In the telecoms and broadcast industries, frequencies are considered scarce resources. Their availability and judicious deployment are expected to deepen broadband internet services across the country. However, this depends on the release of broadcast spectrum known as ’digital dividends’ by the Nigerian Broadcasting Commission (NBC) to the Nigerian Communications Commission (NCC), writes LUCAS AJANAKU.
TELECOMS global body, the Global System for Mobile Communications Association (GSMA), says broadcast frequencies’ sale as a result of digital switch over (DSO) could fetch the country over $2 billion.
The group also said with the release of digital dividend spectrum, sub-Saharan Africa could grow its gross domestic product (GDP) yearly by $82 billion by 2025; earnings by about $18 billion in tax revenues and creating no fewer than 27 million jobs.
Digital dividends spectrum is the frequency band located in 700m egahertz (MHz) spectrum band. It has been internationally adjudged to be very useful in deploying high-speed internet services globally.
The spectrum was approved by the International Telecommunications Union (ITU), an arm of the United Nations (UN), for mobile broadband deployment about three years ago for its member-countries.
In Nigeria and other countries, this spectrum bands is in the possession of the broadcast industry, which will implement the DSO of ITU by July 17, this year.
However, a pall of uncertainty hangs over whether Nigeria will join the rest of ITU member-countries to switch off analogue transmitters’ televison sets.
An official of the NCC, who craved anonymity, lamented that this all-important spectrum bands are still in the hands of the Nigerian Broadcasting Commission (NBC). “As at today, none of these frequencies has been released in spite of the fact that we are getting so close to DSO. Besides, we are not sure yet whether any of these broadcast media is ready for digital transmission,” the source lamented.
NBC’s Director-General, Emeka Mba, said the nation will achieve DSO, adding that more than 26 per cent of the population was already doing digital transmission while the huge mass with analogue transmitters and television sets have their fates hanging in the balance. Inview Technologies of the United Kingdom (UK) and a consortium of indigenous broadcasters, have been contracted to provide set top boxes and make available the software that will make the provision of key service available.
Since spectrum availability is closely linked with broadband infrastructure development, the freeing up of the locked 700Mhz frequency will, no doubt, complement current efforts by the country to increase broadband penetration from about eight per cent to 30 per cent by 2018. This is in line with the Federal Government’s target contained in the National Broadband Plan (NBP).
If the 700Mhz frequencies are taken over from the NBC, it will first be handed over to the National Frequency Management Commission (NFMC) which is the custodian of all frequencies in the country. It is under the Ministry of Communications Technology and currently chaired by Communications Technology Minister, Dr. (Mrs) Omobola Johnson.
The NFMC, then, decides what slots it gives out to the NCC for allocation according in line with global best practices, especially as stipulated by the ITU.
President, Association of Telecoms Companies of Nigeria (ATCON), Mr. Lanre Ajayi, said releasing the spectrum bands to investors that will roll-out service on them will add a new fillip to the industry, especially now that the next revenue frontier of the industry has shifted from voice to data.
He said: “It will be an advantage for the country if these spectrum bands are released by the appropriate authority for NCC to allocate to would-be applicants.”
NCC’s Director, Spectrum Administration, Austine Nwaulune, said June 17 DSO deadline is a global phenomenon, stressing that any analogue station that failed to migrate ran the risk of losing ITU’s protection, warning that “and if Nigeria causes interference, it will be sanctioned.”
But the truth of the matter is that the digital dividends are not yet available and NCC cannot give what it does not have. In the light of this, the regulator said it has commenced consultation with stakeholders on the best way to allocate the spectrum bands ahead of its expected release by the NFMC.
Declaration of broadband year
The Federal Government earlier declared this year as Broadband Year. For carriers, the most technically-advanced technology for broadband offering is the LTE or 4G.
LTE, an acronym for Long-Term Evolution, commonly marketed as 4G LTE, is a standard for wireless communication of high-speed data for mobile phones and data terminals.
Online knowledge encyclopaedia, Wikipedia defined LTE as “the natural upgrade path for carriers with both GSM/UMTS networks and CDMA2000 networks. The different LTE frequencies and bands used in different countries will mean that only multi-band phones will be able to use LTE in all countries where it is supported.
