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How Nigeria Attained 31% Broadband Penetration Target

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Nigerian Communications Commission (NCC) said that Nigeria has attained 31 percent broadband penetration.

 

This, it said was based on empirical indices, and that it is contrary to insinuations in some quarters that the country was far away from that as claimed by some.

 

By the five year National Broadband Plan (NBP), (2013-2018), it was targeted that the country should be able to attain a minimum of 30% from the 5% it had in 2013 in five years.

 

Expectedly based on the population of Nigeria estimated of 190m, and connected lines of 169m, those who have access to broadband at a speed of 1.5 megabytes per second cover over 30% of this population.

 

Despite perceived drawbacks in the sector, the telecommunications remains one of the most consistent enablers of the economy and the economic wellbeing of the citizenry with over 10.43% contribution to the Gross Domestic Product (GDP) in the second quarter of 2018, boosting employment both directly and indirectly and providing a robust infrastructure backbone to facilitate high level efficiency in all areas of the economy.

 

Based on World Bank index, increasing broadband by just 10% in developing countries would deliver at least 1.38% GDP increase per capita while a 10% increase in internet penetration would lead to about 1.12% increase in GDP per capita

 

To realise that the Federal Government set up the NBP (2013-2018) with a target of 30% by 2018. The figures doubled between 21 and 22% in the months before November 2018.

 

According to NCC data, there were a total of 168,729,005 mobile “GSM” mobile subscribers in Nigeria as at November 2018. Of these, 108,457,051 were subscribed to internet access services provided by the major operators.

 

In terms of Broadband services, a total of 58,965,478 connected to the internet through 3G and 4G networks (including those provided by the Long Term Evolution (LTE)-only service providers such as Smile and nTel).

 

This distinction is critical because Nigerians predominantly rely on mobile networks to access the internet, including Broadband networks since the fixed Broadband access which was to have been led by the erstwhile State incumbent – NITEL – is now literally non-existing.

 

Now, Broadband penetration is typically measured by the percentage of total population with access to Broadband networks out of each hundred. So, if we take the total active Broadband subscription figure of  58,965,478 and  divide by the population figure of 190,886,311 (using the  UN’s projection as at December 2017), we come to a penetration percentage of 30.9%.

 

Issues can of course be raised about using the UN figure as baseline – one supposes that the NCC used that figure for consistency since that appears to be the baseline used by the ITU in earlier studies. However, the reader is invited to use other population baselines and come with the above resolute. For instance, if we use the Nigerian Population Commission’s 2006 figure of 140million, we come to a Broadband penetration rate of 42.1%. Most would agree that this would be rather unrealistic, as is the population estimate of 140million.

 

Also, looking through the ITU Broadband Commission’s September 2018 Report, one would see that Nigeria’s Broadband penetration rate is set at an abysmal 19.9%. This cannot be the case, since that report is based on industry statistics of December 2017, which was clearly outdated as at September 2018 when the report was published.

 

Clearly therefore, the NCC’s assertion that Nigeria has attained 30.9% Broadband penetration is logical and supported by available data in the Commission’s custody.

 

There are lessons to be learnt from the needless controversy on this matter. To its credit, the NCC has been rather transparent with industry data. Its website is updated on a monthly basis with data with the subscription, tariff and other industry performance data which enable Stakeholders to see a fair picture of overall industry performance.

 

One would encourage serious industry players to regularly access the NCC website for available data and insights on industry performance, rather than take incorrect and pessimistic positions such as those ignorantly expressed by some stakeholders.

 

Secondly, the NCC itself would need to engage with the ITU to update its 2018 Broadband report. As noted above, the ITU report relied on data from December 2017 which, as we have seen, is now outdated. It is important that the NCC provides updated data to the Broadband Commission so that more accurate publication of Nigeria’s broadband status can be made on which stakeholders can rely on for investment and other decisions.

 


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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