Thursday, August 2, 2012

Broadband: NCC canvasses 3-way business model

Dr. Juwah, EVC NCC

The executive vice chairman of the Nigerian Communications Commission (NCC), Dr. Eugene Juwah has proposed a three-way business model operation to fast-track the penetration of broadband in the country.
Juwah in his keynote address at the Nigeria Broadband Forum (NBF) organized by the Directorate of Licensing and Competition at NCC in Lagos, said that the three models include focus on utility, equal access and passive infrastructure business models.
According to him, the top on the models being proposed for adoption is the equal access model.
This, he noted is similar to the model implemented in countries like Singapore and Australia, expressing optimism the model will facilitate the development of broadband in Nigeria.
For the Communications Technology Minister, Mrs. Omobola Johnson, the key issue in adaptation of broadband is appropriate pricing and availability.
These, she said, are critical in achieving universal access to Broadband, especially in rural areas.
She assured that government of President Goodluck Jonathan is very much interested in getting broadband to all Nigerians, hence, the federal government is keen on setting up Presidential Committee on Broadband Deployment in Nigeria.
Earlier, Chairman of NCC, Mr. Peter Igho in his welcome address noted the need to replicate the revolution in voice telephony experienced a decade ago in the provision of broadband in the country and invited stakeholders to join hands with the leadership of NCC in getting this done.
Also in his address, the Secretary General, International Telecommunications Union (ITU), Dr. Hamadoun Toure, who was represented by Internet Protocol (IP) cum Cybersecurity Coordinators at ITU, Mr. Desire Karyabwite, harped on the importance of establishing a transparent and effective regulatory framework and policy for broadband development in the country.
To elucidate discuss on the broadband subject, three sessions were held at the forum with the first session having a sub-themes on “Broadband Demand Drivers: Economic and regulatory approaches to ubiquitous Broadband infrastructure and services (imperatives for national broadband development and economic growth); Sustaining competition in a broadband market; and Multi-sectoral impact services on the economy.
The government was charged on creating a solid foundation for sustainable broadband deployment, through funding and investment, while spurring national growth.
Also, government was urged to provide enabling environment for the development of infrastructure that will support the growth and access to broadband services at affordable cost to consumers.
Participants posited that availability of spectrum in the 2GHz band would drive mobile broadband penetration and availability in Nigeria. Whereas different categories of services should be developed to suite the various needs of customers.
In addition, the concerted government effort at both Federal and State level to solve the problem associated with right of way through provision of ducts along highways, elimination of double taxation will help drive down the Capital Expenditure (CAPEX).
They pointed out that in order to sustain competition in a Broadband market, the global phenomenon such as the scissors-effect and economic recession pose significant threat to the capacity to finance broadband infrastructure developments.
Asserting that broadband would facilitate the growth and availability of innovative and evolving Information and Communications Technologies (ICT) services which will increase the national Gross Domestic Product (GDP).
Just as the provision of incentives by government will stimulate investments in Broadband deployment similar to the tax exemption granted to GSM operators at the inception of GSM mobile services in Nigeria.
Recent study shows that there is huge demand gap for broadband services in Nigeria. However, there is insufficient infrastructure to support the provision of broadband to meet the demand.
Director, Policy and Competition at NCC, by Mrs. Lolia Emakpore, in her paper ‘Demand as catalyst for broadband services in Nigeria’ said that the forum was just the beginning of consultation and collaboration.
As Nigerians look forward to see how the regulator and key players in broadband penetration including MainOne, Glo1, MTN’s WASC and SAT-3 management would liaise in the delivery of much awaited to the last mile, Nigerians are watching.


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