THE communications sector is undergoing significant changes, with the emergence of a number of platforms available to provide a different range of services. Some of these platforms are complementary, others are competitive, or can provide a valid substitute for some of the services provided, thanks to fibre and VSAT expansion in the country.
To telecoms analysts, it is expected that significant investment would take place, both in VSAT services and fibre deployment across the country that will foster closer relationship between users of telecommunication service and operators. This, according to them would have important benefits in increasing speeds and allowing for the development and transmission of new services.
Specifically, at the Broadband Investment Summit organised by the Association of Telecommunications Companies of Nigeria (ATCON) in Lagos, stakeholders, who gathered at the summit, submitted that the two new submarine fibre cables in the country, Main One and Glo 1, have the potential of unlocking a digital economy where all and sundry would enjoy broadband access.
According to them, broadband will enable entire new industries while unlocking vast new possibilities for existing ones in the country.
Besides, in Abuja, at the NigComSat -1R conference, it was also noted that, though the submarines are in the country, with huge capacities, the role of satellite transmissions couldn’t be over-emphasised.
This was adduced to by the Minister of Science and Technology, Prof. Okon Ewa, while giving the opening address in Abuja, when he pointed out that Nigeria alone spends over N67 billion yearly to import bandwidth from Europe and America to facilitate Internet access, telephony and broadcasting in the country.
The minister opined that, with the launch of Nigerian owned communication satellites, the revenue made from Nigeria on bandwidth by other countries would be retained in Nigeria and used for the country’s development.
But in the lead paper, presented at the Broadband summit, Chairman, MainOne Cable Company, Mr. Fola Adeola said investment growth in the country would itself rely on investments in pervasive deployment of ICT infrastructure, particularly those that support the mass distribution of innovative broadband services critical to improved efficiency and overall productivity in both public and private enterprises.
Adeola said it was no longer news that, just as “electricity a century ago, broadband is a foundation for economic growth, job creation, global competitiveness and a better way of life. It is enabling entire new industries and unlocking vast new possibilities for existing ones. It is changing how we educate children, deliver health care, manage energy, ensure public safety, engage government, and access, organise and disseminate knowledge.”
He noted that the existing investment profiles in the industry have shown that efficient management will guarantee return on investment, so much as the tremendous increase in Nigerian mobile phone subscribers (90 million according to NCC) has equally demonstrated for all, how the right policies and the right partnerships between the public and private sector can result in exponential growth, job creation and contribution to GDP. “This can happen with broadband as well”, he added.
The MainOne Cable chairman, who pointed out that, there is keen global interest to invest in Nigeria given the size of the market and growth potential, however said investors will remain wary until they see political certainty, which hopefully, should improve, following the performance and outcome of the last election.
Adeola advised that government must take a critical lead in establishing an appropriate broadband policy that will lead to a favorable operating environment for investors, and encourage service uptake to drive further investments in this direction.
According to him, going by forecast that wireless broadband services alone can directly contribute additional N190 billion to the GDP by 2015, which will represent 1.22 per cent increase and 1.7 per cent growth in non-oil sector, with indirect contribution as much as N410 billion during the same time, we can only imagine the enormous impact of full proliferation of these services on the Nigerian economy.
But to ATCON President, Titi Omo-Ettu, while delivering the keynote address in Lagos, over 70 per cent of the challenges facing telecoms operators in the country today could be attributed to unreliable power supply. He noted that power problem had been responsible for high cost of running businesses, which also pushed 65 indigenous ICT companies out of business.
Omo-Ettu said, “When we weighed the problems which confront our industry as a component of the Nigerian economy, all the issues of low technical skills, poor access to financing, barrier to investment, and all of that, all constitute 30 per cent. It is in finding solution to this 30 per cent that we are gathered to brainstorm and chart a path.
“The over 70 per cent, that which is constituted by a poor access to reliable public electricity that refuses to go away can only be left for government to work at sorting out.”
He explained that getting the current government policies targeted at boosting power generation was critical to attaining broadband access for economic deployment.
Corroborating the relevance of satellite communications in Nigeria, despite the investment of N336 billion on submarine cables in the country by private operators, the Chief Operating Officer, Phase 3 Telecom, Mr. Sola Teniola said 51.1 per cent of Internet connection in the country is still done via VSAT.
Speaking also at the Lagos forum, Teniola, who described Nigeria as an un-served country in terms of broadband Internet access said, “It is estimated that 51.1 per cent of Internet users are connected by VSAT; 24 per cent by broadband wireless; 3.4 per cent DSL; 9.3 per cent via dial-up; 8.7 per cent by cable/satellite; and the remainder by WiFi and leased lines. Currently, VSAT remains the predominant form of broadband access.”
He pointed out that, contrary to the belief that the advent of submarine fibre cables would disrupt the VSAT business, the dearth of last mile fibre networks with which, to transfer available broadband capacity to the end-users had ensured that majority of users still depend on VSAT for Internet connection.
Former Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Ernest Ndukwe, at the NigComSat forum said from observations, Nigerian companies are paying relatively high bandwidth charges for satellite links to enable long distance transmission.
Ndukwe, who was keynote speaker at the event, said the high charges have continued to prevail in spite of the fact that Nigerian businesses represent over 60 per cent of the African business portfolio.
He said broadband growth supports countries’ GDP, stressing that satellite communications, if adequately managed for broad bandwidth, could bring about stable economic growth.
He said: “Many countries with high broadband penetration now got there by encouraging and providing incentives for widespread broadband deployments.”
Ndukwe implored the stakeholders to ensure the formulation of the broadband policy for the country to meet up with the global standards and maintain its position on the global ICT league.
In his presentation, “Do we really need Communications Satellite (CS)”, the President of the Information Technology Association of Nigeria (ITAN), Dr. Jimson Olufuye stressed that the country still requires satellite for optimum transmission. He stressed that the issue was beyond just having a CS, adding that what we use it to do matters a great deal and how we sustain it and keep it working for the duration of its life cycle should be the point of emphasis.
According to him, while there is great enthusiasm for our new functional CS, the challenge of appropriate use for business continuity is critical. “Therefore, plans should be commenced as soon as possible for Nigcomsat-2.”
Besides, the Managing Director of Gilat Satellite Networks…………. noted that, a national communications infrastructure can benefit from the synergistic effect of multiple technologies.
According to him, satellite evolution to Ka-band can create new opportunity for economical solution for consumers e-learning, e-health, oil and gas, VoIP, IPTV and disaster management.
But to Dr. Chris Uwaje, President, Institute of Software Practitioners of Nigeria (ISPON), software remains a driving force for satellite communications.
Uwaje noted that there are many possible thrusts of a national economic development policy, which according to him, the core critical requirements include and depend heavily on the ability to create and deploy World-class Intelligent Software Systems.
The ISPON president said that these range from modernising information systems in existing industries and government agencies to creating new export industries, including, perhaps, a software export industry.
The Chief Executive Officer, NigComSat Limited, Dr. Timasaniyu Ahmed-Rufai, said the government had given the outfit the mandate to launch back-up satellites to prevent any unforeseen situation in the future.
He said besides the $450 million spent yearly on bandwidth, Nigeria expends over $100 million on other satellite services such as distribution and maintenance.
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