The Nation Newspaper

Category: Infotech

  • Broadband engine of development, says minister

    Minister of Communications Technology, Mrs Omobola Johnson, has stressed the importance of broadband in fast-tracking the development of modern knowledge-driven economic development in the country.

    The minister, who spoke at the kick-off of the Broadband Awareness Campaign (BAC) in Lagos with the slogan: ‘Connect Nigeria, connected Nigerian’, said in the economy of countries where broadband has been well developed, citizens have witnessed a corresponding growth in the standard of living.

    According to her, broadband will increase business productivity, lead to the creation of new businesses and jobs, save lives, deliver the much needed skills in a developing nation, provide security, improve social engagement and enrich governance.

    Mrs Johnson said the BAC is the brainchild of the Broadband Council, which was established by President Goodluck Jonathan to tackle the challenges of broadband internet access in the country.

    The Broadband Council, which is chaired by the minister launched the campaign to communicate the transformational benefits of broadband to all Nigerians and to encourage its use and adoption.

    Stakeholders say the introduction of BAC is timely against the backdrop of the punitive cost of internet access, stressing that with the presence of four global system for mobile (GSM) communication service providers as well as broadband service providers like MainOne, Glo 1, SAT3 and the West African Cable System (WACS), it will work with the relevant stakeholders to address the situation.

  • Operators, subscribers differ over sanctions

    Telecoms operators have disagreed with subscribers over the efficacy of sanctions as a tool for whipping them to order.

    While the operators insist that no amount of sanctions will improve service quality in the country where infrastructure deficit, insecurity, premeditated vandalism of base transmission stations (BTS), vandalism of optic fibre cables and other challenges remain, subscribers say sanctions should be imposed by way of compensation to the subscribers and not to the Federal Government.

    The Nigerian Communications Commission (NCC) earlier in the week imposed fines totalling N647.5million on three service providers, Airtel, Globacom and MTN for failing to meet the Key Performance Indicators (KPIs) for quality of service in the month of January this year, a statement from the regulator has said.

    Details of the sanction showed that Airtel Network Ltd, and MTN Nigeria Communications Ltd, are to pay a fine of N185 million each while Globacom Ltd is to pay N277.5 million. In addition, each of the operators must pay the sanction amount on or before March 7 failing which each will be liable to pay N2.5million per day as long as the contravention persists.

    President, National Association of Telecoms Subscribers (NATCOMS), Deolu Ogunbanjo said a society where there are no rules is the only society where there are no crimes. According to him, the operators and the regulator, the NCC willingly agreed to keep to a minimum set of service levels known as KPIs, adding that should there be any breach, sanctions should apply.

    He, however, said the NCC should stop compelling the operators to pay such fines into the coffers of the government, arguing that subscribers pay money to buy cards, which they rarely get value for as a result of call drops and other forms of poor quality services.

    Ogunbanjo, who spoke against the backdrop of the fines imposed on the operators, said the leadership of the NCC should borrow a leaf from what its predecessor did about eight years ago when it directed some of the service providers to give airtime to their customers.

    Speaking in Lagos, Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo said since the operators do not operate in the blues but within the challenging environment, impediments to roll-out and insecurity of infrastructure must first be addressed before expecting service quality to improve.

  • ‘Glo’s bid for 2.3GHz spectrum licence to enhance service’

    National carrier, Globacom, said it is bidding for the 2.3GHz broadband spectrum licence being auctioned by the Nigerian Communications Commission (NCC) as part of its aggressive investment strategy to give Nigerians the best-in-class telecoms services.

    The licence, the company explained, would ultimately improve the quality of service available to all telecom subscribers nationwide.

    Speaking during a visit by the leadership of Nigeria Information Technology Reporters’ Association (NITRA), Globacom Group Chief Operating Officer, Mohamed Jameel, said the company remains committed to its aggressive investment drive, adding that obtaining the broadband spectrum licence on offer, would enable the company to mobilise necessary infrastructure to move telecommunications to its next phase of development in Nigeria.

    According to the NCC’s plan, the winner of the single 2.3 GHz spectrum will become the sole wholesaler of broadband services to other service providers in the Nigerian market. Mr. Jameel stressed that the licence has therefore placed a critical responsibility on the licence winner because going forward, there will be more dependence on the Internet.

    “There’s going to be more reliance on cloud services and for that to work efficiently, you have to be surrounded by the internet. Globacom is equipped to make that happen. We have the capacity to deploy very quickly, the technical know-how and the international bandwidth through our Glo 1 submarine cable,” he said.

    On the issue of quality of service, Mr. Jameel said no operator is happy when the quality of service is poor, explaining that any spell of sub-optimal service quality saddens the company because of the lost revenue for as long as it lasts.

