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COMMUNICATIONS
COMMISSION
PROPOSED
INFORMATION AND COMMUNICATION
TECHNOLOGY
AGENDA
FOR THE NEXT TEN YEARS
Presented by:
EXECUTIVE SUMMARY 3
26
CONCLUSION 62
BIBLIOGRAPHY 64
EXECUTIVE SUMMARY
The NCC Information and Communication Technology Agenda for the next ten years is a
road map for the future. It presents ICT as a globalizing force and NCC as a driver of
TrainOptima Consulting Group – Office of Strategy, Policy and Competitiveness
Page 2 of 65
Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
development of the digital infrastructure that would determine our future national
competitiveness. It proposes a stronger and more deliberate industry governance strategy
that leverages the roles and functions of all players in the ICT Sector, to deliver a new level
of industry performance. It seeks to articulate an NCC engagement strategy for the sector
for facilitating collaboration amongst the key public and private sector stakeholders locally
and internationally.
It defines a broader range of performance areas set from the point of view of the Nigerian
Citizen (the consumer) and ICT Operators (NCC’s clients) to provide an organizational
framework for regulatory effectiveness. The Agenda presents the convergence of
information and communication technology as the reason for overlaps and duplicity in
regulatory oversight between the NCC and NBC, and puts forward a strong argument for
the urgent and immediate review of the regulatory functions of NCC and NBC; and
provides guidelines and global benchmarks for institutional and operational alignment of
roles to increase oversight effectiveness in the ICT sector. It introduces the evolution of
convergent technology as the driver of exponential demand for broadband bandwidth
requirements and insists that NCC-NBC regulatory bottlenecks will slow the needed
accelerated deployment of broadband technology, hence, the need for a unified regulatory
regime for the ICT sector.
Based on critical global scenario analysis of national requirements, the agenda presents a
framework for Broadband Development that includes a proposed national broadband goal
of a minimum download speed of 1 Mbps for all Nigerians by 2014 and 50 Mbps by 2020,
driven by a projected direct financial investment in broadband infrastructure of $40 billion
over the next ten years, reaching every household in Nigerian household. The framework
includes a clear description of technology options and guidelines for an infrastructure
stimulus programme. The stimulus programme lays out a high level plan and strategy for
developing Infrastructure Funds, which is informed by practices in the leading ICT
economies globally. The broadband development framework places strong emphases on
building indigenous capacity in the areas of manpower development and local content,
education and research, energy provisioning capacity and manufacturing capabilities for
some broadband related hardware and software, to meet our national goals. Finally the
agenda provides a more robust quality regulation framework driving for industry-wide
quality and operational excellence.
The NCC ICT agenda and corresponding frameworks is designed to ensure that the NCC
develops formidable capabilities internally, whilst driving a national agenda that
guarantees the next level of ICT evolution.
basic issues of what presently exists and what is the next level of national ICT transformation and
growth, and the role that NCC must continue to play coming decade.
HOW THE CONVERGENCE OF ICT HAS SET A NEW GLOBAL AGENDA
Thomas L. Friedman, in his book the ‘The World is Flat – The Globalized World in the Twenty-
First Century”, describes three eras of globalization. The First Era of Globalization was from 1492,
when Columbus set sail to discover the New World, to 1800. The force driving global integration
in this first era was industrial power (horse power, steam power, wind power, man power), how
much of it a nation had, and to what degree it could be harnessed. In the First Era, nations were
globalizing – countries developed the power to compete globally.
The Second Era of Globalization was from 1800 to 2000. The force driving global integration in
this second era was multinational companies seeking control of global markets and labour as a
result of the industrial revolution. Second Era catalysts were reduced transportation and
communications costs, as a result of innovation in steam engines and telecommunications and the
personal computer. In the Second Era, companies were globalizing – organizations developed the
power to compete globally.
The Third Era of Globalization was from 2000 to date. The force driving global integration in this
third era is convergence of information and communication technology to create what Thomas L.
[1]
Friedman calls the ‘Flat-world Platform’. The Flat-world Platform is best described by the
Convergence Triangle. [2]
This illustrates the new power and ability for individuals, companies and nations to compete on a
global scale, as each individual via a personal computer can project their digital self in real-time via
global network of fibre optical transmission networks to billions of others. The capacity of
individuals to author and communicate their own digital content has created this era of
globalization. In the Third Era individuals are globalizing – each of us as individuals, to the degree
that we have access to information and communication technology, can and must develop the
power to compete globally. In one generation we have seen the creation of compact single unit
machines that converge workflow software with hardware, making it possible for one machine to
email, print, fax, scan and copy; single unit computer applications that have the potential to manage
the horizontal value and supply chains; and all this potential to give individuals the capacity to go
global was plugged into billions of people living in China, India, Russia, Africa since the early
1900s, thus creating the greatest explosion of information and knowledge the world has ever
witnessed.
As we entered into the year 2000, the global ICT movement was redefining and changing how
individuals, organizations and nations would compete forever. In Nigeria, the President Obasanjo-
led Federal Government of Nigeria set a very ambitious national economic development plan and
clear policies articulated for each sector of the nation’s economy in the Vision 2020 National Plan.
