Friday, June 25, 2010

ICT stakeholders resent delay in NCC, NBC merger

. . . Says it may dampen technology development
Ben Uzor Jr

The delay in the proposed merger of the Nigerian Communications Commission (NCC) and National Broadcasting Commission (NBC) has drawn the resentment of stakeholders in the Information Communication Technology (ICT) industry who maintain that existing technological trends demands such union and failure to accomplish this would not only suppress the impressive growth recorded in the telecommunications landscape but also reduce Nigeria’s chances of attaining its vision 20:20 target.

According to them, there was urgent need to restructure the current independent regulatory agencies (NCC, NBC, and NITDA) until an ICT industry emerges as the sector must recognise that convergence of technologies was challenging existing institutional set-up, breaking new content aggregation, delivery and consumption of communications services. To this end, they called on the Federal Government to speed up the merger process between the NCC and NBC so as to create a suitable regulatory ambiance that would encourage more foreign direct investment into the sector.

Moreover, the call for merger had generated so much controversy in the past and the argument at the time centered on who would regulate the converged technologies, NCC or NBC as well as the new name to be adopted for the emergent industry, Business Day learnt. Experts in telecoms industry wanted NCC to be the regulator of converged technologies. On the other hand, those in the broadcast industry disagreed, claiming that there would be conflict of interest in regulating converged technologies, and insisted that both NCC and NBC be left to regulate telecommunications and broadcasting respectively.

Emmanuel Ekuwem, chief executive officer, Teledom Group who spoke to Business Day, weekend said: “There is so much confusion in the industry as a result of the non-availability of a one stop regulatory shop. We require a unified regulatory institution that will ensure no duplication of effort, no struggling for part of the spectrum. Today, individuals and companies go through the back door to obtain spectrum so as to offer telecom services. If we do not have a good regulatory environment, a one stop shop for regulation, then the confusion we are having now will persist. This will hinder the growth of the telecom industry. It will also hamper the deployment of WiMAX because of inefficient spectrum allocation.”

The Federal Government had earlier set up a presidential committee to harmonise the industry based on stakeholders’ agreement that there was need to converge technology and its regulators. However, the committee’s recommendations on the merger were not adopted because at the time the Obasanjo administration was handing over the reins of power to a new administration. It was also gathered that a ministerial committee has been established to revisit the merger of NCC and NBC.

“We hope that when this present committee finishes its work we will have the needed political will to see it through. I think that when you recommend something like merge the regulatory bodies, that’s not something very easy to do. It is not just something you wake up and do over night. You have to have the political will to make it happen. We hope this time there would be the political will to really implement the recommendations of this committee. The committee by the way right now is asking for public input”, Raymond Akwule, president, Digital Bridge Institute (DBI) explained.

Besides, Titi Omo-Ettu, president, Association of Telecommunications Companies of Nigeria (ATCON) believes that government may have withdrawn from merging the two regulatory institutions because of insufficient understanding of the complexities inherent in convergence. But more importantly, he further noted that the implication of convergence has brought about the need to unify regulation.

“In the past, when government set up the committee to look at unifying regulation, it did not understand the implications of the request that we were making. We were making a request of promoting the need for convergence because technology has already converged. They thought what we were saying was just to merge the NBC and NCC. So they decided to set up a committee to look into it. It was when the report came out that they saw that this issue was more than just merging two agencies.

“I think that the government at that time said since we are on our way out, let us wait, any new government can implement it. This is because it entails a great deal of work. In a developing economy when you say you are merging two things, people starting seeing a husband and a wife and they start reading personalities in issues. It appears this dominated the discussion at the time. Unfortunately, government started withdrawing because they did not want trouble on their hands”, he added. In the same vein, Lanre Ajayi, president, Nigerian Internet Group (NIG) observed that technology had converged and the need for multiple agencies regulating the converged technologies should not arise.

“If technology is converging, it makes sense that the agencies regulating it should converge as well. The evidence of convergence is apparent in the technology devices we carry about today. The GSM phones, for instance, can do voice calls; browse internet on it, and as well watch television and DStv broadcast on it. What evidence do we need to show that technology has converged and why must we have separate agencies regulating technology that is already converging.

“The much talked about merger of the NCC and NBC has to be done. The good news is this; I don’t think the NBC is resisting the merger. I was privilege to be on the presidential committee for the restructuring of the ICT industry that recommended this merger and the NBC’s Director General was also there. I did not see that resistant as was expected. I think he agreed that there should be a merger.

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