Nokia E7: Pretty, hot and tempting

Saturday night, I was dressed to kill, spotting a pink TM lewin shirt, a pair of sky blue Wrangler jeans, Armani belt and black Paul Smith footwear, fresh boy! On my wrist, I had a Baume & Mercier watch on and gold Christian Dior wrist chain. Geez, I was fully equipped to make that kill tonight, if you catch my drift. I stepped into Number 10 Restaurant and bar, got myself a bottle of Heineken, picked a spot in the bar with a pleasant view, sat down to enjoy the appealing flavor of a perfectly brewed beer.

After a few minutes, Alex came in and we exchanged pleasantries. I had earlier spoken with Alex and we agreed to meet at the bar. Alex is quite a catch with the ladies but honestly I get fed up with his overly boring gist of his numerous escapades. Anyway, he sat down and as expected the next thing he said was: “Dude, I was with one cute babe last night……” Hear we go again, I murmured. Just as we were about to get into another long and windy argument about how insensitive I was, a guy stepped into the bar.

In his hands was the most beautiful….goodness! My mouth was agape for at least ten seconds before I got a hold of myself. It was my first time of seeing something like this, lord have mercy! Stunningly beautiful, that’s what ‘she’ was. We (I and Alex) practically drooled at what we saw – one of the sexiest we have ever seen. The glossy lines, hoary colour and nice curves screamed, “Look at me! Hold me!! Touch me!!!” God knows, I wanted to. I am trying not to over flog it, but if ‘bling’ and ‘effizy’ is your thing, taking this ‘sassy babe’ with you to any meeting or social event is bound to get heads turning.

I was tempted into snatching the ‘hottie’ from the guy. Sweet memories of the pastor preaching on the pulpit filled my mind. Just like a sledge hammer slamming against the anvil, I heard a voice, ‘Thou shall not covet you neighbours wife or property’. I turned to Alex and with an ecstatic tone said, “Lexy, check out this Nokia E7, this phone is off the hinges man!” Got ya! I hope you guys were not having any grimy thoughts. I can’t believe this….I mean, come on! This is a Business newspaper not Hints or Hearts magazine. Nevertheless, the Nokia E7 actually makes the N8 look very unattractive.

I use an N8 but I was practically lusting after the new communicator in this guy’s hands. The dude, who later identified himself as Abdulrasheed, a staff of MTN Nigeria, was not a natural flaunter. I could tell by just looking at him, but the E7 made him look like a ‘pro’. Filled with excitement, I asked him, ‘where did you buy the device?’ He replied: ‘It’s not in the market yet, I had to order it. It’s a nice phone. It provides direct, secure and real-time access to e-mail, calendar, contacts, tasks and the corporate directory through Microsoft Exchange servers, and Office Communicator Mobile, developed by Microsoft for Nokia smartphones, which brings presence and corporate e instant messaging.’

He went on, “With its tilting 4 inch clear black display, full keyboard and a fast access to a wide variety of apps directly on the homescreen, the Nokia E7 is the key to having a successful day in or out of the office. The E7 supports business applications from leading enterprise technology firms including IBM and Microsoft.” I was blown away by his in-depth knowledge of Nokia devices and was forced to ask him, do you also work with Nokia sales and marketing department? He smiled and said, ‘I am just a phone freek’.

Over the years, we've seen a steady stream of business and messaging-centric landscape QWERTY smartphones come and go, with HTC arguably leading the pack via its collection of Windows Mobile, Android, and WP7 devices featuring sliding keyboards and tilt-out displays. But few of HTC's offerings are as iconic or memorable as Nokia's line of Communicator clamshell phones -- starting with the Nokia 9000 in 1996, continuing with Symbian S80 models, and culminating with the Nokia E90 atop S60v3. The Nokia E7 is the latest Communicator in this distinguished series and the manufacturer’s current flagship device, dethroning the Nokia N8 which continues on as the company's media mogul.