The Vision 2020 mission was “By 2020 Nigeria will be one of the 20 largest economies in the
world, able to consolidate its leadership role in Africa and establish itself as a significant
[a ]
player in the global economic and political arena,” with the ICT Sector being one of the
thematic areas. The indicative parameter for ICT success being “adequate [information and
communications technology] infrastructure services that support the full mobilization of all
economic sectors” [b]
In the spirit of economic reform and visionary leadership of the Obasanjo administration, a 22-
member Telecommunications Sector Reform Implementation Committee (TSRIC) was inaugurated
to promote the policy goals of total liberalization, competition and private sector-led growth of the
telecommunications sector, on February 1, 2000. The product of the deliberations of the TSRIC
was the National Policy on Telecommunications which spurred a telecommunications renaissance
in Nigeria. This policy was implemented by Engr. Ernest Ndukwe, CEO of the NCC, during his
tenure from 2000 to 2010.
Under his execution of the 2000 version of the National Policy on Telecommunications, the
telecommunications industry has witnessed rapid and enormous transformation and growth.
Driven primarily by mobile telecommunications, the boom was spearheaded by the country’s first
Digital Mobile Licence Spectrum Auction in 2001. Since then, the industry has been hailed for
generating over N120 billion (about USD 1 billion) in revenue for the government, over USD7
billion in service revenues annually, over three million direct and indirect jobs, and over USD 12
billion of foreign investment in the mobile sector itself.
From 2001 to 2009, the Nigerian telecommunications market exploded − from 422,000
subscriptions to approximately 74 million (both fixed and mobile). In a nation that is home to over
146 million people, the country has achieved over 50% teledensity. With 64% of the population
residing in rural areas, coupled with a relatively young population − 42% between the ages of 0-14
and 55% between 15-65 years of age − this telecommunications policy supports operators’
commitment to infrastructure expansion and the provision of value added services.
The NCC ICT agenda for the next ten years provides a set of frameworks which are all within the
statutory provisions of Nigerian Communications Act 2003, and they include:
– An industry governance framework that leverages the roles and functions of all players in
the ICT Sector, to deliver a new level of industry performance. It seeks to articulate an
NCC engagement strategy for the sector for facilitating collaboration amongst the key
public and private sector stakeholders locally and internationally.
– An organizational framework for regulatory effectiveness.
– A regulatory performance framework that sets clear targets for the future of the sector and
the role that each government agency will play, vis-à-vis the role of the NCC.
– A multilateral framework for defining clear deliverables for NCC with respect to its
obligations and role in the global ICT stakeholders.
– A framework on ICT convergence and regulatory implications.
– A framework for Broadband Development
– A framework for regulating ICT Industry quality standards.
Legitimacy of the ICT industry governance framework: the framework draws its legitimacy
from Nigerian Communications Act 2003 which identifies the Communicators Sector key
stakeholders as follows: the President of the Federal Republic of Nigeria, National Assembly (and
their the Joint Senate and House of Representative Committees on Communications), Minister of
Communications, Nigerian Communications Commission (NCC) and its Governing Board,
National Frequency Management Council (NFMC), Universal Service Provision Fund (USPF), and
the International Organizations such as Telecommunications Union (ITU), Licensees (or NCC
licensed ICT operators) and Consumers.
Benchmark/Baseline: the NCC has received significant commendation for its outstanding
performance from major player in the Communicators Sector; including Executive Vice Chairman
(EVC), Engr. Ndukwe receiving the National Merit Award, Officer of the Order of the Federal
Republic (OFR) from the President of the Federal Republic of Nigeria along with several other
professional and civic awards. The EVC, NCC has added immense value in facilitating regional
and international ICT collaboration as the past Chairman of the Administrative Council of the
African Telecommunications Union and is also a former Chairman of the West African Telecom
Regulators Association (WATRA), an organization he helped pioneer. Apart from the active role
NCC plays in the International Telecommunications Union (ITU) which has officially recognized
the tremendous strides that Commission has made in Sector regulation and it continues to partner
with the ITU locally and internationally. In 2008 the NCC in collaboration with the Federal
Ministry of Communications successfully hosted the Commonwealth Telecommunications
Organization (CTO) 6th Annual Forum and 48th Council Meetings in Abuja. Beyond the event,
NCC and CTO have continued to partner in the area of Universal Access. While disputes have
arisen over the years from different stakeholders, the NCC has maintained a track record of always
taking a firm, ethical and principle-centered position, in which it has always been vindicated. This
broad range of governance issues highlights the need for a proper framework for engaging
stakeholders.
The Model of the Framework:
The Industry Governance Framework has been divided into distinct ‘strategic environments’. They
include:
- Global ICT Regulatory Environment: this consists of global and international ICT
regulatory and enforcement organizations whose policies directly and indirectly impact the
global ICT business environment.
- Global ICT business environment: this consists of markets and operators that play on the
competitive global ICT landscape and operate across several regional ICT markets.
- National ICT Regulatory Environment: this consists of the federal ministries and agencies
of government that regulate the National ICT business environment (otherwise called ICT
‘Sector’, ‘Industry’ or ‘Markets’ used in this policy and agenda documents
interchangeably).
- National ICT business environment: this consists of markets and operators.
- National ICT Authorizing Environment: this consists of executive and legislative arms of
government that define boundaries of legitimate support, funding and authority of
regulatory and enforcement organs of government.
committed to implementing the mandates, standards and resolutions of the ITU and
the NCC plays a critical role in the ITU in the shaping of Global ICT development.
