As the August 24 timeline set by the Nigeria Communications Commission (NCC) to begin the roll-out of the fifth generation (5G) technology draws near, factors such as spiraling inflation, exchange rate (forex) volatility, forex crunch, subjecting Internet of Things (IoT) devices that will be 5G compliant to type-approval by the NCC and others may scuttle the excitement expected to come with it, a document prepared by a top official of the Commission has highlighted.
According to the document, other factors such as the inability of the 500-1,000 megabytes per second (Mbps) capacity from traditional microwaves meet the 20 gigabytes per second (Gbps) demand of 5G, which will, therefore, make the need to step-up into the E-band spectrum inevitable.
Another impediment identified by the document is the thorny issue of right of way (RoW), which will adversely affect the fiberisation of the towers/base stations.
Aside these factors, availability, quality and adequate power supply, especially as the world is gravitating towards green alternative energy to save the climate and 5G devices availability and affordability.
All these problems are, unfortunately, still plaguing the country. Some of them are still getting worse, especially forex crunch and inflation. Last week, the International Air Transportation Association (IATA) said foreign airlines’ funds being withheld in Nigeria increased from $450 million in May to $464 million in July. The figure grew by $14 million from the $450 million said to be withheld in May. The cash is being withheld because of the scarcity of forex in the economy.
Also last week, the National Bureau of Statistics (NBS) said inflation rate rose to 19.64 per cent in July 2022 from 18.60 per cent in June.
The inflation rate was 1.82 per cent increase from that of the previous month, the Bureau, in its report entitled: “CPI July 2022”, noted.
NBS said the highest increases were recorded in prices of gas, liquid fuel, solid fuel, passenger, transport by road, passenger transport by air, garments, cleaning, repair and hire of clothing.
The report noted that unlike 4G, 5G has lower penetrating energy into buildings 5G coverage area is small. It added that there will be an additional costs of purchasing new devices that is 5G-compatible before 5G services can be accessed. This translates to spending more cash by the subscribers whose disposable per capita income has been brutally annihilated by inflation.
“More 5G sites will be required to provide similar coverage as 2G. This implies huge infrastructure investments are required to rollout comparable coverage of 5G networks,” the report noted.
“Our industry is highly dollarised because our equipment are imported into the country by our vendors; this means necessarily that we will need forex. You will recall that the value of the naira was battered recently when it exchanged for N710/USD. These are facts that are verifiable and they are the realities on ground,” an industry source said on phone.
Nigeria’s road to 5G started earlier, but 5G trials were completed in November 2019. Last December, the country auctioned two lots of 100 megahertz (Mhz) frequencies in the 3.5gigahertz (Ghz) Spectrum (C-Band) for commercial 5G deployment.
The two lots ranged from 3500Mhz–3600Mhz and 3700Mhz –3800Mhz with two companies emerging as winners per lot, MTN Nigeria Limited and Mafab Communications.
Both companies completed full payment of the final bid cash ($273.6million) per lot before the end of last February 24, the dateline issued by the Commission for payment.
According to Global Mobile Suppliers Association (GSA), More than 18 African countries are either evaluating/testing/trialing or deploying 5G network as of 2021.
South Africa was the first African country that launched commercial 5G network. Kenya has completed 5G trials and has launched commercial 5G in 2021. MTN Uganda demonstrated the 5G network in January 2020.
Director, Technical Standards and Network Integrity at the NCC, Engr. Bako Wakil, said in spite of the enormous challenges militating against the rollout of 5G, its successful deployment will improve jobs creation, boost the nation’s gross domestic product (GDP), unleash creativity and innovations, diversify the economy and improve transparency and efficiency in governance.
He added that it will enhance security of lives and property, accelerate industry automation, promote agricultural revolution and food security