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Fixed Broadband – The Next Big Thing for Nigeria

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By: Rajiv Aggarwal

Nigeria urgently needs rapid rollout of broadband services to address the country’s various socio-economic challenges.

Fixed Broadband – The Next Big Thing for Nigeria

Rajiv Aggarwal, Head of CEWA Market Unit at Nokia

With a population estimated at about 203 million people, 23 percent of the overall population is currently unemployed.

Furthermore, 55 percent of the country’s youth are unemployed, which presents a massive challenge considering that over half the population is under the age of 25.

According to the Nigerian Communications Commission (NCC), the country’s broadband penetration as at June 2021 stood at is 39.9 per cent with a broadband subscriptions figure of 76.29 million.

Therefore, the country is faced with the tremendous challenge of puttingits largely unemployed and underemployed population to work.

Addressing Nigeria’s socio-economic challenges

The rapid rollout of broadband services will address various socio-economic challenges faced by the country, including the need to grow its economy, job creation, expansion of the tax base, and improving digital literacy and educational standards.

This will also address identity management and security challenges through the effective use of technology, increase financial inclusion and deliver a broad range of services to its people to improve their quality of life and work towards achieving the UN’s 2030Social Development Goals.

The new Broadband Plan is designed to deliver data download speeds across Nigeria of a minimum of 25Mbps in urban areas, and 10Mbps in rural areas, with effective coverage available to at least 90% of the population by 2025 at a price not more than N390 per 1GB of data.

The Broadband Plan will drive increased fibre connectivity in schools, healthcare facilities, government buildings and towers, amongst others.

Notably, a large traffic volume within the middle mile networks is still backhauled using microwave equipment today.

While this type of backhaul was adequate for narrow-band voice communications, it is no longer adequate for the effective delivery of bandwidth-intensive broadband applications driving current demand.

The need to make fibre-optics the de-facto means of backhauling traffic within middle-mile networks, for the effective deployment of broadband networks, cannot be overemphasized.

Last-mile connectivity in Nigeria is also largely mobile with comparatively lower investments made in fixed-line infrastructure within the past two decades.

There is therefore a need for improvement in last-mile connectivity for increased adoption.

More submarine cable access will become available as new players such as the 2Africa Consortium extend broadband cable branches to Nigeria, boosting broadband penetration across the country.

The consortium recently announced the addition of four new branches to the 2Africa cable, which will extend 2Africa’s connectivity to the Seychelles, the Comoros Islandsand Angola; and bring a new landing to South-east Nigeria.

The role of fibre and fixed wireless access

To date, fibre density in Nigeria remains particularly low with approximately 10% of base stations connected to fibre and most of the fibre networks overbuilt on the same routes.

The continued reliance on narrowband microwave links remains a limiting factor in terms of aggregate capacity and stability of mobile networks especially in a challenging electricity supply environment.

Denser metro fibre networks will also provide the essential building blocks for future Fibre-To-The-X networks. In addition, the massive development in the real estate sector of the economy with several ‘’gated communities ‘’ being built in cities like Lagos, Abuja, Kano, PHC, Ibadan are also fuelling broadband adoption in Nigeria.

Fibre access is considered the biggest and fastest growing technology with the largest eco-system of players that includes fixed and converged operators, governments, cities, utilities, enterprises, and infrastructure investors.

Fibre access networks are becoming the unifying infrastructure that underpins the entire telecom industry, connecting everyone to everything.

The COVID pandemic has highlighted the “digital divide” and the importance of broadband connectivity worldwide.

New and more powerful fixed networks are therefore needed to increase speeds and improve the user experience.

While fibre remains a preferred choice, it can be expensive, time consuming, and challenge to serve homes and businesses.

To address the broadband need in underserved rural and suburban markets where the economics of FTTH is too cost-prohibitive, fixed wireless access (FWA) is seen as a good substitute via 4G and 5G to enable high-speed broadband.

With expanding network capacity afforded by 5G and new sub-6 GHz and millimeter wave spectrum, more and more operators see FWA as a complement to their “fibre plus FWA” broadband strategy.

The fixed wireless access (FWA) market continues to expand, with the underlying broadband demand arguably accelerated by the COVID pandemic.

The market growth is supported and fuelled by robust product innovations.

It is therefore important to keep pushing the boundaries of fixed technology and make sure the investments in fixed networks made today will be usable for many years to come to meet the inevitable growth in demand for faster, more responsive, and immersive internet services.

Fibre broadband investment enables a premium customer experience, competitive advantage, the lowest operational costs (OPEX), and the lowest power consumption of any broadband technology, with the additional opportunity of service convergence (residential, enterprise and 5G transport).

As a major global equipment vendor with a leading set of Fixed Access technologies, Nokia partners with fixed, converged, mobile and cable operators to deliver extraordinary Gigabit broadband services and enable them to address the unprecedented demands on their networks today.

Our ability to take our customers beyond the network termination point and deliver gigabit broadband throughout the home is another strength, especially with the increased data consumption associating the pandemic.

Fixed broadband will enable Nigerian Service Providers to provide faster speeds and better coverage to customers while achieving the price points highlighted in the Nigeria Broadband Plan.

The use of passive fibre networks along with a shared infrastructure model will greatly reduce the costs of deployment while maximizing the Capex investment.

Fibre not only ensures the speeds of today, but that the capacity needed tomorrow can be met.

Fixed broadband and fibre not only ensure faster download speeds for end users on fibre, but can also serve as an anchor point for densification of mobile networks as well serving as a connection point for wireless access points and even cell towers in some instances.