- Internet Corporation for Assigned Names and Numbers (ICANN): ICANN was formed
in 1998. It is a not-for-profit public-benefit corporation with participants from all over the
world dedicated to keeping the Internet secure, stable and interoperable. It promotes
competition and develops policy on the Internet’s unique identifiers. ICANN does not
control content on the Internet. It cannot stop spam and it does not deal with access to the
Internet, but through its coordination role of the Internet’s naming system, it does have an
important impact on the expansion and evolution of the Internet.
promotion of the GSM mobile telephone system. In 1995 GSM MoU group was formally
registered as the GSM MoU Association in Switzerland with 117 networks on air. That same year
the Global GSM subscribers exceeded 10 million. Today Global GMS GSM subscribers exceed 3.5
billion. The GSMA represents the interests of the worldwide mobile communications industry.
Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as
more than 200 companies in the broader mobile ecosystem, including handset makers, software
companies, equipment providers, Internet companies, and media and entertainment organizations.
The GSMA is focused on innovating, incubating and creating new opportunities for its
membership, all with the end goal of driving the growth of the mobile communications industry.
All the major GSM Players in Nigeria are members of the GSMA.
Global VSAT Forum: The Global VSAT Forum is an association of key companies involved in
the business of delivering advanced digital fixed satellite systems and services to consumers, and
commercial and government enterprises worldwide. The Forum is independent and non-profit and
has a global remit. It is also non-partisan - any companies or organizations with an interest in the
VSAT industry are encouraged to join.
The Telecommunications Industry Association (TIA): TIA is the leading trade association
representing the global information and communications technology (ICT) industries through
standards development, government affairs, business opportunities, market intelligence,
certification and world-wide environmental regulatory compliance. With support from its 600
members, TIA enhances the business environment for companies involved in telecommunications,
broadband, mobile wireless, information technology, networks, cable, satellite, unified
communications, emergency communications and the greening of technology. TIA is accredited by
ANSI.
Services, BigBand Networks, BroadSoft, Inc, Canoga Perkins, Capital Communications, Inc,
Celestica International, Inc. , Charles E. Singleton Company of Florida , Ciena Corporation, Cisco
Systems, Cognizant Technology Solutions, India Pvt. Ltd, CommScope , Communications Test
Design (CTDI), Corning, Inc, Custom Cable Industries, Draka Communications, Dynis, LLC, ECI
Telecom, Emerson Network Power, Ericsson, Extreme Networks, Fujitsu, General Cable
Corporation, General Dynamics, Genesis Networks, Inc, Goodman Networks, GTL Limited, Harris
Corporation, Harris Stratex Networks, Healy & Co, Hitachi Kokusai Electric Inc, Hitachi Ltd,
Huawei Technologies Co. Ltd, INCREDITEK, Infinera Corporation, Infosys Technologies
Limited, Intraline Inc, Jabil Circuit Inc, JDSU, Juniper Networks Inc, KGP Telecommunications
Inc, LogistiCorp LLC, Mastec North America Inc, Motorola, NEC Groups, Network Hardware
Resale LLC, Nixon Dedicated Services, Nokia Siemens Networks, OFS, Padtec S/A, Pinnacle
Telecommunications Inc, Plexus Corp, Prysmian Communications Cables and Systems USA LLC,
Purcell Systems, Research In Motion, Restor Telecom Inc, SeaChange International, Sector Supply
LP, Shields Environmental Inc, Sonus Networks Inc., Spirent Communications, Starent Networks,
Sumitomo Electric Lightwave Corp, Sun Microsystems Inc, Superior Essex Communications LP,
Symmetricom Inc, Telamon Technologies Corporation, Telcobuy.com, Telcordia Technologies,
TeleCommunication Systems, Telect Inc, Telent Technology Services Ltd, Tellabs, Telmar
Network Technology, Teltech Communications The DESARA Group Inc, TII Network
Technologies, Triage Partners LLC, Tyco Electronics Corporation, Volt Information Sciences Inc.,
Wipro Technologies WorldWide Digital, ZTE Corporation.
Ministry of Communications: The Ministry formulates broad ICT policy. Among its specific
functions are:
- Ensuring the independence of NCC in the regulation of ICT sector
National Frequency Management Council (NFMC): The NFMC is established in the Ministry of
Communications under the chairmanship of the Honourable Minister. It is responsible for the
planning, co-ordination and bulk allocation of the radio frequency spectrum in the country. The
Council liaises with the Nigerian Communications Commission (NCC) and the Nigerian
Broadcasting Commission (NBC) on the assignment of frequencies.
Nigerian Communications Commission (NCC): NCC is the independent regulator of the
telecommunications industry. It is empowered to issue licenses, assign frequencies and regulate all
telecommunications licensees and service providers. The NCC designs and maintains a national
numbering plan, and performs such other regulatory functions as may be consistent with its
mandate to promote the development of Nigerian ICT sector.
Functions of the NCC: The functions of the Nigerian Communications Commission (NCC)
include the following:
- Licensing of telecommunications operators;
- Assignment and registration of frequency to duly licensed operators;
- Administration of a national numbering plan;
- Facilitating private sector participation and investment in the telecommunications
sector of the Nigerian economy;
- Promoting and enforcing a fair competitive environment for all operators, as outlined
in this policy;
- Defining standards for economic regulation of dominant operators, including tariff
regulation as outlined in this policy.
- Establishing mechanisms for promoting universal access to telecommunications
services in Nigeria, as outlined in this policy.
- Establishing and enforcing technical operational standards and practices for all
operators, including the imposition of penalties for violations.
- Ensuring that the public interest is protected.
The national ICT business environment is made up of major and individual licensed ICT operators
(NCC Clients) and their customers (The public that uses ICT services).