    “When a site goes down, it negatively impacts the quality of service in the immediate community it is meant to serve. If it is a hub site, the negative impact transcends the immediate community, because other sites dependent on the site that is down will also be technically out of commission. In essence, a site that goes down can negatively impact thousands of subscribers far and near, and the operator is incapable of making revenue. We don’t want that. No operator wants that,” he said.

  • How cybercrooks are killing commerce

    About a decade ago, it seemed impossible to imagine that sitting in one’s bedroom, one could order for goods ranging from tomatoes to trinkets and cars, using the mobile phone. Technology has removed barriers, with the coming of the global system for mobile (GSM) communication. The absence of laws to punish those who take advantage of the cyberspace to fleece people, continues to impede the growth of e-commerce, reports LUCAS AJANAKU.

    Former Director-General, National Information Technology Development Agency (NITDA) Prof Cleopas Angaye will not bat an eyelid pressing the button to delete Nigeria’s name from its global list of countries with high crime rate.

    At a forum in Lagos, he told The Nation why the agency he once headed is at the vanguard of getting the cyber bills pending before the National Assembly passed into law.

    He said: “Nigeria is rated as one of the worst cybercimes. If you go to the internet (and click) cybercrime, you will see that Nigeria is one of the four leading cybercrime countries. It becomes of utmost concern when you count the United States and may be China and the United Kingdom and Nigeria is there. We shouldn’t be there. Nigeria is not as advanced in ICT as these other countries. We want to be advanced in other areas, but certainly not in crime. So, we are concerned. We want our cyberspace to be free.”

    There are two items to the bill: the cybercrime and cybersecurity. “There is the cybercrime and the cybersecurity issue. The cybersecurity part of the bill spells out penalties that will be meted out to the people who contravene the provisions of the bill when passed into law. Security is about how we prepare ourselves and make sure that we secure our cyberspace against crime,” Angaye said.

    Over the years, people have wondered if e-commerce, especially online retailing, will ever be practicable in the country. But in the last couple of years, cynics have been proved wrong. At the last count, not only have more than a dozen online retailing platforms registered their presence in the country, but also business has been good for them.

    The question is how to consolidate on the little success so far recorded in the trade that is carried on through the nation’s porous cyberspace.

    Though there is no reliable data to gauge the performance of online platforms in the country, the number of sites available is a sign that it is gaining traction among the elites. Some of these popular sites are http://www.sunglasses.com/, http://www.konga.com/, http://www.gloo.ng/, http://www.jumia.com.ng/, http://www.kaymu.com.ng/ http://www.mybidmonster.com.ng/, http://www.shopkolo.com/, http://www.ozyet.com/, http://www.buyright.biz/.

    Future of e-commerce

    With the launch of the National Broadband Plan by the Federal Government last year, the future of e-commerce and indeed other e-transactions in the country is bright. Broadband has been described as a game changer that will revolutionise every facet of human endaevours from telemedicine, to e-agriculture.

    To former Chief Executive Officer, sunglasses.com.ng, Jaime Moreno, the future of e-commerce is bright, considering the population of the country and the number of internet users.

    “In the UK, e-commerce accounts for around 10 per cent of the GDP (gross domestic product) implying over $200 billion. And by 2016, it is expected to contribute more than construction, healthcare or education.

    “Now, obviously, Nigeria is at infancy stage, compared to the UK in terms of e-commerce, but this shows the potential the country has and where it could be heading soon.

    “And if some people think UK is a far example, UK has 52 million internet users. Nigeria has 48 million, and most likely will overpass UK by the end of 2014,” he said.

    Moreno added that lack of education about e-commerce and lack of trust between the customers and service providers remain challenges too. “In Nigeria, there is a large amount of internet users, but most do not yet know they can actually buy products online,” he added.

    Employment

    Nigeria has a very large young population (over 50 per cent below 20 years old). The wave of e-commerce will bring many new start-ups and along with them job creation for that young population. Entrepreneurs, self-employed and freelancers will have the key to become the engine of growth and innovation for Nigeria, Moreno added.

    Role of government

    Obviously, the government has a major role to play in regulation and provision of the enabling environment. With the potential that the country has in terms of demographics and internet dynamics, the government could power the country to become Africa’s hub for e-commerce. A sector analyst said allowing intensive benefits to technology startups in the country will definitely attract foreign investment and will help Nigerian and international entrepreneurs to grow and create successful companies.

