EFOSA V. IDEHEN

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UNIVERSAL ACCESS / SERVICE IN NIGERIA

• EFOSA V. IDEHEN
• Nigerian Communications Commission
• ABUJA, NIGERIA

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Content

• Overview of Nigerian Telecom Sector
• The Nigerian Market Scorecard
• Telephone Coverage in Nigeria
• UA in Nigeria Telecom Policy
• USP in the Nigerian Communication Act
• NCC Policy Initiatives
• Ongoing activities in UA
• Conclusion

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Overview of the Telecoms Sector in Nigeria

• Regulatory body, the Nigerian Communications
  Commission (NCC), was established by law in Nov.
  1992.
  
• Commenced operation in mid 1993 with the
  inauguration of the first Commission.
  
• Commenced full market liberalisation in 2000.

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Overview of the Telecoms Sector in Nigeria Contd

• The last few years have seen a notable increase
  in private sector involvement in the Nigerian
  Telecommunications Industry with the
  
• Successful auctioning of the 2G Digital Mobile
  Licenses in January 2001(Total of four GSM
  licenses issued).
  
• Licensing of Fixed Wireless Access (FWA)
  Operators in 2002, (both national regional
  licenses issued to 22 Companies).
  
• Licencing a Second National Carrier in 2002.
• Preparation of the Incumbent Operator for
  privatisation.

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Overview of the Telecoms Sector in Nigeria Contd

• Several Internet Providers licensed to encourage
  fast growth of Internet nationwide. They are now
  allowed to roll out their own networks. VOIP is
  seen as technology and being Technology Neutral,
  regulations will be for services provided through
  VOIP.
• The Regulatory Body has been strengthened, and is
  receiving full support from the government.
  
• A National Telecom Policy (NTP) released in
  September 2000.
  

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Overview of the Telecoms Sector in Nigeria Contd

• A new Communications Law was enacted in July 2003
  
  
• The new law significantly empowered the NCC by
  giving it operational and financial independence
  
  
• The new law also established a Universal Service
  Provision Fund Agency

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The Nigerian Market Score Card
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FIXED TELEPHONE COVERAGE IN NIGERIA
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MOBILE TELEPHONE COVERAGE IN NIGERIA
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The Nigerian Telecommunications Policy 2000
Objectives The long term objective of this pol
icy is to enable all Nigerians have access to all
forms of modern information and communications
technologies and services. This would support the
economic, social, and political development of
the country and its integration into the global
information society. Government will encourage
the development of telecommunications services in
the rural areas to promote rapid socio-economic
development. Furthermore, our educational
institutions will be afforded access to basic and
advanced telecommunications services in order to
enhance and sustain educational standards
nationwide.
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The Nigerian Telecommunications Policy 2000 Contd

• UA Initiatives
• The NCC is responsible for promoting specific
  regulatory and market initiatives, including
  defining development targets and other interim
  and long term goals for national communications
  access. Such initiatives may include the
  following types of strategies
• Open market entry in unserved areas
• Establishment of Universal Service Fund
• Competitive license bidding based on investment
  commitments
  
• Franchise minimum rollout obligations
• Community Telecenters development projects
• Public-private financing of infrastructure
  Construction projects
  
• The NCC shall design and promote mechanisms for
  defining policy options and programs to achieve
  universal access, with the participation of
  industry, community representatives and other
  stakeholders.

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The Nigerian Telecommunications Policy 2000 Contd

• UA Funding Provision in NTP
• The most effective and sustainable means for
  realising universal access is directly from the
  revenues generated by services provided to
  customers. In the event that revenues are
  insufficient to support needed investment or
  operating expenses, additional financial support
  may be sought from one or more of the following
  sources
• Contributions from licensed operators
• Government funding sources
• Outside donor agencies
• Commercial lending programs (with government
  guarantees)
  
• Any obligatory contributions to financing
  universal access by regulated telecommunications
  operators shall be administered in a transparent,
  non-discriminatory, and competitively neutral
  manner, and shall be applicable to, and imposed
  on all participants in the relevant market
  segment .