Major Licences
Basic Licences
– Community Telephony
– Internet Services
– Prepaid Card Calling Services
– Public Payphone Services
– Sales And Installation
– Voice Mail
protect stakeholders, ensure efficient resource management, share industry best practices and
deliver affordable, quality telecom services.”[c] The NCC corporate vision statement is “an
information rich environment, comparable globally in quality telecom service provision, regulated
by a responsive, world-class organisation.” [d]
The key question that must form the ICT Industry governance objectives of the future is “to
achieve the NCC vision and mission, how should the Commission appear to our stakeholders?” A
sample of feedback from the stakeholders in the strategic environments within which NCC plays
shows that each stakeholder expects governance performance in particular areas.
– Licensed ICT Operators: a fair and competent regulator that guarantees a competitive
business environment, with world class regulatory service excellence.
– National Assembly: an accountable agency of government that has maximally utilized the
enabling laws and resources at its disposal to create public value, and can provide the
national assembly verifiable evidence of its performance.
– Presidency: the federal government’s ICT sector regulator that ensures that the sector
contributes to the vision 2020 goals in line with global best practices, and can provide the
presidency verifiable evidence of its performance.
– International Organizations: the arm of the Nigerian government that ensures that global
resolutions and mandates with respect to national and regional ICT goals and regulations
are implemented.
The NCC inverted stakeholder value pyramid illustrates the stakeholder expectations above. The
model is based on the principle[f] that the aim of regulators “in the public sector is to create public
value just as the aim of managerial work in the private sector is to create private value.”
The ICT Industry governance initiatives articulate a proposed set of programmes to meet the
objective statements for each stakeholder relationship. This initiatives shall if adopted must be
reassigned within the Scorecard of executive and management owners.
2010
Implement a new industry quality 2011-2020
standards enforcement
programme for the
programme
synergy to achieve
national ICT policy
objectives.
National Assembly An accountable Initiate periodic interventions 2010-2020
agency of with Joint Committees of the
government that has National Assembly to provide
maximally utilized forum for policy and industry
the enabling laws performance reporting and
and resources at its legislative oversight.
disposal to create Develop legislative capacity 2010-2020
public value, and opportunities (via Conferences,
can produce the International Tours and
national assembly Roundtables) in the areas of ICT
verifiable evidence to increase legitimate support for
of its performance. ICT policy formulation and
development in the National
Assembly
Presidency The federal Initiate periodic Presidential ICT 2010-2020
government’s ICT policy and industry performance
sector regulator that reporting.
ensures that the
sector contributes to
the vision 2020
goals in line with
global best
practices, and can
produce the
presidency
verifiable evidence
of its performance.
International The arm of the Create a list of all International 2010
Organizations Nigerian Organizations that critical NCC’s
government that goals and define NCC’s
ensures that global obligations to each one.
resolutions and Consistently monitor and measure 2010-2020
mandates with the performance of NCC against
respect to national these International Obligations
and regional ICT
sector obligations
are implemented
The purpose of an organization framework for NCC’s regulatory effectiveness to ensure that the
Commission continues to deliver effective regulatory services its clients (the ICT Operators) and
tangible public value to its citizens (ICT service consumers).
Legitimacy of the organizational framework for regulatory effectiveness: the Nigerian
Communications Act 2003 established the NCC for the purpose of creating “an effective, impartial
and independent regulatory authority” [g].
Hence, the NCC’s operational effectiveness in the
execution of its regulatory mandate is of utmost importance.
TrainOptima Consulting Group – Office of Strategy, Policy and Competitiveness
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Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
There however needs to be in addition to the above types of indicators more emphasis on
regulatory effectiveness indicators in the areas of[i]:
– Compliance Rates
– Non-Compliance Rates
– Failures in ICT Service Quality
– Failures in Hardware Quality
– Failures in Software Quality
– Network Outages and Causes
– Consumer Risk
– Environmental Impact
– Enforcement Actions (number, seriousness, case disposition, penalties
– Inspections (number, nature, findings and so on)
TrainOptima Consulting Group – Office of Strategy, Policy and Competitiveness
Page 26 of 65
Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
In recent times, some industry watchers have argued that NCC does little or no enforcement. While
this is not the fact, the lack of sufficient reports on compliance/non-compliance and industry risks
maybe the reason for position.
The NCC Value Chain:
AUTHORIZ
TrainOptima Consulting Group – Office of Strategy, Policy and Competitiveness
Page 27 of 65
Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
INITIATIVES
Client/ICT
Operator a fair and competent Legal and Licensing Services: 2010 -2020 (Renewable
Spectrum Administration
Services:
Consumer/Public An efficient industry Consumer Affairs and Protection 2010 -2020 (Renewable
Satisfaction regulator that Services: Yearly)
effectively enforces
affordable quality Develop stretch targets and service
telecommunications delivery standards for effective of
The regulatory effectiveness initiatives comes from baseline indicators used by the United Nations
and the World Bank for measuring the effectiveness of regulations, which include turnaround
times for obtaining licenses, approvals and permits.
Today, the major driving force of the industry is the need to create new revenue streams outside of
traditional telecom. The highest potential for this opportunity exists in the convergence of
telecommunications; communications and information technology (see Figure below). Broadband
Technology is at the centre of ICT convergence and development of broadband is the number one
ICT agenda in the leading telecommunications economies globally (See section on Broadband
Framework)
CONVERGENCE TRIANGLE
- Partial Convergence: this requires the redistribution of all ICT regulatory and
enforcement powers and functions into a logical framework in which functions are
allocated to more than one regulator without creating areas of overlaps. This is the case in
Ghana and South Africa. In this case a realignment of regulatory functions between NCC
and NBC to match the new reality.
