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Enhancing Internet Penetration in Nigeria Using KA-Band Broadband Satellites

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By Andrew Aroh

For a start, what is the classical definition of true broadband. Broadband is generally triple play data, voice and video access link, especially an internet access link, usually defined in terms of the minimum amount of bandwidth to which the enduser has access, and whose characteristics facilitate the use of advanced telecommunications applications and services.

Some definitions fix broadband access threshold at 1.5Mbps (T-1) speed in North America and at 2Mbps (E-1) speed in Europe, including Nigeria.

There are two important questions to address:

  1. Why is it that the high penetration of GSM in Africa and Nigeria in particular the issue of digital divide is still prevalent?
  2. How can Africa and Nigeria in particular secure sustainable universal access but affordably?

Recall that according to the broadband commission for digital development, the issue of Universal service for broadband, which is vitally important in ensuring that citizens in remote and rural areas can have access even though they live outside more profitable urban areas.

This is important because in this age of Information and Communications Technology (ICT). It is crucial to reach the rural and remote areas as well or Nigeria as a whole will fall further behind and the digital divide between “the haves and the have not” will remain divergent.

This underscores the New Roles for the Space & Satellite industry on Digital Economy, especially financial services now emphasized by the United Nations (UN) through the ITU-T.

So, is it not time for Nigeria to make a Legislation enabling HOME BUILDERS to include INTERNET CONNECTIVITY as part of the bargain for Social and Economic Welfare?

Government of Nigeria has included broadband as part of universal services obligations, regarding access to the internet as a utility and an essential tool for social and Economic Welfare. We recall that Nigeria planned big for the ITU Telecoms World 2016. Among the topics for the forum was:

New approaches to connectivity; re-imaging the satellite industry: How demand for always-on connectivity is leading to innovative connectivity solutions, new players and new markets for the satellite industry.

The topic underscores the way broadband is defined classically by ITU telecommunications monitory process (as distinct by ICT professionals) which usefully emphasize:

  • Broadband’s always-on (dedicated access) character
  • The user ability to upgrade her or his access bandwidth as the need arises
  • The consideration that the local link be neither a limiting factor in deploying existing applications or a bottleneck in encouraging new ones.

These factors justifies the use of the phrase “Anywhere, Anytime” for true broadband connectivity and access.

  • True Broadband performance shows up with the satellites that use Ka-band (20-30GHz) for satellite to-and-from ground transmission.
  • The higher frequency of Ka-band system allows easy implementation of satellite spot beams, which when combined with channelized switching provides a capacity of a single Ka-band that can easily exceed that of Ku-band satellite by a factor of four or more.

With such systems, Ka-band allows satellites to provide access-oriented circuits to an entire continent at prices comparable to terrestrial delivery in cities. This will find broad residential applications where access services are more price sensitive.

However, flexibility defines the coming generation of broadband satellites. This is because by the long life and broad geographic scope, a satellite must be able to shift capacity among beams through onboard processing and space switching.

In the wake of COVID-19 pandemic, SSPI NIGERIA has identified growth in the following area:

  1. Education: Online teaching via satellite/distance learning via satellite
  2. Management: Video conferencing for management meetings
  3. Direct-To-Home Broadband Internet Access/Connectivity via Satellite.

The above applications have become very essential and are in high demand in Nigeria.

Note that the above applications demands: Two-way Satellite Internet access service with broadband consumer VSAT/other innovative products in personal connectivity, M2M and GLOBAL BROADBAND.

We are looking at the Satellite Networking Technology Solutions and Services that have the following features:

  • A modern, technological product that provides subscribers with access to high-speed internet even in regions where the use of alternative access methods to the network are difficult
  • High-quality and affordable broadband access to the internet
  • Low-cost residential kits
  • Supports automatic services activation-indoor or outdoor
  • Where broadband consumer or professional VSAT is required:
    • It is an innovative VSAT-in-a-Box
    • Availability of the required capacity is guaranteed
    • Reliability, Availability, & Flexibility of installation receiving equipment
    • Broadband consumer VSAT terminal which can be self-installed.
    • All outdoor solution, which further simplifies self-install, maintenance and easy mounting or placement.