A lot has changed in the six months since the N8 was introduced, including Nokia’s recent partnership with Microsoft and the stunning announcement that it will be adopting Windows Phone for future high-end smartphones. So, is the E7 -- which is finally shipping in the United States of America (USA) -- the greatest Communicator to date? Can it carry the torch for Symbian in the immediate future? And more importantly, how does it fare in today’s shark-infested Android and iOS waters?

Hardware

Let's make one thing abundantly clear: black or silver, the Nokia E7 is one gorgeous piece of hardware. It might not have the proportions of the Dieter Rams-inspired iPhone 4, but it's a handsome and refined phone that can definitely compete in terms of materials and build quality. The E7 design language mimics its N8 sibling, and consists of a flattened aluminum cylinder that features a 4-inch glass-capacitive touchscreen on one side, a glass window protecting the 8 megapixel camera and dual-LED flash on the other side, and tapered plastic covers hiding antennas and connectors at each end.

From the front the E7 looks like a larger N8, but in order to accommodate the physical keyboard, the body is sliced longitudinally into two sections. The thinner "half" houses the tilt-out display and the menu key (centered below the touchscreen), the other "half" contains the keyboard, the camera, and most of the electronics. Without a camera pod sticking out the back, the E7 ends up being thinner than the N8 overall, and one of the slimmest landscape QWERTY devices we've come across. The E7 feels hefty in a reassuring, confidence-inspiring way -- as a point of reference, it's almost the same weight and size as the HTC Thunderbolt, but about 6 mm (1/4-inch) narrower.

Fit and finish are impeccable, and so is the attention to detail: there's a machined and polished bevel surrounding the camera window in the back of the E7 and lining the edge of every control on the aluminum body. The top cap contains a 3.5 mm headphone jack, the power / profile key, a mini-HDMI port (behind a plastic door), and a micro-USB connector with a charge indicator. At the opposite end, the bottom cap hosts a microphone and a single speaker. We found a few niggles here.

While the headphone jack supports stereo accessories (3-pin) without any problems, it's electrically incompatible with most non-Nokia headsets (4-pin). The speaker is very loud and clear but is positioned such that it becomes muffled slightly as soon as the phone is placed face-up on any flat surface. On the right edge of the E7 you'll find a SIM tray (that's easily removed with a fingernail), a volume slider (which feels downright awkward), and the camera shutter button. The screen-locking slider benefits from the same excellent spring action as on the N8 but lives by itself on the left edge, where it's easier to access when using the keyboard.

Camera

The E7 is equipped with an 8 megapixel EDoF (Extended Depth of Field) camera and dual-LED flash. In typical Nokia fashion the optics and sensor is top notch. This, together with superior image processing results in beautiful shots. As you can see in our sample pictures, color balance and exposure are excellent, and noise is kept under control without obliterating detail. While it's no match for the phenomenal N8, the E7 camera stands out amongst today's smartphones. There's however one massive, glaring problem -- the elephant in the room, if you will -- and that's the EDoF lens.

Depth of field becomes meaningless with this camera. Sure, everything from 60cm (two feet) to infinity is perfectly in focus, but just like with a fixed-focus lens it's impossible to take closeup shots. Nokia waxes poetic about how EDoF means no moving parts, allows for a thinner device, improves shooting speed, and makes it easier for the average person to use the camera. We're reminded how the 8 megapixel sensor captures enough information that images can be enlarged and cropped without a huge impact on quality. This is all true, but we feel EDoF is too much of a compromise especially when it's combined with a decent sensor and optics. It just takes away an entire layer of creativity from the picture taking experience when compared to an autofocus lens.

Software

We're going to be frank here: Symbian breaks what is otherwise great hardware. Most of what we mentioned about the software in our N8 review applies to the E7 -- it's the same tired routine, a frustrating user experience that quickly becomes a burden day-to-day. Now, before you get up in arms, you have to remember that we've been Symbian users for a very long time, so we're well aware of the strengths and weaknesses of this once-glorious OS.

The sad reality is that when measured against other major platforms Symbian is no longer competitive, especially at the high-end of the market, and that's even true today than it was six months ago after the launch of the N8. With that disclaimer out of the way, let's look at some specifics. Our European review unit was running what was formerly known as) Symbian^3 PR1.1 while our US model was one release behind at PR1.0, and both devices were using browser version 7.2.

