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Editions 141 - 149
CYBERSCHUULNEWS EDITION 149
eNIGERIA RATED HIGHLY SUCCESSFUL AS
NIGERIAN YOUTHS CHALLENGE ECOWAS ON ICT
Nigeria's ICT youth community was represented at the
recent eNIGERIA conference by a caucus made up of
Nigerian Youth Coalition on ICTs, Intelligence Foundation
and Youth Development entrepreneurship foundation, YDEF.
The IT Youth Ambassador, Mr. Edward Popoola, led the
delegation. The caucus actively participated in the
conference, presented a Nigerian Youth Paper on WSIS,
provided live Internet coverage of the conference
proceedings and issued the Nigerian Youth Declaration on
WSIS communiqué. Their paper invited ECOWAS member
states to make ICT the driving force in teaching and
learning through the revision of existing curricula at
the three tiers of the educational system.
Stay tuned www.cyberschhul.com for full report on
eNIGERIA 2004 summit [May 24 - 26].
NITEL HIKES PHONE TARIFF
'When a telco is suffocating, it lowers prices. When it
is asthmatic, it hikes them' is a common dictum in
telecommunications industry parlance. Chances are that
NITEL is asthmatic as it went on a rigmarole of surprise
price hike last week. It raised its local charge rate by
50% from N4.30 to N6.50.
The significance of its action is in the fact that it is
the benchmark for industry tarrification in Nigeria.
NITEL's fortune had been on a steady decline in the past
ten years as it never recovered to its early 90's best
fiscal performances. But matters reached a head when its
monopoly was withdrawn legally in 1992, practically in
1998 and radically in 2000 when several PTO's came into
the market. Today there are 25 other PTOs and NITEL,
which is being restructured under a 'foreign coach'
approach preparatory to privatization, appears to need
only one solution to make it retain its current market
share. Miracle.
The guy who announced the apparent panic measures said
the company's fortunes are very promising.
. MTN BOWS TO REGULATION
AS NCC WINS TARIFF WAR
The court case which GSM giant MTN Nigeria instituted
against Nigeria's phone Regulator, NCC, has ended, at
this stage, in favour of the latter. Relying on its new
powers under the telecommunications Act 2003, the
pro-consumer regulator had, late 2003, imposed N11.52
sealing down from N18.00 for interconnect traffic
terminating across gsm networks and two mobile service
providers one after the order headed for the courts. Now
the court has compelled MTN to comply.
Analysts believe the judgment is a vindication of a
responsive regulator which has demonstrated very fine
credentials of piloting telecommunications business in
what many regard as a global-best-practice manner.
Unlike in military years when decisions usually took
immediate effect, sometime retroactive, NCC, star of the
current regime, has always given good notice for its
rulings to take effect and its conduct has been a case
study in good industry regulation under a democracy and
the rule of
DIVORCE:
ECONET-VODACOM-VODAGO-VEENETWORK-VMOBILE................
The recent patched relationship between South African
mobile giant Vodacom and Econet Wireless Nigeria appears
to have collapsed irretrievably. Vodacon which has been
finding the Nigerian juicy market too tempting to ignore
must have realized lately that it has no temperament for
corrupt markets. But dogs cannot ignore bones.
It is testing times for Nigerian officials in view of a
foreseeable distabilisation in the industry as the
custodian of 30% of the mobile market may be flying back
into turbulent weat
SPECIAL REPORT
SPAM CREATES FEVER ON THE INTERNET
A US based filtering firm MessageLabs reported a few
days ago that Spam now makes up 70% of all e-mails
worldwide, and the figure is growing,. The firm also
said the U.S. anti-spam law that took effect this year
actually has had the opposite effect of what was
intended because it has legitimized some forms of spam
and allowed aggressive marketers to adapt rather than to
shut down.
Titi Omo-Ettu a Lagos based telecommunications
consultant and trainer says Spam mails have assumed the
proportion of HIV on the net. 'Its crazy these days
especially if you use the net frequently. Four years ago
I used to receive an average of 80 mails per day 60 of
which were useful to me. Today I get over 200 and only
20 are useful. Many local contacts may not have access
to the web again just as those who use free web based
addresses have been tortured to submission by spam
mails. 12,000 persons are receiving our cyberschuulnews
and almost 7000 of them are the yahoos who, boy, bear
the brunt. It s bad, my brother..’
ESSAY
Issues in Youth Empowerment
by
Edward Popoola
Nigeria IT Youth Ambassador
One of the definitions given empowerment in the Oxford
English Dictionary is "to give individuals control over
their own lives or the situation they are in". In this
piece we will look at the present situation of the
Nigerian Youth and areas in which they are being
empowered or could be empowered.
At the just concluded eNigeria 2004 ICT conference, a
man in his forties walked up to the youth stand. Like we
did for every other person visiting the booth, we gave
him an idea of what the youth caucus was at the
conference to do, that is, to present the Nigerian Youth
Declaration on the WSIS. He listened to what we had to
say, he waited patiently for us to finish and there he
went, into what I felt has been bothering his mind as
someone who loves his country.
Mr Haruna [not original name] raised the issue of
empowering our youths by buying motorcycles[okada] for
them. He maintained that in the 21st century this is a
most unfair treatment meted out to the youths of this
generation. His argument was that, for how long is a
young man of 25 going to ride Okada. He pointed out the
various things he will have to contend with, his family,
his siblings, his house rent among others. At the end he
made a conclusion that these youths are those who will
ride okada by the day and carry guns at night, to make
both ends meet.
I couldn't help but agree with Mr. Haruna. Not because
he eloquently passed across his message, nor because he
appealed to my emotions but because, he once again
reminded me of the fact that we as the youth caucus not
only represent the interest of the "literate" youths but
also the underprivileged youths.
One thing that I however pointed out to Mr Haruna was
the education gap between the literate and the
illiterate. For those youths who have had little or no
formal education, I will say putting them on an Okada is
a short term solution to the problem of unemployment and
a short term form of empowerment. This is because in an
information society, knowledge is the driving force, and
a minimum level of education is required. Otherwise
vocational training seems to be a very important area
that can benefit these set of youths.
For the literate ones, I think it is most debasing and
also an insult on our educational system. For a
University graduate or a secondary school leaver, the
last option is to settle for an Okada. These are young
people who have spent the early part of their lives
learning in the four walls of the classroom. A passion
has been started in them and it is most unfortunate that
we kill this passion by throwing them into the reality
of poverty, forcing them to do things they wouldn't have
settled for if given other worthy options.
ICT is another worthy option. The World is changing and
economies are changing from being concrete resource
dependent to knowledge dependent. Nigeria has a
population of over 125 million with the youth
constituting the major workforce. We can use our
population advantage to change our economy. India is
doing that today as it is the largest exporter of
software personals.
Nigeria is a country that has educated youths littering
the whole place, these young people can be trained for
the new knowledge economy. They can be empowered with
the tool of Information and Communications Technology.
Today, access to the tools of Information Technology is
something of concern, however access becomes useless if
the people that have access do not have the know how to
use and maintain the access. This might then water down
the efforts of those clamouring for access to the ICT
tools.
The Government, private sector and the civil society
should work together to get training and resource
centres in different parts of the country. In places
where these centres are present there should be a
radical awareness program as to their availability. One
of such is the Lagos Digital Village that was just
commissioned. Parties involved in the project are the
Lagos Sate Government, Junior Achievement Nigeria and
Microsoft.
And from all indications, over the years the private
sector and the civil society have shown interest in
sustainable development, their interest do not however
see the light of the day when the government shows
lackadaisical attitude.
This then is a clarion call to the people in government
that the effect of the things we do right or fail to do
today will become our neighbours tomorrow.
Edward Popoola can be reached on me@edwardpopoola.com
THE RIGHT TO TALK BACK
NBC CLARIFIES BAN, BAN BAN STORY
Going through CYBERSCHUULNEWS 300404-144, I was hit by
the second paragraph of item iii in NEWSreview as it
concerns the NBC. I then thought it necessary to correct
the misinformation therein. I subscribe to the ideals of
the CYBERSCHUULNEWS and quite appreciate the effort at
bridging the gap in digital information flow. For
contribution to remain relevant I would not want it to
be a channel of misinformation.
The National Broadcasting Commission has neither banned
the broadcast of foreign news nor used the word ban in
the directive given to the broadcast stations in Nigeria
0n March 30, 2004. The Commission only stopped the live
relay of foreign news and news programmes by local FM
stations. This is in line with the nature of FM licence.
The FM, Frequency Modulation band is utilized for
city-based broadcasting. It is usually for light-hearted
entertainment, cultural and social taste. The FM
stations are essentially meant to cater for urban tastes
and considerations because they do not have the reach,
which the SW and MW have.
The Short Wave Band -SW is universal and used by all
nations for long-range transmissions depending on the
power of the transmitter. It can be received without
impedance across continents. This is what the BBC, VOA,
VON and all others use for long distance broadcast.
The directive on live relay is embedded in the Nigeria
Broadcasting Code, the professional Code of the industry
in Nigeria. Section 5.1.4 of the Code states;
"A terrestrial station shall not relay foreign news
content directly. This does not preclude the universal
practice of using excerpts for news whose duration shall
not exceed three minutes".
The National Broadcasting Commission Act 38 of 1992 as
amended by Act 55 of 1999, section 2(1) (k) supports the
Code;
"The Commission shall be responsible for initiating and
harmonizing government policies on trans-border direct
transmission and reception in Nigeria".
Having established that this action is not illegal as it
is backed by law, does it really make sense for any
licensed terrestrial station to hook on to "live foreign
news broadcast"? Doesn't it amount to a calculated
attempt to kill our creativity and freedom of
expression?
Another issue of misinformation is that private
electronic media owners are made to pay four times what
their government owned counterparts pay for operating
license.
For license fees, the country categorized is into A, B,
and C zones depending the economic viability of the part
of the country. At the highest fee of twenty million
Naira for five years for private stations which operate
in zones, where each zone is made up of five or more
states, the fee comes down to about eight hundred
thousand Naira per annum. For the government owned
stations the fee is five hundred thousand Naira a year
per frequency and where a state has more than one
frequency, which is usually the case, it pays five
hundred times the number of frequencies. So you have
some states paying up to twenty-five million Naira in
five years. Where as you have some private stations
paying as low as ten million Naira in five years.
Whereas the private operator may find a state
economically unattractive, the state government has no
choice but must as a matter of responsibility provide
information and enlightenment machinery to its citizens.
Is it not unfolding that some operators are not just
ready pay bills, including employee emoluments and
taxes.
Bridget Udeorah,
Principal Public Affairs Officer of National
Broadcasting Commission, NBC
Editor NBC News
CYBERSCHUULNEWS EDITION 148
"ENTERPRISE BANKER" LAUNCHED IN LAGOS
A new Banking application codenamed 'Enterprise Banker"
has been launched in Lagos by Connect Technologies Ltd.
The product is 100% indigenous effort and conforms to
best practice principles and international standard and
quality.
