associated net transfers to foreign operators on account of this lopsidedness,” Danbatta explained.

Danbatta further stated that regulating the ITR is imperative for developing countries, such as Nigeria, with volatile currencies in order to prevent or mitigate the imbalance of payments with international operators. He also said the Commission was faced with the challenge of arriving at a rate that will balance the competing objectives of economic efficiency while, at the same time, allowing operators the latitude to generate reasonable revenues.

He informed the forum however, that “where ITR is not regulated, it tends to converge to the MTR and for a market like Nigeria with major supply side challenges, the socio-economic implications and attendant backlash can only be imagined.”

In her comments, the Director, Policy, Competition and Economic Analysis, NCC, Yetunde Akinloye, corroborated the EVC, noting that the study was intended to compliment and consolidate the initial work done by the Commission which had also culminated in the MTR Determination published in June 2018.

According to her, the ITR previously determined was based on actual benchmarking with countries of similar characteristics to Nigeria, but the findings from that study were faced by major national macroeconomic management challenges, ultimately pointing to the need for an ITR that is cost-based, consistent with the MTR.

ITR is the rate paid to local operators by international operators to terminate calls in Nigeria as contrasted with MTR, which is the rate local operators pay to another local operator to terminate calls within the country.

Meanwhile, Danbatta has reiterated the NCC’s commitment “to continuously provide a conducive environment and level playing field for the effective interplay of factors that would engender sustained market development and growth, while ensuring the provision of qualitative and efficient telecommunication services to the consumers”.

 

MTN’s N640b broadband cash

MTN Nigeria plans to invest N640 billion, about $1.5 billion, over the next three years to expand broadband access across Nigeria.

The plan is in line with the Federal Government’s 2020-2025 National Broadband Plan and in support of MTN Group’s strategy, Ambition 2025: Leading Digital Solutions for Africa’s Progress.

Group President and Chief Executive Officer, MTN Nigeria, Ralph Mupita, who spoke after a three-day visit to Abuja and Lagos after meeting a number of key stakeholders, said Nigeria is one of the group’s most important markets.

“We have a proud history of partnering with Nigeria and Nigerians to drive faster and more inclusive growth through digital transformation,” Mupita said.

 

He said MTN Group’s plans to sell down 14 per cent of MTN Nigeria to Nigerian investors were well advanced and this would happen as soon as conditions were conducive. MTN Nigeria, in which MTN Group has a 78.8 per cent stake, sought to have the largest retail shareholder base on the Nigerian Exchange (NGX), where it has a market capitalisation of N3.4 trillion (S$8.2 billion).

 

The chickens are coming home to roost as the ban on Twitter operations in the country has started taking its toll on small and medium businesses (SMBs), reports LUCAS AJANAKU.

These are not the best of times for some small businesses that rely on Twitter for survival.

They are finding it tough to cope as a result of the indefinite suspension imposed on the operation of the micro blogging site by the Federal Government.

Chief Executive Officer (CEO) of JE Stores, Jadesola Praise, said her sales had dipped since the ban was imposed because she depends on the platform to reach her numerous customers.

According to her, JE Stores is a virtual shop that deals in unisex wears, sneakers, bags, slides, wrist watches and others with nationwide delivery arrangements.

To continue to survive, she has now opened a WhatsApp business account through which she’s been reaching out to her customers.

“My sales have been affected. I am hopeful that the government and Twitter will reach an agreement soon so that the nightmare will come to and end,” she said.

Also, a Lagos-based entrepreneur, Ogechi Egemonu, said she was selling more than N500,000 worth of watches, shoes and handbags on Twitter weekly.
Now, with the site suspended by the government, Egemonu does not know how she will cope.

“Social media is where I eat. I depend on social media for my livelihood,” she had told Reuters.

Praise and Egemonu are few of the several small medium enterpriseses (SMEs) in the country that have been affected by the indefinite suspension of the micro-blogging platform.

The Federal Government had on June 4, announced the “indefinite” suspension of Twitter over “the persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence”. It came days after the platform deleted President Muhammadu Buhari’s post threatening to punish secessionist agitators.

With a huge youthful population, analysts estimate that Twitter has about 40 million users in the country. They say a sizeable number of citizens use Twitter to eke a living.

Though Twitter is accessible via Virtual Private Networks (VPNs) that mask location, experts warn its consistent use could have ripple effects on the economy.

Praise said she would not resort to VPN use for patriotic reasons.

The Lagos Chamber of Commerce and Industry (LCCI) has warned on the damage the ban will have on the economy.

“The ban has significant collateral damage,” said Dr Muda Yusuf, its Director-General, arguing that a “sizeable number of citizens” use Twitter to make a living.

According to NOI Polls, nearly 20 per cent of Nigeria’s population of 200 million have Twitter accounts.

It was estimated by NetBlocks that Nigeria’s fragile economy will lose $6,014,390 (about N2.47 billion at N410 per dollar exchange rate) per day for blocking the operations of Twitter.

NetBlocks, a watchdog organisation that monitors cyber security and the governance of the internet uses data-driven online service, estimated the economic cost of internet disruptions on its cost of shutdown tool (COST) platform.

The platform, built on Brookings Institution and CIPESA methodologies, estimates the economic cost of internet shutdowns, mobile data blackouts, and social media restrictions using public economic indicators relating to the global digital economy.

Checks on the COST platform showed that a single-day total internet shutdown will cost the country about N48.6 billion in economic value relating to the global digital economy.

According to the data, if Nigeria shuts down WhatsApp, Facebook, Instagram, YouTube and Twitter, it will lose N10.9 billion daily.

A research analyst with the Financial Derivatives Company, Dumebi Iyeke said the ban would hit young Nigerians – among whom there is a 45 per cent unemployment rate – the hardest.

“We are looking at a potential loss in their revenue,” Iyeke said, adding that it could further lower living standards amid high inflation.

Information and Culture Minister Lai Mohammed said all social media sites must register a local entity and get a licence to operate from the National Broadcasting Commission (NBC).

He cited complaints over loss money as proof that the ban was effective, but said other sites such as Facebook, WhatsApp are still available.

The NBC subsequently directed broadcasting stations in the country to desist from patronising Twitter.

Its Acting Director-General, Prof Armstrong Idachaba, said the order was pursuant to the suspension of the platform’s operation in the country over its persistent use for activities capable of undermining Nigeria’s corporate existence.

Titled: Suspend Twitter Handles, the statement signed by Prof Ida haba reads: “Section 2(1) r of the NBC Act entrusts the Commission with responsibility to ensure strict adherence to the national laws, rules and regulations,” the DG said.

“Section 3.11.2 of the Nigeria Broadcasting Code provides that ‘the broadcaster shall ensure that law enforcement is upheld at all times in a matter depicting that law and order are socially superior to or more desirable than Crime and Anarchy.”

“Attention is also drawn to section 5.6.3 of The Code which requires Broadcasters to be mindful of materials that may cause disaffection, incite to panic or rift in the society in the use of a user generated Content (UGC).

“Note that it will be unpatriotic for any broadcaster in Nigeria to continue to patronise the suspended Twitter as a source of its information therefore strict compliance is enjoined.”

Analysts hope the matter would be settled amicably soon because when two elephants fight, the grass always suffer.