• Globacom, Mobitel, Swift, DOPC make inroad
Ben Uzor Jr
Recognising that existing wireless technologies will not be the definitive solution to internet access in Nigeria, telecommunications firms and Internet Service Providers (ISPs) are migrating to an innovative wireless platform which promises to open up new revenue generating streams for them by enabling new capabilities well beyond mundane voice and data services, Business Day can now reveal. Globacom, Mobitel, Swift Networks and Direct-on-PC (DOPC) have all announced and launched 4G-LTE networks.
Though, other telcos are keeping plans close to their chests, MTN, Starcomms, share the view that LTE-4G will enable them offer better value to their customers. Industry analysts have doubted Globacom’s claim because suitable spectrum was yet to be issued and also because compatible devices were yet to become available in Nigeria. On the other hand, analysts told BusinessDay yesterday that intense competition is forcing telcos and Internet Service Providers (ISPs) to reassess their data strategies.
“Telecoms companies are reassess their data strategies to make certain that they generate considerable revenue from the internet access market in coming years”, Adebayo Oyewole, head of marketing and strategy for MainOne Cable told Business Day recently. The reassessment exercise, according to informed sources had begun in the preceding year in anticipation of the landing of MainOne and Glo-1 underwater cables. Geared up to take advantage of the new infrastructure, management of some of the telecoms companies have started re-adjusting data strategies to meet current market demands.
At the moment, some telcos are embarking on strategic multi-million dollar infrastructure projects while others are testing new technologies and platforms; all geared towards strengthening their data services segment. Gbenga Adesanya, a telecom analyst told BusinessDay that mobile network operators (MNO) are paying ardent attention to data services as the next revenue generating stream because forecasts have shown that the bulk of telecom revenue was expected to come from mobile broadband and data in the next five years. Data segment accounts for a paltry 10 percent of telcos’ revenue.
BusinessDay learnt that Mobitel Limited, pioneer WiMAX service provider, has adopted an aggressive three year-strategy plan for data services. This, it was learnt will culminate in the replacement of its current WiMAX platform for the revolutionary 4G-LTE; offering its customers superior quality of service. In a document sighted by BusinessDay, the firm said that it sees LTE as a unique differentiator in delivering best-in-class, superfast broadband service, and multimedia streaming amongst other services.
Similarly, Second National Carrier, Globacom has begun testing LTE in 30-40 locations in Lagos, with preliminary results showing that speeds are ten times faster than available 3G services. Investigation revealed that Globacom was currently using a combination of its existing GSM and 3G spectrums to conduct LTE testing, but intends to obtain either 2.1 or 2.6 GHz licenses from the NCC. On the other hand, Airtel is building a 3G network expected to cover 80 percent of Nigeria’s population by 2012 and required to offer reliable and affordable internet services to its customers.
Rajan Swaroop, chief executive officer, Airtel Nigeria, confirmed that the project was indeed strategic for increasing market share in the data internet segment of Nigeria’s highly competitive telecoms market. According to the analysts, Nigerian internet users have continued to express their discontent with the slow and exasperating access to the cyberspace even with the landing of two submarine cables (Main One and Glo-1) on the country’s coastline. For years, the only cable system serving Nigeria’s internet and data needs was the SAT-3 submarine cable. Besides, stakeholders expect better service delivery as more telecoms firms and ISPs migrate to the LTE-4G platforms.
Charles Anudu, managing director, Swift Networks, who spoke with Business Day in an exclusive interview on the company’s new 4G broadband internet offering, believes that the deployment of 4G networks and services in the country would assist the industry to potentially get ahead of many markets on the global stage, thus, putting Nigeria on the fore rather than playing catch-up. “4G will enable telecoms operators to use their existing frequency to deliver more capacity and throughput of data. 4G essentially means that for the operator, we are able to do more with same spectrum as we would have done with either 2G (Second Generation) or 3G (Third Generation) network.
For the telecoms subscriber, it means that they can actual access the internet at a more higher speed using the same spectrum that was available to the telecoms operator”, Anudu stated. In the same vein, John Salako, chief executive officer, Mobitel, noted that this technology platform was well positioned to drive the Nigeria’s evolution towards pervasive wireless broadband communications with huge market acceptance, rich ecosystems, and promising economies of scale. In the estimation of analysts, 1.8 billion people worldwide will have access to broadband services and nearly two-thirds of this number will be mobile broadband consumers who will be served by 4G-LTE networks.
Giving insight into what this new wireless platform can do in terms of enhancing service delivery and improving the bottom line of the business, Mohammed Jameel, group chief operating officer (GCOO), Globacom argued that its LTE network can better leverage the enormous bandwidth capacity coming from Glo-1 underwater cable. “We will now connect demanding corporate customers and high data users through our latest LTE wireless broadband connection to Glo-1 and then the rest of the world.
“For our subscribers, 4G-LTE offers the key benefits of performance and capacity. In addition, it will enhance more demanding applications like interactive Television (TV), mobile video blogging, advanced games or professional services”, the GCOO further explained. According to Jameel, though Nigerians can already browse the internet or send e-mails using HSPA-enabled systems and send or receive video or music using 3G devices, the experience with LTE-4G will be even better.
LTE-4G is a revolutionary Fourth Generation Mobile Technology which enhances data transfer rates, providing unmatched mobile broadband experience. By delivering speeds ten times faster than available 3G services, this new wireless technology will provide telecoms consumers in the country with widespread all-IP based services such as superfast broadband access, video blogging, high quality multimedia streaming, enhanced gaming services etc. Business Day checks reveal that 24 networks worldwide have successfully adopted and launched 4G-LTE networks.
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