IT experts who previewed the test runs have classified
it as the best banking solution so far engineered by
Nigerians for the Nigerian banking environment,
especially for community banks.
DBI TAKES OFF
The Digital Bridge Institute, NCC's answer to the
manpower development requirement of the
telecommunications industry was commissioned May 20,
2004. The Institute is taking off with courses which
include Advanced Intelligent Network, Telecom business
trend & analysis, Project management for ICT industry,
E-commerce, Portal & Vortal Information Systems etc.
PRIVATISATION
Energy may not be the direct knowledge area of
CYBERSCHUULNEWS' alright, but there is a close
relationship between good telecommunications/ICT and
public electricity industry. Malaysia is reported to
have made a success of privatization policy in her
electricity supply industry. The following analysis,
duly abridged for brevity, is taken from
http://www.metering.com/archive/014/14_1.htm
PRIVATISATION OF THE POWER SECTOR:
A MALAYSIAN SUCCESS STORY
The electricity supply industry in Malaysia was
privatised in 1990. There are three main utilities in
the country - Tenaga Nasional Berhad (TNB), Sabah
Electricity Sdn. Bhd. (SESB) and Sarawak Electricity
Supply Corporation (SESCO). The power demand in 2000 was
10,600 MW, met by a total generation capacity of 13,280
MW. 5,090 MW or 38% is contributed by 13 independent
power producers (IPPs).
Malaysia is a developing country with a population of 23
million and a per capita income of about RM13,000
(US$3,400). The economy grew at a rate of about 8% p.a.
for the ten years before the 1997/1998 economic
slow-down, with electricity demand increasing by over
12% p.a. It is expected to grow at 6% to 8% p.a. over
the next ten years.
As a first step in implementing the government's
privatisation policy, the National Electricity Board was
corporatised in 1990 as Tenaga Nasional Berhad (TNB) and
subsequently privatised and floated on the Kuala Lumpur
Stock Exchange, with the Ministry of Finance holding
about 70% of the shares. The Sabah Electricity Board was
privatised in 1998 as Sabah Electricity Sdn. Bhd., with
TNB as the major shareholder, while the Sarawak State
Government divested 50% of its equity in SESCO to the
private sector in the late 1990s.
The government has also granted 15 IPP licences, one
transmission licence, several distribution licences and
a number of merchant co-generation licences since 1990.
Besides these, there are about 2,000 self-generation
licences issued to industrial and commercial entities
that generate electricity for their own use.
Until recently the utilities were vertically integrated
entities undertaking generation, transmission,
distribution, supply, metering and billing activities.
However, TNB has formed two wholly-owned subsidiaries
which have taken over the operation of its thermal and
hydro stations, selling the energy generated back to TNB
through power purchase agreements. TNB has also
appointed its subsidiary TNB Metering Service Sdn Bhd to
undertake its metering services.
The Malaysian model of privatisation of the power
sector, which was designed to meet the country's social
and economic objectives, has been able to secure
adequate supply of reasonable quality, ensure affordable
and stable electricity prices, provide confidence to the
investors, meet the funding challenges, promote
competition and improve efficiency and productivity
About the Energy Commission of Malaysia
The Energy Commission of Malaysia was established in May
2001 as an independent regulatory body for the
electricity and gas sectors. The Commission consists of
a chairman, two members representing the government and
four other members from the private sector appointed by
the Minister of Energy, Communication and Multimedia.
Its main functions are to act as the technical, economic
and service regulator of the electricity supply and gas
distribution industries, responsible for matters such as
ensuring adequate, affordable and quality supply;
promoting competition and efficient market conduct; and
promoting the interests of consumers. The Commission is
also responsible for safety issues, for promoting the
use of renewable energy, for promoting R&D and training
initiatives, and for advising the Minister on matters
concerning national policy objectives for energy supply
activities
SOLUDO AS WELCOME ALTERNATIVE
For him who uses his soul to play ludo, he probably
needs a soul'ludo to bail him out if he find himself
consistently landing in wrong places. The fact that Prof
Charles Soludo has been sent to the CBN should give us
some hope. We probably need that fellow since he is
Sol'udo. The fact that he is an economist makes me feel
comfortable with the change of thrust. Those who know
the new helmsman describe him as very brilliant. I did a
search on him on the Internet and I agree with my
informants. If only what is required is such brilliance,
we would have been very close to the promised land. I
know he is youthful. And when he spoke on tv the other
day, I felt like going to read his pet project NEEDS
[National Economic Empowerment & Development Strategy]
document on the Internet. The fact that he considered
putting the document in such public domain talks volume
of the kind of guy we are talking about.
On tv he had said the document is a public document and
that the concept he was pushing made it critical that
the public should contribute to it and be thoroughly
involved in its formulation and implementation. He
therefore has been taking the crusade round the country
until his appointment caught up with him. After
listening to him on tele, I hit the web to find the
125-page document. I did not however read the stuff just
like that for obvious reasons.
What I did was to search for the words
'telecommunications' 'ICT', 'Information technology' or
'information and communications technology' which are
the only things I should imagine would make me gauge the
content before reading the entire work if I should at
all.
At the end of the search I made 13 hits and I did an
analysis of the full text under which each hit appeared.
I then felt like reading the entire document and did so.
I also went ahead to make a contribution to the work. I
sent my contribution to the advertised email address and
that was on April 13, 2004. If I had received an
acknowledgement I would not have needed to use my
contribution here. But since I am not sure the
contribution was received, I have taken liberty to use
CYBERSCHUULNEWS to also be part of the nice development.
We shall use the material in future editions.
There is no doubt that we have used all our soul to play
ludo in the management of our economy especially for all
the years that we have managed CBN as if the whole of an
economy is about banking. Although the ludo game was
raised to an art in IBB's time when the game was even
the one we used to call the snake-type ludo in my kid
days. As a kid I did not like the snake ludo because the
board was splashed with various sizes and colours of
snakes. It was a game that made us give the name of 'maradona'
to the smilling general. One cannot accuse IBB of not
using high caliber men to manage public affairs in his
time. In fact he did more than any government we have
ever had. But that is not the issue here. What we want
to say is that we should give NEEDS a chance now that we
have realised that our economy should be managed as an
economy, not as a bank.
We should congratulate Prof Soludo for this great
challenge especially as he is taking over from a highly
respected banker and professional. Congratulations also
to Chief Sanusi for his sagacity while in office and
also to baba for making the difference at this time of
NEED for a change.
[Titi Omo-Ettu who contributed the above is a Lagos
based telecommunications engineer]
CYBERSCHUULNEWS EDITION 147
MTN friendship, or exploitation centers?
asks
Ndubisi Okere
Loss of mobile phones to thieves in Nigeria has been a
very common occurrence. What has become very worrisome
is how GSM operators, especially MTN, exploit its
subscribers who go about the normal business of
replacing lost SIM Cards.
As if the unjustifiably high cost of replacing SIM Pack
at N2,500 each is not enough, MTN has just made new
laws, with possible approval of the Nigerian
Communications Commission, NCC, for replacement of lost
or stolen SIM Pack at its so called friendship
centres. In the new law, MTN is asking its unfortunate
subscribers, who, for no fault of theirs, lost their
phones and SIM Cards to do seven highly tasking things
to get their numbers back.
To get an affidavit from a Magistrate, State or Federal
High Court with the coloured passport of the subscriber
attached on the left top corner of the documents duly
singed by the court.
Provide an Identity card.
Provide a letter of Recommendation from existing
unsuspended MTN Business Time subscriber, with the
letter containing the number of the BusinessTime
subscriber phone number and Account Number.
Provide a declaration signed and sealed by a Registered
Notary Public stating that the customer is a bona fide
owner of the line.
Answer a test question.
Pay a N2,500 for the welcome back pack.
Obtain a police report (Implied as most of the other
documents cannot be obtained without a police report.)
To think that these Packs were bought without being
asked to provide any of the above items, raises the
question as to whether MTN intends to encourage the
subscriber who lost their SIM Cards to replace them, or
discouraging them so that they will prefer to buy
new SIM Cards while their stolen ones are used by the
thieves to increase MTN subscriber base.
In actual fact, apart from the inconveniences of running
about the business of this replacement, it will cost no
less than N3,000 to obtain the aforementioned documents
in addition to the N2,500 payable to MTN. To many, it
may be easier to obtain a new SIM at less than N9,000.
Perhaps, that may be main objective of MTN.
Why does it cost N2,500 to replace a stolen SIM Pack
What is the average cost of manufacturing a SIM Pack?
Ironically, most other GSM operators are beaten by the
bug of exploitation to be charging fees as high as
N2,500 to replace a SIM Pack. But none has conditions as
draconian as MTN. Why would it cost a subscriber a
whooping N2,500 to replace a SIM Pack for which he had
already paid more than N8,000 when all there is to it is
to change the number in the SIM. Is it not only in
Nigeria that such exploitation is allowed?
It is worse to think that NCC may have approved this fee
for MTN. Or did MTN choose to charge these fees without
approvals from the NCC?
Why will an innocent subscriber be subjected to a
condition such as obtaining a recommendation from a
BusinessTime subscriber, to replace a Pay As You Go, SIM
Pack? How does the two types of services relate to each
other as to become a condition in replacement of SIM?
What has the courts got to do with loss of SIM Packs to
be inundated with requests for affidavits, after one has
been obtained from Notary Public? Does this not suggest
an indirect support to touting and falsification of
records, as even the company cannot cope with the
necessary verification of these documents before issuing
new packs?
Why would providing a police report and identity card
not suffice for replacement of a lost SIM Pack, which
simply replaces the same number that the subscriber was
using before it was lost without even adding the value
in terms of the records which the subscriber had stored
in them? Paying money for such a replacement is to
exploitative in the least, and the NCC has a lot of
explanations to make to the Nigerian public to have
allowed MTN to continue to exploit the Nigerian
subscribers.
[Ndubuisi Okere lives at 36 Afric Road, Iponri, Lagos]
GOOD JOB, NCC
Thanks a lot for the information which your Institute
supplied to our recent search! One only wishes that this
kind of information was publicly available, or at least
one would know who to ask. You know, in my interaction
with NCC over the past couple of months, I have found
them quite open and easy to deal with. If only [Name
withheld] can move in the same direction -- at least,
let them re-activate their website and put useful
information on it!!
Anyway, thanks very much for the information. We really
appreciate the quality of the information and your
concessionary charge for it.
M. Taiwo, New Zealand
. IMPORTATION OF SCRATCH-CARD, NO, NOT AGAIN!
Hon. Minister of Communications Cornelius Adebayo told
the largest gathering of communications stakeholders
recently that government would not allow importation of
scratch cards beyond January 2005. He was applauded
amidst a show of surprise on the faces of several
listeners that scratch cards were even being imported at
all at the moment.