Because of the issue of rain fade, the African region has seen a predominant of C-band satellites. However, the development of smart adaptive technologies on ka-band transmission is winning.

Although few African satellite operators are beginning to ramp up their strategies in this area, more African region operators will need to develop services in ka-band.

Satellite broadband via ka-band remains a key issue for a number of operators. In fact many global satellite operators are already playing a key role in satellite delivered broadband applications.

From corporate private networks to consumer connectivity, this is one business segment that remains strong on the industry’s revenue growth plans.

Major broadband service providers are ready to offer commercial internet services via satellite and ka-band satellites will be vital to their success.

I do think ka-band satellite will do certain things very well.

  • Ka-band satellites are by nature very high-capacity.
  • They have much more capacity per dollar of capital investment than any other satellite.
  • It is very well suited for unicast applications were each user is doing something different and very cost-effective for that i.e. low-cost broadband service offering to consumers.
  • It is a mass market and that branding could be the catalyst for its service success.
  • The market opportunity in remote and rural areas is considerable
  • Ka-band has better economics than Ku-band and C-band.

The order of magnitude of improvement in economics is what is necessary to compete with fiber or terrestrial services. You couple that with standardized low-cost consumer equipment and all of sudden you have a pretty compelling offering.

  • What are major challenges:
  • Negative perception in the marketplace of broadband offering i.e. lack of awareness partly because of price and partly because there is not enough capacity available today for the existing providers to get super aggressive from a market perspective.
  • Learning lessons from the past i.e. becoming more realistically cautious with incremental implementation approach for provision of satellite – based two-way broadband.
  • The cost factor. Costs need to come down. We need achievable low price point. With the advent of one or two operators launching major initiative requiring large scale ka-band CPE and GMPCS production, this should effectively improve.
  • Encouraging a healthy growth driver:

Satellite broadband is certainly an important growth driver for major satellite operators. However, a healthy enterprise services growth for the next few years predates mass market of satellite broadband. To sustain this growth, major operators need to install broadband two-way hubs covering a large part of their satellite fleet connectivity around the world.

  • Doing satellite business to succeed in Nigeria:

Experience has shown that the business people who succeed in Nigeria are those who have tangible prospects, not those with high flying business plans. “Do not think about what satellites can do, and then look for customers. Instead, Look for people with communications issues, and ask how satellites can help!!”. Satellites can help Nigerians solve the problem of internet connectivity.

The key desirability of any good technology are:

  • Allows customers to generate new revenue
  • Enhance network performance
  • Reduce operating cost

Today, ka-band has crossed the chasm from Risk to mainsteam; the ka-band evolution is not only underway in the space segment but also on the ground as manufacturers and developers race to produce technology that fully leverage the high performance bandwidth.

The ka-band service means one is always connected. So what makes an ISP better than others?

  1. Efficient and reliable service.
  2. Internet speed, reasonable and competitive pricing and packages to choose from
  3. Mobility and high uptime.

On mobility, the customers need to have:

  • The connectivity for browsing within coverage areas
  • Seamless roaming
  • Developing the satellite broadband business for critical mass

Even the uptake of terrestrial cellular phones are not closing Africa’s digital divide. This is because internet penetration is still low. African countries as a whole and Nigeria in particular have the terrain, geography, tradition, history and politics that requires internet penetration with interactive broadband applications through the use of global mobile personal communications by satellite (GMPCS) to truly drive and close the digital divide. Thus we need to facilitate rapid expansion of the use of GMPCS for internet applications and services using IP technologies.

Ka-band services are targeted to densely populated areas, which are real market for these services.

