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Tag: Spectrum

  • NCC to accelerate licensing of new spectrum to facilitate new technologies

    NCC to accelerate licensing of new spectrum to facilitate new technologies

    Prof Umar Danbatta, the Executive Vice Chairman/CEO, Nigerian Communications Commission(NCC) has reaffirmed the commitment of the Commission to ensuring accelerated licensing of new spectrum that would usher in new technologies.

    Danbatta made the assertion at a virtual webinar organised by the Nigerian-British Chamber of Commerce (NBCC) tagged: “Nigeria’s Telecommunication Industry-Post COVID”.

    Danbatta said that the technologies, inclusive of 5G, broadband satellite services , high altitude platform services, and others would address the dearth of infrastructure and services.

    “We will create additional areas of investments with the opening of new spectrum, especially for broadband deployment in both urban and rural areas, and facilitate fibre deployment through initiatives such as the infocomm.

    “NCC is committed to the provision of infrastructure, transparency and ease of doing business in Nigeria,” he said.

    Danbatta, represented by Mr Babagana Digima, Head, Digital Economy Department, NCC, added that some operators had reported an increase in data usage and volume of calls.

    This had in turn raised the demands for better network connectivity and improved internet coverage, especially in the rural areas, he said.

    Danbatta said that the telecommunications industry was committed to the delivery of better service and internet infrastructure that would provide quality service and experience as well as address customers’ complaints.

    “Some of the complaints raised by the customers during the pandemic were attributed to poor mobile network signals’ absorption and low internet speed.

    “The immense contribution of the telecommunications industry during this pandemic is undoubtable because it has managed to keep people connected ,informed, entertained and enlightened about the disease which has helped in curtailing its spread.

    “Governments worldwide, especially in developing countries like ours, have since recognised the need for telecommunications’ infrastructure.

    “The pandemic has laid bare the urgency of such interventions,” he said.

    Also, Mr Segun Ogunsanya, the Managing Director of Airtel, advocated support for Small and Medium Enterprises (SMEs) to engender economic recovery in the post COVID-19 era.

    Ogunsanya, in his presentation, said that the SMEs were most hit by the impact of the COVID-19 pandemic and Airtel had created incentives and discounts for them to support their businesses.

    This, he said, was the company’s ultimate objective to reduce the digital divide between those who have access to internet and those who do not.

    According to him, access to the internet is key and imperative because it acts as a leveler that provides information opportunities to small and big businesses alike.

    Ogunsanya said that contrary to conventional thinking, the telecommunications industry recorded a decline in its revenue in the first month after the lockdown.

    President Muhammadu Buhari announced a total lockdown in Lagos State, Ogun and the Federal Capital Territory in March 2020 to curb the spread of the COVID-19 virus.

    Ogunsanya said that the pandemic had transformed the conventional ways of carrying out businesses, with online engagements becoming more popular.

    “The impact has been huge on social and economic activities but we thank the authorities for creating a good environment for the virus to be contained very quickly.

    “The telecoms industry is not isolated from the main economy and you can see the impact on the five key areas of the GDP.

    “There was an initial reduction in consumer spending on telecoms services and products and a rise in the demands for data services at the initial stage of the lockdown.

    “We got a decline in the second quarter and a lot of pressure is being put on us to increase capital expenditure as a result of increased back haul requirements,” he said.

    Ogunsanya urged telecommunications industries to live up to their key responsibility of creating the right access either through mobile broadband, fibre or wireless connectivity to improve the future trend of businesses in the country.

    “We need both fibre and wireless because it’s slightly more difficult to leave fibre but easier to spread the wireless access.

    “We have seen a shift from coverage and capacity to customer experience, but data requires a lot of bandwidth.

    “We’re focusing more on the kind of experience we’re giving our customers,” he said.

    Also, Bisi Adeyemi, the Deputy President of NBCC, stressed the importance of the telecommunications industry on small businesses due to the evidence of more reliance on data and voice connectivity.

    “People across the world have had to rely on technology to deal with the new realities of working from home.

    “It has,therefore, become necessary to evaluate the impact of the industry on creating an enabling business environment and economic growth,” she said.

  • NCC to open up, assign other spectrum bands to telcos

    NCC to open up, assign other spectrum bands to telcos

    The Nigeria Communication Commission (NCC) has said, given that spectrum is a critical mobile infrastructure, it will open up and assign other spectrum bands for telecoms service providers in the country.

    NCC’s Executive Vice Chairman, Professor Umar Danbatta, made this known, while also stressing that the Commission will open up and assign the other spectrum bands in an open and transparent manner.