Cybercafé patronage drops as Nigerians opt for individual subscription

Ben Uzor Jr

Cybercafé patronage in the country is declining in favour of individual subscription as telecommunications operators (Telcos) continue to roll out cheaper and innovative broadband internet services, industry analysts told BusinessDay at the weekend. Confirming the development, Ross Bateson, spokesperson for the Global System for Mobile Communication Association (GSMA) told BusinessDay that only 66 percent of users accessed the internet from a cybercafé in 2009 down from 82 percent in 2008, as workplace, home and mobile usage increased.

“Cyber usage is declining in favour of individual subscription”, he said. An analyst told BusinessDay this has also translated into revenue loss for operators of Cybercafes and job loss for those who work in those places. A prominent analyst told BusinessDay earlier that the bulk of telecoms revenue was expected to come from mobile broadband and data services in the next five years.

To this effect, mobile network operators are paying keen attention to data (internet) services as the new revenue generating stream. However, a new report from the GSMA, a global body representing the interests of mobile operators, indicated that 31 million Nigerians accessed the internet in 2009. Other estimates put the figure as high as 43 million. According to Bateson, broadband internet usage will be driven essentially by an increase in personal computer (PC) ownership, expected to rise from 7 percent of households in 2009 to 13 percent in 2014.

Gbenga Adesanya, a telecom analyst, agrees with Bateson; claiming that low-end smartphones and PCs will increasingly become the preferred consumer broadband devices. Industry analysts maintain that with the proliferation of underwater cables on the country’s coastline, and by virtue of their unified license - designed to allow them offer a bouquet of services - telcos are offering innovative and affordable internet services geared towards meeting the growing internet demands of Nigerians.

As of today, MTN, Globacom, Airtel, Starcomms, Visafone, ZoomMobile and even new entrant Etisalat, offer broadband internet services to Nigerians. Conversely, stakeholders in the Information Communication Technology (ICT) sector have said that Nigeria’s cybercafé industry could spring up again and become an enterprise haven if operators are focused and geared up to bring to bear the required professionalism and innovation into the business, without necessarily succumbing to the evident infrastructural challenges facing the industry.

They blamed that failure of the industry on wrong use of application and the absence of professional advice. For the industry to be revived, they suggested that operational challenges such as bandwidth unavailability due to high cost, power, poor technology infrastructure, unfriendly taxation for Internet service providers (ISPs), unaffordable modems and electronic fraud must be fully addressed. Lanre Ajayi, past president, Nigerian Internet Group (NIG), pointed out that only a change of approach will help revive the ailing industry and avert its imminent collapse.

According to him, changing of tactics has become necessary in view of the dynamics inherent in running a Cybercafé enterprise in modern day business environment; especially as it relates to emerging technologies. Ajayi observed that the demand for internet services had started increasing; this is in addition to steady adoption of online payment in the government establishments across the country in line with the global best practices. This, he added to a large extent underscores the need for evolution of Cyber business in Nigeria, built on strong business ideals and professional competence.

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Broadband to generate N598 billion for Nigeria’s economy by 2015, says GSMA

Ben Uzor Jr & Biodun Coker

Indications are that Nigeria’s wireless broadband market will have a direct revenue impact of N598 billion by 2015, the Global System for Mobile Association (GSMA), a global body representing the interests of mobile operators, predicted yesterday. A new report made available to BusinessDay revealed that mobile broadband can potentially contribute over 1 percent of GDP (Gross Domestic Product) and 1.7 percent of non-oil GDP in 2015, supporting diversification of the Nigerian economy.

Such economic gain, the GSMA however maintained, would depend on a positive environment created by all stakeholders with regard to infrastructural development, frequency spectrum management, and access to internet for women and rural citizens. The report further asserts that if positive policy actions are effectively taken by the federal government to remove barriers to mobile broadband adoption and delivery in the country, the benefits to GDP in 2015 will be an additional N190 billion.

