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BROADBAND NIGERIA: THE JOURNEY AHEAD. Austin Okere C.E.O. COMPUTER WAREHOUSE GROUP. A cry for help. broadband statistics. SPEEDS (mbps) Ghana - 10.1 South Africa - 2.95 Nigeria - 1.38 Global average - 8.48. Broadband in Ghana. Broadband in SA. Broadband in Nigeria.
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BROADBAND NIGERIA:THE JOURNEY AHEAD Austin Okere C.E.O. COMPUTER WAREHOUSE GROUP
broadband statistics • SPEEDS (mbps) • Ghana - 10.1 • South Africa - 2.95 • Nigeria - 1.38 • Global average - 8.48
Network service providers • entrepreneurs in in the value chain • More providers means • More infrastructure to increase access • More competition to decrease prices • Possible intervention • Facilitate market entry • Support sustainable existence of all players • Segmentation for fair competition
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
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 discriminatory • Possible intervention • Open Access National Backbone • Interconnectivity • Establishment of price framework
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 interconnection • Possible intervention • Fiscal incentive (long term loans, USPF) • Right of way support/incentive
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 stations • Possible intervention • Fiscal incentive support • Simplification of licensing process • Solving right of way and taxation issues
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
Crux issues • role of Government • Role od service providers • Requirements of service providers to • Roll out to rural areas • Underserved areas • Possible quick wins • Establish true cost of right of way (1 km of Fibre) • How to optimize frequency segment