Regulations, Broadband & Convergence

1. Regulations, Broadband & Convergence By Professor U. G. Danbatta, FNSE Executive Vice Chairman, Nigerian Communications Commission (NCC)

2. Overview • BROADBAND – Definition. • BROADBAND PENETRATION – Where we are. • BROADBAND INFRASTRUCTURE ROLL-OUT – Government’s Role. • BROADBAND INFRASTRUCTURE EXPANSION DRIVE. • CONVERGENCE IN TELECOMMUNICATIONS • CHALLENGES OF TELECOMMUNICATIONS INFRASTRUCTURE PROVISION. • WAY FORWARD • PUBLIC AND PRIVATE SECTOR COORPERATION / COLLABORATION. • CONCLUSIONS

3. Broadband is defined within the Nigerian Context as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5 Mb/s. The Broadband Vision for Nigeria is one of a society of connected communities with high-speed Internet and broadband access that will facilitate faster socio-economic advancement of the nation and its people. BROADBAND - Definition

4. At the moment, wireless technology is the primary delivery medium for broadband in Nigeria. The licensing, rollout and upgrade of Mobile networks based on emerging technologies, as well as, the introduction of smart phones and other advanced mobile devices with seamless capability to connect to the internet have been responsible for the current growth in internet access and usage recorded in Nigeria. Growth in the Data segment is lagging far behind (less than 30%) and broadband even further behind (less than 10% of the population) compared to that of Voice. There is however a huge bandwidth capacity of over 9Tb/s landed at the shores of the country via four (4) submarine cable operators - Glo-1, MTN-WASC, MainOne and SAT-3). This needed to be processed and translated to provide adequate domestic bandwidth for broadband services. BROADBAND PENETRATION – Where we are.

5. The Nigerian Government is playing a significant role in coming up with appropriate policy guidelines (and even direct investment) in order to facilitate universal broadband roll-out and promote access and usage. Some of the indices for Broadband roll-out and provision that the government is looking at include:- Availability nationwide, Quality of Service, Affordability, Market - driven competition, Incentives to encourage FDI. Consumer Protection. The Nigerian Communications Commission (NCC), is vigorously making efforts towards improving broadband penetration by coming up with appropriate policies that encourage investment and growth in this area. BROADBAND ROLLOUT – Government’s Role...1

6. The Federal Government is promoting the rapid establishment of recovery agreements and the delivery of additional cable landing points to other coastal states in the country, even as it is also looking into ways to facilitate the distribution of the current landed fibre capacity of over 9Tb/s at the shores of Lagos to fast track last mile penetration in the country. The Nigerian National Broadband Plan (2013-2018) sets out a five-year roadmap and strategy, with focus on the primary objective of achieving a five-fold increase in broadband penetration in Nigeria by the year 2018. The plan targets to have 3G/LTE Wireless Broadband coverage, as a minimum, to 80% of the population, and fixed broadband based on fibre to at least 16% of the population by 2018. As at June, 2015, Nigeria has total active internet subscription of 97,815,572out of an estimated population of about 140million (2006 official census figure). BROADBAND ROLLOUT – Government’s Role...2

7. The Nigerian government seeks to promote seamless interconnectivity and an Open Access regime aimed at attaining a robust National Fibre Optic Backbone Infrastructure. The Nigerian Communications Commission (NCC) is implementing an Open Access policy whereby prospective companies bid for (and are issued) licenses on regional basis. The Open Access regime encourages infrastructure sharing agreements among the various operators who currently have multiple fiber installations along common routes in the country. It also encourage/enforce last mile infrastructure sharing regime that enables new entrants to spring up and thrive in the industry, measures that are necessary for attracting investments. This is expected to fast track attainment of an evenly distributed and robust National Fibre Optic Backbone Infrastructure. By 2018, when the expected penetration target is achieved, a considerable surge in internet access and utilization, converged services and applications in the area of Internet of Things are envisaged. BROADBAND INFRASTRUCTURE EXPANSION DRIVE...1

