Prof. Umar Garba Dambatta
Executive Vice Chairman, Nigerian Communications Commission

•
▫ The Nigerian Telecommunications Industry
▫ Connectivity Statistics
•
▫ What is Broadband
▫ Current status
▫ Challenges of Broadband Development in Nigeria
▫ Broadband and Frequency Spectrum
▫ National Broadband Infrastructure Initiatives
•

3

• Increasing use of data enabled devices (Smartphones, dongles, MiFis etc)
• Voice service dominates the industry (Dominated by the 4 GSM providers)
• Internet and VAS usage increasing
• E-commerce entities increasing
• Increasing confidence of transacting online by the populace
• Online transaction security becoming critical
• Increasing network coverage for 3G and 4G data services
• Increased Colocation of services
• Reducing Average Revenues per User
• Increasing competition among players
• Rather limited competition to GSM providers in the mobile broadband segment
• Continued strong growth from the mobile sector threatens fixed-line growth with mobile substitution
• The insurgency in the north threatens the operations and network expansion plans of service providers
4

Active Voice Subscribers and Teledensity - December 2002 to Sept 2015
160,00
140,00
120,00
100,00
80,00
60,00
40,00
20,00
0,00
2002 2003 2004 2005 2006 2007 2008
Subscribers (Millions)
2009 2010 2011
Teledensity (%)
2012 2013
120,00
100,00
80,00
60,00
40,00
20,00
2014 Sep-15
0,00
Subscribers (Millions)
Teledensity (%)
Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Sep-15
2.27
4.02
10.20
19.52
33.86
41.98
64.30
74.52
88.35
95.89
113.20
127.61
139.14
150.70
1.80
3.19
8.10
15.49
24.18
29.98
45.93
53.23
63.11
68.49
80.85
91.15
99.39
107.61
5

120,00
100,00
80,00
60,00
40,00
20,00
0,00
Internet Subscribers and Penetration Dec 2012 to Sept 2015
2012 сен.15
80,00
70,00
60,00
50,00
40,00
30,00
20,00
10,00
0,00
Internet Subscribers
(Millions)
Internet Penetration
(%)
2012
30.94
22.10
2013
64.23
45.88
2014
76.32
54.52
Sep-15
95.40
68.14
6

7

Traditionally, the term broadband referred to high-speed communications networks that connected end-users at a data transfer speed greater than 256 Kbit/s.
Broadband within the Nigerian context is defined as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5 Mbit/s.
Source: Nigerian National Broadband Plan
8

International Submarine
Cable landings at our shores
Inadequate metro fiber infrastructure in several cities
Distribution and last mile challenge
Over 30,000 km inter -
City Fiber laid already
Unutilized Capacity Due to
Duplications in some inter-city fibre routes
Internet access mainly through wireless means
Relatively limited locally relevant content
9

• The challenges of the ICT industry in Nigeria have also been identified as the absence of a robust national backbone infrastructure, high cost of access to devices, threat of power supply, right of way issues, damage/vandalization of fibre infrastructure, multiple regulations and taxation, discriminatory special high taxes and security of telecommunications infrastructure, spectrum availability underutilization and non-utilisation of spectrum.
• Investment and funding have also contributed to the rate of deployment of needed infrastructure for the telecoms industry. Telecoms infrastructure is capital intensive and while it is also true even at the level of investment so far, more would have been achieved if the operators had shared infrastructure at various levels .
10

Supply Side Demand Side
• Relatively limited Infrastructure sharing
• Power supply issues
• High Right of Way charges and multiple taxes and levies
• Duplication of backhaul intercity fibre
• Lack of metropolitan fibre infrastructure
• Multiple Taxation and regulation
• Limited spectrum bandwidth
• Discriminatory pricing by existing infrastructure owners
• Security and Community issues
• Government policy
• Availability of skilled manpower
• Clear regulatory frameworks
• Profitable data business model
• Cost of terminal devices
• Availability of applicable content
• Cost of broadband access
• Relatively low level of digital literacy
• Unsatisfactory “broadband” speeds
• Scale of fake or substandard devices
• Poor perception of broadband value
• Government policy
• Electrical power supply
4

• Broadband is the centrepiece of the digital age
• National Backbone Broadband Networks in conjunction with latest generation mobile telecommunications will drive the digital economy
• Aim to deliver - Productivity - Connectivity – Mobility
• Vast majority of Nigerians carry out online transactions via mobile devices making frequency spectrum critical
• Spectrum is critical mobile infrastructure
• The trend world wide is transactions and other interactions between business entities and consumers and potential consumers are going online and mobile

13
• Accelerated rollout of Metropolitan Area Fibre
Infrastructures across the country
• To address last mile challenges to businesses, homes, telecommunications sites etc
• Instituting price caps and price floors for wholesale broadband capacity
• Instituting an open access framework for access to broadband infrastructure
• Licensing several Retail Service Providers to encourage innovation, choice and improved service delivery
• Licensing additional spectrum for wireless broadband
• Effective compliance monitoring and enforcement frameworks
• Clear regulatory frameworks to encourage investment and effective industry operation

14

• Effective E-commerce ecosystem requires pervasive telecommunications and broadband infrastructure deployment
• Mobile broadband demand growth strong and prices falling
• Mobile economic contribution – direct and indirect – Access
• Mobile Broadband – productivity enabling technology
• Global and local demand for mobile broadband on the rise
• Technology pathway – speed and capacity evolution
• New spectrum allocations – critical future infrastructure
• With further technological advancements and international standardization, average terminal device price will keep falling
• Content is crucial is driving broadband adoption
• Optimal deployment of broadband infrastructures in the face of falling ARPU’s critical to driving broadband availability and affordability as well as effective support for the E-commerce ecosystem