NIGERIAN UNIVERSITIES FOR BROADBAND SERVICES
AS AfriHUB INTENSIFIES PLANS
SkyTerra Communications Inc recently purchased a
majority interest in Virginia based AfriHUB LLC as the
latter fine-tunes its planned business project in
Africa. AfriHUB [www.afrihub.com ] aims to provide
satellite based broadband Internet access, domestic and
international calling services to Africa especially in
Nigeria where more than 250,000 undergraduates are
yearning for internet access.
Nigerian Universities are the major interest areas as
this is one of the early projects which Nigerian IT
professionals in America are facilitating. The arrowhead
of such initiatives, Prof. Manny Aniebonam, told
cyberschuulnews that the first two campus facilities are
expected to mature around midyear. AfriHub plans to
spread 15 such ICT Parks across Nigeria by end of 2005.
CYBERSCHUULJOKE
A man is getting into the shower just as his wife is
finishing up her shower when the doorbell rings. After a
few seconds of arguing over which one should go and
answer the doorbell, the wife gives up, quickly wraps
herself up in a towel, and runs downstairs.
When she opens the door, there stands Yakhoub, the
next-door neighbour.
Before she says a word, Yakhoub says, "I'll give you
this N100,000.00 to drop that towel that you have on."
After thinking for a moment, the woman drops her towel
and stands naked in front of Yakhoub. After a few
seconds, Yakhoub hands her the fresh from the mint
N100,000.00 and leaves.
Confused, but excited about her good fortune, the woman
wraps back up in the towel and goes back upstairs. When
she gets back to the bathroom, her husband asks from the
shower, "Who was that, Lizzy?"
"It was Yakhoub the next door neighbour," she replies.
"Great!" the husband says, "Did he say anything about
the N100,000.00 he owes me?"
BOOK SERIALISATION
. GROUPE SPECIALE
MOBILE [GSM] V
PHONES-4-ALL, the most authoritative compendium of
Nigeria's telecommunications development, edited by
Nigeria's foremost telecom journalist, Mr. Aaron Ukodie
is a must-read as it tells the story of Nigeria's
development from Magneto to GSM. CYBERSCHUULNEWS started
the serialisation of chapter 8 of the 122-page book with
the edition 141. In this edition, PHONES-4-ALL talks
about Interconnectivity politics and the shift to
Frequency Auctioning.
What Is to be licensed
by
Aaron Ukodie
ronukodie@yahoo.com <?XML:NAMESPACE PREFIX = O />
The Question of Technology to Be Licensed
The appointment of Engr. Ernest Ndukwe the chief
executive of General Telecom, GT, and President of the
Association of Telecommunications Companies of Nigeria,
ATCON in the first quarter of 2000 came at the point
where of resolution of the crisis generated by the GSM
bidding process had ended, with the consequent
disbandment of the Ministerial Committee for that
purpose. With the exit of Dr Nnama, who was at
loggerheads with the Minister of Communications, and
cancellation of the first round of the "beauty contest"
bidding process, Engr. Ndukwe inherited a blanket
cheque. But before he could sit down to business, two
new issues emerged. The Bureau of Public Enterprises,
BPE, the national privatization agency, indicated it
would, alongside the World Bank, handle the licensing of
mobile cellular operators as a result of the bungling of
the bidding processes.
In its recommendations, the BPE gave support to a
Technology-free licensing for the four mobile cellular
operators, thus, elevating the criticisms from certain
sections of the industry over the choice of GSM as a
national standard. Some of the companies that
participated in the first round of auction, like
Intercellular which had a CDMA network had publicly
indicated that it would not tow the GSM line if it wins
the license since it already has a CDMA network. The
American embassy, which saw the argument in the prism of
the old argument the CDMA, developed by Qualcom, belongs
to America while CDMA is a European system, and with
Intercellular buying from Motorola in America, supported
a technology free license process.
The debate over the technology to chose for nationwide
deployment became do topical that the Nigerian Academy
of Engineering, on May 11, 2000, organized a debate
between the choice of the two contending technologies,
CDMA and GSM. Pioneer EVC of NCC spoke in favour of GSM
and defended the choice while a veteran telecoms
engineer, Engr. A. Bodede who also participated in the
study carried out by Telecom Answers for NCC, spoke in
favour of CDMA. Engr. Ernest Ndukwe represented NCC at
this debate, which took place shortly after his
appointment. Engr. Ndukwe's assumption of duty at NCC
was followed with the appointment of a ten-man board of
Commissioners as prescribed in the NCC decree. The
administration of Late Gen Sani Abacha had since 1995,
disbanded the pioneer board of the Commission in an
unusual action that affected all boards of the
government board and parastatals. The new board of NCC
became the first \to be so reconstituted. It was another
indication that the Federal Government was determined to
give the telecommunications industry a priority
consideration. Alhaji Ahmed Joda, a former permanent
secretary in the 1970's was appointed chairman of the
board.
The Auction Endgame for GSM
Back at the NCC, the Ndukwe-led management and the board
chaired by Alhaji Ahmed Joda, began to tinker on the
best way to proceed in the licensing of the four GSM
operators with the patience of the public running out.
During this period, many regulators in the developed
countries were adopting auction as the process for
licensing operators for third generation mobiles
systems. Auction has been a method adopted in the USA
for licensing most frequency-based services so that the
highest bidder wins what is considered publicly owned
natural resources.
Pioneer CEO of NCC, Engr. Ogbona Iromantu, had severally
rebuffed suggestions for this method during his tenure.
He consistently argued that the method may appear
transparent but can only be applied to mature telecoms
market but would not address some issues like
affordability and accessibility which is more crucial to
developing nations rather than money making through
telecoms licensing activities. But the new thinking at
NCC at this period, highly favoured auction as a way to
avoid the complexity, and the apparent suspicious that
may trial another round of "beauty contest".
The difference between the "beauty contest" biding and
straight auction and their various implications for the
Nigerian market are very clear. Beauty contest would
have kept the license fee for each of the GSM license at
$100 million as prescribed by the new policy. With this
method, it would have been clear how each of the
operators would roll out and the kind of tariff it would
have charged. The abilities of the companies to perform,
rather than the amount it is capable of paying is the
hallmark of this method.
The major concern of the auction process was its demand
for above average transparency. In fact, it demanded a
highly show of transparency, compelled by the overriding
desire of the Obasanjo government to transact government
business in the open and with a higher level of
fairness.
On the other hand, auction was straight and simple. It
does not require complex evaluation processes that pitch
the bidders against each other, item by item. It does
not task the bidders to engage in complex feasibility
studies and business plans. It does not require high
level of human resources and could take just few days of
actual section process to achieve. It lasted just few
days of auction design and two days of auction for four
winners of the GSM license to emerge in Nigeria.
But the major concern of this method is its tendency to
escalate the license fees beyond realistic levels as the
bidders are more interested in out bidding the others to
win the market. A non-performer can win the license in
an auction situation at the expense of the performer.
Performance is based on a mere assumption that no
company which is not prepared to loose money would come
for an auction, or that those who would want to fund
such a license must undertaken due diligence. It is a
verifiable fact that higher cost of licenses brought
about in the auction process are borne by the
subscribers, rather than the operators, while the
auction situation stretches the operator by pushing up
the roll out cost. In fact, it was seen around the world
that some auction winners for the third generation
mobiles in developed countries- could not roll out
services on the later realization that they have paid
too much for the licenses. In fact, some companies went
bankrupt for this reason. Some others, who saw that the
license was not worth the price to roll it out, freely
gave back the licenses to their respective regulators.
Given the peculiar nature of the Nigerian circumstance,
the Nigerian regulator chose to go by auction. The
Information memorandum for the auction was published in
November 2000. Before this publications, the NCC had
used the request for expression of interest which was
widely published to request the bidders to indicate
technology of interest should they win the license. The
result did not differ with the one during the first
biding in the "beauty contest" method as more than 90
per cent of the companies indicated GSM technology as
technology of choice for development. Hence, all
questions asked by the companies which expressed
interest, bordered on the development of GSM technology.
However, in the publications of the Information
Memorandum, the NCC deliberately avoided using the name
GSM for the licensing. In fact, the name of the process
was tagged, digital Mobile Licensing, DML auction
process. This choice of tag was to avoid criticism of
NCC in the event of particularizing or prescribing
technology. But NCC also made it clear in some sections
of the Information Memorandum that the frequencies about
to be auctioned are available in the popular GSM bands:
900MHz and 1800 MHz Bands. So it would appear that the
choice of GSM was not only popular demand, but also by
the constrains of frequency availability, which in fact
gave credence to the reasons for the choice in the first
place.
The publication of the Information Memorandum naturally
set the stage for the auction. There were reports that
MTN of South Africa started jubilations over the
commencement of the licensing process for GSM in
Nigeria, which the company was poised to bid as a
front-runner. When the bid process started, NCC reserved
a license for Nitel, which was exempted from the bidding
but was to pay any price tag arrived at the auction,
reducing the license available to three. At the start of
the auction, some of the seventeen companies that bided
in the first phase, dissolved into consortia. Five
companies finally bided for the auction. They include
MSI international of Netherlands, united network ltd,
Econet wireless ltd, communication investments ltd,
(CIL), and MTN Nigeria communications ltd. Another major
operator, mts, which switched consortium partners from
Telecel to Bellsouth of USA, submitted bids and
requested few weeks' extension to finalize its
submissions. Motophone declined to participate in the
auction and instead, headed for the courts to lay claims
to its frequency allocations upon which it has already
rolled out services. The five pre-qualification
companies deposited $20million, each. The stage was set
for the auction.
Auction excitement
The D-Day for the auction for the digital mobile license
auction came on Thursday, January 19, 2001, and the
venue, Nicon Hilton hotel, Abuja, had all the trapping
for the day. After several rounds, the auction Dragged
into another day. Before the companies became license
price tag weary, CIL indicated it willingness to pay a
whopping $300 million for Nigeria's GSM license. United
network and MSI, could not march the most commonly
agreed $285 million which all the other three were
willing to pay, hence, the license was lost and won.
Winning the GSM license meant securing a 5 MHz frequency
in the 900MHz band, and 15 MHz in the 1800 MHz band, a
free numbering plan, an international gateway for
internal transmission of the international traffic, all
for 15 years duration of the license and the winner
would belong to an exclusive class of four operators
with this line of services for five years. The companies
have 14 working days to pay the balance of the full
license fee, and three months to commence services
roaming agreement would not be signed between any
network until 12 months after commencement of
operations.
One of the winners, CIL, did not meet with the payment
deadlines, and its licenses was revoked. This action,
which was not envisaged in the auction, left the process
without a replacement, thus, leaving the turf for three
out of the four operators expected to commence service
from the first day. This licenses was subsequently
reserved for the second national operator, SNO, which
the NCC planned at a future date.