Strategic Initiatives
There are six main initiatives that are necessary in implementing total or partial convergence of
regulation.
- A national policy that is informed clearly by the global trend and the need for convergence
of regulation (NCC may need to provide critical input in this regard into the ongoing
national policy review)
- Identification of areas of overlaps and multiplicity of regulation
- Decision about whether convergence of regulation will be total (resulting in only one
agency of government regulating all aspects of ICT) or partial.
- Cultural integration of organizations that presently share ICT regulatory and enforcement
powers and functions, with a view to ensure the same level of efficiencies in sector
regulation
- Review of structure of government agencies that presently share ICT regulatory and
enforcement powers and functions.
- Review of all regulatory and enforcement processes of the organizations and agencies with
the objective of achieving maximal regulatory effectiveness and operational efficiencies.
Milestones
Convergence of information and communication technology has resulted in the need for broadband
technology development, which is the platform and infrastructure of the 21st century. If Nigeria,
will achieve its vision 2020 goals, NCC must ensure that the organization framework for reducing
overlaps is put in place. The proposed milestones are recommended.
- Ensure the convergence of regulation policy goes into the review of the National ICT
Policy (2010).
- Resulting unified regulatory arrangement to drive broadband policy more efficiently (2011-
2020).
Broadband services began to be rolled out in the last half of the 1990s. In the early days, broadband
adoption was relatively low and lacked critical mass, thus limiting the realized benefits of
complementary broadband-specific content and services. With the development of the worldwide
internet culture in the 2000s and the massive online movement of social networks platforms
ranging from YouTube, Skype, Face Book, to Twitter and a range of other more sophisticated
Workflow Software applications (that stimulated Asia’s capacity for off-shoring and outsourcing a
significant portion of technical and professional work from the UK and the USA), new bandwidth
requirements of a exponentially higher order of capacity and magnitude was created.
In Nigeria, the ICT industry performance over the last ten years accentuates the potential of
ubiquitous broadband service in the growth of GDP and enhancement in quality of life through
societal applications including tele-education, tele-medicine, e-governance, entertainment as well
as employment generation by way of high speed access to information and web-based
communication, hence, the imperative for NCC to put in place regulations to accelerate the growth
of broadband services.
Why Minimum Download Speed of 1 Mbps to All Nigerians by 2014 and 50 Mbps by
2020?
To estimate the benchmark speed of minimum download speed of 1 Mbps to All Nigerians
by 2014 and 50 Mbps by 2020, we examined four policy questions:
What broadband speeds are countries aiming for in their national plans?
How are various nations paying for necessary broadband investments?
What new applications become available at various broadband speeds?
– How valuable do other national populations see broadband for the economy, social
connections, civic engagement, and public sector service delivery?
“In terms of speed, South Korea has the most ambitious national goal in terms of future
broadband traffic. It is seeking to raise broadband speed to 1 gigabyte per second. Australia
and Finland are aiming for 100 Mbps, while Germany has a stated target of 50 Mbps by
2014. These countries are pushing for high speeds because they see them as necessary for
new health, education, energy, and civic engagement applications.
The challenge for most nations is how to improve access, open networks, and pay for faster
service. In the USA for instance, the Federal Communications Commission estimates that
it will require $350 billion to provide universal broadband coverage in the United States at
100 Mbps, yet the public investment authorized as part of the economic stimulus package
is only $7.2 billion. The American public sector investment is the highest in the world. As
a point of contrast, Japan is spending $3.7 billion; Australia is devoting $3 billion, Canada
has budgeted $150 million, Finland $130 million, and Spain is spending $90 million.”[o]
No matter the national broadband goal, almost every nation realizes that encouraging
greater private sector investment is key to realizing the long-term benefits of broadband.
The Vision 2020 National Strategic Agenda from where the National ICT Policy draws its
objectives requires that Nigeria has a digital infrastructure that supports the goal of being
one of the top twenty global economies by the year 2020. The digital infrastructure which
must deliver faster connection speeds is vital to take advantage of new digital tools such as
GIS mapping, telemedicine, virtual reality, online games, supercomputing, video on
demand, and video conferencing. New developments in health information technology and
mobile health, such as emailing X-rays and other medical tests, require high-speed
broadband. And distance learning, civic engagement, and smart energy grids require
sufficient bandwidth. Hence, the NCC’s agenda in setting broadband connectivity goals
must be based on empirical evidence of our national consumption.
According to the OECD (2008), the top bandwidth required for various applications runs as
high as 18 Mbps for high definition television, 14 Mbps for online games, 13.5 Mbps for
video on demand and Internet Protocol TV, and 13.4 Mbps for video conferencing. As
these applications gain popularity, it will increase the demand for high-speed broadband.
Since the question of broadband speeds is one of national aspiration it may be critical to
consider what other nations targets and realities are. A Workers of America Study in
2009[p], found that South Korea had the highest average download speed of 20.4 Mbps,
followed by Japan (15.8 Mbps), Sweden (12.8 Mbps), the Netherlands (11.0 Mbps),
Germany (around 9 Mbps), and the United States (5.1 Mbps). In the same vein, NCC needs
to set very clear broadband goals taking into cognizance the Vision 2020 goals and the
digital infrastructure that are prerequisites to reaching them.
In 2009, Qiang, Christine Zhen-Wei, in the World Bank white paper on “Broadband
Infrastructure in Stimulus Packages: Relevance for Developing Countries,” provided an
outline for developing countries seeking to accelerate broadband development. One of the
foremost insights of this report is that developing countries must set informed national
broadband goals. Consider Qiang’s analysis of national broadband goals below.