    Quality of Service

    With the dearth of fixed broadband, mobile operators have done so well in the area of providing mobile broadband. With active subscriber population now crossing the 120 million mark, the place of quality telecoms service cannot be overemphasised. Many subscribers access the internet through their mobile phones. This implies that the Nigerian Communications Commission (NCC) should step-up its regulatory role to ensure quality of service not only in voice, but also in data services.

    Delivery time

    Nigeria is a huge country with dilapidated infrastructure and unorganised transportation system. While the major highways interconnecting the country have become express roads to the graves, promises by successive administrations to rejuvenate the rail transportation system remain unfulfilled. This could certainly pose a daunting challenge to products’ delivery time. Added to this is the inefficient postal system in the country.

    Innovative payment method

    Payment for online transaction should be electronic. Online stores should be web-enabled. When orders are placed on amazon.com for instance, payments are made instantly. Operators should work closely with electronic payment firms like Interswitch, eTrazact and others to device a way payment could be made within the comfort of one’s living room in a seamless and secure manner.

    Combat online insecurity

    Nigerians are still anxious about the security of their online information, especially without an enabling law to punish people who breach the cyberspace.

    Managing Director, New Horizons Nigeria, Tim Akano said security has always been taken with levity in the country, arguing that this will make breach an easy task by the large pool of unemployed smart graduates.

    “IT security is already a major concern globally. In Nigeria, where IT security is usually handled with levity, with more young people acquiring IT skills and with little opportunity to earn a decent income due to poor infrastructure, that will make them transit to technopreneure. These youths will turn to vulnerable banks, universities, government agencies and other corporate organisations to earn huge income by hacking into their database and selling it for handsome fees in the booming online black market,” he said.

    He identified malware, ransomware, advanced persistent threats, spear phishing, social network attacks, cyber attacks on banks and telecoms, and cloud backlash as new threats to watch this year.

  • ‘Nigeria not investing enough in research, development’

    LOW investment on research and development (R&D) is a major reason the nation has not made in-road into innovation, the President, Nigeria Computer Society (NCS), Prof David Adewumi has said.

    He said R&D budget should come under the national budget on education because it falls under education.

    He said: “Government is not investing enough in R&D and it is unfortunate because any development in any part of the world is brought about by R&D. this is so particularly in respect of ICT. The government is not investing enough but then, hopefully, the National Information Development Agency (NITDA) will take up the responsibility of getting government to do more.”

    He said the minimum budgetary allocation recommended by the United Nations Educational, Scientific and Cultural Organisation (UNESCO) to the education sector is 26 per cent of member countries’ annual budget.

    Prof Adewumi who spoke on the sideline during a press conference in Lagos, said: “The budget on education should incorporate R&D budgeting which is 26 per cent. The Academic Staff Union of Universities (ASUU) is asking for 26 per cent of the whole national budget. You also compare it with your own budget.

    “What amount of your own budget (as an individual) you spend on education is more than 50 per cent. If the nation is spending 26 per cent to have a knowledge-based economy, it is not too much. That is the best way to go. So, the Federal Government should take a second look at the funding of R&D.”

    Speaking on strategic stakeholders’ engagement, he said it is the best way to go in the industry, adding that it will continue to do what he described as “constructive engagement and building of strategic partnership with important stakeholders in the industry.”

    According to him, stronger stakeholder partnerships with NCS will build an inclusive, globally competitive and prosperous Nigeria that will be the envy of other African nations.

    He said the group will continue to push its advocacy campaign through its annual conference, adding this year, the event with Building a knowledge-based economy in Nigeria: The role of IT, as its theme, will be held in Enugu.

    He said the theme was picked because no nation could grow and develop in the 21st century with the application of IT tools.

    He said: “The nation is not fully harnessing the growth opportunity of the IT sector. The industry, academia, profession, entrepreneurs and other stakeholders are not tapping into the opportunities in the IT industry. Appropriate recognition, policies and legislation still needs to be put in place. There is a glaring need to incorporate and prioritise the role of the IT sector if Nigeria is to be a key player and fulfill its promise in this century.

    “It is against the background of the very critical role that IT must play in achieving rapid national transformation that it is imperative that the information profession and industry is represented in the upcoming National Conference. Nigerian IT professionals, through its umbrella body, the NCS are very uncomfortable with their lack of representation in the composition of the National Conference.”

  • Why SMEs are not doing well, by Vodacom

    LACK of investment in technology and appropriate application to solve problems is one of the reasons small and medium enterprises (SMEs) are not doing well in the country, Managing Director, Vodacom Business Nigeria, Guy Clarke, has said.

    Clarke, who spoke at a roundtable on its new business product, software as services (SaaS), in Lagos over the weekend, said the firm had invested in providing infrastructure by substantially funding an undersea cable, adding that with the absence of legacy infrastructure, it could be challenging for business to grow.