The GSM celebrations
The frenzy began. Even the formal payment of the
licenses fees to NCC were marked with press conferences
and other forms of publicity that indicated the shape of
things to come. The waiting game also started as some of
the operators who promised to commence services as early
as April, came to the realities of the infrastructure
bottlenecks. But in august 2001, the two front-runners
in the GSM race, Econet and MTN, launched commercial
services, and since then, the story has never been the
same again. For GSM launch and spread of services that
put those small talk pieces in the hand of several
Nigerians, telecommunication stands out as the biggest
achievement of the present administration.
In just one year of commencement, more Nigerians are
able to have direct access to telephone services, as
both Econet and MTN were able to hit the
million-subscriber mark. This is a mark that Nigeria was
not able to achieve in more than 100 years of arrival of
telephony technology in the country. The Usage pattern
has continued to surprise even the operators and pundits
who have applied the per capital income of $300 per
annum average to calculate percentage of services
penetration.
Interestingly, GSM services have not met with average
standard of quality existing in other parts of the world
and services at N50 per minute for pre-paid services and
N25 per minute for post paid services are considered too
high in the country. But Drop in the acquisition of
services from about N20,000 in august last year, and
less than N10,000 a year after, gives an indication of
better things to come. With handset costs ranging from
N8,000 to N100,000 per piece, affordability is currently
being defined in different ways.
One year after the launch of services, MTN and Econet
have ruled the market. Nitel has begun to make an in
road, while globacom, which emerged from the ashes of
CIL to win the license for the second national operator
licenses, with a GSM attached, at $200 million in august
this year, are expected to pop up the volume of
competition and Drive down the cost. With an expected
improvement in the interconnectivity of various
networks, which have presented the biggest challenge to
the industry, the growth of this service would continue
to head for the sky where at least, a 10 million
immediate demand for telephone services are still
waiting. The improvement in business communications, and
the development of ancillary market for the GSM industry
has added to the employment opportunities created by the
GSM launch to rub off very positively on the economy.
But how long GSM continues to dominate the market may be
determined by the ingenuity of the operators to hold on
their customers with reduced tariff and improved quality
of services being rendered by the private operators like
Nitel, the SNO and other key private operators some of
whom are already deploying services using alternatives
technologies like CDMA.
The race to third generation mobile systems may be the
ultimate judge in that race, but GSM has definitely made
its mark in the Nigerian telecommunication firmament
So for a nation that has embraced democracy, the morning
for GSM is yet on creation. For a country, which has
converted a premium services like GSM to its basic
services, this technology must have its pride of place
in history. The consumers of telecommunications services
would determine how this record is sustained
[The author Mr. Aaron Ukodie has written another book
titled ICONS OF ICT which is due for launch in Lagos on
May 14, 2004]
Engr. Ogbonna Iromantu, pioneer Chief Executive of
Nigerian Communications Commission, NCC, at a recent
conference on satellite communications for Nigeria
argued that the launch of communications satellite is
overdue. He cautions however that such launch must serve
the needs of our people, must be commercially viable and
its public-private partnership must be sustainable. His
paper, which we started serialising in edition 144
concludes here with suggestions on how to make the
Nigerian communiction satellite project a viable one.
Which way to Nigeria communications satellite?
by
Ogbonna Iromantu
nsl@consultant.com
Making the Nigerian satellite viable requires careful
planning and market development and should not be
rushed. A detailed market survey should be carried out
both within Nigeria and outside. I propose a 3 phase
Project approach.
Phase 1 includes:
(i) Requirements Analysis
(ii) Market survey and assessment
(iii) Determine services to be offered
(iv) Identify key stakeholders
(v) Identify the competition
(vi) Develop Memorandum of Understanding (MoU)
(vii) Secure commitments
(viii) Determine coverage
(ix) Determine Technical considerations
Phase 2 includes:
Determine relevant cost issues including:
(i) Consultancy services
(ii) Building the satellite
(iii) Launching the satellite
(iv) Operations and Maintenance services
(v) Building the Operations Centre
(vi) Staffs costs
(vii) Training costs
(viii) Accommodation costs
(ix) Transport costs
(x) Logistics costs
Phase 3 includes:
(i) Develop Requests for Proposal (RFP)
(ii) Evaluate Proposals
(iii) Building the satellite
(iv) Launching the satellite
Before embanking on SAT-3, the South Africans engaged
consultants who travelled extensively to virtually all
African countries to evaluate the market. They met with
Government Agencies and corporate bodies as well as
Telecoms Operators and various stakeholders. In some
cases, they obtained firm commitments to the project.
The project was driven strictly from a commercial
standpoint. In comparison, the Nigerian Satellite
project appears to be driven from a developmental
perspective. While this initiative from Government is
laudable, however, its sustainability as a government
project is suspect going by our experience of other
government run enterprises. My suggestion is to
incorporate the satellite project as a commercial
enterprise in which government has a stake and
commercial interests, also have a significant stake as a
public-private partnership.
Another critical success factor for the sustainability
of the Nigerian Satellite enterprise is that it should
not limit itself to being a technology or access
provider, but as a solution provider. I recall an
interesting discussion I had around 1995 with
representatives of Panamsat who came from South Africa
to market Panamsat service. I requested to know if a
small enterprise Internet Service Provider wanted access
to the Global Internet Exchange through Panamsat, what
should he do? I was told that he would buy a space
segment from Panamsat and he would also have to make an
agreement separately with his chosen Global Internet
provider, before Panamsat would interconnect them. To
me, the level of coordination required was way beyond
the competence of small ISPs'. My suggestion to them,
which they readily accepted, was that Panamsat should
use its clout to develop strategic partnerships with
different types of service providers such as global
Internet or telephone service providers. This would
provide a one-stop-shop for its customers. Since this
proved to be a success, I wish to recommend that the
Nigerian Satellite project adopts or adapts the same
approach. While it should not lose focus as a satellite
operator, its strategic partnerships will close the loop
of providing total solutions for different needs for
different levels of customers.
Such strategic partnerships should not be limited to the
Telecoms Industry. In fact, the Broadcast Industry is
even a higher consumer of Satellite Bandwidth. Many of
us, in our homes and offices, receive close to 30
satellite TV Channels. In the PAL Broadcast TV system,
which is our standard in Nigeria, each channel occupies
about 6MHZ of Bandwidth. So the 30 channels that we
receive occupy a minimum of 180 MHZ, that is the
equivalent of 5 Satellite Transponders of 36 MHZ each.
This is already a significant market for the Nigerian
satellite to tap into. In addition, the Nigerian Radio
and TV market is about the most extensive in Africa in
terms of the numbers of such stations. Virtually every
one of the 36 States in Nigeria has a Radio and a TV
station. The Federal Government has close to 60 NTA
(Nigerian Television Authority) stations In addition
there are close to ten each of privately owned Radio and
TV stations around the country. The reach of these
stations is rather limited. They could benefit immensely
from quicker and affordable access to a Nigerian
satellite that has a stronger footprint over Nigeria and
Africa to enable them expand the coverage of their
stations and enhance their business opportunities and
profitability. This is a ready market for the Nigerian
satellite to harness.
To achieve e-Governance, some experts already speculate
that we will need close to 200,000 MB (200GB) of
Bandwidth for e-governance to be effective. Undoubtedly,
a significant proportion of this bandwidth has to come
from Satellite Bandwidth using VSAT in order to reach
such locations where terrestial infrastructure is non
existent or inadequate.
NITEL, we are informed, has 3 digital and one analogue
Satellite Earth Stations with an estimated combined
total of 7500 Voice Channels. Assuming each is a 64KB
channel, this gives a combined total of 480 MB. This is
very significant demand on satellite space segment.
Therefore, NITEL, the four GSM Operators, the nearly 20
Private Telephone Operators (PTO's), the 30 active ISP's
and the numerous VSAT Groups as well as the Second
Network Operator amongst others are potential Strategic
Partners. Also, strategic partnerships have to be
structured with other Satellite Operators in order to
procure satellite Interconnectivity, amongst other
factors, and to achieve wider coverage as market demands
may dictate.
It is estimated that in the coming years, some 5 million
new jobs will be out sourced from the United States and
Europe to developing economies where labour is much
cheaper, the expertise exists and the communications
infrastructure is developed, stable and reasonably
priced. The new jobs will be particularly in the areas
of software development and call-centre services. It is,
for example, by demonstrating how many of such jobs that
it can attract to Nigeria, that our satellite programme
will be adjudged to be relevant to our needs and
therefore acceptable to our people. Tele-medicine,
tele-education, tele-agriculture, and so on, these are
real people issues that can support poverty alleviation
initiative and that the Nigerian Satellite programme
should seek to promote and enhance in real practical
ways.
It is evident that the political will to launch a
Nigerian communications satellite exists, judging from
the successful launch of the first Nigerian satellite
for Scientific Research. It is critical that the
political will be extended to providing political
protection for the Nigerian satellite project in a world
of fierce business and political competitions.
To summarise, the message of my opening paper is that
the Nigerian Satellite should serve the needs of the
people to be acceptable, it should be run commercially
to be viable and it should develop Public-Private
strategic partnerships to be sustainable. I wish you a
most successful workshop.
[concluded].
CYBERSCHUULNEWS EDITION 145
$465million UP FOR TELECOMMUNICATIONS
Close to $465million may be involved in expenditure
within the public sector in Nigeria to provide
telecommunications infrastructure in the next six
months. The figures came from contracts which are up in
finance, telecommunications, oil/gas and military
sub-sectors of the public sector. Such basic
infrastructure is capable of motivating a vibrant
private sector into making dramatic investments.
President Obasanjo attended his first-ever event in
Telecom & ICT when he showed up at the e-government
conference in March 2004. He has also, on May 29, the
anniversary of his second term, appointed an economist
to head the Central Bank thus shifting Central Bank's
thrust from an 'Apex Bank' syndrome to a powerhouse of
government's economic planning and implementation. This
may mean a radical change and improved economic
activities may be expected in the polity especially in
telecommunications where significant impact has already
been recorded by the regime.
. MTS FLAGS OFF LONG DISTANCE
COMMUNICATIONS SERVICES
MTS First Wireless which rolled out telephony services
in March 2004 commenced long distance communications
carrier services May 3, 2004. MTS has a basket of
licenses which include national fixed wireless, national
long distance communications, international data access,
and Internet services. It deploys CDMA 2000 1x and is
already providing phone services in Lagos.
GROUPE SPECIALE MOBILE [GSM] V
PHONES-4-ALL, the most authoritative compendium of
Nigeria's telecommunications development, edited by
Nigeria's foremost telecom journalist, Mr. Aaron Ukodie
is a must-read as it tells the story of Nigeria's
development from Magneto to GSM. CYBERSCHUULNEWS started
the serialisation of chapter 8 of the 122-page book with
the edition 141. In this edition, PHONES-4-ALL talks
about Interconnectivity politics and the shift to
Frequency Auctioning.
