Information and Communications Technology, ICT,
once again, showed its economy- boosting
potentials when the statistician-general of the
Federation, Dr. Yemi Kale recently released the
rebased Gross Domestic Product, GDP data for
2013.
Announcing the
data, Kale
highlighted the
remarkable
contribution of
telecom and
information
services to the
N80.22 trillion
estimated GDP.
Being a new
industry un-
accounted for
in the last
rebased GDP
year 1990,
telecom’s N6.97 trillion addition to the economy,
was regarded as a star performer in the new
rebased GDP year, 2013.
However, the question is whether the sector has
the sustainability power to hold the GDP at an
all time high.
Hi-Tech has however, mirrored into the activities of
the sector and selected some programmes that
may provide the magic wand. One of such
programmes includes the new licences lined up to
be issued by the regulator, the Nigerian
Communications Commission, NCC, to open the
sector to more players.
Reliable NCC sources have confirmed that new
licences are to be issued to seven new
infrastructure companies, InfraCos, before the end
of 2014 in a move to deepen broadband
infrastructure rollout across the country.
Already, the NCC had on February 19, this year,
auctioned the 30MHz slot of the 2.3 gigahertz
spectrum to Bitflux, a consortium of three
companies, at a whopping $23.251 million. This is
also as it has concluded fresh arrangements to
license another available frequency slot in the 3.5
GHz band available to 27 states in MHz bandwidths.
In an advertorial published in prominent Nigerian
dailies recently, the regulator said it was “pleased to
announce to interested public, the availability of 3.5
GHz band in some states and the federal capital
territory, which the commission is willing to sell”
The spectrum, expected to be licensed on a state by
state basis, is said to be available in 27 states and
Abuja, the capital territory, with all the states having
25 MHz bandwidth available, except for Abuja that
has only 20 MHz bandwidth available.
What this means is that winners of the spectrum
licence will operate within the state or states where
the licence is situated. No doubt, if the licenses
would attract revenues close to that of the 2.3GHz,
the GDP will surely be green.
Also, the 700MHz spectrum band licence, according
to NCC is also planned for auctioning next year,
promising to rake in some revenue into the
economy.
Moreover, the issuance of all these spectrum
licences would not only attract revenue but will go a
long way in helping the country to transmit the huge
international bandwidth from the undersea cables,
across the nooks and crannies of the country to
make more services available to Nigerians.
Another factor is the demand in the area of data.
Telecoms experts have noted that data truly driven
by broadband network is the next frontier for
telecoms revenues. Currently there is avid taste for
data services in the country, among individuals,
businesses and government.
Latest industry data by the regulator has indicated
that there were 129 million active telephone
subscriptions in the country as at the end of
February, 2013. Of this figure, 63.4 million are active
mobile internet subscriptions on Global System for
Mobile Communications, GSM networks, indicating
that there is increasing demand for data-enabled
services.
The improving connectivity and increase in
businesses done online is also spurring the need for
data centers. It is estimated that Nigeria, may
almost triple its online purchases in just three years
to more than $1 billion by 2014.
Also, considering the low level internet penetration
points, there are also expectations for high demand
of penetration points, translating to opportunities.
The ministry of Communications Technology has
consistently promised to jerk up Broadband
penetration from the current 6 percent to around 30
per cent in the next few years.
Indeed, new policies, such as the National
Broadband Plan and others, are also going to play a
key role in making Nigeria’s telecoms sector an
attractive investment destination.
As at the middle of 2012, the telecoms sector had
recorded a whopping $25 billion local and Foreign
Direct Investment, FDIs, up from the $500, 000
recorded in 2001 with a plan to double the $25
billion in the next years. Broadband is prided as
being the potential investment booster for the
industry. To drive this investment, the NCC and the
ministry also continue to leverage every local and
international fora to attract investors into the
country.
Realistically, if these programmes are steered as
programmed, there are great hopes that telecoms
would continue to play lead roles not only in the
economy but also in the new rebased GDP.
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