    He said the firm has also invested in data centre in line with the trends in the industry, adding that the place of data and cloud can no longer be wished away as they are the two dominant forces shaping the global information technology (IT) industry.

    “The ability to analyse data and make it relevant to your need is changing. Cloud computing is another game changer. But in most emerging markets where there is no legacy infrastructure,” he said, adding the opportunity opened to businesses to leapfrog is to tap into the infrastructure provided by the firm in the country.

    Speaking on SaaS, the Product Manager, Abu Ettu, said collaboration and communication are key to business success, adding that with the appropriate solution, SMEs and other businesses could greatly optimise productivity.

    He said: “Gone are the days of buying, maintaining, upgrading and securing your software requirements inhouse. Simply choose the software your business needs and we will do the rest. Hosting SaaS from Vodacom will increase productivity by having direct communication link with employees wherever they are; banishes worries about losing data as data is securely stored at Vodacom’s data centre; increase productivity by judiciously while there will be support from Vodacom managers. There will also be access to the Vodacom Business Self Service Portal.”

    He identified speed of change, increasing complexity, new technology and targeting today’s users as the major challenges besetting businesses as offices move away from the traditional physical structure to virtual in the era of agnostic devices.

    Ettu said business agility, adaptability, continuous collaboration, speed are business drivers. Others are innovation, future-proof IT, ubiquitous computing adding that cloud has become the king of all.

  • Telcos pay N1.76t to govt, says Airtel CEO

    The Federal Government has collected about N1.76trillion as taxes from telecoms operators over the last 11 years. It has also collected another N605 billion in various forms as regulatory levies, the Chief Executive Officer, Airtel Nigeria, Segun Ogunsanya, has said.

    He said the sector generates close to N160 billion annually to the Federal Government in form of taxes, adding that another N55 billion acrues annually to the government in various forms of regulatory levies.

    Ogunsanya, who made this known in Lagos, said the direct contribution of telecoms operators to the country’s gross domestic product (GDP) is estimated at about N400billion in 2012.

    He said: “Taxes and regulatory levies are the most important sources of direct contribution from network operators in Nigeria, accounting for about 55 per cent of the direct contribution. By our estimates, network operators pay close to N160billion in taxes annually, with another N55billion paid in various forms of regulatory levies.

    Ogunsanya said Nigerian operators have paid close to $4 billion (N640billion) in license and spectrum fees since 2001, adding that a further, three per cent to five per cent of Nigerian telecoms services’ revenues are paid out in wages and benefits for some of the highest skilled jobs in the economy.

    He listed other contributions to the economy to include payments to contractors, corporate social responsibility (CSR) programs and dividends to shareholders. “CSR programmes have been of particular significance, with many operators investing a substantial portion of their revenue on such programmes,” he said.

    He explained that operators also contribute to the economy through their wider ecosystem which includes the entire industry value chain, from contractors for base transmission station (BTS) deployments and system integrators, to resellers of devices, adding that the third channel of contribution came through multiplier effects and productivity gains from the society at large, using telecoms services.

    He said the telecoms sector is a major contributor to Foreign Direct Investment (FDI) in the country, along with the banking and oil and gas sectors. Cumulative FDI in Nigeria over the 2001-2011’s been around $45 billion, stating that the telecoms sector has accounted for around 35 per cent of that amount, with operators using capital to acquire licenses, acquire or prop up local operations and expanding their networks.

    On employment generation, Ogunsanya said: “The contribution to employment has been visible in the volume of new job opportunities created and in the variety of required skill set. Nigerian operators have created close to 10,000 direct jobs since liberalisation, a pace of nearly 1,000 direct, full time equivalent (FTE) positions created each year. On an indirect basis, the total number of jobs created by the telecoms operators hover between one million and three million, depending on the estimates.”

    He said the nation’s patchy power infrastructure remains an obstacle to telecoms operators, adding that in a country with about 25,000 BTS and a need for around twice that number over the next 10 years, the power infrastructure challenge is especially nagging.

    “The power costs of a site connected to the power grid are only about 1/6th those of a fuel-powered site, but only about 10 per cent to 15 per cent of BTS are connected to the electric power grid. The implications of such absence of reliable power infrastructure, are far-reaching. Nigerian operators spend around N8billion to N10billion a year in diesel costs to power their base stations. Such costs account for about 60 per centg of operators’ network costs. Primarily because of such fuel costs, average network costs in Nigeria are twice to thrice higher than in a number of other African markets,” he lamented.

  • Nigeria’s elusive Internet world

    Customers count their losses as access to the internet by many Nigerians remains a luxury. Those who can afford the punitive cost rarely get services commensurate with money paid, reports LUCAS AJANAKU.