However, according to the GSMA, in bringing this projection to fruition, government support could take the form of harmonisation of tax and levies, as well as proper management of national frequency spectrum. “The federal government must reduce the 35 percent tax level faced by Nigerian mobile operators, a tax which is double the global average. The federal government must also implement harmonised levies or taxes and environmental approvals processes at state and local levels of government”, Ross Bateson, spokesperson for GSMA told BusinessDay in an interview.

According to the study, only 6 percent of all Nigerians currently have access to broadband services, and 74 percent of those do so through mobile broadband. There is little fixed broadband connectivity outside Lagos, and even in cities, most cyber cafes now connect to the internet using wireless services. Bateson said Nigeria’s poor management of national spectrum could slow down foreign direct investment in the telecoms sector, thus reducing the uptake and growth of mobile broadband.

“The 2.3 GHz award process has been mired in controversy for over a year. More than 2 years have passed since 2.5 GHz was proposed to be offered by NCC, and negotiations over its use are yet to be concluded. There is a lack of clarity over when the vital Digital Dividend spectrum will be passed to the NCC for use by operators, which could dramatically increase mobile broadband coverage”. The GSMA spokesman called on the Nigerian Communications Commission (NCC) to ensure that spectrum is made available quickly and with maximum transparency, using international harmonised band plans.

Bateson also pointed out that the federal government must, as a matter of expediency, implement e-government initiative, including online transactions, for license and levy payment, and support the development of web content and applications as well as commit to publishing state-owned datasets (e.g. population, geography and financial), so that entrepreneurs can easily leverage their benefits.

The report also forecast that wireless broadband will create N410 billion of indirect value through 2015 in various sectors of the economy, namely: Manufacturing, services, and agriculture; diversifying outside the oil and gas industry. This, the report noted, was because industrial productivity increases as workers increasingly use e-mail and electronic file exchange, thus providing quicker access to businesses’ critical information and faster access to more distant customers and suppliers.

Another core benefit the report alludes to is that improved broadband would increase the attractiveness of Nigeria to foreign investors. Over 30 million Nigerians accessed the internet in 2009, increasingly choosing personal subscription over cybercafé access, the report disclosed. In addition, only 66 percent of users accessed the internet from a cybercafé in 2009. This represents a drop from 82 percent the year before as workplace, home and mobile usage increased.

Key metrics confirming the direct impact of wireless broadband penetration on the Nigerian economy shows that the number of users will increase from 1.3 million in 2010 to 13.9 million in 2015. This figure could grow further with the enormous bandwidth capacity emanating from two submarine cables. Conversely, the GSMA has called on the federal government to adopt best practices spectrum policy, with spectrum resources managed by one entity in order to improve penetration.

However, the GSMA fingered power supply as a key barrier to widening broadband usage in Nigeria. “In Nigeria, where generators work for up to 22 hours a day, two generators (costing in total $40, 000) are typically used to power a base station. In more energy reliable markets such as Ghana, Kenya and Tanzania, the cost is about half. “Benchmarks show that OPEX (Operating Expenditure) spend on power per telecom tower in Nigeria is as high as $2, 000 compared to $429 in India”, the report stated.

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Airtel Nigeria set sights on data market as competition thickens

. . . Expect to be cash-flow positive in 18 months
Ben Uzor Jr

Airtel Nigeria 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, disclosed in an interview. This is even as the data market has emerged as the new ‘competition war front’ for telecommunications firms in the country. An analyst told Business Day that the project was strategic for increasing market share as the bulk of telecom revenue in Nigeria was expected to come from mobile broadband and data services in the next five years.

Swaroop noted that Airtel was spurred on by the prospect of boosting revenue from internet data services as voice tariffs continue to fall. “We are building a 3G (Third Generation) infrastructure and by the time we’re finished, we will have covered 70 to 80 percent of the population and that’s maybe one year away. We currently have 100,000 to 150,000 subscribers but we strongly believe that the overall potential for this is something like 2 million subscribers out of an overall total of 16 million.

Commenting on the company’s financials, the Airtel boss revealed that over the last 12 years, the performance of the business has been declining but by virtue of the investments made in infrastructure deployment, he believes Airtel Nigeria would be self-funding and cash-flow positive in the next 18 months. “We also intend to encourage the Nigerian Communications Commission (NCC) to introduce Mobile Number Portability. Then the best provider will be successful.”