    TheNewsGuru had earlier in a feature urged the telecoms regulatory commission of a greater need to tread with caution in order to avoid monopoly with the Visafone spectrum transfer to MTN Nigeria.

    This is given that the MTN/Visafone spectrum transfer has raised issues among telcos operators in the country.

    ALSO READ || Telecoms: NCC must avoid monopoly with Visafone spectrum transfer

    TheNewsGuru reports reports that 2.3GHz spectrum has been licensed for wholesale wireless last mile services.

    According to Danbatta, there are ongoing discussions with various levels of government to facilitate speed in processing permits, harmonisation of tax regimes and to ease the deployment of infrastructure, including streamlining right of way charges.

    He said that there were also limitations and access gaps in metro fibre deployment to nodes, neighbourhoods and last mile connection to homes and businesses, which the government needed to address.

    “Since spectrum is a critical mobile infrastructure, the commission will strive to provide the required frequency spectrum capacity.

    “The commission will facilitate the re-farming of existing spectrum held by operators to provide broadband services without impacting their quality of service delivery.

    “We will open up and assign other spectrum bands in an open and transparent manner,” he said.

    According to Danbatta, the availability of broadband infrastructure will unlock new opportunities and drive a second wave of growth in the telecoms industry and the economy.

    Meanwhile, speaking at ICT Watch Network Award Ceremony held on Friday in Lagos, Danbatta stated that broadband access is an important feature in communications infrastructure policy and should be treated as a key economic indicator.

    According to him, broadband deployment has a strong impact on GDP, employment and productivity in all economic sectors.

    “It can be seen all over the world that there is a higher economic growth in countries with more broadband penetration than countries with less broadband penetration.

    “Hence, governments and regulators worldwide are strongly in support and make every effort in promoting broadband deployment, in order to stimulate the development of the economy and the society.

    “The International Telecommunication Union (ITU) advocates that Broadband should be treated as an essential service like electricity and water, it is difficult to imagine life without water or electricity,” he said.

    Danbatta assured that the commission would continue to drive and support high speed broadband connectivity to end users through various initiatives.

    He said that initiatives such as licensing of InfraCos, on a regional basis, provide metropolitan fibre and wholesale transmission services on a non-discriminatory, open access and price regulated basis.

    The Executive Vice Chairman said the roadmap was to have fibre point of access in every Local Government Area in in the country within four years of the commencement of deployments in each geopolitical zone.

     

  • Telecoms: NCC must avoid monopoly with Visafone spectrum transfer

    There is a greater need for the Nigerian Communications Commission (NCC) to tread with caution in order to avoid monopoly with the Visafone spectrum transfer to MTN Nigeria.

    Given that the current MTN/Visafone spectrum transfer has raised issues among telcos operators in Nigeria, it becomes imperative that the NCC reached an informed decision to avoid monopolizing the Nigerian Telecommunications Industry.

    TheNewsGuru recalls the regulatory commission held a public enquiry in this regards on the 25th of June 2018; however, it is more imperative to properly cross the Is and dot the Ts if the NCC must reach an informed decision to avoiding monopoly.

    It is commendable that overtime the NCC has put in place certain guidelines to regulate telecommunication operations in the country.

    The June public enquiry was necessitated by the question of whether NCC should or should not transfer Visafone’s license and spectrum to MTN Nigeria Communications Limited.

    At a public hearing in Abuja recently, 9mobile and Airtel argued that transferring Visafone’s 800 Megahertz spectrum would concentrate 38 per cent spectrum available in the country on MTN and thereby give the company undue advantage to further dominate the Nigerian telecommunications market.

    TheNewsGuru also recalls that on the 7th of December 2015, the NCC granted MTN Nigeria final approval for the acquisition of 100% equity in Visafone. In 2016, Visafone sought NCC’s approval to transfer its operating and spectrum licenses to MTN to ensure the optimal use of its spectrum holdings.

    Although the NCC had approved the acquisition deal, it has yet to approve the transfer of the frequency and license to MTN, even as 9mobile had gone to court to challenge the transfer of the frequency to MTN.

    According to the Nigerian National Broadband Plan and the Nigerian Communications Act 2003, NCC can issue spectrum licenses, and has such powers to reallocate or reissue. It also has powers to recall an unused spectrum license which has remained unused for 2 years, and reallocate to another client.