INTERCONNECTIVITY CROSSROADS
by
Aaron Ukodie
ronukodie@yahoo.com
Right from 1997m the problem of interconnectivity in
Nigeria had begun to rear it's ugly heads. Then chief
Executive of NITEL, Professor Buba Bajoga had tagged all
private telephone operators as parasites to the national
carrier, NITEL. All attempts by private operators to
interconnect with NITEL were rebuffed. It took extensive
ministerial and regulatory pressure to achieve
interconnectivity for the first private operator. By
1996.By 1996, Engr. Ogbona Iromantu-led NCC developed an
interconnectivity framework, and the breakthrough was
achieved in 1997 when multi-links, a Lagos bases PNL
operator was interconnected with NITEL. The company
became the first ever-private operator to begin services
in Nigeria. Intercellular and EMIS were to follow in
1998. However motophone, which would have been recorded
as the first ever-nationwide GSM operator, could not
achieve interconnectivity with NITEL in 1998 when it
concluded deployment in three locations in the country.
The company made a bold refusal of the type of
interconnectivity entered into by the other PTOs in an
arrangement that was lopsided in favour of NITEL. Had
the company yielded, it would have become a serious
contender in the market where it had prepared the ground
with a brand name Celia
However, its GSM services were functional and some
subscribers to the network were able to speak to each
other. But without an interconnection with NITEL, it
remained a closed network. CIL also suffered the same
interconnectivity with NITEL when it network was ready
at the twilight of the general Abdusalami Abubakar
regime. M-tel, the government owned company was stopped
from its 1,000lines networked donated to the federal
government by GSM phone maker, lm Ericsson
The m tel GSM network was later launched in mid 1999,
after enormous pressure was brought to bear on professor
Bajoga-led NITEL, to achieve Nigeria's first GSM
services that were fully integrated into the global
network. Motophone had by this time claimed to have
developed 10,000. But the roll out of these networks was
held up by lack of interconnectivity.
Before these, many other private phone operators have
successfully achieved interconnectivity with NITEL.
Multi links and intercellular, and Aba based Bourdex
Telecoms, have also successfully introduced limited
mobility facilities in their various networks. But these
ties in their various networks. But these limited
mobility services, and the limited service from M-tels'
TACs network, left a lot of gap in the demand market.
Dollar Denominated GSM License Fee Era
The transition from the military to the democratic
government in mid 1999, led to a renewed interest in
telecommunication services. Holders of lapsed GSM
license began to make claims to licenses and wanted a
renewal. Those who failed to interconnect with NITEL
before Mounted pressure. Some operator who paid license
fee but were not issued appropriate fre1quencies,
renewed pressure. The newfound freedom of expression in
the new democracy resulted in lots of claims and counter
claims for license. The new democratic government
reacted very swiftly by setting up a p presidential
committee headed by vice president Atiku Abubakar, to
initiate a new policy to chat a faster way to realize
the full potentials of the telecoms industry.
Dr. Engr. Emmanuel Nnama, an experienced telecoms
engineer who headed the telecoms department of Nigeria
ports authority, was appointed in mid 1999.
To take over from Engr.Iromantu, the pioneer EVC of NCC.
Dr. Nnama, a radical of sorts, sought to achieve results
very quickly, and took the advantage of a national
seminar on telecommunications, convened by the federal
government. The seminar, where all operatives in
international and national telecoms environment were in
attendance, was to chart a way for the new policy. At
this point, Engr. Nnama had boasted that he would raise
huge amount of money with GSM license. He indicated that
the license fees would be denominated in dollars, with a
reference to a similar action he took at the ports
authority, which resulted in huge revenues
In fact, before the seminar was held, Dr. Nnama,
convened a pre-seminar was held, Dr Nnama, convened a
pre-seminar work- shop at the NCC, which was attended by
all stake holders and who is who in the Nigerian
telecommunications industry. Hr initiated many
preemptive policy actions, including the restriction of
the number of cellular operators, and increasing the
license fees. He was later to initiate another
consultancy study, which prescribed the licensing of GSM
service based on geo- political zones with each zones
having two operators.
The decision to restrict the number of GSM operators led
to the final recommendation of four GSM cellular
operators with five-year exclusivity in the national
telecoms policy. During national telecoms policy
committee sessions Dr. Nnama Mounted advocacy for
denomination of the GSM license in dollars. This later
gained currency, and the license fee was pegged at $100
million dollars per license in the new national telecoms
policy. The policy prescribed a condition that each of
the four companies would at least, build out a 1.5
million subscriber network within the five year
exclusivity period.
The policy released in September 1999,Received heavy
knocks from the press, the industry operatives and the
general public for putting the cost of a license at
$100million adjudged too high with potentials to
increase the cost of services to subscriber. In fact,
the office of the vice-president Atiku Abubakar publicly
put up defense with a promise that the money realized
from the auction would be ploughed back into developing
the transmission backbone of the country to ensure
reliable and affordable service delivery. Although the
policy was not immediately adopted, the industry came to
term with the fact that licenses for GSM has been
restricted to four, with a higher license fees. The
language of the policy, and government's adoption of
it's spirit; also presupposed that a lot of licenses and
frequency allocations that were not commercially
operational during this period, stood the risk of
revocation.
For this amount, Dr. Nnama insisted it is a realistic
value and was proved right in late 1999 when the NCC
invited bidders for the four license slots. A total of
18 companies submitted bids to participate in the
process. They include the earlier contenders: motophone,
CIL, NITEL, MTN, M-tel, mts and united networks. Some
PTOs like intercellular and multilinks joined the fray.
Some international operators like MSI also bided.
After the first round of the bids, seven companies were
pre-qualified. They are NITEL, mts, motophone, CIL,
United Networks, MTN, and Vodanet. The pre-qualification
was greeted with a lot of complaints. By then, Dr. Nnama
has openly criticized ministerial interference in the
process. When summoned by the House of Representatives,
Dr Nnama publicly washed his hands off the process. He
disregarded the ministerial committee on GSM which
included the minister of communications as chairman,
Minster of finance, the central bank governor minister
of justice and attorney general of the federation, and
secretary to the federal government, set up by the then
minister of communications, Alhaji Mohammed Arzika. Dr
Nnama saw this as an affront and set to take decisions
with the independence of the NCC in mind.
He also disagreed with the opening of the bids process,
which qualified NITEL at the expense of M-tel on what
appeared a flimsy excuse because the minister favoured
NITEL receiving a GSM license to M-tel. his independent
viewpoint met with vehement opposition from the ministry
of communications, and his disagreements with the
minister on the account later saw to his exit from the
commission appearing more radical in his approach, Dr.
Nnama indicated that the commission would pursue a
regional licensing formula following the committee he
set up to take another passionate look into the GSM
licensing process, and still realize the $100million for
license for the ultimate four operators in the country.
Before these events could reach collision head, the
federal government cancelled the first round of the
bidding process based on alleged irregularities. This
ended the "beauty contest " bidding process for the
Licensing of the four operators prescribed by the new
National Telecoms policy as Engr. Ernest Ndukwe, the new
Executive Vice Chairman of the NCC, appointed to replace
Dr. Nnama, appeared to find solution in the auction
option.
[The author Mr. Aaron Ukodie has written another book
titled ICONS OF ICT which is due for launch in Lagos on
May 14, 2004]
10 YEARS OF
TELECOM DEREGULATION
A report featuring developmental milestones, industry
statistics, investment opportunities, growth and
investment forecast of Nigeria's telecommunications
development.
ESSAY
Engr. Ogbonna Iromantu, pioneer Chief Executive of
Nigerian Communications Commission, NCC, at a recent
conference on satellite communications for Nigeria
argued that the launch of communications satellite is
overdue. He cautions however that such launch must serve
the needs of our people, must be commercially viable and
its public-private partnership must be sustainable. His
paper, which we started serialising in edition 144
continues in this edition as he poses and answers the
question on whether a Nigerian communication satellite
in desirable at the moment. Please enjoy it.
IS A NIGERIAN COMMUNICATIONS SATELLITE A VIABLE VENTURE
FOR NIGERIA AT THIS TIME?
by
Ogbonna Iromantu
nsl@consultant.com
My gut feeling tells me that it is, also because nobody
has convinced me that it is not. Some practical
indicators from our recent developments in the ICT
Industry in Nigeria point in the direction of viability.
For example, when some of the GSM Operators in Nigeria
did their viability assessment, they did not see a
market far more than 500,000 subscribers in eighteen
months and they designed their networks to handle that
capacity over that period. But in less than one year,
some of them passed that subscriber level, even hitting
a million subscriber level within a year of coming into
operation. Today, we have about three million subscriber
level in the country. With each line generating an
average of about N7,000 to N10,000 a month, this gives a
revenue stream of between N21 billion and N30 billon a
month . I assume that at least 30% of this revenue comes
from traffic that passes through satellite connections.
This is aside from revenue from Internet traffic and
satellite transponder lease for corporate transactions
in Banks and Oil companies. This is an indication of
part of the market need that a Nigerian satellite has to
fulfill.
Virtually all the banks in Nigeria today use VSAT for
their corporate network interconnection and Wide Area
Networks. Many of these banks consume at least 2mb of
space segment. And there are about 100 banks, some with
as many as 100 branches, yet we are only at the
threshold of electronic banking which demands that huge
volumes of data be processed with significant bandwidth
demands. Oil companies operate in difficult terrains in
the Niger Delta and offshore where communications
infrastructure is difficult to implement. They depend on
VSAT to reach such locations. Their bandwidth demands
for both local and international communications is
already in the Gigabit range for some of the major Oil
companies.
Many Government Agencies have huge unmet demands for
communications using VSAT. I recall that in late 1998, I
chaired a Federal Government Committee to rationalise
the requests of many Government Agencies for VSAT. The
Agencies included:
(i) The Ministry of Foreign Affairs with requirement to
connect to all of the about 100 Embassies and Missions
around the world.
(ii) INEC to link to all state capitals
(iii) National Population Commission, also, with
requirement to link to all state capitals
(iv) Nigerian Immigration Services with requirement to
over 100 sites
(v) Nigeria Customs Services also, for over 100 sites
(vi) NDLEA, also about 100 sites
(vii) NAFDAC, for about 30 sites
(viii) NEMA, wherever there is emergency
(ix) Nigeria Police Force and others.
Since then, new Agencies have been created such as the
National Open University who needs VSAT services. Beyond
Nigeria, we have RASCOM (Regional African Satellite
Communications), a body that was created to rationalize
the need of African countries for Satellite
Communications and to spearhead the launching of an
African Communications Satellite. They can form a
strategic partnership with Nigeria to launch the
Nigerian satellite to service the needs of Africa for
satellite communication, in much the same way that the
South African initiated SAT-3 submarine Fibre Optic
Cable is serving the need of Africa for Fibre Optic
interconnection. Talking of SAT-3, some experts have
raised the question of whether you need an African or
Nigerian Satellite when you have SAT-3. My answer is yes
because their respective services are in most parts
complementary, not exclusive. SAT-3 is the submarine
Fibre Optic Cable originating from South Africa and
connecting the countries on the West African Coast and
terminating in Portugal in Europe. It is designed
essentially for international connection through a
specific point in Europe. On the other hand, VSAT
provides connections to distributed locations anywhere
both locally and internationally. Their niche markets
are also different.