The challenge is really to get the critical mass of subscribers as broadband is becoming a mass market product. The dynamics seems to be in favour of satellite operators. 

The satellite – based companies are part of a broader trend in the corporate sector in Nigeria. They want the best equipment available and they want to have it all tied together using the most reliable and highest quality satellite feeds in the region.

Industry officials and investors both are far sarvier about the technologies and business approaches today as a result of the difficulties of the past years.

A smarter industry combined with a better-developed user community for broadband could help satellite broadband operators make their marks in the months ahead in Nigeria.

In terms of deployment of ka-band satellites, the positive characteristics are:

  • Use of smaller antennas
  • Operate with higher power
  • Operate in less congested frequency bands where you don’t have to share with terrestrial services.
  • With satellite broadband via ka-band it is possible to have a series of smaller spotbeams, reuse the same frequencies and therefore have more capacity per satellite which if and only if, you use all the capacity results in a lower cost per subscriber.

As major service providers rolls out their services all eyes on the satellite industry will be on how quickly it can build a profitable business with prices comparable to terrestrial and fiber offerings. With lower cost of equipment, as well as broadband now being accepted medium, there really can be no excuse to profitable business. Rolled out broadband success could provide the impetus for other operators.

 As broadband becomes mass market, the time may finally be right for ka-band satellites to become a key part of the equation for satellite operation within the African region and in particular Nigeria.

In the United State since 2001, satellite has been accepted as a viable medium for IP access by businesses, leading the rest down the path of satellite. Broadcasters started putting broadband overlays on their networks in 2002. Outside U.S.A. India and China are good broadband markets due to their changing regulatory regimes. We expect that in the next few months, satellite-based internet will transform into booming broadband business services. We expect the growth rate will pick up more than before because the cost of user terminal is dropping and demand for high-speed internet access is growing. What is quite clear, though, is that satellite communications have emerged from a relatively Limited niche technology to a mainstream service providing cost-effective IP-based broadband point – to – multipoint solutions.

In all, we must have in mind that the space & satellite industry has slowly, surely and with its usual lack of flair gone to the “next level” universally. We are olive branches with on-board processing transponders and switching technology that the UN commission for digital development has in mind when it reports that broadband will be and should be a basic name digital right. We have our own innovators. We have stars on the satellite field that are moving quickly in constellations (and without flair) having been crowned the queen of the future, enabling full 5G system which includes: Enhanced Mobile Broadband (eMBB); Ultra Reliable Low Latency Communications (URLLCs); and Massive Machine type communications (mMTCs)

But in the final analysis, why is satellite an effective medium for Africa and Nigeria in particular?

  • Can be rolled out easily without environmental disturbances and rapidly, and offer attractive costing
  • Offer ubiquitous coverage meaning that no matter where you are on the continent or the earth you can have access to satellite communication
  • Can be positioned to cover high and low density areas at cheaper cost
  • With the advent of Ka-band, high density coverage and mass market with satellite technology is now growing fast.

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MTN is Largest Contributor to VAT Pool, Pays N200Bn Monthly—PFPTRC

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December 18, 2024

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Taiwo Oyedele, chairman, Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC) has disclosed that MTN Nigeria contributes over N200 billion in Value Added Tax (VAT) monthly, making it the largest contributor to the nation’s VAT pool.

MTN is Largest Contributor to VAT Pool, Pays N200Bn Monthly—PFPTRC

Oyedele made the disclosure recently while speaking as a panellist during Channels Television’s Town Hall on Tax Reforms.

He used the platform to highlight disparities in the current VAT distribution system and explained the reforms aimed at addressing them.

According to the tax expert, the current system allocates all VAT paid by the country’s biggest telco to Lagos State, where the company’s headquarters is located, even though the services that generate this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria. So they, in fact, pay VAT of over N200bn every month; the gap between them and number two is huge.”