Giving vivid insight into the company’s position with regard to international fibre and acquisition of bandwidth capacity, Swaroop disclosed that the telecom firm had bought significant capacity from both MainOne and Glo-1 cables. “The price per MEG is down to US$300-350 per MEG per month at volume and this price is a substantial drop and what was available previously. We will probably double our capacity in the next 6-12 months and prices will come down again.

“They are currently pretty high compared to rates across the world. In India, it is sub US$10 per MEG. Bharti Airtel, who took over mobile operations in 15 African countries in a deal that makes it the world’s fifth-biggest mobile firm with 180 million customers in 18 countries, is known for its low-cost strategy but the firm has revealed that it will not adopt the same strategy which has made it India’s market leader. In India, Airtel’s call rate charges are as low as 1US cents as against the 20US cents charged in Nigeria currently. “We have not dropped prices significantly in Nigeria.

It’s no good having a too good N12 product that is actually a N14 product. But with our new tariffs, we’ve created excitement and pull. “There’s not been huge numbers but there has been some change. We wanted to see what kind of reaction there would be to this kind of offer and galvanise our sales distribution process. The question was: can we galvanise our own teams.

If the answer was positive, then I think we can stand and fight. We didn’t want to do disruptive price packages because we don’t believe the lead to customer stickiness or loyalty. I’m going to see how I can take some customers from others but we don’t want to destroy the value in the business”, he posited. In the area of customer care service which some telecoms operator often say differentiates them, he explained that the firm needs to provide higher levels of customer service as it was discovered that 90 percent of its customer care calls failed to get through to the call centre.

“We’ve added 1,400 people and bought this number down by 30 percent. By April this year, we should have cleared the backlog out and got that figure down to 5 percent or less. We’re also enabled customers to use self-help services. And for example on what’s the balance at the end of a call? We’re pumping up capacity on that. We’re setting a level of quality of service we should be able to sustain”, the CEO maintained.

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Globacom to apply for new license from NCC

. . . Seek to dominate Nigeria’s internet access market
Ben Uzor Jr

There are burly indications that Globacom, Second National Carrier, will obtain a new spectrum license from the Nigerian Communications Commission (NCC) by third quarter of 2011, informed sources close to the network told Business Day at the weekend. This new frequency spectrum, our sources further maintained will enable the telecom firm offer more efficient and reasonably priced broadband internet services to its teeming subscribers on its Long Term Evolution (LTE) platform. Officials of the telecom operator however declined to comment on the development when contacted.

Only recently, Globacom announced that it had launched the LTE network in Nigeria but industry watchers had doubted the telecom firms claim because suitable spectrum was yet to be issued and also because compatible devices were yet to become available in the country. A prominent industry analyst, who spoke with Business Day at the weekend, said Nigeria had failed to effectively manage its national frequency resources, stressing that it might pose a serious challenge to Globacom’s aspirations.

Our sources disclosed that Globacom was testing LTE in 30-40 locations in Lagos, with preliminary results showing that internet 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. Besides, Equipment providers have emphasised the need for effective management of the spectrum resources.

According to them, the frequency bands most suitable for deploying LTE are 700MHz and 2.6GHz.The 700MHz band is recommended for wide and rural areas, whilst 2.6GHz is said to deliver better internet speed and more effective in urban areas. But ironically, such spectrum bands are hardly in use by telecoms companies in Nigeria. According to the analyst, there is an urgent need to free up these frequency spectrum because LTE deployment will further deepen competition in the data segment of Nigeria’s highly competitive telecoms market, thus, giving Nigerians more value for their money.

This, the further analyst explained was because LTE promises to open up new revenue generating streams for telcos by enabling new capabilities well beyond traditional voice and data services. According to the analyst, the price of data and other broadband internet services, including BlackBerry (BB) subscriptions, will come down remarkably as the recent take-off of two submarine cable initiatives (Glo-One and Main One ) have continued to drive data and Internet subscription charges down.

