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Access Gap Studies

Abdullahi MaikanoSecretaryUniversal Service Provision Fund

Bidders Meeting

October 2012

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Key Objectives of Meeting Introduction Background to the Access Gap Study Key Objectives of the Access Gap Study

Presentation Outline

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Key Objectives of the Meeting

To provide a background to the Project.

Give further clarifications where necessary Brainstorm and exchange ideas on the Project

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The Universal Service Provision Fund (USPF) was established by the Nigerian Communications Act No. 19 of 2003: To facilitate the extension of Information and Communication

Technologies (ICT) and Network Services to the rural, un-served and underserved areas of the country

The USPF commenced operations in 2006.

One of USPF’s major programmes is to accelerate mobile expansion to cover all the nooks and cranny of the country To replicate the telecoms explosion witnessed in the urban areas

(towns/cities) to the rural areas

To leapfrog the unserved and underserved communities to the digital experience.

Introduction

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Under the Accelerated Mobile Phone Expansion Programme (AMPEP), two projects were implemented:

1. BTS – Licensed mobile operators are provided subsidies to build BTS in selected underserved and unserved communities

2. CIP – Infrastructure providers are awarded subsidies to build BTS for collocation i.e provide shareable (passive) infrastructure for operators

Locations were selected by implementers for approval of the USPF

Key challenges faced in the implementation of these projects include the following:- Non-completion of most projects- “Cherry-picking” of sites, therefore implementation became

uncoordinated resulting in suboptimal performance - Request for location changes

Introduction

AMPE - BTS AMPE - CIP

A total of 3 completed and 101 in progressA total of 62 completed and in operation

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Subscriber Statistics - 2000 – 2012 Nigeria is the fastest growing telecommunications market in Africa i.e. in

terms of number of subscribers The graph overleaf shows the trend from 2000 to August 2012

Background to the Access Gap Study

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0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

400,000 866,7822,271,050

4,021,945

10,201,728

19,519,154

33,858,022

41,975,275

64,296,117

74,518,264

111,517,229

124,801,018

141,297,289

Years

No

. o

f S

ub

scri

ber

lin

es

Annual Subscriber Data in Nigeria

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Subscriber Statistics – Comparative Analysis Nigeria is number 1 among selected African in terms of number of

subscribers

Background to the Access Gap Study

Telecoms Subscriber base of selected African countries (August 2012)

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Statistics - coverage Africa However, in terms of coverage

(penetration), Nigeria is far behind.

From being No 1 to No. 8, in selected African countries

Therefore, a new strategy must be adopted to ensure 100% coverage of Nigeria within the next 5 years.

Background to the Access Gap Study

Nigeria

Kenya

Benin

Ghana

Gambia

Egypt

Algeria

South Africa

0% 20% 40% 60% 80% 100% 120% 140%

59%

65%

85%

85%

89%

91%

99%

127%

Mobile Phone Coverage in se-lected African Countries

Percentage Coverage

Coun

trie

s

Source: World Bank

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To address this, the USPF has to change its strategy. Hence, the need to cluster unserved areas into blocks and

thereafter request bids from Operators. The coverage map for consolidated BTS sites and fibre routes are

presented overleaf:

Background to the Access Gap Study

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Consolidated BTS Coverage of Nigeria

Consolidated BTS Coverage of Nigeria

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Consolidated Fibre Coverage of Nigeria

Consolidated Fibre Coverage of Nigeria

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The key objectives of the Access Gap Study are to: Create Clusters of areas not covered by telecommunications

services in Nigeria with the view of inviting bids for each cluster as a bundle/block – this is similar to the Model adopted by the USP Fund, Malaysia

Each Cluster will come with the necessary attributes that would be the selling points. The attributes include – Population; Land Area; Key Public/Private

Institutions; Principal Economic Activity; Major Road network; Existence of other USPF assisted projects etc.

This strategy would reduce cherry picking by prospective implementers and ensure the 40% , not served would be served.

Key Objectives of the Project

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The Request for Proposal (RFP) provides a high level scope of work for the Project. Details were not provided considering that there could be several means of

achieving the objective of the Project

The USPF did not want to prescribe any particular means but hopes that bidders will come up with innovate solutions for analysing and identifying clusters.

The expectation is that bids will provide the detailed strategy and methodology for achieving the Project objectives.

Key Objectives of the Access Gap Study

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