He added, “Today, all the VAT paid by MTN is credited and attributed to Lagos State, even as calls are made in Kano, the FCT, Ekiti, Edo, or Kebbi.”

Part of the reform bill proposes adjustments to ensure a more equitable distribution of VAT revenues across states based on actual consumption rather than the location of corporate headquarters.

To demonstrate the implications of the proposed reforms, Oyedele provided a hypothetical redistribution model of MTN’s VAT contributions.

He illustrated how the reforms would allocate the VAT revenue based on consumption rather than the location of the company’s headquarters.

Under this new framework, Lagos State, which currently retains the full N200bn, would see its share reduced to approximately 20 per cent, while other states across the federation would benefit from a fairer distribution.

“This adjustment ensures that states where the VAT is generated get their fair share,” Oyedele said.

“When you analyse the data, you see Lagos State’s share reduces slightly, but every other state gains.”

The tax reform bill, which aims to address longstanding issues in Nigeria’s fiscal policies, includes provisions for revenue redistribution, addressing inefficiencies, and promoting fairness in the tax system.

The reform proposal has sparked debates recently, with some critics accusing the committee of pushing policies that could adversely affect some parties.

Oyedele dismissed these claims, emphasising that the current system is flawed and unfair. “If you’re doing the wrong thing, how can Lagos State disagree with us when we propose to fix it?” he argued.


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Airtel Kicks-off 10th Edition of ‘5 Days of Love’, Feeds 6,000 Across Nigeria

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December 18, 2024

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Airtel Nigeria has commenced its annual 5 Days of Love campaign, a philanthropic initiative designed to spread the joy and warmth of the festive season by feeding thousands of underprivileged Nigerians and supporting communities across the country.

Marking its 10th edition, this year’s campaign themed ‘5 Days; 6 Cities; 6,000 Meals’ successfully kicked off in Lagos on Monday, 16th December 2024, at Holy Cross Cathedral School, Onikan, Lagos, with 1,000 individuals, including children, youth, and the elderly, receiving packed meals. The event created a festive atmosphere filled with joy, celebration, laughter and entertainment.

Speaking on this year’s edition of the project, Airtel Nigeria CEO, Dinesh Balsingh, represented by Lagos Regional Operations Director, Airtel Nigeria, Peter Francis, emphasized that the broader significance of the 5 Days of Love festive period program was beyond meal distribution.

“At Airtel, we pride ourselves in being a people-centred organization. This event is not only about providing meals; it is a meaningful way to connect with communities, share moments of warmth, joy, and togetherness, and create a vibrant atmosphere of celebration and love.

“Today reminds us of the core values of joy, love, kindness, and shared humanity that define this initiative and Airtel’s mission. Together, we can continue to make a lasting positive impact.”

Following the successful completion of Lagos event, the 5 Days of Love train moves to Borno on Tuesday, 17th December; Abuja on Wednesday, 18th December; and Enugu and Rivers States on Thursday, 19th December; before concluding in Osun State on Friday, 20th December 2024.

Also speaking during the event, Executive Chairman, Lagos Island East Local Government Development Area, Honourable Muibi Alade Folawiyo, lauded Airtel Nigeria for a thoughtful initiative of sharing love with individuals and communities, encouraging the telco to keep the program alive.

“This is a remarkable act of kindness, and I appreciate Airtel for its dedication to uplifting lives and spreading love to individuals. I am grateful to Airtel Nigeria for spreading joy to us in this part of Lagos,” he said.

The 5 Days of Love campaign reflects Airtel Nigeria’s commitment to enriching the lives of Nigerians through meaningful community engagement and support. By fostering a sense of togetherness and goodwill, Airtel continues to exemplify its role as a socially responsible organization, creating lasting positive impact during the festive season and year round.

 


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Towards Cashless Societies: Mobile Money Leading the Way in West Africa

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December 18, 2024

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Lauded as one of the 21st century’s most transformative financial tools, mobile money has significantly inspired financial inclusion by providing previously unbanked and underbanked populations the access to essential financial services.