Until recently, monthly BlackBerry charges were about N5, 000 across networks, today however, it is as low as N2, 500 and promises to go lower still. With regard to the timeline for implementation, our source confirmed that Globacom will commence roll-out of LTE services in the beginning of 2012, pointing out that modems will however be available in Q3 of 2011. 3G customers will ultimately become LTE customers, one industry analyst told BusinessDay, but warned that unless handsets are available at a cheaper rate uptake will be limited.

LTE is a revolutionary Fourth Generation Mobile Technology which enhances data transfer rates, providing unmatched mobile broadband experience. 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 LTE networks.

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Poor policy formulation, high equipment cost hinders PC Penetration

• Country has 3.3 million functional computers
• Telcos, OEMs seek to perk up penetration rate

Ben Uzor Jr

The computer hardware market has remained underdeveloped due to poor policy formulation and implementation on the part of government as well as the attendant high cost of equipment acquisition in Nigeria, analysts told Business Day at the weekend. According to the analysts, inspite of the growing number of Original Equipment Manufacturers (OEMs) and resellers, along with the significant growth recorded in the telecommunications industry after the sector was successfully deregulated in 2001; there are only 3.5 million functional Personal Computer (PC) systems in the country.

In the estimations of the analysts, there are a total of 10.5 million PCs in offices, hospitals, homes and schools across the country. Business Day further gathered that only 34 percent of the total is in functioning condition, which leads to the conclusion that PCs are still uncommon in a country of 140 million people. Besides, it is imperative to stress that dependable statistics of PCs in Nigeria are difficult to get hold of because a good number organisation do not have proper documented inventories and also because of the apparent unwillingness of many to release information they consider vital.

Moreover, reliable statistics from the International Telecommunications Union (ITU) reveal that PC penetration remains very low at 7 per 1, 000 Nigerians. Analysts are optimistic that the PC market has the prospects of growing exponentially in no distant time. According to them, it will be sustained by increasing awareness levels in the population, especially the youth, spurred by education, the internet and deliberate initiatives from stakeholders. Johnson Obioma, a telecom analyst told Business Day, that the fundamental barrier to increased PC penetration was the high cost of buying equipment.

According to him, most indigenous OEMs offer affordable computing equipments, but are hindered by the prevailing high cost of doing business in Nigeria which to a large extent impacts on the quality of their equipments when compared to other foreign brands. He called on government to as a matter of exigency introduce zero tax policies for local computers manufacturers as well as an exemption on duties on the import of computers parts and accessories. With regards to price reduction, some telcos and PC manufacturers have entered into strategic alliances to offer affordable laptops to Nigerians.

Only recently, Globacom and HP introduced an innovative offering that enables Nigerians to own top-end internet-equipped netbooks. Under the special bundling offer, customers can get Glo 3G powered HP netbook for N34, 000. MTN followed suite by introducing its Internet Netbook Bundle which offers 20 percent of the purchase price of the Netbook back after 12 consecutive months of subscription to internet service from MTN. Though operators believe that the trend is very positive for the market, analysts do not think that PC penetration will suddenly shoot up on account of Telco’s resourcefulness.

Over the years, the federal government has introduced numerous PC acquisition schemes with little or no impact on PC penetration in the country. One of such initiatives was the Computer for All Nigeria Initiative (CANi), a government-private sector collaboration designed to increase computer penetration in Nigeria. The CANi scheme suffered numerous setbacks, one of which came from government agencies which still prefer to patronise foreign brands like HP, Toshiba, and Dell even when local brands like Zinox, Omatek, and Brian computers have proven just as good.

Leo Stan Ekeh, chairman, Zinox Technologies, strongly believes that governments at all levels must support indigenous computer manufacturers through policy and preferential patronage. This, he added, was if government intends to make significant headway regarding increasing the number of Nigerians who have access to PCs. “The endorsement of Zinox Computers in 2002 by the Federal Executive Council of Nigeria under President Olusegun Obasanjo…may not have created patronage but it achieved fascination for the Zinox brand. “Governments must do more than pronouncements, they must buy into the numerous marketing schemes designed to move the products to end users.