    A Nigerian journalist had travelled to Kenya for a three-day international conference. During the conference, he had no problems filing stories and pictures from the venue of the event.

    “Each time I send pictures and stories back home, it goes with the speed of lightening. The situation in Kenya, a smaller country to Nigeria, in every ramification, is different. I was so excited because, back home, even when you pay through your nose, you scarcely get the promised speed and when there is down time, you are on your own as nobody cares a hoot about what happens to you,” he said.

    Back home, at the last Telecom Stakeholders’ Summit held at the Intercontinental Hotel, Victoria Island, Lagos, stories and pictures sent by some of the journalists that covered the event never got to their offices within the metropolis, several hours after they were filed. Similarly, it took several minutes to get pictures attached just as it took valauble time to get the pictures downloaded.

    In the rural areas, the story is worse. Forty-two-year old Samuel Ojuko got admission to study Public Administration at the Crown Polytechnic, Odo, an agrarian community sandwiched between the state capital, Ado Ekiti and Ilawe Ektit. He was given an assignment which he needed the internet to do. Armed with a modem powered by one of the global system for mobile communication (GSM) service providers and his laptop, he set out on the fruitless journey to access the internet.

    “For more than two days, I could not access the internet. Time was running out on me and the lecturer will not take any excuse from me. I had to travel to the state capital before I could get access to the internet,” he said.

    That is the story everywhere in the country, from Calabar to Kano, Bauchi to Bayelsa. Nigeria is the most populous nation in Africa with a population of over 168 million as at 2012 according to the World Bank. The population has grown at a rate of 2.3 per cent each year from 2000 to 2013. Approximately 60 per cent of the population is said to be under 22.

    The Nigerian Communications Commission (NCC) said in line with these demographic changes, internet penetration has increased from less than 0.1 per cent in 2001 to about 32 per cent in 2012. The 2012 National ICT policy placed broadband internet penetration for mobile and fixed broadband at about 6.1 per cent.

    But the road to achieving this target is not smooth but laced with thorns.

    Director, Regulatory Affairs and Special Projects, Airtel Nigeria, Osondu Nwokoro, who spoke at an ICT forum in Lagos, said the launch of the National Broadband Plan (NPB) 2013-2018 by the Federal Government is consistent with developments in other parts of the world, adding that it is a step in the right direction and showed government’s commitment to pursue a broadband agenda for the country.

    Nwokoro defined broadband as the easier, faster, and high speed internet access for data transmission and download, compared to traditional telephone and modem. Broadband supports real time internet radio, music, video, gaming, interactive services and others.

    The Nigeria National Broadband Plan (NNBP) defines broadband as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5 megabytes per second (MBPS).

    He said with six per cent broadband penetration in the country, there is both a challenge and an opportunity to meet the goal of realising a five-fold increase in broadband penetration by 2017.

    According to him the Broadband Commission for Digital Development charges that “access to broadband infrastructure and services must therefore be a top policy priority for countries around the globe, developed and developing alike as well as least developed countries,” adding that commission urges “governments and business to work together to develop innovative policy frameworks, business models and financing arrangements needed to facilitate growth in access to broadband worldwide

    “We could not agree less with the statement in the NBP that the “the implementation of a NBP requires long-term commitment and significant action by federal, states and local governments, as well as, the executive and legislative branches of government – alongside strong private sector participation.

    Speaking on impact on the economy, he said wireless broadband is expected to contribute an additional N190billion to gross domestic product (GDP) by next year while wireless broadband will have a direct revenue impact (spend on usage and devices) of N598billon or 0.7 per cent of GDP.

    He added that its ecosystem value will be N124billion comprising consumer retail (m-commerce; m-entertainment), financial services (m-banking), social services (m-learning, m-health, and m-governance) and corporate verticals (m-farming, m-enterprises, m-utilities).

    Wireless broadband will create N140billon of indirect value through productivity and efficiency gains in manufacturing, mining, industry, agric and services by next year, he added.

    Head, Core Network Services, Cyberspace Network Limited, Osuere Peter said broadband is the totality that forms the entity for faster information delivery across a network. This network could either be digital subscriber line (DSL), fiber-optic, cable modem, satellite, wireless and broadband over power lines (BPL).

    He said internet and mobile banking: customers could now carry on banking transaction activities via their fixed and mobile devices while e-commerce sites like konga, jumia, olx have also emerged..

    It has also led to the provision of public services like driver-license application, international passport, national identity card (ID) card registration and the general e-government solutions, adding that the implementation of regulatory framework and policies to promote electronic transaction such as the Cashless Policy of the Central Bank of Nigeria (CBN).