The January 2010 NCC sponsored Pyramid Research Report on “The Impact of Mobile Services In
Nigeria: How mobile technologies are enabling transformation across economic and social
activities”[s], provides strong indication that national broadband requirements for the next 10 years
may well be benchmarked at between 35 Mbps – 50 Mbps. Due to the rapid ICT integration goals
that has been driven by approximately $14 Billion in the last ten years. Hence, our proposal for
a National Broadband Goal of Minimum Download Speed of 1 Mbps to all Nigerians by 2014
and 50 Mbps by 2020.
With the increase in commercial availability of fibre technologies, the cost of fibre rollout
is approaching the cost of other wired networks. Spread of optical fibre networks should
be emphasised keeping in view the long-term perspective. This would require that
NCC review of the cost and sources of funding for optical fibre networks rollout plans
and the inherent collocation challenges. It has been severally proposed that instead of
the ICT Operators individually laying ducts for fibre optics, an ICT Infrastructure
provider (s) should be licensed to lay all the ducts nationwide and lease ducts to ICT
operators under a managed collocation agreement, This will significantly drop the
costs of fibre optic technology deployment.
Recognising that last mile copper loop is not a ‘bottleneck facility’ for broadband
services, access providers should be encouraged by the NCC to enter into mutually
agreed commercial arrangements for utilization of available copper loop for
expansion of broadband services. The owner of local loop should be encouraged to
decide the areas in which investment is to be made to upgrade the infrastructure for
Broadband services. The information regarding the areas in which Broadband services are
being offered by a service provider shall be available in the public domain. It is hoped that
other access service providers would also provide broadband connections using their
copper in a targeted manner. A constructive review of their performance shall also be
undertaken on an annual basis.
It is noted that cable TV connection as last mile infrastructure reaches more people than
even the telephone copper infrastructure and can be leveraged in providing cable operators
a new business model while giving a stimulus to Broadband penetration. Therefore, Cable
The NCC maybe in a better position following the failure of the national satellite
programme to insist that Government to make available transponder capacity for VSAT
services at competitive rates after taking into consideration the security requirements and
not consider another satellite project until the question of sustainable power supply and
provisioning has be sorted out. Pending when Nigeria is able to launch a viable National
Satellite programme, the NCC should encourage arrangements with other Satellite
providers that guarantee that we achieve our Vision 2020 objectives. These arrangements
can be adjusted and reviewed when the nation’s satellite programme is up and running.
VSAT service providers should be permitted to transmit data of larger capacities and
limits should be reviewed, particularly for a Closed User Group domestic VSAT network.
This increased data rate will allow new applications like bulk data transfer for software
industry, high-speed backhaul links, in-house training using audio-visual etc. NCC should
encourage reduction in antenna size to enable easy installation, lower space occupancy,
lower cost of hardware etc. NCC should consider the reduction in antenna size to 1.2
metres and 2.4 metres for star network and mesh network respectively in extended C-band.
In Ku-band also, 1 metre diameter antenna in star network should be considered. To keep
pace with technological advances, this shall be periodically reviewed.
The Technical Standards Department of the NCC may also consider several other
related measures in hardware options and type specifications that increase
broadband viability.
In the changing technology scenario, there is a possibility of new options being used for
provisioning of Broadband services. These technologies can also be utilised for
provisioning of such services within the licensing framework of the service provider and
the spectrum management and administration regulations.
indirect incentives for those investments. The Japanese Ministry of Communications and
the Nippon Telegraph and Telephone company, for example, worked together to develop
fast broadband. A similar phenomenon happened in South Korea through KT, a company
that combined Korea Telecom with KTF, a wireless carrier. Korea has the highest
bandwidth of any nation because Kepco, its utility company, developed a fiber-optic cable
network many years ago for its own use, and now leases the unused 90 percent of this
network to service providers. Between KT and Kepco, consumers can purchase high-speed
broadband for $25 a month (Herz, 2006). With cheap and speedy broadband, it is estimated
that nearly all Koreans have access to fast broadband service.
Between 1995 and 2005, the Korean government invested $900 million in broadband and
this stimulated $32.6 billion in private technology investment (Qianq, Rossotto, and
Kimura, 2009). Public officials aggressively pushed high-speed applications in government
and business. This sparked substantial increases in consumer demand. In exchange for the
government dollars, private companies were required to connect public institutions
(Williams, 2009). Of course, Korea has benefitted from a set of favorable conditions not
present in other countries. It has high population density and a homogeneous population
that make it affordable to provide Internet service. Whereas the United States has 31 people
per square kilometer, Korea has 476 and Japan has 337 (Kim, Moon, and Yang, 2004).
Over 70 percent of Koreans reside in half a dozen cities. Its broadband backbone contains
13,670 miles of fiber-optic lines, less than what Verizon has in the state of West Virginia
alone (Herz, 2006). Apartment buildings in Korea have rental rates based on bandwidth
capacity and enterprising owners with fast pipes pitch Internet speed as a way to convince
people to live in their units.
Most other nations have opted for a broadband system based mainly on private investment.
The idea is that governments should not finance or compel commercial carriers to
undertake broadband investment unless the latter see market conditions that are conducive
to these kinds of investments. This allows companies to make relevant decisions based on
their perceptions regarding return on investment.