The indigenous manufacturers/assemblers must carry the governments along on these schemes. In the same vein, Tunji Balogun, chief executive officer, Brian Computers, urged to the federal government to improve their participation in the computer hardware market by making requisite funds available for indigenous OEMs. “If OEMs are empowered, it will do two things. It will reduce the cost of ownership of systems and make things easier for people to buy because we can do installmental payment over a period of time. But we cannot do that without government empowerment by talking to the banks on our behalf or empowering the banks for them to empower we local OEMs”, he added.

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New fibre initiatives pose no threat to satellite business, operators say

Ben Uzor Jr

Satellite operators and resellers in Nigeria have declared that the new fibre initiatives (Main One and Glo-1) pose no threat to their existence due to the variation of services both technologies offer. This comes on the heels of heated debates amongst industry analysts that the revenue of satellite operators will dip following the growing number of submarine cable systems on the country’s shores. Fibre optics is quicker and has higher bandwidth but for long distances requires more infrastructures.

On the other hand, satellite is slower with lower bandwidth and noticeable delays. The long range capability is greater but parts of the infrastructure are expensive to replace and repair. Satellite operators told Business Day yesterday that because most of the national fibre backbones and fibre rings only run through large cities and towns, majority of Nigeria’s unserved and underserved population will get internet access through satellite communications and other wireless technologies.

Analysts who are familiar with the evolution of internet in Nigeria say that that the internet connectivity business has been dominated by satellite. This, the analysts maintained was because satellite and subsequently other wireless technologies for a long time were the only viable option in the past owing to non-availability of fibre across the country. With the boom in the telecoms industry, they noted, it became essential for operators to lay fibre to attain the high capacity required for a good voice network.

A senior executive in one of the new cable firms’ who pleaded anonymity told Business Day that satellite business will experience a severe downturn on the African continent owing to the proliferation of submarine cables initiatives. He further revealed that satellite operators in Africa have already invested huge amounts in new and replacement satellites at a time when there was already growing apathy to satellite/VSAT use. In his estimation, $4.395 billion will be invested in new and replacement satellites against $2.15 billion in seven international submarine cable systems.

“By the end of 2010, the internet submarine fibre capacity had increased by 1, 683 percent by the end of 2010. It is expected that by the end of 2011, the capacity would have increased by a whooping 3, 967 percent, which is a clear indication of the growth of fibre deployment”, he stated. For Johnson Obioma, a telecom analyst, the big transition from satellite to fibre would force satellite operators to dig deep and come up with new strategies to enable them retain market share.

More importantly, he noted that, if they are to survive, they would need to find new ways to reduce cost of access. As at today, MainOne, Glo-1 and SAT-3 sell bandwidth capacity to their customers within the range of $300 - $400 per megabyte. Lanre Ajayi, past president, Nigerian Internet Group (NIG) who spoke with BusinessDay in a telephone interview, pointed out that the emergence of these new fibre initiatives would only mean expanded business for satellite operators. According to him, satellite was extremely effective in reaching places where the volume of traffic would not justify a fibre connection.

“The tendency is to think that the submarine cables will eliminate satellite communication but it might actually expand the business of satellite in Nigeria. The truth is that fibre cannot get to everywhere. “Most of the national fibre backbones and fibre rings would run through large cities and towns. But for the rural populace, the way for them to get internet connectivity would be through satellite technology.

“This means that the emergence of these cables would only mean expanded business for satellite operators”, Ajayi posited. In the same vein, Oladapo Raji, general manager, DCC Networks, a subsidiary of Computer Warehouse Group (CWG), observed that Nigeria cannot boast of as much fibre as any of the countries in Europe and America, adding that despite the extensive use of fibre in these countries, they have very large installations on satellite and it’s growing quickly.

“If in these economies fibre does not compete with VSAT but both co-exist as compliments why should we expect the contrary in Nigeria? “Even though fibre is faster and has high capacity, its availability is very low especially in our environment where there are no proper cable ducts and infrastructure development is still massively ongoing. So in this light, the VSAT comes in as a compliment to the fibre.”

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