This innovation empowers individuals and businesses with the tools to send and receive remittances, make seamless payments for goods and services and save money, while ultimately contributing to faster economic growth and development across the region.

Research from GSMA’s The State of the Industry Report on Mobile Money 2024 reveals that over the past decade, increased adoption of mobile money services has significantly improved GDP. This has contributed an impressive USD 600 billion to the economies of countries utilising these platforms. This finding reaffirms the transformative economic potential of mobile money as it drives entrepreneurship, increases consumer spending and enhances overall economic activity.

The popularity of mobile money in East Africa has not only redefined the scope of financial inclusion but has also spurred significant economic growth and altered consumer behaviour within and outside the region. Specifically, the success of platforms like M-Pesa has provided a powerful blueprint, easily demonstrating how mobile money can democratise access to financial services and drive socio-economic development.

This SeerBit whitepaper casts a deep look at mobile money’s regional adoption trends, its economic contributions and the challenges of scalability, while advocating for urgent, collective action to unlock mobile money’s benefits, paving the way for a more connected and prosperous future in the region.

Rise of Mobile Money Adoption Across West Africa

The Macroeconomic Performance and Outlook (MEO) report developed by the African Development Bank Group notes that Africa will account for 11 of the world’s 20 fastest-growing economies in 2024 – with the continent set to remain the second-fastest-growing region after Asia.

Mobile money adoption is playing a significant role in this growth.

In the 10 years leading up to 2022, mobile money contributed USD 600 billion to the GDP of countries with a mobile money service, according to the GSMA’s The State of the Industry Report on Mobile Money 2024  (SOTIR 2024).

Spotlighting West Africa in particular, which currently has a population of over 451 million (United Nations), West African Economic and Monetary Union (WAEMU) countries have seen increased financial account ownership since 2014, with mobile money accounts witnessing increased adoption and usage. On average, 41 percent of adults in the WAEMU have an account with a bank or similar institution or with a mobile money service. Senegal has the highest account ownership rate at 56 percent, but the country still falls 15 percent below the developing economy average.

In Nigeria, where a majority of adults remain unbanked or underserved due to the limitations of traditional banking infrastructure, the country’s dynamic fintech sector is bridging those gaps with mobile money, digital payment platforms and wallets to reach underserved populations in rural and remote areas. While digital transactions have grown, they are yet to exceed cash-based transactions. A recent GSMA report reveals that Nigeria’s mobile money account ownership increased to 22 percent among all adults that are aware of mobile money and have used a mobile phone in 2022 and the number of adult account owners who have used mobile money in Nigeria in the last 30 days increased to 80 percent – this was up from 61 percent in 2021.

Global Findex data suggests there are opportunities to accelerate ownership and usage through digital financial enablement.

What You Should Know About Mobile Money in West Africa

Here are some interesting things to note about the adoption and effectiveness of mobile money in West Africa.

Mobile money is bridging the financial inclusion gap in West Africa

If there is one thing industry critics can agree on, it is that mobile money services continue to play a critical role in financial inclusion across the continent, providing a secure and convenient platform for transactions, bill payments and access to banking services, highlighting the demand for accessible financial services where traditional banking infrastructure is minimal and as such unable to address the needs of the populace.

Mobile money has had a gender-equalising effect in most countries, except for Côte d’Ivoire, which has a 13 percent gap due to males having adopted mobile-based accounts at a higher rate.

Mobile money has also enabled more women to save money than other financial services. For instance, in Senegal, only six percent of women saved using a traditional bank or other financial accounts in 2021, whereas four times more women chose mobile money to save.

Enabling regulation has led to greater access to and use of mobile money

As an important solution in the provision of basic transactional financial services to populations largely underserved by formal financial institutions, mobile money services are subject to a range of regulations.

