one world one connection
one world one connection
Why Governments should
implement a National Broadband
Policy
Commonwealth Broadband Forum, Abuja 2015
Every 10% increase in broadband penetration in developing countries results in a commensurate increase of 1.3% in GDP
(Zhen-Wei Qiang, World Bank economist)
Synopsis
How do we drive this?
The increased relevance of a Broadband-enabled ICT industry in Nigeria
2013 Rebased GDP figures put ICT’s contribution at 8.68% or N6.97 trillion. Oil and Gas has trickled down to
14.4%
Rebased Nigerian GDP
Oil & Gas Services ICT Manufacturing
Pre Rebased GDP
Oil & Gas Services ICT Manufacturing
NATIONAL BROADBAND PLAN
The implementation of the National Broadband Plan (2013-2018) which has set a target of a five-fold increase in broadband
penetration by 2017. This policy is expected to facilitate the growth of ISPs and will also see new telecommunication
companies
SPECTRUM Bitflux won 30 MHz Frequency In The 2.3 GHz Band for
the delivery of broadband wireless
INFRACO
MainOne & IHS won InfraCo for Lagos & North Central. This signifies an opportunity to deepen
infrastructure investments in Nigeria and to assure
that the Broadband future which is critical to the
growth of the economy is achieved.
NGREN
The NgREN, the national REN for Nigeria
established to provide connectivity
infrastructure and service layers for
innovation in teaching and research in Nigeria.
USPF
The Universal Service Provision Fund was established by the
Federal Government of Nigeria to facilitate the widest possible
access to telecommunications services for greater social equality and inclusion for the
people of Nigeria.
Broadband in Nigeria: Overview
Broadband penetration currently circa 10%
Broadband in Nigeria: Quick Facts
Circa 10 Terabytes of capacity in Nigerian landing points
Mobile internet penetration: 83m or 49% of population
By 2018, 80% internet connections via wireless/mobile broadband, 20% via fixed
fiber-optic line
NCC InfraCo licenses for Lagos and North Central
National target of 30% broadband penetration by 2018
Smart States: Lagos, Ondo, Cross Rivers, Bayelsa, The FCT
Challenges Solutions Proprietary dominance of Infrastructure and Access
• Unbundling and Promoting Open Access to enable
competition in the market, allowing Government to own and regulate the pricing and spurring competition
Policy
• More effective spectrum management framework for
competition and shared infrastructure, opening industry to more players, and forces high quality of service.
• Consumer protection is also key as it regulates the pricing.
Government perception of telecommunications as cash cow
• Government needs to drive focus and investment in ICT as an enabler of jobs and economic growth
• Reduced tolerance for corruption and mismanagement of telecom infrastructure and unused spectrum, assets etc.
However…
Addressing Access
Infrastructure
Regulatory/Policy
Content
What is required?
Access for All
Infrastructure Sharing Funding
PPP Collaboration + Smart City
Infrastructure Protection
Infrastructure
Open Access Initiative
NCC Infraco licenses for all regions
Harmonised Taxes and RoW Government online etc
Regulatory/Policy
What is required? Businesses to focus on local content development
Financial motivation
Encourage indigenous hosting of content
Encourage cluster ecosystem e.g Technology, etc
Content
Broadband has enabled the e-Commerce landscape Today, leading online stores achieve about $2 million worth of
transactions per week (approximately N1.5bn per month)
15,000 orders per day, with market size valued at $550 million (N88 billion).
Expected to grow to $13 billion (N2.5 trillion) in 2018
Konga.com, Jumia.com, DealDey, QuikTellers, WakaNow,
RyteDeals, Checki.com, Buga.com
20,000 direct jobs created since 2012 i.e logistics, web designers, call centers etc
Rise of SMEs/Middle Class/Value Added Services All these achieved with <10% broadband penetration
Industry in focus: e-Commerce
Broadband is the foundation and propeller of development in a knowledge-driven economy
Broadband presents unlimited potential for enabling entire new
industries to emerge; enhanced performance, reduce youth unemployment, increased GDP, facilitate cluster ecosystems
Implementation of broadband policy to contribute N190 billion to
GDP*
Every 1000 new subscribers of broadband Internet result in the creation of 80 new jobs
Why shouldn’t governments implement a National Broadband agenda?
Nigeria needs to move up the value chain beyond over dependence on natural resources, and into the labour intensive service
economies
Parting shot
Broadband offers this leap.