    As at May 2018, MTN has over 50% revenue market share and 66.4mn subscribers representing 41% subscriber market share in the Nigerian Telecommunications Industry. It also has robust Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) margin of ~50% which underscores its capacity to undertake massive network investment compared to other telcos with less than 30% EBITDA Margin.

    Furthermore, the NCC in its study on the level of competition in selected communications market in 2013 declared MTN a Dominant Operator in Mobile Voice Market and Joint Dominant Operator alongside Glo in the Wholesale Leased Lines and Transmission Capacity sub-segment. This is also in addition to its interest in IHS, Colocation and Infrastructure Sharing Licensee with the highest number of towers in the Nigerian Telecommunications Industry.

    Stakeholders concerns in this matter, considering MTN’s size, resources under its control, even without the 800MHz band, and its dominance status in both voice mobile and wholesale leased lines and transmission capacity segments of the industry, the proposed transfer of license and resources including the 800MHz spectrum from Visafone would not only increase MTN’s market power but will substantially lessen competition in the Mobile Voice Market and Mobile Data Market segments of the industry, which could lead to MTN becoming a monopoly.

    This is because, other telcos, including the top 3 operators, will not be able to compete, as the proposed transfer will enable MTN to grow from dominance into a monopoly, thereby distorting the competitive landscape in the Nigerian Telecommunications Industry.

    MTN through the proposed transfer of license and resources including the 800MHz spectrum from Visafone to MTN is intended to unnecessarily amass and reserve spectrum bandwidth capacity at the detriment of other players in the industry.

    It is pertinent to state that the 800MHz spectrum band has been identified as the most ideal and suitable for the deployment of mobile broadband due to its characteristics to traverse farther distance and support mobile broadband rollout at optimal cost (~25% CAPEX) compared to 2.6GHz spectrum band.

    It is critical to mention that the proposed transfer of the aforementioned resources from Visafone to MTN will enable MTN to be the only operator among the top 4 pan-Nigeria operators holding this prime spectrum band.

    The National Broadband Plan (2013-2018) had intended that the digital dividend band will be relinquished by the National Broadcasting Commission (NBC) and transferred to the NCC for mobile broadband services. MTN had, however, earlier engaged and acquired 10MHz bandwidth capacity on the 700MHz spectrum band from the NBC. The transaction was conducted in a closed and non-transparent manner which is disadvantageous to other interested operators.

    MTN had earlier opposed similar acquisition in South Africa. It is, therefore, sane to query the justification of its bid to replicate what it rejected in South Africa. If that acquisition is not good for South Africa, why is it good for Nigeria?

    Spectrum is the same all over the world, and in the UK, the regulator places a cap on the amount of spectrum an operator can buy. Also in India, there is a cap on the volume of spectrum that can be acquired and held by a particular operator. This needs to be introduced to the Nigerian Telecommunications Industry to avoid spectrum hoarding at the detriment of other stakeholders in the industry.

    There is need to ensure balanced investment and control of prime resources in order to build other strong players apart from MTN in the Nigerian Telecommunications Industry.

    In line with international best practice for Mergers and Acquisition, NCC should consider conducting an assessment of the impact of the transfer of the License and other resources including the 800MHz spectrum from Visafone to MTN taking into consideration inputs from other industry players likely to be affected by the transaction.

    Example of such is the EU Merger Regulation 2004 and the United Kingdom Enterprise and Regulatory Act 2013 which provides detailed steps on the test to be conducted by a Regulator with regards to this kind of transaction.

    NCC recently published Spectrum Trading Guidelines intended to ensure optimal utilization of this finite resource and create a secondary market for spectrum transfer, spectrum leasing and spectrum sharing. The Guidelines further specify conditions to be met by both the Buyer and Seller in order to enter into Spectrum Trading arrangement.

    In line with general principles of law, the guideline cannot be applied retrospectively towards the regularization a pre-existing transaction, which in this instance is between Visafone and MTN.

    The same guideline stated that if in the considered opinion of the Commission, a transaction will negatively impact on competition and other regulatory considerations, the Commission may at its discretion conduct a Public or Private Inquiry in respect of an application for Spectrum Trading.

    NCC at this junction should consider all other stakeholders’ concerns to review their stand to see that monopoly should not be allowed.

    If MTN is given the access to the 800 MHz spectrum band which will enable it to provide 4G LTE services and apparently place it in an enviable position of being the only GSM operator with access to this spectrum, it will thereby increase their chances of becoming a monopoly in the industry.

    As much as NCC plan to surpass the 30 per cent penetration target set for 2018, critical consideration of the spectrum should be well reviewed.