    According to the ambitious targets of the NBP, fixed broadband targets for cities (which is currently standing at 1.5per cent) expected to go up to 10 per cent in 2015 in the short term, 16 per cent medium term of 2018 and long term target of 25 per cent by 2020. Penetration level which now stands at 0.5per cent, will move up gradually to 3.3 per cent, 5.3 per cent and 8.3 per cent respectively

    For national broadband targets, current level is 35 per cent while short term target is 60 per cent (2015). For medium term (2018), 80 per cent is targeted while 95 per cent is targeted by 2020 as long term target.

    Penetration currently is 6 per cent. It is expected to go up steeply to 21 per cent, 42 per cent and 48 per cent respectively.

    Challenges

    The broadband technology infrastructure has grown up to an appreciable level in some very specific places and at different degrees.

    According to Peter, while the growth is on, the industry is faced with the major challenge of reliability of the services provided.

    This means that the e-business services being provided and the broadband technology infrastructure platform must both be reliable.

    Nwokoro said fixed infrastructure is not available in Nigeria and the cost and burden to put same in place is daunting. Wireless is the only viable option for broadband penetration.

    Another challenge is paucity of spectrum. According to him, NBP acknowledges the need for spectrum for mobile broadband and proposes to publish plan for freeing up spectrum for LTE rollout this year, conduct licensing of 2.5/2.6 gigahertz (GHz) spectrum in 2014 and facilitate accelerated wireless infrastructure expansion and upgrade with operators.

    “Nigeria remains at risk of not meeting International Telecommunications Union’s (ITU’s) 2015 timeline for analogue broadcast switch off. Without concerted action by the country to address the delayed implementation of analogue-digital broadcast switchover earlier scheduled for June 2012, the NBP proposals remains at risk,” he warned, adding that the 700/800 megahertz (MHz) digital dividend and 2.5/2.6GHz spectrum availability could be delayed till 2016 or beyond.

    Another issue is that of Right of Way (RoW) permits and other planning approval processes and associated charges between different ministries, departments and agencies (MDAs) at Federal, State & Local levels remain a strong disincentive for infrastructure development.

    Though NBP proposes to secure RoW waivers with states and also pursue expedited RoWs. achieving this goal between the three tiers of government remains a daunting challenge.

    Another challenges are device ownership and access points which are key to adoption and utilisation.

    “NBP proposes to challenge OEMs (original equipment manufacturers) to produce sub $30 access devices to reduce cost of ownership and thus facilitate uptake by the broader subscriber base.

    “NBP also proposes to deploy local access points (in NIPOST premises and local government headquarters) to facilitate access within 2km for people who cannot afford own access devices,” he said, adding that in spite of all the promises of the market size in the country, major OEMs are unwilling to site assembly plants in the country for device manufacture on account of unstable electricity supply, intellectual property rights issues and obstacles in the business environment.

    Way forward

    Mandate should be given to the National Frequency Management Council (NFMC) to articulate a spectrum roadmap to address timely availability, cost-effective pricing and licensing of the 700/800 MHz Digital Dividend spectrum band to support mobile broadband penetration.

    Another is resuscitation of the NFMC and expansion of its membership to incorporate private sector representation.

    Nwokoro said consideration should be given to the 900 MHz and 2.5/2.6 GHz spectrum re-farming to support mobile broadband on LTE while spectrum policy and regulation to support flexibility while supporting regional integration.

    Transition to a converged regulatory and spectrum environment by the merger of NCC and NBC consistent with international best practice

    Peter stressed the need to have quality data centers within the country while efforts must be made to have solutions that can bring together independent broadband technology platforms to function as a single unit

    He said: “We must move to monitor and measure the protection policies for infrastructures. We must have business boundaries

    “Accelerated growth and development comes as a result of subscriber satisfaction and loyalty. This can only be achieved by service and broadband technology reliability.”

  • Fed Govt urged on appropriate mobile money model

    Acting Chief Executive Officer, Etisalat Nigeria, Matthew Willsher has urged the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to come together and decide which model of mobile money will be well suited for the country.

    According to him, mobile money remains one of the most convenient, secured and affordable way of sending money to friends and family members, adding that the fundamentals of the scheme has to be identified for it to succeed in the country.

    He said the banks, the regulators and telcos need to build efficient mobile money that will assure the success of the initiative which recorded resounding success in Kenya with M-Pesa. He spoke in Lagos on the sideline of the launch of Going the Extra Mile (GEM).