In fact, SAT-3 which links South Africa (Cape Town) to
Portugal (Sesimbra) has landings only at Dakar
(Senegal), Abidjan (Ivory Coast), Accra (Ghana), Cotonou
(Benin), Lagos (Nigeria), Douala (Cameroon) Libreville
(Gabon), Luanda (Angola) and Melkbosrand (South Africa),
that is only about 8 eight countries while another 25
landlocked African countries can only connect to SAT-3
through terrestrial or satellite connections. It is
estimated that African countries spend close to
$600million US dollars annually to switch traffic
through Europe. For example, to call Ghana from Nigeria,
the traffic is routed via London. To call our next door
neighbouring country Benin Republic or Niger, the
traffic is first touted to London then through Paris to
Benin or Nigeria. To achieve direct connections between
African countries was, in part, the justification for
SAT-3. It is also a good reason for a Nigerian or
African satellite to ensure that even landlocked African
countries also achieve dire connections amongst
themselves. The annual expenditure of $600million can
easily put two or three Communications Satellites in
space.
Making the Nigerian satellite viable requires careful
planning and market development and should not be
rushed. A detailed market survey should be carried out
both within Nigeria and outside.
I propose a 3 phase Project approach as follows:.
[To be continued]
THE RIGHT TO TALK
SOYINKA IN GHANA-MUST-GO ENVIRONMENT?
I wish to express my appreciation for this well laid out
news items, they are quite revealing & educative.
Politics in Nigeria is all about money, how does Soyinka
who is not a moneybag intend to compete with our c...y
politicians who will go to any length in being elected.
I believe his party will just be one of the pack. Too
many things are too wrong in this country, there are
deliberate actions of the monied people to trample on
the country perpetually. Pray we get out one day but it
will be very bloody. Ati gbomo lowo ekuro ki soju boro.
Once again I say thank you.
Temowo
RIDE ON VODAGO!
I think the marriage will be a blissful one. Right from
the beginning of this week VODACOM NIGERIA has made it
clear to all present subscribers that they are in for a
good business. I know you are aware of the fact that the
new management has been sending SMS to subscribers about
the changes. Let us hope there will be further expansion
and better connectivity so that people like me and you
will stop carrying two mobile sets around in order to be
connected all the time and everywhere.
INSE SET TO RE-TRAIN TELECOM ENGINEERS
The Nigerian Society of Engineers will commence the
re-training of engineers in telecommunications come June
2004. Ten courses are on the list of programs which will
run from June through December 2004. The Association
recently went into collaboration with THE EXECUTIVE
CYBERSCHUUL to design cutting-edge training courses
which focus on development of engineers.
iCYBERSCHUUL GLO'S TOO
THE EXECUTIVE CYBERSCHUUL, Lagos, has announced training
schedules for the 2nd and 3rd quarters of the year.
Telecommunications, website design and computer
application training constitute the major focus of the
several continuous running programs of the Institute.
CYBERSCHUULNEWS EDITION 144
AfriHUB TARGETS NIGERIAN UNIVERSITIES
FOR BROADBAND SERVICES
SkyTerra Communications Inc recently purchased a
majority interest in Virginia based AfriHUB LLC as the
latter fine-tunes its planned business project in
Africa. AfriHUB [www.afrihub.com ]aims to provide
satellite based broadband Internet access, domestic and
international calling services to Africa especially in
Nigeria where more than 250,000 undergraduates are
yearning for internet access.
Nigerian Universities are the major interest areas as
this is one of the early projects which Nigerian IT
professionals in America are facilitating. The arrowhead
of such initiatives, Prof. Manny Aniebonam, told
cyberschuulnews that the first two campus facilities are
expected to mature around midyear. AfriHub plans to
spread 15 such ICT Parks across Nigeria by end of 2005.
For more information contact MannyA@Afrihub.com
JUNK OF PHONE WIRES COMPETE FOR LAGOS SKYLINE
The sky may soon be jammed with overhead telephone
cables which appear set to disfigure the landscape in
Lagos. Pre 1998, NITEL was the only provider of public
phone services and its overhead wires were an eyesore in
some parts of the country. Today with the coming of
several PTO's who also offer wired services, the
situation has gone worse. In the days of NITEL-only,
there were standards but which were kept only in the
provider's books, the new comers do not even seem to
know that the standards exist. Go to Victoria Island,
Agbara estate and such areas which hitherto were saved
these ugly sights of junks of overhead wireBAN, BAN, BAN
In the USA, President George W. Bush has asked Congress
to ban all taxes on high-speed Internet connections,
saying too much regulatory oversight will stifle
broadband deployment. He says "Broadband technology will
enhance our nation's economic competitiveness and will
help improve education and health care for all
Americans,"
In Nigeria, The National Broadcasting Commission,
without reference to the National Assembly, has imposed
a ban on rebroadcast of foreign news in electronic
media. Private electronic media owners also say they
have been made to pay four times what their government
owned counterparts pay for operating license.
PANIC IN INTERNET SERVICES MARKET
The current situation of the Internet Market in Nigeria,
in particular, is confusing. Entrepreneurs and business
owners within Internet Services are experiencing
deep-seated heartache due to market uncertainties
leading to an inherent inability to generate investor
enthusiasm towards business and growth plans. All the
indices show that this indeed is the province of panic.
With over 322 licensed Internet Service Providers (ISP),
and about a fourth of these active in one form or the
other with rapid entries and exits commonplace. There
are indeed reasons for an entrepreneur to be worried.
Unfortunately, competition has been of an adversarial
nature. Unable to withstand the pressures, a number of
ISPs, including some of the early pioneers, have closed
shop. Each new player goes for the same customers using
the same strategies. Lower prices. Each new price offer
results in shrinking margins for the operator. There has
been little innovation at play since 1995 when the first
Internet organizations were publicly noticed. There has
been relatively little competition on quality, support,
and customer service.
Who Then is an ISP?
An ISP truly defined is one that delivers Internet
Services (not just Access) to a closed network of users.
Internet Services includes access, content, web hosting,
web services, etc. If this definition is applied within
the Nigerian context, then you probably would have only
a handful of ISPs.
With the death of dial-up, and uncleared ambiguities
with respect to commercial private networks, it is
increasingly difficult to find a true Internet Service
Provider in these parts. ISPs in Nigeria have been
generally unable to build similar-type closed networks
for users in any significant number as to attract the
sympathy of financiers and other stakeholders.
Without sufficient capital, attracting the right grade
of human resources to support business operations is
virtually impossible. Without the numbers, business
hemorrhage sets in.
Moving Out of Panic
So what should an ISP do to emigrate out of the regions
of market worries? There are several routes, we shall
examine a few.
One, an ISP should recognize that the traditional ISP
model is dead and should place emphasis on the business
of Internet Provisioning, as opposed to hardware sales
and equipment supply.
Two, grow out of the internet access rut. Access is
nothing, service is everything. An access provider
mentality is no different from one who constructs a
public road and leaves others to think of the mechanisms
of transporting users across the highway.
Which is more
lucrative?
Three, leverage on the latest technologies. Wi-Fi is
fast, cheap and pervasive. There is no law that prevents
ISPs from carrying VoIP traffic - they currently do
anyway - at least for outgoing calls to any national or
international destination. The latest technologies
reduce cost, increase competitiveness, and enhance the
development of innovative products.
Four, focus on the numbers. The residential market is
underserved, for instance. The SME market also suffers
from a lack of ISP attention. Meanwhile, cheaper
technologies such as Wi-Fi represent for ISPs a potent
competitive response to one, the PTO threat if targeted
at large residential areas and estates, and two, to
discovering the right tools for service delivery.
Five, be open to mergers and acquisitions. There is
little evidence to show that the market would not
consolidate over the next five years. It is likely that
bigger players would swallow up fledgling ones. It is
likely that more ISPs would close shop under the impact
of shrinking margins, excessive competition, and the
impact of alternative (cheaper) technologies that
threaten the business model and antiquate assets already
acquired.
The steps you take today would determine how tomorrow
would be.
[Above essay was written for CYBERSCHUULNEWS by Fola
Odufuwa, Executive Director, eShekels Limited, one of
Africa's premier technology research firms based in
Lagos, Nigeria]
BOOK SERIALISATION
GROUPE SPECIALE MOBILE [GSM] IV
PHONES-4-ALL, the most authoritative compendium of
Nigeria's telecommunications development, edited by
Nigeria's foremost telecom journalist, Mr. Aaron Ukodie
is a must-read as it tells the story of Nigeria's
development from Magneto to GSM. CYBERSCHUULNEWS started
the serialisation of chapter 8 of the 122-page book with
the edition 141. In this edition, PHONES-4-ALL talks
about the politics of GSM licensing.
SCRAMBLE FOR GSM LICENSES
by
Aaron Ukodie
By late 1994, the NCC had begun to initiate actions to
attract investors. At ITU Telecom 94 in Egypt, a pan
African mobile cellular operator, Telecel made a
presentation of its pan African coverage. The Executive
vice chairman of NCC, Engr. Ogbona Iromantu who
accompanied then minister of communications, Alhaji
Abubakar Rimi, also made a presentation about the
deregulatory potentials of Nigeria, which attracted the
interest of Telecel officials.
It was no surprise then that in early 1996, the
succeeding minister of communications major general Tajudeen Olanrewaju, announced Telecel as the only
company whose application for a GSM license has been
fully processed and offered.
At this period, the procedure for the licensing was in
three stages: submission of applications, licensing
offering, license issuance and frequency allocation.
After applications processing, a letter of offer is
first made to the applying company with conditions,
including offer acceptance, payment of relevant fee
within six months of offer. If the conditions are met,
the license is issued and the operator proceeds to the
ministry of communication to obtain relevant
frequencies.
The license fee of equivalent of half a million dollars
($500,000), payable for a GSM license was arrived at
with a comparative reference to south Africa where the
fee for a GSM license stood at about one million dollars
and Ghana where it was about a quarter of a million.
Nigeria stood at the middle bases on the license fees in
the two countries.
However, in spite of its early interest, Telecel did not
meet the conditions for the offer of license, leading to
the lapse of the offer. The inability of this company to
implement services was blamed on political and economic
atmosphere prevailing in the country. In fact, before
this period, theHon Minister of Communications and
executive vice chairman of NCC, had also traveled to
Ghana in early 1995, to convince south western bell
corporation, sbc, of USA, to divert its huge investment
portfolio for cellular service to Nigeria. When the sbc
came to Nigeria to pursue the mission, it met another
minister of communications. The perceptive instability
discouraged the company, which later moved to South
Africa where it became a member of the consortium that
bought into Telkom South Africa.
With the failure of Telecel staring the nation in the
face, the authorities opened the door for other
operators to be issued license. Applications rolled in
late 1996 and early 1997. With the failure of Telecel,
the NCC decided to make many offers for license,
expecting that few would meet the conditions. Nigeria's
inability to offer digital mobile phone service was
already embarrassing to the commission which also
approved the existing private network links operators
whose equipment have potentials for mobility to deploy
limited mobility services across the country.