    In view of the above, NCC should consider not to transfer the license and resources including the 800MHz from Visafone to MTN in order not to distort the competitive landscape in the industry.

    Way Forward:

    a) Enforcement of Licence Conditions: The NCC is invited to take necessary measures toward enforcing the terms and conditions of the licence issued to other telcos on the 800MHz frequency band. Given its uniqueness to effectively support pervasive rollout of high-quality mobile broadband services at minimal cost, it is critical for the NCC to ensure its optimal utilization. The NCC should exert pressure on current occupants on the band to either meet rollout obligations or sell, lease or share with other interested telcos within a particular timeframe failing which such assignment will be withdrawn and reassigned to licensees. This is a critical issue deserving immediate attention of the NCC to facilitate the attainment of the targets of the National Broadband Plan (2013-2018).

    b) Engagement with NFMC/NBC: In accordance with the provisions of the National Broadband Plan, the NCC is further invited to engage the National Frequency Management Council and the National Broadcasting Commission to revoke and invalidate every frequency assignments on the 700MHz carried out in a closed and non-transparent manner, so as to ensure fairness and equity in the Nigerian Telecommunications Industry. The NCC will be required to subsequently conduct a competitive auction on the reallocated digital dividend frequency slots to interested licensees.

    It is believed that the NCC as a forthright and proactive National Regulatory Body will take necessary measures to ensure level playing field in the Nigerian Telecommunications Industry to avoid creating a monopoly in the interest of the nation.

     

  • Tizeti secures $2.1m funding to offer unlimited Wi-Fi service in Lagos

    Tizeti and its consumer facing brand, Wifi.com.ng, which offers unlimited, uncapped internet service across Lagos, Nigeria, have announced the closure of a $2.1 million seed funding from international investors.

    The investors include Western Technology Investment, Social Capital, Vy Capital, Picus Capital, Ace & Company, Lynett Capital Partners, Zeno Ventures and a number of angel investors including Y Combinator’s Michael Seibel and Gabriel Hammond.

    The company which operates widely as a “Comcast for Africa”, builds and operates solar-powered towers to provide reliable and affordable Wi-fi services to hundreds of residential areas and SME’s across Nigeria’s megacity.

    The capital injection, secured as part of this seed round, will see services extended across the city and the South-South region of Africa’s most populous country, by launching an Xfinity Wifi-like Hotspot service, as well as scaling up mobility with the inclusion of 3,000 new public hotspots across Lagos.

    Founded by Y Combinator Alumni Kendall Ananyi and Ifeanyi Okonkwo, cohorts of the Winter 2017 batch, Tizeti was created to address poor internet connectivity on the continent by developing a cost-effective solution from inception to delivery, for reliable and uncapped internet access for potentially millions of Africans.

    Since launching, Tizeti has been building its own solar panel towers in key hubs in Lagos, therefore is not restrained by costly wholesale internet costs from large telcos who have, until now, dominated the data market.

    The use of solar energy also reduces overheads on generators and diesel, which are often used across the continent to run towers. Running its internet network from its own infrastructure allows Wifi.com.ng to be hyper competitive in its pricing, offering an affordable and flexible payment structure, with subscriptions starting from N9,500 / $30 a month, which is approximately 30% cheaper than the large telcos.

    “Today’s seed announcement allows us to grow aggressively in the Nigerian market, and we will continue to invest in building out our own solar powered infrastructure, as well as refine and expand our consumer focused product that delivers reliable, cost-effective Wifi to potentially millions of Nigerians,” Kendall Ananyi said.

    “We aim to ‘win Lagos’, with a view to expanding across the West African region over the next 18-24 months”.

    It is estimated that 26% of Africans are online, however only 6% having an internet subscription.

    As the use of solar power in West Africa grows, Tizeti is building out its network of 35 owned and operated towers, taking advantage of the rapidly decreasing cost of solar panels in the region; providing unlimited, undisruptive internet with a basic speed of 10mbps.

    Additionally, the company owns a delivery network that facilitates internet connectivity from Submarine Cables directly to their customers through its solar-powered Wifi towers.

    “Since graduating from Y Combinator, we’ve licensed Spectrum (fees and pricing) from the Nigerian Government and signed an IRU contract with a Submarine Cable provider to extend the coverage of our Unlimited Internet Service, which will put Tizeti in a stronger position to roll out additional services to more people such as our new Wifi Hotspot Service,” he added.

    Since its launch, Tizeti has connected thousands of Nigerian subscribers to broadband internet, and continues to capitalise on a market that is witnessing steady growth.