04/22/23 1

CONNECTING THE CONNECTING THE NEXT TEN MILLION NEXT TEN MILLION PEOPLE IN NIGERIAPEOPLE IN NIGERIA

ByByEngr. Ernest Ndukwe, Engr. Ernest Ndukwe, OFR, OFR,

FNSE,FNIMFNSE,FNIM

Chief Executive Officer, Chief Executive Officer, NCCNCC

At the Nigerian Telecom Summit, Abuja, At the Nigerian Telecom Summit, Abuja, Nov. 1, 2004Nov. 1, 2004

04/22/23 2

1. Agenda1. Agenda• Introduction Introduction

• Overview of the Current Telecommunications Overview of the Current Telecommunications Landscape in NigeriaLandscape in Nigeria

• Benchmarking Nigeria in the International Benchmarking Nigeria in the International Telecommunications LandscapeTelecommunications Landscape

• Discussion on how to sustain the gains so far and Discussion on how to sustain the gains so far and connecting the next 10 million people can be achievedconnecting the next 10 million people can be achieved

• ConclusionsConclusions

04/22/23 3

2. Introduction:2. Introduction:

• In In NigeriaNigeria, the , the Telecommunications Industry has Telecommunications Industry has experienced exponential growth in the last four years experienced exponential growth in the last four years with close to with close to eighteight ( (88) million lines connected ) million lines connected to dateto date

• For this, For this, Nigeria has been described as one of the Nigeria has been described as one of the world’s fastest growing telecommunications marketworld’s fastest growing telecommunications marketss

• These achievements can be attributed largely to the These achievements can be attributed largely to the goodwill exhibited by the Nigerian government and goodwill exhibited by the Nigerian government and the enabling and conducive environment with respect the enabling and conducive environment with respect to government policy and regulatory regimesto government policy and regulatory regimes

04/22/23 4

3. Introduction:3. Introduction:• Quoting Mr President, ChiefQuoting Mr President, Chief Olusegun Obasanjo , Olusegun Obasanjo ,

““We cannot be talking about creating a We cannot be talking about creating a conducive conducive environment environment for foreign for foreign

investments if the investments if the performance of our performance of our transport, transport, telecommunications telecommunications and energy and energy sectorssectors remain dismal and epilepticremain dismal and epileptic.” .”    - -

July 1999July 1999• This statement of intent, confirming government’s This statement of intent, confirming government’s

areas of particular focus, provided the initial areas of particular focus, provided the initial driving force behind subsequent activities that led driving force behind subsequent activities that led to the level of development of the industry thus to the level of development of the industry thus far.far.

04/22/23 5

4. Introduction4. Introduction

• The need to keep abreast of developments The need to keep abreast of developments and remain relevant in the global information and remain relevant in the global information society became a priority for all those in society became a priority for all those in government with responsibility for this sector.government with responsibility for this sector.

• Hence, NCC’s continued commitment to Hence, NCC’s continued commitment to promoting a regulatory environment that is promoting a regulatory environment that is fair, transparent and predictable within fair, transparent and predictable within nationally and globally defined agenda for nationally and globally defined agenda for sustainable development sustainable development

04/22/23 6

5. Introduction5. Introduction• Mr Vice President, during a courtesy Mr Vice President, during a courtesy

call on him by the some CEO’s of call on him by the some CEO’s of Telecommunications companies last Telecommunications companies last year attributed the success recorded year attributed the success recorded in the Telecom sector to “in the Telecom sector to “the the commitment of the Ministers and commitment of the Ministers and officials in the sector to the officials in the sector to the successful implementation of successful implementation of government market reform agendagovernment market reform agenda””

04/22/23 7

6. Telecom scorecard6. Telecom scorecard

Source: NCC

Fixed telephones has been only about doubled from about 450,000 in 1999 to about 1 million, while mobile Increased geometrically from 35,000 analogue lines in 1999 to about 6.71 million digital lines by mid Oct. 2004

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Connected lines/subscribers

1999 2000 2001 2002 2003 Mar'04

June‘04

Sept‘04

Oct18 ‘04

Period

Telephone Subscriber Growth in Nigeria

Fixed

Mobile

04/22/23 8

7. Telecom Scorecard7. Telecom Scorecard

Source: NCC

Consolidated Growth in Telephones in Nigeria

Cumulative number of connected telephone lines has increased from less than 500,000 in 1999 to about 8 million as at about now.