Historically, the United States has relied on private companies for the bulk of broadband
infrastructure. AT&T, for example, has invested over $44 billion in the last two years
building a broadband and wireless network. Verizon has spent nearly $43 billion, while
Comcast has invested $14 billion, Sprint $10 billion, and T-Mobile $8.5 billion. These
investments have created networks to which 63 percent of Americans have home access
(Pew Internet & American Life Project, 2009).
A recent report by the U.S. Federal Communications Commission estimated that it would
cost $350 billion to create 100 Mbps universal broadband coverage in the United States
(FCC report, 2009). With the federal government investing only $7.2 billion from the
economic stimulus package, it is apparent that the vast bulk of the American infrastructure
funding will come from the private sector.
A serious challenge for most countries has been bringing service to rural areas with low
population densities or other under-served geographic places. The cost of wiring the “last
mile” is high because of low concentrations of people and limited demand for service. It is
here whether the public sector in most countries has played a significant role. According to
Qiang (2009a), “for the goal of universal coverage of broadband services, countries are
spending larger public funding for rolling out high-speed networks to areas that are
underserved or unserved by commercial internet service providers. The Finnish
government plans to foot one-third of such costs. Others are contracting commercial
providers to build the network with service obligations through a competitive bidding
process (e.g. France, Ireland, Japan and Singapore). The EU, US and members of the
African Telecommunications Union (ATU) are adding resources to existing rural
development or universal service.”
Broadband financing must be designed to provide a set of funding options that taps into
several global, regional and national sources of funding. This should include a clearer
strategy for the utilization of the existing Universal Service Provision Fund. The following
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Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
proposed guiding principles should be considered by the NCC for the development of a
National Broadband Development Fund and the maximization of Universal Service
Provision Fund:
- The NCC should consider approaching the Federal Government, Central Bank and
Ministry of Finance to discuss the possibility of Government making an investment
into Broadband Development Fund which would include, but not be limited to the
USPF.
- The NCC should further consider inviting global financial institutions to participate
in the Broadband Development Fund as equity partners.
- Funding through the Universal Service Provision Fund must be disbursed via
reputable financial institutions that have core competence in fund arrangement and
technically sound project finance units equipped to provide support for
telecommunications companies in Nigeria.
- Financial institutions must have a sound track record in providing credit facilities
to telecommunication companies.
- The NCC should facilitate the increase of its Universal Service Provision Fund
(USPF) funding capacity by leveraging existing funds to access Global Export and
Import (EXIM) Funds (and other international infrastructure development funds
targeted at emerging economies) via identified reputable financial institutions, to
whatever sum is necessary to meet set economic targets, ensuring that the financial
institutions meet all credit risk management requirements.
- The selected reputable financial institutions should lend from the USPF domiciled
with them to telecommunication operators at single digit interest rates. These
single digit interest rates shall provide incentives for to achievement of universal
access to ICT.
- Telecommunication operators that will benefit from this Broadband Development
Fund should show commitments in their rollout plans to match and meet prescribed
universal access and national broadband goals.
- The National Broadband Development Fund should have a 5-10 year tenure to
align with the structure of OPEX and ROI profiles within the ICT Sector.
- The National Broadband Development Fund commitment shall be rigorously
monitored to ensure that operators deliver and deploy services at the agreed
milestones and within time frames. There must be strict penalties and punitive
monetary measures for non-compliance.
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Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
- The National Broadband Development Fund shall take into consideration the
equity/debt profile of ICT operates seeking funding opportunities.
In line with global practices in ICT manpower and local content development, the NCC
should outline a clear set of initiatives to guarantee that Nigerians are trained, equipped,
qualified and positioned to design, manufacture, build, deploy, manage and maintain the
ICT networks of the future. Having already shown the potential for generating employment
and having contributed significantly to slowing the rate of unemployment, which presently
is at 14%, there is a need for the vibrant ICT sector to contribute more by reducing capital
flight through local content development. The manpower and local content development
agenda should, amongst other things, focus on:
- Transforming the Digital Bridge Institute (DIB) [which serves as the National
Institute for Telecommunication] into a fully fledged University, benchmarked
against the leading ICT Institutions globally, offering education in the core
management and technical areas of ICT.
- Set up and regulate manning levels within operating firms in the ICT Sector to
guarantee that jobs for which Nigerians are suitably qualified, as defined by the
National ICT Occupational Competency Requirements, are met and that they
are following the policy guidelines in (d), which may be further reviewed based on
a well defined, stakeholder informed ICT local content agenda, wherein manning
levels of local and foreign content are specified.
ICT Education and Research to match National Broadband Goals – Digital Bridge
Institute Transformational Programme: The strategic thrust of the Digital Bridge
Institute should be its transformation into the University of Information and
Communications Technology. The ICT Education and Research Programme shall,
however, be extended to include:
- The allocation of a percentage of NCC’s revenue for the development of a state-of-the-art
University of Information and Communications Technology, which will have the mandate
to educate the present and future manpower of the sector and lead futuristic research into
the next generation ICT innovations.
- Ensuring that National ICT Research imperatives are congruent with the growth of the
telecommunications sector and the Vision 2020 Mandates of the Federal Republic of
Nigeria.
The NCC should work in conjunction with the State Governments, the Ministry of
Commerce and Industry to work out modalities for attracting investments in the area of
domestic production of telecommunications equipment, components and software to meet
local and export demands. In order to achieve this objective, NCC should:
- Work with ICT operators to define the hardware and software requirements for the
achievement of our proposed national broadband goals for the next ten years.
