An Overview of the National Broadband Plan

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1 An Overview of the National Broadband Plan Commonwealth Broadband Forum June

2 1. Background Current State of Broadband in Nigeria

3 The Nigerian Telecommunication sector is one of the fastest growing sectors, receiving over $32 billion dollars in foreign investment to date with a contribution of 11.04% of the GDP in the 4 th quarter of 2014 However, the growth across voice and data services is relatively unbalanced Data Voice Teledensity has reached April 2015 Active Mobile subscriber base of April 2015 Internet Penetration Rate of December 2014 Broadband Penetration Rate of December Million Mobile Internet Data April 2015 Source: Nigerian Communications Commission, Federal Ministry of Communications 3

4 The slower growth in data services has been primarily as a result of the dearth of comprehensive infrastructure required to deliver these services The Nigerian Context Last Mile connection to Homes and Businesses (OFC, Microwave, Copper) Limited Coverage Some coverage by GSM Operators and ISPs Metropolitan Transmission to nodes and neighbourhoods (OFC, Microwave, Copper) Limited Coverage only an estimated 10% of cities and towns covered Some coverage by GSM Operators and ISPs National Long Distance Transmission (OFC, Microwave, Copper > 116,000 KM and 41,000 KM of OFC deployed deployed by GSM, CDMA and NLDO Operators Internet Link and International Connectivity (Satellite & Submarine OFC) 4 Submarine Cables with > 9 terrabytes of capacity Source: NCC Study, National Broadband Plan ( ) Key trends indicate that demand for data services will continue to rise. can the supply match this demand? 4

5 2. The Broadband Challenge Nigeria s Response

6 In 2013, Nigeria developed a National Broadband Plan ( ) to drive a coordinated effort toward bridging Nigeria's Broadband Gap The National Broadband Plan is an ambitious and comprehensive plan which outlines the key national targets for broadband deployment and usage in Nigeria by 2018: The broadband vision for Nigeria is one of a society of connected communities with high speed internet and broadband access that facilitate faster socioeconomic advancement of the nation and its people 90% 80% [ ] 70% 60% 50% 40% 30% 30% 65% [ ] [ ] [ ] [ ]cv [ ] [ ] [ ] 80% 20% Source: Nigeria s National Broadband Plan, % % National Broadband Penetration Legend Actual 2013 Target in 2018 Target in 2018 Target in 2018 % Coverage of Community Public Access Venues % Coverage of 3G enabled Base Transceiver Stations *Nigeria s National Broadband Plan defines broadband as an internet experience where the user can access the most demanding content in real time at a minimum speed of 1.5 Mbit/s 6

7 The National Broadband plan aims to achieve its target through the implementation of the following key principles: Drive Demand through Digital Advocacy, Literacy and Inclusion Multi-Agency Involvement and Collaboration Employ an Open Access Model for Broadband Infrastructure Key Imperativ es Promote Enabling National Infrastructure Optimise Spectrum Allocation Facilitate the Provision of the Required Investment Source: Nigeria s National Broadband Plan,

8 The National Broadband Plan also groups the key activities required to achieve the targets into the following themes: Regulatory Policy Review/update of extant polices and development of relevant ones to create an enabling environment for infrastructure deployment Service Delivery Agree Operator rollout targets and implement the Smart City initiatives in states Infrastructu re Take key actions to build and integrate infrastructure on a national basis Demand Stimulation Promote e-governance by moving critical activities online Cost & Pricing Develop and implement a cost-based and competitive pricing framework for broadband services Incentives for Stimulating Rollout Agree and provide financial incentives for infrastructure deployment Source: Nigeria s National Broadband Plan,

9 In 2013, the NCC launched its Open Access Next Generation Broadband Network as one of the critical strategies required to deliver the National Broadband Plan targets : The Open Access NGBN introduces the Infraco whose role is to address existing gaps in the deployment of metropolitan fibre across the country. The objectives of the Open Access NGBN are to stimulate: Nationwide Fibre Penetration Non-discriminatory and Open Access Coordinated Fibre Deployment Improved data Speed Extend the backbone fibre infrastructure network into metropolitan areas and achieve the National Broadband Plan s target of covered of 50% of the population Make available the new network infrastructure and services to all on a fair and non-discriminatory basis and build a foundation facilitate for fair and effective competition Minimise duplication of fibre rollout to facilitate the coordinated build-out of an interconnected fibre network and minimize unnecessary environmental impact Utilise the advantages of optic fibre cable as a transmission medium to achieve a minimum broadband speed of 1.5 Mbps Investment in Broadband Infrastructure Offer financial incentives to stimulate increased rollout of broadband infrastructure by the private sector this is similar to strategies deployed by other jurisdictions The NCC has completed the licensing of 2 out of 7 zones and is set to commence the auction of the remaining 5 in June

10 Other achievements of the National Broadband plan include: Smart States Initiative Spectrum Auction KATSINA FCT Successful completion of the auction of the 2.3GHz spectrum band for wholesale broadband access Pending Auction of 2.6Ghz and 700Mhz spectrum bands LAGOS ONDO BAYELSA CROSS RIVER 10

11 Nigeria s National Broadband Plan A Journey set on the Right Course 11

12 Presenter s Contact Joseph Tegbe Partner and Head Telecoms, Media & Technology Management Consulting KPMG Nigeria T: E: jtegbe@kpmg.com

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