The offer letters to the companies included those on GSM
for nationwide services on the 900 MHz band. Some were
issued GSM license on regional basis on 1800 MHz while
others were made offers on the 1900 MHz band for what
was tagged as personal communication services available
in the united states. Some of the companies who
fulfilled the conditions, including payment of the
relevant fee and were issued licenses in the 900 MHz
bands included motophone Ltd, wireless system ltd,
communications investments ltd. (CIL) M-tel the
government mobile cellular operator whose payment of the
fees marked a departure from the attitude of NITEL to
the regulators. MTS, also which has available
frequencies in the extended GSM bands, EGSM, also paid
for a GSM license. All the companies also got allocation
of about 5MHz each in the 900MHz bands. Motor phone and
CIL subsequently began deployment of equipment in the
same year, 1997. Another company from South Africa, MTN,
first applied as INTEGRATED MOBILE SYSTEMS, IMS, and
later changed it's name back to MTN before it was issued
a license after general Abdusalami Abubakar took over
from late Gen. Sani Abacha.
Some of other companies, including some PNL operators,
received offers but did not meet the conditions. At some
point between 1998 and 1999, many companies were holding
GSM and PCS license offer that have lapsed but most of
these companies continued to lay claim to holding a
valid license.
Some began to approach the ministry of communications
for frequencies without fulfilling the conditions of
license offer
[ Next edition: Interconnectivity crossroads ]
ESSAY
Engr. Ogbonna Iromantu, pioneer Chief Executive of
Nigerian Communications Commission, NCC, at a recent
conference on satellite communications for Nigeria
argued that the launch of communications satellite is
overdue. He cautions however that such launch must serve
the needs of our people, must be commercially viable and
its public-private partnership must be sustainable. His
paper, edited slightly for brevity, is presented here
under a borrowed title of Paths to Nigeria’s
Telecommunications Satellite.
PATHS TO NIGERIA’S TELECOMMUNICATIONS SATELLITE
by
Ogbonna Iromantu
nsl@consultant.com
Eight years ago, when we issued the first licenses at
the Nigerian Communications Commission for Internet
Services, we were queried because it was believed that
it had security implications. Two years later when we
issued the first licences to Private Telephone
Operators, the story was the same and it was extremely
difficult for those operators to secure
Interconnectivity from NITEL. We were undeterred. We
were motivated by certain principles and guided by the
knowledge and conviction that we would be proved right.
So we went ahead to issue the first VSAT licences in
1997. The authorities were infuriated. They set up a
panel on me, I survived it. We did not give up. By early
1999, we issued the first GSM licences. At that point,
they felt they had had enough of me.
Distinguished ladies and gentlemen, think of where we
would be today if we had succumbed to those pressures.
Think of Nigeria not being part of the Internet
revolution. Think of the significant contributions that
Private Telephone Operators have made in using wireless
technology to extend telephone services instantly to
communities that had lost hope of phone services or had
already been ten years on the waiting list. Think of the
transformation of the banking industry from the days of
tally numbers to the present electronic banking services
through the use of Satellite VSAT services. Think of how
GSM has completely revolutionized business and social
contacts. When you think of all these, then you begin to
imagine the role that Satellite Communications has
played in providing a significant transmission medium
for all these developments in our communications
services. You also begin to wonder, why we should not
consolidate all these gains through our own
communications Satellite. And that is why we are all
here today. I feel honoured and fulfilled that you found
me worthy to deliver the opening paper at this very
important workshop.
Let me caution that you will face no less challenges in
proposing a Communications Satellite for Nigeria than we
faced in proposing Internet, PTO, VSAT or GSM service
for Nigeria. This time, the obvious question would be
why should Nigeria spend millions of dollars in
launching a communications satellite when millions of
our people are living below poverty line. For me, the
answer is simple, if you don't then you may not be able
to fully consolidate the gains that communications
technology brings, through creating more jobs, creating
more wealth and extending services and development to
rural communities. If we don't, the danger is that even
millions more of our people, in the long run, will have
no opportunity of rising above the poverty line because
they will be held perpetually below the digital divide,
an expression which has become the new paradigm to
describe the division between the rich and the poor.
So how do you win the argument. Primarily by winning
over the informed communities and stakeholders and
through them winning over the general public. Also
through the press, seminars and workshops such as this.
Let the people hear the benefits and not be held back by
the problems of today. You know, when the Soviet Union
launched its first satellite, the Sputnik, in about
1957, some parts of Moscow were still using pit toilets.
I saw some of those in 1964 when I went there for
University education. When the United States of America
landed a man on the moon in 1969, black people in some
parts of America were barely allowed to vote in
elections. We need not necessarily follow their
examples, but it is pertinent to note that this is the
dilemma that evolutions in technology pose for nations.
So is a Nigerian communications satellite a viable
venture for Nigeria at this time?
[To be continued
Life FROM ISLANDNEWS
Hypertension -The silent killer
An incipient health crisis on the Island
A recent health survey reveals a large percentage of
Islanders are hypertensive. The alarm does not simply
lie in the ailment's high prevalence; the real concern
arises from the fact that sufferers were largely
ignorant before their blood pressure test revealed they
were at risk. There are also other rising medical
problems which experts say are triggered by unwholesome
lifestyles, and the socio-economic conditions peculiar
to Island's diverse communities and character....Read
all about the prevalence of hypertension on the Island
in the latest edition of Island News. Get your free copy
now!
CYBERSCHUULNEWS EDITION 143
NITEL CLEANS OUT 220,000 LINES OFF ITS BOOKS
71 telephone exchanges which had remained unserviceable
for several years have finally been removed from the
books of Nigeria's First National Operator, NITEL. The
exchanges, mainly analogue types, provided nearly
220,000 lines. The company may require to close down a
further 150,000 telephone lines in the next 12 months
and commission 400,000 to remain competitive and retain
its hold of 50% of all the forecast wired telephone
lines in the country by end of 2005. It is on its way to
putting 250,000 lines into Lagos very shortly.
A turn around effort is being led by Pentascope
International aimed at injecting modern facilities,
re-training the operatives for change and preparing the
company for full privatisation.
SLASH IN PHONE TARRIF
Forces of competition and subtle maneuvers of the
regulator are driving telephone tariff downwards in
Nigeria. M-tel which provides 15% of the mobile phones
in the country announced a 54% reduction on its
international call rate just as it sliced off 38% on SIM
packs. M-tel’s subscribers will now pay N45 per minute
for international calls, down from N99, and buy SIM
packs for N6,500 down from N10,500.
ECONET CHANGES NAME, REDEFINES OFF-PEAK, OFFERS
MORE INCENTIVES
Econet Wireless Nigeria has announced a change of its
name to Vee Networks Limited and says it will henceforth
trade under the brand name Vodago. It also informed its
subscribers that the off-peak call charge rate would now
be N30.00 per minute or 60K per second with effect from
April 21, 2004.Off peak period is now 10.00pm to 6.00am
all days of the week.
In recent time, telecom service providers in Nigeria are
consulting various bags of trade initiatives to attract
patronage through genuine incentives and outright
tricks, all happening at a time of low economic
activities occasioned by non release of federal budget.
High-level competition, uncertain government economic
policies and rapid changes in technology are conspiring
to shrink margins in the industry. With the budget
signed into law April 21, a significant rise in service
patronage is envisaged.
ICOMS OF ICT” FOR LAUNCH IN LAGOS
35 persons who are known to have played remarkable roles
in the development of Information and Communication
Technology in Nigeria have been profiled in a book
called ICONS OF ICT due for launch on May 14, 2004, in
Lagos. The book is written by Mr. Aaron Ukodie, himself
a pioneer in telecom and ICT journalism. In 2003, Mr
Ukodie edited the most authoritative record of
telecommunications development in Nigeria from Magneto
to GSM in the form of a compendium he calls
PHONES-4-ALL.
.FCC DEALS A BLOW TO AT&T on INTERNET CALLS
In the USA, Phone Regulator, FCC, ruled yesterday that
AT&T must pay local access charges on long-distance
phone calls that originate and end on public switched
phone networks but use IP networks in between. As a
result of the decision, AT&T may have to pay hundreds of
millions of dollars in deferred access fees.
TECHNOLOGY AND EDUCATION
VoIP an d YOU
VoIP, Voice over Internet Protocol, allows you to make
telephone calls using a computer network, over a data
network, like the Internet. It is generally and
significantly cheaper than the traditional phone
service. VoIP converts the voice signal from your
telephone into a digital signal that travels over the
Internet, then converts it back at the other end so you
can speak to anyone with a regular phone number. Some
call it Internet Telephony, or Internet Phone while some
just say it is Internet Voice. It is usual for Providers
to impose their choice name on their subscribers.
You can use your computer while you talk on phone.
Contrary to popular assumption, it may not be a win-win
situation as a broadband (high speed Internet)
connection is required.
Some VoIP providers offer their services for free,
normally only for calls to other subscribers to their
service. When they do, they may be up to a game which
ultimately helps their business. See story above in
which AT&T burnt its fingers in one of such games. Your
VoIP provider may permit you to select an area code
different from the area in which you live. This means
you may not incur long distance charges if you call a
number in your area code regardless of geography. It
also means that people who call you may incur long
distance charges depending on their area code and
service.
Some VoIP providers charge for a long distance call to a
number outside your calling area, similar to existing,
traditional wireline telephone service. Other VoIP
providers permit you to call anywhere at a flat rate for
a fixed number of minutes.
Because Internet Voice is digital, it may offer features
and services that are not available with a traditional
phone. If you have a broadband internet connection, you
need not maintain and pay the additional cost for a line
just to make telephone calls.
With many Internet Voice plans you can talk for as long
as you want with any person in the world (the
requirement is that the other person has an Internet
connection). You can also talk with many people at the
same time without any additional cost.
Of course some Internet Voice services don't work during
power outages and the service provider may not offer
backup power. When Internet Phone arrive your
environment, ensure you ask questions and know details
of the facilities and compromises before you throw away
the traditional phone service.
[Contributed by J Abraham, California]
GROUPE SPECIALE MOBILE [GSM] III
PHONES-4-ALL, the most authoritative compendium of
Nigeria's telecommunications development, edited by
Nigeria's foremost telecom journalist, Mr. Aaron Ukodie
is a must-read as it tells the story of Nigeria's
development from Magneto to GSM. CYBERSCHUULNEWS started
the serialisation of chapter 8 of the 122-page book with
the edition 141. In this edition, PHONES-4-ALL talks
about why Nigeria chose GSM among other standards of
Mobile Communications Systems.