“Although marketed as a 4G wireless service, LTE (as specified in the 3GPP Release 8 and 9 document series) does not satisfy the technical requirements the 3GPP consortium has adopted for its new standard generation, and which were originally set forth by the ITU-R organisation in its IMT-Advanced specification. However, due to marketing pressures and the significant advancements that WiMAX, HSPA+ and LTE bring to the original 3G technologies, ITU later decided that LTE together with the aforementioned technologies can be called 4G technologies. “The LTE Advanced standard formally satisfies the ITU-R requirements to be considered IMT-Advanced. To differentiate LTE Advanced and WiMAX-Advanced from current 4G technologies, ITU has defined them as “True 4G”.
Experts say LTE can support downloads at 300 megabits per second (Mbps) or more based on experimental trials. However, the actual network bandwidth available to an individual LTE subscriber sharing the service provider’s network with other customers is significantly less.
According to latest Ericsson Mobility Report, there will be 9.3 billion mobile subscriptions in 2019, adding that 65 per cent of the global population will have LTE coverage by that same year.
GSMA’s March last year report indicated that there were 279 commercially-launched LTE networks in 101 countries and 482 LTE network commitments in 147 countries.
Experts say for telecoms end-users, LTE services will give them a superior user experience when it comes to stability, throughput, and latency. The increased capacity will bring new and better services to users.
For carriers, LTE offers them the advantage of a proof network delivering capacity, throughput and redefined user experience that creates new business opportunities and revenues. The technology offers low long-term capital outlya and operational costs.
On the development, a telecoms analyst, Mr. Akin Akinbo, said: “The introduction of LTE is an evolutionary step, rather than revolutionary, as large parts of existing infrastructure is re-used providing a future-proof technology path for flexible migration of services between 2G, 3G and 4G mobile technologies. But in order to meet customer expectations and demands for capacity and speed tomorrow, all major players need to put an LTE strategy in place.”
In addition to the efforts being made to ensure the availability of 700Mhz, the NCC early this year convened a stakeholders’ consultative forum on the 70/80 Mhz band, in Lagos.
As it awaits the release of the spectrum bands, the NCC is working to fine-tune the document and release the rules for its bidding process soon.
Before the implementation of its open access broadband model, the regulator auctioned the 2.3 gigahertz (Ghz) spectrum band to an indigenous player, Bitflux Communications Limited to provide wholesale services. Its Managing Director, Biodun Omoniyi, said environmental issues stopped the firm from rolling out services on the spectrum it defeated national carrier, Gloobacom, to clinch. He, however, said the firm would commence commercial service any moment.
It is part of the regulator’s move to make adequate spectrum available for broadband services to a country where more than 90 per cent of telecoms services are deployed through wireless means.
Another effort to complement the 2.3GHz auction was the 2.6 GHz spectrum band auction, which had experienced two postponements.
Government sources said the NCC wanted to get it right before putting the spectrum on sale. “Recall that in 2001 after the Digital Mobile Licence (DML) auction, Communication Investment Limited (CIL), one of the winners, did not pay for the licence because the frequency allocated to CIL was believed to be encumbered and it lost the licence and the deposit for same.
“So, the NCC wants to clear the coast before another major licence round will take place. Let me assure you that the licensing round is work in progress,” the NCC official said.
Also, the Infrastructure Companies (Infracos) licencees have swung into action, as Lagos and North Central including Abuja licensing has already been concluded.
The other five zones, according to the NCC, are works in progress. The government, through the NCC, is dangling incentives to attract bidders to the zones considered less attractive commercially.
Besides, the Ministry of Communications Technology said tax holidays of between five and seven years, 30 per cent rebate on capital expenditure (capex) is also in the offing for the investors.
Additionally, the 5.4 GHz spectrum auction has already been advertised and applications are already being received by the NCC.
Stakeholders say the NBC should put its house in order, raise the funding required for DSO, rise up to surmount the legal and logistical cobwebs on its way so that the digital spectrum band could be relaesed for national development.