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,000

Number of Connected Lines

1999 2000 2001 2002 2003 Mar'04

June‘04

Sept‘04

Oct18‘04

Period

Mobile

Fixed

04/22/23 9

8. Telecom scorecard8. Telecom scorecard

•Giving current spate of Giving current spate of roll out, total number of roll out, total number of connected fixed and connected fixed and mobile lines are expected mobile lines are expected to surpass 1.2 million and to surpass 1.2 million and 9 million respectively by 9 million respectively by the end of 2004the end of 2004

04/22/23 10

9. The Global Telecom 9. The Global Telecom LandscapeLandscape

0

0.5

1

1.5

2

2.5

Series1

0

0.5

1

1.5

2

2.5

Series1

0

0.5

1

1.5

2

2.5

Series1

04/22/23 11

10. The Global Telecom 10. The Global Telecom Landscape:Landscape:

Growth in Telecom in Developed and Developing Countries

Source: ITU World Telecommunications Indicators Database

04/22/23 12

11. Connecting the next 11. Connecting the next 10 million10 million

•Information and Information and Communications Communications Technology should be Technology should be placed on the front placed on the front burner of priority burner of priority sectors of government.sectors of government.

04/22/23 13

12. Connecting the next 12. Connecting the next 10 million10 million

•Duty rates must drop to Duty rates must drop to less than 5% to reduce less than 5% to reduce price of basic phone price of basic phone sets and facilitate sets and facilitate connection to the next connection to the next 10 million people.10 million people.

04/22/23 14

13. Connecting the next 13. Connecting the next 10 million10 million

•The national carriers and The national carriers and the major operators the major operators licensed to deliver long licensed to deliver long distance transmission distance transmission infrastructure need to be infrastructure need to be encouraged to fast encouraged to fast forward their roll-out.forward their roll-out.

04/22/23 15

14. Connecting the next 14. Connecting the next 10 million10 million

There is urgent need to open up There is urgent need to open up

discussions on how to drive down the discussions on how to drive down the satellite bandwidth charges perhaps, satellite bandwidth charges perhaps, by consolidating the requirement on a by consolidating the requirement on a national basis and using that to national basis and using that to negotiate better bandwidth prices.negotiate better bandwidth prices.

04/22/23 16

15. Connecting the next 15. Connecting the next 10 million10 million

Expanding subscriber base will Expanding subscriber base will

also be achieved faster in the fixed also be achieved faster in the fixed services area by a move towards services area by a move towards market consolidation. Some of the market consolidation. Some of the operating companies offering fixed operating companies offering fixed services would probably perform services would probably perform better if they merge to take better if they merge to take advantage of economies of scale.advantage of economies of scale.

04/22/23 17

16. Connecting the next 16. Connecting the next 10 million10 million

Growth of subscriber base Growth of subscriber base must also go side by side must also go side by side with improvement in the with improvement in the public electricity power public electricity power supply situation in the supply situation in the country.country.

04/22/23 18

17. Conclusion17. Conclusion

• Access to telecommunications is critical to the Access to telecommunications is critical to the development of all aspects of a nation’s economy including development of all aspects of a nation’s economy including manufacturing, banking, education, agriculture and manufacturing, banking, education, agriculture and government. government.

• Nigeria's immediate requirement for telecommunications Nigeria's immediate requirement for telecommunications facilities is enormous and the required capital and time facilities is enormous and the required capital and time investment needed to complete a full deployment are investment needed to complete a full deployment are daunting.daunting.

• The Federal government must therefore continue to place The Federal government must therefore continue to place the development of the and Information and the development of the and Information and Communications technology Industry on its priority list.Communications technology Industry on its priority list.

04/22/23 19

18. Conclusion18. Conclusion

•The target of connecting The target of connecting the next 10 million people the next 10 million people in one year is achievable if in one year is achievable if we can create the enabling we can create the enabling environment.environment.

04/22/23 20

1919

I I BELIEVE BELIEVE WE CAN WE CAN MAKE ITMAKE IT

HAPPENHAPPEN

04/22/23 21

Thank You!!!Thank You!!!