WHY GSM WAS CHOSEN AS A NATIONAL STANDARD
by
Aaron Ukodie
ronukodie@yahoo.com
The choice of GSM as a national standard for Nigeria in
1995 was based on five compelling factors according to
the contents of the report recommended by the NCC to the
ministry of communications, which gave the approval. The
recommendation appeared to be more bothered about
services at that particular period without giving
consideration to the frequent changing dynamics of the
industry these compelling reasons adduced by the NCC for
this choice can be summarized into
Technology Appropriateness
One of the major potentials of the GSM, which is yet to
be equaled today, is its ability to roam internationally
and into other networks. Regarded as a European
standard, and with a lot of business relationship
existing between Nigeria and Europe, this feature was
very fascinating. In addition, GSM was founded on the
planks of mobility, unlike the CDMA, which was planned
initially as a replacement for the fixed line
technology, hence it's ability for massive coverage as
against roaming potentials. At this time, GSM was also
more user and operator Driven than manufacturer Driven
as against its major contender, CDMA which was
proprietary. In addition, it has an open,
non-proprietary standard architecture
Technology Maturity
By 1995 GSM was fully matured and already deployed in
Africa. It was more tested and proven. Since the African
environment lacks the expertise to manage other
technologies that were combining, or are being tested, a
favourable consideration was given to the one already
matured and are being deployed across the globe with
considerable ease and success. At this period, dual mode
and tri-mode handsets were already present on the shelf
and its downward and upward integration to first
generation and third generation mobiles systems
respectively was already proven
With almost all European countries and majority of
African countries on GSM, the market was filled with a
lot of potentials. In fact by then, all the global
mobile personal communication system, GMPCS, operators
like iridium, global star, Teledesec, and ICO, have all
adopted the GSM standard transmission and roaming.
Market Acceptability
With operators and users forming such technology
pressure groups like the GSM MoU association, and the
speedy spread of Usage across the country, topped with
the open system architecture of GSM, the market
acceptability was compelling. In fact many manufacturers
began to produce switches that are very compatible to
GSM, which is more radio-based technology as a platform
for compatible interconnectivity. Handset market was
growing very fast as well as other ancillary markets
that were growing with this technology.
Futuristic Potentials
The GMPCS market may have dwindled considerably but by
1995, it was about the next technology to beat. GSM
integrates this technology. This is the reason why
current services like THURAYA, which appears to have
survived the jinx of GMPCS, finds roaming compatibility
with GSM. With the number of countries launching this
service, it appeared the de facto international or
global standard. Implementation frequencies were made to
include 900, 1800, 1900, MHz bands. It has all the
potentials for the ITU's IMT 2000 service, i.e. the
third generation mobiles. It supports some feature
expected of the third generation mobile like data
transmission like the basic short messaging services,
SMS. All these factor influenced the choice of GSM as a
national standard to pursue the gradual deregulation
policy adopted by the NCC during this early stage of
industry deregulation characterized by massive
opposition by the national carrier whose monopoly was
under serious threat.
[Above text is culled from page 42 of PHONES-4-ALL]
CYBERSCHUULNEWS EDITION 142
DBI, ABUJA TAKES OFF
The Digital Bridge Institute, DBI, NCC’s
telecommunications Institute Abuja has commenced
business. Director of The Institute Dr Idika Ochaa
announced in Lagos recently that training courses in
telecommunications management would commence soon. The
DBI is one of the most radical creations of Nigeria's
Regulator in 2003 as it is a true answer to provision of
human resource for the emerging telecommunications
industry.
NEW TECHNOLOGY/ VoIP PRODUCTS
Voice Service Telecom Operators may be in for a future
of hot challenge as a new US based VoIP company, Skype
has developed a software which enables users of
Microsoft's PocketPC handhelds to access the Internet
and make free VoIP calls via Wi-Fi hot spots. Skype
calls its software PocketSkype, It is the latest of the
fledging products which are results of a rush of
technology companies to use Internet phone and Wi Fi. It
was launched on April 6, 2004.
Meanwhile, Gallup in USA reported that 34% of
respondents said they would switch to VoIP if it would
save them 20% or more on their phone bills. Respondents
also said they are more concerned about reliability than
voice quality.
BOOK SERIALISATION
GROUPE SPECIALE MOBILE[GSM] II
PHONES-4-ALL, the most authoritative compendium of
Nigeria's telecommunications development, edited by
Nigeria's foremost telecom journalist, Mr. Aaron Ukodie
is a must-read as it tells the story of Nigeria's
development from Magneto to GSM. CYBERSCHUULNEWS started
the serialisation of chapter 8 of the 122-page book with
the edition 141. In this edition, Aaron talks about How
GSM was chosen among other standards of Mobile
Communications Systems.
NIGERIA’S DATE WITH MOBILE CELLULAR
by
Aaron Ukodie
If 1992 was significant to GSM evolution, it was a year
when Nigeria experienced analogue mobile telephony for
the first time, following the earlier introduction of
the system by the then mobile Telecommunications
Services Ltd, MTS, led by Engr. Richmond Aggrey. It was
during this period that NITEL also launched a TACs
analogue mobile net-work while MTS later began to offer
services on an ETACs network.
Same year in 1992, the laws, establishing Nigeria’s
Telecom regulatory authority, the Nigerian
Communications Commission, NCC was instituted via Decree
75, of 1992. the Commission was later inaugurated in
1993, and with this came avalanche of requests for
mobile cellular services licenses. The commission headed
by the highly intellectually minded telecom expert,
Engr. Ogbonna Iromantu, began to develop regulatory
frameworks for issuing licenses for various types of
telecom licenses. The Commission was confronted on one
hand with many requests for analogue Mobile cellular
licenses, and on the other hand, by the emergence of
digital mobile services with a potential to spread fast
across the world. More disturbing was that the spectrum
plan for the GSM on the 900MHz band and 18000 MHz band
were overlapping with the TACs, AMPS, and ETAC’S bands.
As soon as it was inaugurated in mid 1993, the NCC
itself began to advice some of the operators to direct
attention towards GSM. Before then, MTS had announced
plans to deploy GSM technology. With the advice of the
NCC, EMIS also announced it’s plan to go GSM, followed
by another company SIOTEL, being promoted by
multimillionaire businessman, chief Sunny Dike Odogwu,
publisher of the POST EXPRESS Newspapers.
How GSM was chosen as a national standard
The commission slowed down the request pending the
outcome of a study which it commissioned in 1994, to
recommend a commend a common standard that Nigeria would
adopt for the deployment of mobile cellular services in
such a way that Nigeria would advance the regulatory
environment. An intellectually managed telecom
consultancy firm. TELECOM ANSWERS ASSOCIATES, headed by
Engr.Titi Omo-Ettu , concluded the study in record time.
Although the report did not only reject a restriction of
any technology for Nigeria, it in fact, provided a
detailed potentials and limitations of all available
technologies for mobile cellular services. It came short
of choosing the code division multiple access, cdma
another technology that was at this time emerging as a
contender to GSM.
In January 1995, the Engr. Iromantu-led NCC reviewed and
forwarded a recommendation to the ministry of
communications. Major highlight of this recommendation
was the choice of GSM as a national standard for
national coverage while any other digital technology
could be deployed regional mobile cellular services. It
also recommended gradual phasing out of the analogue
technology. This recommendation had a direct reference
to the NCC regulatory design to issue two categories of
licenses: the regional and national licenses. But some
industry critics stood against this decision,
emphasizing the need to allow any investor to choose the
need to allow any investor to choose the technology it
finds suitable to provide services and ensure returns on
investment.
The recommendation of the NCC was presented to a
ministerial committee, which approved the
recommendation, leading to the final adoption of the
report and it’s publication in June 1995.
[Next edition Why GSM was chosen as a national standard
]
ESSAY
The Face of the Digital divide
By
Edward Popoola
Nigeria's IT Youth Ambassador.
Walking into the hall filled with over 250 students,
nothing could be so challenging than being there to
inform, educate, and motive these young people of your
generation. I figured it was going to be fun filled and
interesting talking to these young men and women about
information technology, but leaving the venue, was a new
me, with a practical understanding of what the digital
divide means.
I had received this invitation like some other ones and
was pink with anxiety to once again stand as the IT
Youth ambassador to preach the IT gospel. The invitation
was not what got me pink, it was the school. A college
of Technology. I took it upon my self to get the best I
could, I went into my closet and searched the books
until I was satisfied. The day came and there was I
ready to walk on in the line of duty.
Five minutes into the talk, a nasty realisation befell
me. I could see written on the faces of my audience what
could best be described as question marks. I kept
talking for another five minutes this time with some
techie jokes, yet the expression remained the same. It
was then I knew something was wrong somewhere. I had
been speaking on things which made little or no meaning
to my audience; the technical part of the technology
called InfoTech. I was surprised but was not alarmed. I
had spoken to some university students and the response
to the techie parts of my speech had been welcoming, at
least showing they have an idea of what I was talking
about.
To help the situation and to do a great deal of
assistance to the inquisitive and avid listener, I
flowed into a less technical discussion of which I could
hear the silent yell of 'thank goodness'. Responses
followed with nods, smiles and occasional side talks
from my beloved audience. I left the place fulfilled but
with an acknowledgement of the fact that the harvest is
indeed ripe but the labourer are few.
For that moment I felt with my skin and beheld with my
eyes what the divide really means. I could see in these
young people a desire to learn, to know and to grow. But
it was just too difficult for them to hide that open
wound of ignorance. Less than 5% of our graduates leave
school with IT knowledge, let alone skills and this is
the real face of the digital divide. The Basic
understanding of what IT means is still not known among
the majority of our young people. Although in some
schools, some students have shown a thorough
understanding of the subject, our focus this time should
rather be on the other majority.
These are young men and women who we hope will use IT as
a tool for development. They are our future leaders.
That singular experience made me to realise that a lot
still needs to be done to raise the level of IT
education among the Nigerian Youth, the greatest asset
the country has got. This is a college of technology and
graduates from this school are among the millions of
Nigerian Youth who we expect to be globally competitive.
Today the new word is outsourcing, getting skilled
expatriates to do a job. Then the question is, let alone
our own problems, can the Bill Gates of today come to
Nigeria to get enough skilled young minds to solve the
American problem like they do to young Indians?
The harvest is ripe…
[Edward can be reached at me@edwardpopoola.com ]
Course Notes also available in C-D for N5,000.00 only
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'...MENopause, MENorrhagia, MENstruation, MENarche all
make woMEN say MEN are their problem...'
Contributed by O Majek [ Edited]
CYBERSCHUULNEWS EDITION 141
ESTABLISHED
COUNCIL OF WEST AFRICA INFOTECH PROFESSIONALS
The recent International ICT Conference 2004 which Ghana
hosted along with the celebration of her independence
rose with ICT eggheads in the sub region agreeing to
establish The Council of West Africa Information
Technology Professionals, CWAITP. With good backing of
the Ghanaian Government and a very strong presence of
Nigeria ICT professionals both at home and in the
Diaspora, The Council emerged with a resolution to drive
ICT as the core tools for a more purposeful and
sustainable development and creation of wealth for the
sub region.
The Council says it will carry |