BROADBAND NIGERIA:THE JOURNEY AHEAD
Austin OkereC.E.O. COMPUTER WAREHOUSE GROUP
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A cry for help
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broadband statistics SPEEDS (mbps)
Ghana - 10.1South Africa - 2.95Nigeria - 1.38Global average- 8.48
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Broadband in Ghana
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Broadband in SA
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Broadband in Nigeria
Network service providers entrepreneurs in in the value chain More providers means
More infrastructure to increase accessMore competition to decrease prices
Possible interventionFacilitate market entrySupport sustainable existence of all
playersSegmentation for fair competition 8
Ample capacity at shore International access is good Very good submarine and satellite
capacity One operator has 1.92 TB A second consortium is adding 5.0TB an operator spent $250m on undersea
cable Prices have gone from $1300 to
$350/mbps Yet only 2% of capacity inshore Price target of $86/mbps based on supply Prices may reach $25/mbps with right
volume
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capacity limitations Inland
Some problems along the way… NLDO is challenged There is core network fibre to 27 states Operate as islands Cost is high (4 times international trunk) Access is discriminatoryPossible intervention
Open Access National BackboneInterconnectivityEstablishment of price framework
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More bottlenecks on the way RLDO is seriously challenged Some states not linked to the National
backbone Many key cities yet to be linked Right of way hindrance & cost Lack of national interconnectionPossible intervention
Fiscal incentive (long term loans, USPF)Right of way support/incentive 1
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Metro Distribution is worse hit… Less than 6% penetration Interconnection issues Right of way and barriers to deployment Multiple and illegal taxation Multiple regulation e.g. Masts & Base
stationsPossible intervention
Fiscal incentive supportSimplification of licensing processSolving right of way and taxation
issues
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Metro Ring Provider
Race to the Bottom Major concerns
Majority of service providers have become moribund substantially lessening competition Almost all medium sized operators (mostly Nigerian start
ups) are failing This group is critical to vibrant competition and prevention
of oligopoly in the market Possible intervention
Closer regulation of anti-competitive practices Fiscal incentives through special purpose funds e.g. USPF Dealing with transmission market incongruences in prices
and access Digital Access Broadcasting policy and regulatory
framework 15
The Rat Race…
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Thinking outside the box
Crux issues role of Government Role od service providers Requirements of service providers to
Roll out to rural areasUnderserved areas
Possible quick wins Establish true cost of right of way (1 km of
Fibre) How to optimize frequency segment 1
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