- Consult with a wide spectrum of telecommunications suppliers in Nigeria as to the
type of operating environment they would desire to be able to make the huge
investments in the area of manufacturing capabilities.
- Provide a sufficient awareness as to the investment potential and capacity of ICT
manufacturing clusters to create jobs for Nigerians.
- Facilitate pilot projects with the private sector on some broadband related
components (towers, optic fibre cables, computers, computer components,
software etc.)
NCC should pursue the goal of global telecommunications quality and industry-wide performance
excellence through baseline quality management systems requirements. The Commission can
accomplish this goal in three ways:
installation and maintenance of telecom products and services and also providing a
measurement system that allows companies to track performance and improve results
• By eliminating the need for multiple quality management standards, which reduces the
cost of doing business and ultimately results in better products and services to consumers
The key operational benefits of this Systems Approach to telecoms suppliers are, it:
The Consumer Relationship benefits of this Systems Approach to telecoms suppliers are it:
The global requirements for Telecommunications and ICT quality excellence can be illustrated
with the model below:
This Systems Approach provides both a management and measurement system comprised of
the two parts that cover the following areas:
The Requirements
In order to implement this system, NCC shall maintain an online repository system to which all
ICT operators will be required to report monthly telecommunications quality performance
measurements, based on pre-determined counting rules and quality criteria. The Online Repository
should a multi-user portal with the capacity to give every ICT operators in Nigeria an account with
a log-in interface.
- Points to quality issues which maybe further investigated during enforcement visits
- Provides a basis for validating root causes of service or product failures during
enforcement visits
- Provides the data for trend analysis for identifying patterns of quality failures and
developing an industry-wide strategy
The NCC would need to develop the enforcement capabilities to conduct surveillance audits to
guarantee that all operators comply and continue to do so. Therefore a National ICT Industry
Quality Management Audit Programme should be integrated into the National Monitoring and
Enforcement Programme as it presently exists. The purpose of the Audit Programme is to provide
evidence that operators have conformed to the quality requirements for their category of operations
and show adequate records to confirm that the reports submitted to the NCC on a monthly basis are
accurate. The NCC should develop sanctions for penalizing defaulters and a reward system for
acknowledging operators that maintain the highest standards of telecommunications quality and
business excellence. Hence, NCC should institute an Annual Award for ICT Quality and Business
Excellence.
The globalizing forces of information and communication technology and its corresponding digital
infrastructure are defining the new competitive advantage of nations. Nigeria’s vision of being the
in the top twenty economies in the world is possible with the vigorous and committed execution of
the national broadband development goals, with the Nigerian Communications Commission
serving as the driver of the next level of ICT revolution. This ten year agenda would require a new
organizational paradigm, a new level of operational effectiveness and a new level of regulatory
efficiency. The critical success factor of this agenda is without doubt the institutional and human
capital readiness of NCC itself. Readiness that can be measured in the following:
Leadership: the ICT sector achievements of the last ten years have been a function of effective
leadership at the Nigerian Communications Commission. It will take effective leadership
succession and disciplined visionary leadership to achieve the mandates in this agenda.
“Success in today’s business environment requires that a company’s leaders have the
ability to create a vision of the organization’s future direction as well as the course it
needs to take to get there”. Center for Simplified Strategic Planning
Execution: NCC would require a management team that is committed to translating our national
vision into results and sector performance. Performance is executing the strategy, thus delivering a
projected and expected outcome that raises the value of all stakeholders. Nothing else would do in
this era of globalization.
Fortune Magazine
“In 70% of failures the real problem isn’t bad strategy….It’s bad execution”
Talent and People: NCC would need a dedicated, motivated and professional workforce that are
committed to this strategic agenda and are entrenched in the practice of getting things done.
“Strategic success comes not simply from crafting sound strategy and implementation
plans. Both are essential ingredients, but results come from activities that people engage
in. Your people can only deliver good strategic results if you ensure that they align their
actions closely with the course and direction, implementation plans, and priorities
established in your strategic planning process”.
National Vision: At the heart of every feat of national greatness lies a core commitment by
a group of people to aspire to something more than themselves. The promise of the Vision
2020 which will be driven by a state-of-the-art digital infrastructure that must deliver faster
connection speeds for cutting edge digital tools like GIS mapping, telemedicine, virtual
reality, online games, supercomputing, video on demand, and video conferencing, is an
aspiration that will demand the greater recesses of Nigerian genius. We can develop into a
nation where new developments in health information technology and mobile health,
distance learning and education and smart energy grids are possible and available to all, if
only this national vision is owned by everyone at the NCC, Ministry of Communications
and the country as a whole. This is the mandate of the this agenda seeks to achieve.
BIBLIOGRAPHY
a. http://www.nv2020.org/?ThematicAreas
b. http://www.nv2020.org/?IParameters
c. http://www.ncc.gov.ng/
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Proposed Nigerian Communications CommissionInformation and Communication Technology Ten (10) Year Agenda
d. http://www.ncc.gov.ng/
e. Herbert Kaufan, The Administrative Behavior of Federal Bureau Chiefs (Washington, DC.:
Brookings Institution, 1981), pg.91-138.
g. Federal Republic of Nigeria, Nigerian Communication Act, 2003 ACT No. 19.1. (b).
h. http://www.ncc.gov.ng/industry
i. Malcolm K. Sparrow, The Regulatory Craft: Controlling Risks, Solving Problems and
Managing Compliance (Washington, DC.: Brookings Institution, 2000), pg. 119
j. http://www.doingbusiness.org/EconomyRankings/
DR TAYO ADULOJU