Ben Uzor Jr
Efforts by the Nigerian Communications Commission (NCC) to revive the ailing fixed line segment of Nigeria’s highly competitive telecommunications market are headed in the right direction, industry watchers say. Over 1.9 million fixed lines have become inactive according to 2011 reports. The NCC’s subscriber data shows that there are 2.7 million fixed wired/wireless telephone lines in the country out of which the 1.9 million are not in use. The NCC data also reveals that the total connected fixed wired/wireless lines were 2.7 million as at November 2010 but the number dropped to 2.2 million in October 2011. The regulatory agency says that actualisation of its broadband strategy and the issuance of additional fixed-line telephone licenses next year, will assist in resuscitating the fixed line segment.
In terms of its broadband strategy, the telecoms regulator had decided to explore an open access model for effective deployment of a national fibre network which will ensure an even platform and level playing field for retail service providers. Analysts say that NCC’s broadband strategy will open the doors to the global investment community through the adoption of an open access model, strategically designed to strengthen investment in the area of deploying in-land fibre networks needed to move available bandwidth capacity around the length and breadth of the country.
Though telecoms operators are investing huge financial resources in laying national, metro backbone networks, roll out is slow- paced and controlled in a proprietary nature, unlike an open access infrastructure, where anybody can connect at a uniformly low price. “The licenses will be issued to revive the fixed-line telecommunication services that have been comatose and will benefit our broadband initiative. “Broadband internet is mainly deployed through fixed telephony and it is part of our broadband project to ensure that as we are empowering the private sector, providing incentive to the private sector to create broadband centres in Nigeria, this will go in hand with the restoration of fixed telephony to complement the mobile networks that we have”, Eugene Juwah, executive vice chairman, NCC, disclosed this in an interview.
Lanre Ajayi, past president, Nigerian Internet Group (NIG) said in an interview with Business Day, “For me, it is a move in the right direction. The most important role of the telecoms regulator is to engender competition. It is appropriate to encourage more operators in the fixed line segment because more operators will foster competition in the segment and consequently lower the cost of services. More operators in the fixed-line space will also mean faster deployment of requisite infrastructure which will in turn deepen broadband penetration in the country. Finally, it will improve quality of service.”
“I am not aware of this development. But, it is important that we do whatever is necessary to ensure that broadband services get to the nooks and crannies of the country. If the NCC does issue additional licenses in the fixed line segment, it would be one step in promoting universal access. Adewale Jones, vice president, Association of Telecommunications Companies of Nigeria (ATCON), posited. These are not the best times for fixed telephony in the country, as over 1.9 million lines have become inactive. The NCC’s subscriber data shows that there are 2.7 million fixed wired/wireless telephone lines in the country out of which the 1.9 million are not in use.
The NCC data also reveals that the total connected fixed wired/wireless lines were 2.7 million as at November 2010 but the number dropped to 2.2 million in October 2011. This, according to the data, means that over 500,000 connected fixed lines had been totally disconnected within 11 months ended October 2011.Similarly, the number of active fixed telephone lines, which stood at 1.1 million in November 2010, had cascaded to 801,297 in October 2011.A brief look at the figures, reveals that 300,000 out of the 1.1 million active fixed telephone lines as at November 2010 went inactive in 2011.
Nigeria, according to analysts, missed a great opportunity due to the Nigerian Telecommunications Limited (NITEL’s) inability to massively deploy fixed lines when other development-focused nations of the world, such as the United States (US) and United Kingdom (UK) did. Whilst it is true that the mobile phone has attained high penetration and usage, for many homes, businesses and companies, according to analysts, there exist, a yawning need for basic fixed line access, with its numerous advantages. By year 2000, NITEL could only put in 400,000 connected telephone lines and 25,000 analogue mobile lines.
The total teledensity stood at a paltry 0.4 lines per 100 inhabitants. By the end of 2011, according to statistics from the NCC, Nigeria has attained over 90 million lines .The NCC is however conscious of the importance of fixed lines infrastructure in broadband deployment. This, according to analysts explains why the Juwah led administration is looking to revive the segment by providing the enabling environment for private investors to expand the country’s broadband infrastructure. Statistics show that fixed-line telephone users make up less than 1 percent of Nigeria’s total subscriber base. Tremendous opportunity exists there, for growth in broadband communication as demand for data services grows.
Jones had predicted that fixed telephone lines might be extinct if they continued to decrease at the current rate. “The disconnection of fixed lines is increasing in the country and if the trend continues, we may end up not having fixed lines again in the next few years. “We need to draw the attention of the Universal Service Provision Fund to this development. We should not abandon fixed lines. It is a warning sign. USPF needs to look at those figures and do something. “This is not the fault of the public per se; it is the government through the USPF that should be pushing for the sustenance of fixed telephony”.
Published on Business Day, tuesday 07 february 2012.
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