Providing Seamless Connectivity in E-commerce
Prof. Umar Garba Dambatta
Executive Vice Chairman, Nigerian Communications Commission
Content
• Context
▫ The Nigerian Telecommunications Industry
▫ Connectivity Statistics
• Broadband/ Data Services
▫
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What is Broadband
Current status
Challenges of Broadband Development in Nigeria
Broadband and Frequency Spectrum
National Broadband Infrastructure Initiatives
• Conclusion
3
Context
4
The Nigerian Telecommunications Industry
Increasing use of data enabled devices (Smartphones, dongles, MiFis etc)
Voice service dominates the industry (Dominated by the 4 GSM providers)
Internet and VAS usage increasing
E-commerce entities increasing
Increasing confidence of transacting online by the populace
Online transaction security becoming critical
Increasing network coverage for 3G and 4G data services
Increased Colocation of services
Reducing Average Revenues per User
Increasing competition among players
Rather limited competition to GSM providers in the mobile broadband
segment
• Continued strong growth from the mobile sector threatens fixed-line
growth
with mobile substitution
• The insurgency in the north threatens the operations and network
expansion
plans of service providers
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•
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5
Active Voice Subscribers and Teledensity - December 2002 to Sept 2015
160.00
120.00
140.00
100.00
120.00
80.00
100.00
80.00
60.00
60.00
40.00
40.00
20.00
20.00
0.00
0.00
2002
2003
2004
2005
2006
2007
2008
2009
Subscribers (Millions)
2010
2011
Teledensity (%)
2012
2013
2014
Sep-15
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Dec-13
Dec-14
Sep-15
2.27
4.02
10.20
19.52
33.86
41.98
64.30
74.52
88.35
95.89
113.20
127.61
139.14
150.70
1.80
3.19
8.10
15.49
24.18
29.98
45.93
53.23
63.11
68.49
80.85
91.15
99.39
107.61
Subscribers (Millions)
Teledensity (%)
6
120.00
Internet Subscribers and Penetration
Dec 2012 to Sept 2015
80.00
70.00
100.00
60.00
80.00
50.00
60.00
40.00
30.00
40.00
20.00
20.00
10.00
0.00
2012
Internet Subscribers
(Millions)
Internet Penetration
(%)
Internet Subscribers
(Millions)
2013
0.00
Internet
2014Penetration (%)
Sep-15
2012
2013
2014
Sep-15
30.94
64.23
76.32
95.40
22.10
45.88
54.52
68.14
7
Broadband / Data Services
8
What is Broadband?
Traditionally, the term broadband referred
to high-speed communications networks
that connected end-users at a data transfer
speed greater than 256 Kbit/s.
Broadband within the Nigerian context is
defined as an internet experience where the
user can access the most demanding content
in real time at a minimum speed of 1.5 Mbit/s.
Source: Nigerian National Broadband Plan
9
Current Status
- International Submarine
Cable landings at our
shores
- Inadequate metro fiber
infrastructure in several
cities
- Distribution and last mile
challenge
- Over 30,000 km inter City Fiber laid already
- Unutilized Capacity Due to
Duplications in some
inter-city fibre routes
- Internet access mainly
through wireless means
- Relatively limited locally
relevant content
10
Challenges of the ICT industry in Nigeria
• The challenges of the ICT industry in Nigeria have also been
identified as the absence of a robust national backbone
infrastructure, high cost of access to devices, threat of
power supply, right of way issues, damage/vandalization of
fibre infrastructure, multiple regulations and taxation,
discriminatory special high taxes and security of
telecommunications infrastructure, spectrum availability underutilization and non-utilisation of spectrum.
• Investment and funding have also contributed to the rate
of deployment of needed infrastructure for the telecoms
industry. Telecoms infrastructure is capital intensive
and while it is also true even at the level of investment so
far, more would have been achieved if the operators had
shared infrastructure at various levels.
Challenges of Broadband Development in Nigeria
Supply Side
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Relatively limited Infrastructure
sharing
Power supply issues
High Right of Way charges and
multiple taxes and levies
Duplication of backhaul intercity
fibre
Lack of metropolitan fibre
infrastructure
Multiple Taxation and regulation
Limited spectrum bandwidth
Discriminatory pricing by existing
infrastructure owners
Security and Community issues
Government policy
Availability of skilled manpower
Clear regulatory frameworks
Profitable data business model
Demand Side
• Cost of terminal devices
• Availability of applicable
content
• Cost of broadband access
• Relatively low level of
digital literacy
• Unsatisfactory “broadband”
speeds
• Scale of fake or substandard devices
• Poor perception of
broadband value
• Government policy
• Electrical power supply
4
Broadband and Frequency Spectrum
• Broadband is the centrepiece of the digital age
• National Backbone Broadband Networks in conjunction with
latest generation mobile telecommunications will drive the
digital economy
• Aim to deliver - Productivity - Connectivity – Mobility
• Vast majority of Nigerians carry out online transactions via
mobile devices making frequency spectrum critical
• Spectrum is critical mobile infrastructure
• The trend world wide is transactions and other interactions
between business entities and consumers and potential
consumers are going online and mobile
13
National Broadband Infrastructure Initiatives
• Accelerated rollout of Metropolitan Area Fibre
Infrastructures across the country
• To address last mile challenges to businesses, homes,
telecommunications sites etc
• Instituting price caps and price floors for wholesale
broadband capacity
• Instituting an open access framework for access to
broadband infrastructure
• Licensing several Retail Service Providers to encourage
innovation, choice and improved service delivery
• Licensing additional spectrum for wireless broadband
• Effective compliance monitoring and enforcement
frameworks
• Clear regulatory frameworks to encourage investment and
effective industry operation
14
Conclusion
Conclusion
• Effective E-commerce ecosystem requires pervasive
telecommunications and broadband infrastructure deployment
• Mobile broadband demand growth strong and prices falling
• Mobile economic contribution – direct and indirect – Access
• Mobile Broadband – productivity enabling technology
• Global and local demand for mobile broadband on the rise
• Technology pathway – speed and capacity evolution
• New spectrum allocations – critical future infrastructure
• With further technological advancements and international
standardization, average terminal device price will keep falling
• Content is crucial is driving broadband adoption
• Optimal deployment of broadband infrastructures in the face of
falling ARPU’s critical to driving broadband availability and
affordability as well as effective support for the E-commerce
ecosystem
Thank You
Dr. Eugene Juwah
Nigerian Communications Commission