A major milestone in Nigeria’s telecommunications industry in 2018 was the attainment of the 30 per cent broadband penetration target.
The term broadband refers to high-speed communications networks that connect end-users at a data transfer speed greater than 256 kilobytes per second.
It has been empirically proven that every 10 per cent increase in broadband penetration in developing countries results in a commensurate increase of 1.38 per cent in Gross Domestic Product (GDP).
As at the year 2012, the most credible statistics estimated that Nigeria’s broadband penetration was between four per cent and six per cent, further underscoring the need for Nigeria to give strategic importance to the development of broadband infrastructure.
It is against this backdrop that in 2013, the Federal Government of Nigeria, under the administration of President Goodluck Jonathan designed the National Broadband Plan (NBP) 2013-2018, setting a target of 30 per cent penetration to be achieved by end of 2018.
In December 2018, the Nigerian Communications Commission (NCC) says the country’s broadband penetration stands at 30.9 per cent as at November 2018, surpassing the 30 per cent target set by the National Broadband Plan.
The Executive Vice Chairman of NCC, Prof. Umar Danbatta, confirms that the country exceeds the target set for itself by 0.9 per cent.
“At NCC; we knew we have to meet the broadband implementation plan to get to 30 per cent at the end of 2018. Due to the work done, we now stand at 30.9 per cent, equivalent of 31 per cent.
“NCC had issued licences to seven infrastructure companies to deploy the needed infrastructure to facilitate the required penetration in the 774 Local Government Areas (LGAs) in Nigeria.
“This will enable broadband penetration reach the served and underserved areas in the country,’’ he says.
The NCC boss says according to the reports released by the National Bureau of Statistics (NBS), between the first and third quarters of 2018, contributions of the Telecommunications and Information Services to Gross Domestic Products (GDP) stand at N4.7 trillion.
According to Danbatta, NCC has set up a committee to come up with another strategic plan after the successful implementation of the 2013-2018 plan.
The Team Lead, Network Operations, Cyberspace Network Ltd., Opeyemi Praise, explains that the decentralisation of infrastructure to other parts of the country will deepen broadband penetration across Nigeria.
Praise, however, notes that some of the recommendations of the 2013-2018 NBP have not been implemented.
He says the new NBP should include and ensure implementation of recommendations not met in the 2013-2018 NBP.
According to him, one of the recommendations of extending infrastructure to other parts of the country has not really been met, as broadband infrastructure is mainly situated in Lagos State.
“Lagos is currently the hub for all international fibre landings and this is not good for broadband acceleration in the country.
“Centralisation of fibre landing just in Lagos is not good because of national security and high cost of long-hauling connectivity to the other parts of the country.
“Another reason might be job opportunities; because wherever you have infrastructure, there you have the jobs,” he says.
Praise explains that broadband penetration was a means to eradicate poverty; as it ensured inclusion and connect rural communities with urban communities, thereby facilitating trade and commercial exchanges.
He points out that the country is left with no option than to increase its broadband penetration and reduce poverty.
“Thirty per cent in any country, by any denomination is not a pass mark. We cannot go to sleep yet.
“It is good that we have moved forward but it is pretty much a call to more work.
“There has been some improvement in the broadband space in the country but we can do better,’’ Praise notes.
He says the proposed new plan should include having local contents and solutions to ride on the available infrastructure.
The President, Association of Telecommunications Companies of Nigeria (ATCON), Mr Olusola Teniola, mentions that none of the infrastructure companies (InfraCos) licensed so far by the NCC has been able to roll out infrastructure as expected.
Teniola notes that this is due to the current challenge of Right of Way permission.
“Lack of fibre roll-out under the InfraCo open access model and an environment that lacks any incentive for Foreign Direct Investment (FDI) are a few of the many challenges that have hindered the broadband project, ‘’ he says.
Teniola advises that a lot of works still need to be done for the country to accelerate broadband penetration.
The Chief Executive Officer of Pinet Informatics Ltd., Mr Lanre Ajayi, mentions that the country still has a long way to go in terms of deepening broadband penetration in spite of attaining the 30 per cent target.
Ajayi is of the opinion that the current infrastructure challenges have to be addressed before the country can talk of pervasive broadband penetration.
He says special incentives should be provided for operators to encourage them to deepen their investment in broadband network rollout.
“Such incentives should include tax holiday as was done for the GSM rollout and lower cost of frequency spectrum
“There should be accelerated approval of request for right of way and provision of licence-exempt frequency for deployment to under-served and unserved,’’ he says.
The President of the National Association of Telecommunications Subscribers (NATCOMS), Chief Deolu Ogunbanjo commends the achievement of the 30 per cent broadband target.
Ogunbanjo says the next step is for government to further deepen broadband penetration, by ensuring that broadband gets to the 774 local governments.
According to him, acceleration of broadband should be more to sub-urban centres, as it will encourage commercial and economic activities in the areas.
“So it will of course, create more jobs, more than can even be imagined; hence, enhancing economic development, ‘’ he says.
To facilitate the required penetration, there should be uninterrupted deployment of infrastructure across the country.
Stakeholders in the telecommunications industry agree that deeper broadband penetration will facilitate economic development.
They are also of the opinion that a new National Broadband Plan should go beyond setting a 30 per cent penetration in order to improve the GDP. (NANFeatures)