It has generally been accepted by regulators, mobile money providers and investors that regulation has a material impact on mobile money adoption and usage.  Regulation affects the ease with which new customers can enrol to a mobile money service and the range of services offered, as well as the commercial and operating environment for providers and investors.

Fintechs are instrumental to making mobile money a success in West Africa

Fintech companies in Nigeria are collaborating with traditional banks to tailor services to the evolving needs of Nigerian consumers and businesses. These offerings pair a range of traditional banking products such as savings accounts and bill payments with innovative tech solutions such as lending platforms, virtual investment advisors, digital insurance products, and digital remittance solutions.

Fintech platforms such as SeerBit offer more widely accessible financial products that can help close the unmet credit demands of micro, small and medium-sized businesses in the country. A 2022 IFC Nigerian SME Finance Market report estimates this is around 13 trillion Nigerian naira (equivalent to USD 9 billion today). These products include invoice financing services, supply chain finance solutions, inventory management systems, data analytics tools, digital capital investment, digital assets, neo-banking and digital accounting and bookkeeping tools tailored to their needs.

West Africa Making a Bold Statement With Mobile Money

Despite several infrastructural, economic, social and regulatory challenges in West Africa, countries in the region are making meaningful strides to address all these areas. This is evidenced by countries in the region leading the mobile money adoption race globally. In 2023, over a third of new registered and active 30-day accounts globally were from West Africa and these accounted for transaction volumes of 19 billion, an increase of 40 percent from the previous year and transaction values of USD 347 billion, also up 40 percent from the previous year.

Mobile money adoption in West Africa is booming, with the GSMA reporting over 500 million active mobile money accounts in the region by 2023. The World Bank highlights that mobile money transactions are growing rapidly, driven by increased smartphone penetration and financial inclusion efforts. Despite this progress, challenges persist, including regulatory hurdles and infrastructure limitations. According to the GSMA, over 40 percent of the region’s population remains unbanked, which hampers broader adoption. Additionally, cybersecurity threats and digital literacy gaps could inhibit future growth. Addressing these challenges will be crucial for sustaining the upward trajectory of mobile money in West Africa.

Towards Cashless Societies

In January 2024, Bloomberg reported that six of the top 10 performing economies in the world were predicted to come from Sub-Saharan Africa. The continent’s youthful population is also an enormous opportunity for economic growth.

Africa also has the advantage of having fewer legacy challenges to deal with and is, therefore, adopting digitised solutions faster out of necessity.

Today’s technologies are a good indicator of the scale and speed at which technology is transforming traditional socioeconomic sectors across the continent. African countries are implementing key policies to accelerate digital payments adoption, creating a competitive market with solutions tailored to the underserved.

How Can Africa Further Accelerate the Growth and Adoption of Mobile Money?

Connectivity is  critical.

Widespread internet access would enable card-based transactions at merchant/agent locations. Offline solutions and strong interoperability policies are crucial for addressing connectivity challenges.

What’s the Future Outlook on Mobile Money Adoption?

In two words: Quite positive.

Beyond improving financial inclusion and access to other digitally enabled services, the adoption, use and growth of mobile money are now reflected in macroeconomic indicators – an increase in mobile money adoption will inevitably lead to a rise in GDP.

The emergence of mobile money as an alternative cashless currency has fundamentally changed the way people access financial services, enabling millions of unbanked individuals to store and manage money through their mobile devices.

However, despite this progress, a significant portion of Africa’s population remains outside the traditional banking system, facing limited and costly banking services.

Ease in regulation has played a key role in driving mobile money adoption in West Africa. As mobile money continues to gain traction, it is crucial that the regulatory frameworks in many West African nations evolve to meet dynamic needs. Effective regulations are essential to protect consumers while encouraging new entrants and consistent innovation in the market.

By establishing a robust regulatory environment, African countries will ensure that mobile money remains a powerful tool for economic empowerment and financial inclusion, ultimately driving sustainable development across each region.

Download the full report for free here.


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