    Willsher who is also the Chief Commercial Officer of the telco said: “I have always believed that the Central Bank of Nigeria (CBN), Nigerian Communication Commission (NCC), telecommunication operators and banks need to build efficient mobile money structure that will guarantee the project’s success.

    “It is only when the fundamentals, like knowing whether a bank-led or telco-led model is best for the country that the level of success expected would be achieved. At Etisalat, we are committed to the mobile money project.

    “Mobile money remains a convenient, secure and affordable way to send money to friends and family

    “As at today, it remains a huge business opportunity for stakeholders, but there is the need to get the fundamentals right. We see a lot of business potential in this field. But, like I said, regulators and other stakeholders need to get the fundamentals right.”

  • Nigeria’s elusive internet world

    Customers count their losses as access to the internet by many Nigerians remains a luxury. Those who can afford the punitive cost rarely get services commensurate with money paid, reports LUCAS AJANAKU.

    A Nigerian journalist had travelled to Kenya for a three-day international conference. During the conference, he had no problems filing stories and pictures from the venue of the event.

    “Each time I send pictures and stories back home, it goes with the speed of lightening. The situation in Kenya, a smaller country to Nigeria, in every ramification, is different. I was so excited because, back home, even when you pay through your nose, you scarcely get the promised speed and when there is down time, you are on your own as nobody cares a hoot about what happens to you,” he said.

    Back home, at the last Telecom Stakeholders’ Summit held at the Intercontinental Hotel, Victoria Island, Lagos, stories and pictures sent by some of the journalists that covered the event never got to their offices within the metropolis, several hours after they were filed. Similarly, it took several minutes to get pictures attached just as it took valauble time to get the pictures downloaded.

    In the rural areas, the story is worse. Forty-two-year old Samuel Ojuko got admission to study Public Administration at the Crown Polytechnic, Odo, an agrarian community sandwiched between the state capital, Ado Ekiti and Ilawe Ektit. He was given an assignment which he needed the internet to do. Armed with a modem powered by one of the global system for mobile communication (GSM) service providers and his laptop, he set out on the fruitless journey to access the internet.

    “For more than two days, I could not access the internet. Time was running out on me and the lecturer will not take any excuse from me. I had to travel to the state capital before I could get access to the internet,” he said.

    That is the story everywhere in the country, from Calabar to Kano, Bauchi to Bayelsa. Nigeria is the most populous nation in Africa with a population of over 168 million as at 2012 according to the World Bank. The population has grown at a rate of 2.3 per cent each year from 2000 to 2013. Approximately 60 per cent of the population is said to be under 22.

    The Nigerian Communications Commission (NCC) said in line with these demographic changes, internet penetration has increased from less than 0.1 per cent in 2001 to about 32 per cent in 2012. The 2012 National ICT policy placed broadband internet penetration for mobile and fixed broadband at about 6.1 per cent.

    But the road to achieving this target is not smooth but laced with thorns.

    Director, Regulatory Affairs and Special Projects, Airtel Nigeria, Osondu Nwokoro, who spoke at an ICT forum in Lagos, said the launch of the National Broadband Plan (NPB) 2013-2018 by the Federal Government is consistent with developments in other parts of the world, adding that it is a step in the right direction and showed government’s commitment to pursue a broadband agenda for the country.

    Nwokoro defined broadband as the easier, faster, and high speed internet access for data transmission and download, compared to traditional telephone and modem. Broadband supports real time internet radio, music, video, gaming, interactive services and others.

    The Nigeria National Broadband Plan (NNBP) defines broadband as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5 megabytes per second (MBPS).

    He said with six per cent broadband penetration in the country, there is both a challenge and an opportunity to meet the goal of realising a five-fold increase in broadband penetration by 2017.

    According to him the Broadband Commission for Digital Development charges that “access to broadband infrastructure and services must therefore be a top policy priority for countries around the globe, developed and developing alike as well as least developed countries,” adding that commission urges “governments and business to work together to develop innovative policy frameworks, business models and financing arrangements needed to facilitate growth in access to broadband worldwide

    “We could not agree less with the statement in the NBP that the “the implementation of a NBP requires long-term commitment and significant action by federal, states and local governments, as well as, the executive and legislative branches of government – alongside strong private sector participation.

    Speaking on impact on the economy, he said wireless broadband is expected to contribute an additional N190billion to gross domestic product (GDP) by next year while wireless broadband will have a direct revenue impact (spend on usage and devices) of N598billon or 0.7 per cent of GDP.

    He added that its ecosystem value will be N124billion comprising consumer retail (m-commerce; m-entertainment), financial services (m-banking), social services (m-learning, m-health, and m-governance) and corporate verticals (m-farming, m-enterprises, m-utilities).

