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Operator links dip in broadband penetration to spectrum scarcity

By Adeyemi Adepetun
28 July 2015   |   11:18 pm
UNTIL Nigeria’s telecommunications sector has access to sufficient spectrum frequencies, deepening the country’s broadband penetration may not materialize. Responding to The Guardian enquiries bordering on challenges confronting broadband penetration in the country, MTN Nigeria’s General Manager, Corporate Services, Funmi Onajide, said a major challenge is the unresolved issues pertaining to spectrum. Onajide, citing examples, said…
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UNTIL Nigeria’s telecommunications sector has access to sufficient spectrum frequencies, deepening the country’s broadband penetration may not materialize.

Responding to The Guardian enquiries bordering on challenges confronting broadband penetration in the country, MTN Nigeria’s General Manager, Corporate Services, Funmi Onajide, said a major challenge is the unresolved issues pertaining to spectrum.

Onajide, citing examples, said licenses for 4G spectrum have still not been issued by government. She added that there was need for more investment in metropolitan and national fibre by the Information and Communications Technology (ICT) industry.

“As you are aware, a large part of the challenge in this regard is the lingering difficulties with Right of Way permits and the associated bureaucratic bottle necks. When all these have been done, and 4G is mainstreamed, then we are in for great things in Nigeria”, she stressed.

Already, Nigeria has about five submarine cable systems landed on her shores in the last five years by operators including MainOne, MTN, Glo 1, NITEL and Dolphin Telecoms. But part of the challenges confronting these cable systems, which include MainOne, WACS; Glo 1; SAT 3 and ACE, have been last mile capacity to the hinterland.

With suggestions for collaboration among the operators, Onajide said the players are already partnering and sharing infrastructure where it is viable and necessary.

She disclosed that multiple taxation and other operational challenges have had negative impacts on penetration. Nigeria currently has 10 per cent broadband penetration.

Onajide explained that taxation alters incentives for production and consumption, “and so economic distortions will be prevalent where the burden of taxation is high. The burden is subsequently transferred to end users, which makes costs higher and affordability slows penetration. In view of this, there is the urgent need to address imposition of unstructured fees and charges by the various labels of government and service interruptions arising from collection attempts”.

On the impact of National Broadband Plan on penetration strategies in the country, the MTN Nigeria’s chief, said the broadband plan is a most forward-looking and progressive instrument.

According to her, the right policy framework is a critical issue, “but it cannot be taken in isolation because it is only when the enabling environment and the necessary resources are put in place that the true promise of the digital future and digital economy would be realized. So essentially, the key challenge is implementation, and the urgent resolution of some of the challenges raised on spectrum availability.”

Meanwhile, an arm of the the telecommunications firm, MTN Business has rolled out HyNetLTE for high-speed broadband across Lagos.

According to the firm, whether a customer is at home streaming multiple movies, a small office/home office (SOHO) owner seeking a reliable Internet connection or an SME uploading and downloading heavy, business-critical files, the upgraded MTN HyNetLTE is designed to drive greater efficiency, improving the way you live, work and play.

Acting Head of SME Segment at MTN Nigeria’s Enterprise Business Unit, Alexander Ibehre, said the objective is to continuously create new value for customers.

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