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The Communications Act 2003

• The Act came into effect in July 2003. It made
  provision for the following in Sections 112 -
  120
  
• Universal Service Provision
• Determination by NCC on the definition of
  unserved areas, underserved areas and unserved
  groups
  
• Creation of universal service provision fund and
  its sources of funds (USPF)
  
• Establishment of a Universal Service Provision
  Board and defined its membership
  
• Creation of an Autonomous USP Secretariat within
  NCC with properly defined functions
  
• Creation of the office of independent USPF
  Managers to be appointed by the USP Board in
  consultation with NCC Functions are clearly
  defined in the Act.
• Provision for NCC to make USP Regulations

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NCC Key Strategic Policy Initiatives

• Bridge the urban rural divide through improved
  access to telephony services
  
• Develop an appropriate and enduring UA Strategy
  (UAS) for Nigeria
  
• Ensure provision of telephony service to
  underserved urban and semi urban areas
  
• Facilitate provision of telephony service to all
  rural and underserved areas
  
• Develop appropriate regulations to ensure
  compliance with network roll out obligations
  
• Encourage use of technology specifically aimed at
  delivering cost and service benefits for rural
  applications.

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Ongoing NCC Activities at Providing Universal
Access.

• Demand Studies
• To know the demand potential and to determine
  market efficiency and access gap in the
  telecommunication services delivery Nigeria, NCC
  commissioned a demand study in 2003. The result
  of which was shared with all stakeholders in
  August 2003. It showed the following,
• The existence of enormous demand for
  telecommunication services.
  
• That telecommunication entrepreneurs will spring
  up if there are transmission facilities
  
• That there exist a huge market efficiency gap and
  that access gap occasioned by affordability is
  minimal in most states surveyed.
  
• To know if the above result could be
  generalized, the Commission is expanding the
  demand study to cover more states in all the
  geopolitical zones of Nigeria

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Ongoing NCC Activities at Providing Universal
Access Contd.
Pilot Projects To test the viability of the reco
mmendations from the demand studies, the
commission is working with some renown
international consultants in the design of a
transmission / access pilot project route in one
of the geo-political region. This project is cur
rently at the request for proposal stage and will
provide subsidy if need be to the bid winner to
provide transmission and telecommunication access
to all communities along the route. It is being
financed from a World Bank assistance facility.
The project is expected to be replicated in two
other areas at the completion of the expanded
demand study.
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Ongoing NCC Activities at Providing Universal
Access Contd.
Collaborative Efforts NCC is aware of the need f
or accurate information for planning and so it is
collaborating with other Government Agencies to
validate the level telecommunications penetration
in Nigeria Liaison with the National Population
Commission to determine the level of Access
penetration in Nigeria. Telecommunications access
questions have been included in the Census 2005
questionnaires. Also presence of telecoms
infrastructure in every locality is been collated
in the Enumeration Area Demarcation (EAD)
exercise for the Census. The aim is to know area
s that need services, help define obligations
that will be given to service providers and also
in the implementation of USP as provided for in
the Act.
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Ongoing NCC Activities at Providing Universal
Access Contd.

• Establishment of USPF Management Agency is almost
  completed.
  
• Establishment of new license categories and
  services for the rapid deployment of rural
  service is ongoing.
  
• Determination of rural interconnection rates
  and development of regulation for universal
  access are also ongoing.
  
• Allocation / reservation frequencies for rural
  telecommunications is being considered.

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Ongoing NCC Activities at Providing Universal
Access Contd.

• Incentive development to encourage service roll
  out in semi urban and rural areas is ongoing.
  
• The Act stipulate that part of the annual
  operating levies on operators to be set aside for
  USPF (NCC is setting 40 aside ).
  
• All operators are expected to contribute to USPF
  and NCC collects.
  
• Work on UA obligation to all operators is ongoing.

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Conclusion

• Telecommunications Service is a fundamental right
  of every individual and as such Universal Access
  is key to achieving this objective.
  
• With the Plans and Programs enumerated above,
  Nigeria is on the track towards providing
  sustainable access to telecommunications services
  nationwide.

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Thank You All

• Nigerian Communications Commission
• ABUJA
• 3RD MARCH 2005