    Wireless broadband will create N140billon of indirect value through productivity and efficiency gains in manufacturing, mining, industry, agric and services by next year, he added.

    Head, Core Network Services, Cyberspace Network Limited, Osuere Peter said broadband is the totality that forms the entity for faster information delivery across a network. This network could either be digital subscriber line (DSL), fiber-optic, cable modem, satellite, wireless and broadband over power lines (BPL).

    He said internet and mobile banking: customers could now carry on banking transaction activities via their fixed and mobile devices while e-commerce sites like konga, jumia, olx have also emerged..

    It has also led to the provision of public services like driver-license application, international passport, national identity card (ID) card registration and the general e-government solutions, adding that the implementation of regulatory framework and policies to promote electronic transaction such as the Cashless Policy of the Central Bank of Nigeria (CBN).

    According to the ambitious targets of the NBP, fixed broadband targets for cities (which is currently standing at 1.5per cent) expected to go up to 10 per cent in 2015 in the short term, 16 per cent medium term of 2018 and long term target of 25 per cent by 2020. Penetration level which now stands at 0.5per cent, will move up gradually to 3.3 per cent, 5.3 per cent and 8.3 per cent respectively

    For national broadband targets, current level is 35 per cent while short term target is 60 per cent (2015). For medium term (2018), 80 per cent is targeted while 95 per cent is targeted by 2020 as long term target.

    Penetration currently is 6 per cent. It is expected to go up steeply to 21 per cent, 42 per cent and 48 per cent respectively.

    Challenges

    The broadband technology infrastructure has grown up to an appreciable level in some very specific places and at different degrees.

    According to Peter, while the growth is on, the industry is faced with the major challenge of reliability of the services provided.

    This means that the e-business services being provided and the broadband technology infrastructure platform must both be reliable.

    Nwokoro said fixed infrastructure is not available in Nigeria and the cost and burden to put same in place is daunting. Wireless is the only viable option for broadband penetration.

    Another challenge is paucity of spectrum. According to him, NBP acknowledges the need for spectrum for mobile broadband and proposes to publish plan for freeing up spectrum for LTE rollout this year, conduct licensing of 2.5/2.6 gigahertz (GHz) spectrum in 2014 and facilitate accelerated wireless infrastructure expansion and upgrade with operators.

    “Nigeria remains at risk of not meeting International Telecommunications Union’s (ITU’s) 2015 timeline for analogue broadcast switch off. Without concerted action by the country to address the delayed implementation of analogue-digital broadcast switchover earlier scheduled for June 2012, the NBP proposals remains at risk,” he warned, adding that the 700/800 megahertz (MHz) digital dividend and 2.5/2.6GHz spectrum availability could be delayed till 2016 or beyond.

    Another issue is that of Right of Way (RoW) permits and other planning approval processes and associated charges between different ministries, departments and agencies (MDAs) at Federal, State & Local levels remain a strong disincentive for infrastructure development.

    Though NBP proposes to secure RoW waivers with states and also pursue expedited RoWs. achieving this goal between the three tiers of government remains a daunting challenge.

    Another challenges are device ownership and access points which are key to adoption and utilisation.

    “NBP proposes to challenge OEMs (original equipment manufacturers) to produce sub $30 access devices to reduce cost of ownership and thus facilitate uptake by the broader subscriber base.

    “NBP also proposes to deploy local access points (in NIPOST premises and local government headquarters) to facilitate access within 2km for people who cannot afford own access devices,” he said, adding that in spite of all the promises of the market size in the country, major OEMs are unwilling to site assembly plants in the country for device manufacture on account of unstable electricity supply, intellectual property rights issues and obstacles in the business environment.

     Way forward

    Mandate should be given to the National Frequency Management Council (NFMC) to articulate a spectrum roadmap to address timely availability, cost-effective pricing and licensing of the 700/800 MHz Digital Dividend spectrum band to support mobile broadband penetration.

    Another is resuscitation of the NFMC and expansion of its membership to incorporate private sector representation.

    Nwokoro said consideration should be given to the 900 MHz and 2.5/2.6 GHz spectrum re-farming to support mobile broadband on LTE while spectrum policy and regulation to support flexibility while supporting regional integration.

    Transition to a converged regulatory and spectrum environment by the merger of NCC and NBC consistent with international best practice

    Peter stressed the need to have quality data centers within the country while efforts must be made to have solutions that can bring together independent broadband technology platforms to function as a single unit

    He said: “We must move to monitor and measure the protection policies for infrastructures. We must have business boundaries

    “Accelerated growth and development comes as a result of subscriber satisfaction and loyalty. This can only be achieved by service and broadband technology reliability.”