8. To further consolidate its landmark achievements in mobile telephony, the government established the Universal Service Provision Fund (USPF) to specifically tackle the challenge of providing ICT services to un-served, underserved and deprived rural communities in the country. The USPF has also been positioned to serve as a veritable tool in addressing the last mile connectivity challenges of broadband penetration into the hinterland by collaborative agreements that reduces the high cost of deployment of distribution infrastructure across the country. The USPF therefore addresses a significant component of the problems of broadband access by providing investment funding to the critical sector of the telecommunications industry in Nigeria. As the main entry barriers to the industry are addressed, competition is envisaged to intensify and drive:- Increased innovation by players Improved penetration of broadband services Better quality of service experience and, Enhanced affordability. Development of the local content. Thereby facilitating the attainment of convergence…. BROADBAND INFRASTRUCTURE EXPANSION DRIVE...2

9. CONVERGENCE IN TELECOMMUNICATIONS • In simple terms, convergence in the telecommunications industry translates to having voice, video and data (Multi-media) services in a single data stream. • For instance, mobile phones will handle voice calls, instant messages, streaming television, photographs, radio services and email using the internet. Converged networks usually employ Internet protocol (IP) the architecture used by the World Wide Web. • Convergence is driven by growth in the penetration of broadband Internet services and competition from new service providers, which often results in the prevalence of IP-based networks. • Some of the reasons for companies switching to converged services include a more efficient business organizational model, open-source technical standards and favorable regulatory environment. • The NCC is playing an active role in providing quality regulatory interventions in terms of promoting ethical conduct, ensuring level playing ground, fair and transparent competition, etc.

10. High costs of right of way resulting in high cost of leasing transmission infrastructure, Long delays in the processing of permits resulting in long time to roll out Fiber infrastructure and BTS sites. Multiple taxations / regulations by various levels and agencies of government, Incessant damage to existing fiber infrastructure as a result of vandalism, theft, road works, etc. Lack of sufficient shared ducts for fast roll out of Metro fiber, Lack of reliable and clean grid electricity supply. Reluctance by private providers to invest funds in rural areas. Lack of effective National fibre network redundancy / resilience. Challenges of Broadband Infrastructure Provision.

11. WAY FORWARD Government , through the Ministry of Communications Technology and the NCC is currently addressing the following:- • Deployment of Robust and Effective Metro fiber infrastructure in all Cities – through the implementation of the 5-year National Broadband Plan and the Open Access Regime - This will ensure the much needed resilience and redundancy necessary for a robust and truly national fibre backbone infrastructure. • Standardize administrative charges for ROW for duct construction /cable laying in order to fast track metro and backbone fiber deployment. • Designating telecommunication infrastructure and ICT facilities nationwide as critical national assets - The Commission has in fact reached advanced stage in getting government to designate telecommunication facilities nationwide as critical national assets. • Engaging States, Local Governments and other relevant stakeholders on streamlining the issues surrounding taxes and roll out permits for ICT infrastructure deployment and operations – the SMART City initiative. • Ongoing Reforms in the Power Sector. • NCC’s continuous strict monitoring and enforcement of compliance with laid down rules / regulations / terms and conditions in the telecommunications industry.

12. Obviously, there is clear need for collaboration and partnership with the private sector in our drive to overcome most of the challenges enumerated earlier. Through the USPF for instance, the Nigerian government aims to achieve universal service and coverage using public - private partnership that promotes private sector investment and market based provision of basic, affordable and quality ICT infrastructure and services, while at the same time stimulating economic and social development in the vast majority of un-served and underserved populations of the country. COLLABORATION WITH THE PRIVATE SECTOR.

13. CONCLUSIONS • There is no doubt that Government, through the Nigerian Communications Commission, has put in a lot to provide the appropriate enabling environment that will facilitate nationwide Broadband deployment. • The NCC’s role in providing appropriate regulatory interventions in terms of promoting ethical conduct and ensuring level playing ground, fair and transparent competition also helps in shaping the industry. • With more Broadband deployment, the potential for enormous economic, social benefits and better convergence services can be achieved. • Regardless of the technology used to deliver the services, Broadband will enable opportunities for many applications, particularly for rural and remote communities, as well as lesser developed regions of the nation.

14. THANK YOU