All of this translates to greater broadband penetration in Nigeria and increased services and benefits for CSPs and their end customers.

As part of the 2Africa Consortium, Nokia is facilitating increased fibre deployments in Nigeria.

Alcatel Submarine Networks (ASN), a division of Nokia that has been selected to deploy the new branches, which will increase the number of 2Africa landings to 35 in 26 countries, further improving connectivity into and around Africa including Nigeria.

Nokia also provides GPON solutions to several providers in Nigeria, thereby increasing fixed broadband speeds using FTTH.

One of the examples is that Nokia is providing Spectranet, Nigeria’s largest Internet Service Provider, with its GPON solution and enabling 100+ Mbps ultra-broadband services to end users in Lagos and Abuja as part of an extensive Fiber-to-the-Home (FTTH) rollout.

This kind of deployments with Nokia’s superior fixed network technologies, in turn, enables Nigerian Service Providers to offer up to 1Gbps speeds to end customers using passive fibre connections.

Rajiv Aggarwal, Head of CEWA Market Unit at Nokia


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Telecom

Telcos Threaten to Shut Down Services in Some Parts of Nigeria over Tariff

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Telecommunications operators in Nigeria have threatened to shut down their services in some parts of the country this year if their demand for tariff review is not considered by the Nigerian Communications Commission (NCC).

Telcos Threaten to Shut Down Services in Some Parts of Nigeria over Tariff

The operators under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) said this in a statement signed by Engr. Gbenga Adebayo, its chairman.

According to Adebayo, the survival of the telecom sector demands immediate and bold reform for its sustainability, adding that tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability.

“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as Service Shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic Fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.

“There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” Adebayo said.

Telecom industry is under heavy burden. Emphasising that without the tariff review, operators cannot continue to guarantee service availability, the ALTON Chairman said though the challenges being faced by the telcos are not new, they have become more acute and more threatening with this passing year.

He said that rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates, amongst others, have all placed an unsustainable burden on network operators. He said that despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.

According to him, the resources needed to maintain, expand, and modernise telecom networks are no longer available and without intervention, “the future of this sector is at grave risk.”

The ALTON chairman noted that stakeholders have done their best over the years to sustain the sector by upholding the values and importance of telecommunications in society.

“However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come. Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector,” he said.


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Telecom

Subscribers Say Telcos Cannot Hike Tariff Business without Consultation

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Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS) has said that operators would not review tariff without consulting stakeholders.

Subscribers Say Telcos Cannot Hike Tariff Business without Consultation

ATCIS was reacting to fears to rumours that telecom operators were planning tariff increment early this year.

Recall the operators had threatened service disruption without an increment in tariff even as the operators await regulatory nod to effect an increase in tariff.

But Prince Sina Bilesanmi, national president, TCIS-Nigeria, said the association confirmed from the Nigerian Communications Commission (NCC) that there has not been an increment.

“ATCIS had written a letter to the NCC dated December 24th, 2024 requesting the Commission to clarify the new tariff increment proposed to be announced on December 13, 2024 as reported by the national daily and the online platforms, which they said would take off in January 2025.

“Firstly, there are procedures for tariff review like; cost study, consultation, enlightenment, engagement of Stakeholders like ATCIS being telecom subscriber advocacy body and all these requirements are not yet met by telcos,” he said.

He urged telecom subscribers not to panic, saying the NCC is the authorised body to announce tariff increment.

“The commission would have made an official statement regarding tariff increase. Therefore, people should disregard whoever said he is the spokesperson of NCC.

“Telecom subscriber members of the public should watch out for some unscrupulous reporters that are being used to destabilise the telecommunication industry. There’s no new tariff, and if such will happen every stakeholder would be carried along,” he said.

He assured that the association would not rest on its oar to ensure sanctity of information, saying their mission is to promote mutual co-existence, fair play and defend the rights of telecom subscribers.

 

 

 

 

 

 

 

 


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NCC Dismisses Rumours of Telecom Tariff Hike in January

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Nigerian Communications Commission (NCC) has dismissed claims of a telecommunications tariff hike allegedly set to take effect in January 2025.

NCC Dismisses Rumours of Telecom Tariff Hike in January

The Commission described the reports as false and unfounded, urging subscribers to disregard the misinformation.

A senior NCC official, emphasised that the regulatory body operates under a transparent framework guided by the Nigerian Communications Act, according to Punch Newspaper.

According to the official, this framework requires stakeholder consultations and strict adherence to due process before any tariff adjustments are approved.

“These rumours are baseless and misleading. The NCC is committed to protecting consumers and ensuring that any potential tariff changes are communicated clearly and transparently,” the official stated.

“Subscribers can rest assured that no tariff increase has been approved,” he added.

The NCC also appealed to journalists and industry stakeholders to verify information before publication, stressing the importance of accurate reporting to avoid unnecessary public panic.

Reiterating its commitment to consumer interests and the stability of the telecommunications industry, the Commission assured Nigerians that updates on tariffs or related matters would always be communicated through official channels.

The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) also addressed the rumours.

Speaking in Lagos, Mr Sina Bilesanmi, national president, ATCIS, stated that the association sought clarification directly from the NCC on December 24, 2024.

“The NCC confirmed there is no truth to claims of call charges increasing to N15.40 per minute from N11, SMS charges rising to N5.60, or 1GB of data costing N1,400 instead of N1,000.

“Any changes in tariffs, if necessary, will follow due process and involve input from all stakeholders, including ATCIS. There is no cause for alarm,” Bilesanmi said.

Both the NCC and ATCIS emphasised their commitment to consumer protection and urged subscribers to rely on verified information from credible sources.

 


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