By Dele Ogbodo
Engr. Stephen Bello, the former Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), who acted briefly in that capacity before his retirement from service 13 years ago has endorsed the ongoing strategic partnership of dozens of Internet Service Providers (ISPs) which is being championed by Phase3 Telecoms to enable them provide robust network infrastructure for faster broadband deployment and acceleration of Nigeria’s digital economy adaptation.
However, Bello regretted the ‘tsunamis’ that hit the sector, as he recalled that between 2005 and 2006, the Commission licenced over 600 companies (ISPs) to provide high speed internet across the country, but unfortunately there are less than 20% of ISPs that still operating.
As according to him…”Well at the official site of NCC website, there are about 106 ISPs. Not more than 30 of them are actually active in that market.” he averred.
The former NCC boss, made the disclosure at the sideline of a strategic alliance/meeting brainstorming session organized by the MD/CEO of Phase3 Telecoms, Mr. Stanley Jegede, in Abuja.
Bello, acknowledged that ISPs are still very indispensable and relevant in the telecommunications space because of their higher quality signal and bandwidth that they provide to small scale industries, estates and schools etc etc, unlike the MNOs that operate in the mass-market segment.
He said: “Mobile Network Operators, that is the GSMs provide service for the masses, to every dick and harry with moderate data rate and quality of service and then the ISPs can now come in and support those who require speed for higher quality active services etc which the mobile service cannot provide because of limited spectrum.
“Their spectrum is limited and so the number of people that they can service is limited so let them service the masses while the ISPs provide service for the small SMEs etc.”
While recalling the ‘tsunamis’ that rocked both the ISPs and CDMAs at the verge of telephony explosion in the country, Bello, said: “Initially we (NCC) didn’t even allow the MNOs to build their network because we wanted Nigerian companies to provide transmission network at least to give Nigerians a stake in the system.
“But again, because we didn’t want to stall the network growth, we have to change that policy and allowed them to build their network that is micro wave and fibre.
“Then the ISPs were still operating side by side but as soon as we now issued the Unified Access licence and they were now allowed to offer internet service, that changed the whole thing and it was like a tsunamis.
“It was not only the ISPs that got affected at least close to 25 CDMAs telecoms collapsed with the coming of the GSM operators…
“When we realized that the ISPs were having serious problems, we changed their licensing model and then upgrade them to be able to have network resources, that was when we started giving them spectrum and so on like that
“I congratulate those of you that survived the great tsunamis and I’m happy that many of have survived. I’m happy to see new outfits in the sector like INQs, IPS IPNS, Layer3, Dimension Data, Spectranet, etc etc…Again I want to congratulate you for being so innovative to have weathered the storm and stay afloat in the business of providing robust infrastructure network for others to ride on. I want to encourage all of you to continue and to collaborate with each other and especially with Phase3 that is providing the backbone for you to move on.
According to him, the cost model in the telecoms industry or any service industry is that 75% of the cost is on the last-mile.
“In switch and telecommunications 75% is on last-mile whether it is landline, wireless or whatever you call it or anything like that. Then you have about 15% on the switch and 10% on the transmission.
The same thing happens even with our power and that is why our power is not going to improve until we get it right.” He said.
In his remark, Jegede, called on the government to support the sector, adding that us as a country the government still needs to support us in building that infrastructure and I think that they are doing their best.
He however, alluded that the Minister in charge of the sector has a clear plan on how to turn telecoms operators in achieving the goal of growing the broadband penetration in the country.
The Phase3 boss, said: “If we want to go fast, we go alone and if we want to go very far, we go together. I’m excited that we are all gathered here today to discuss ways in which we can encourage one another and build that infrastructure that will support Nigeria in jump-starting the economy, is that if we do it right, we will continue to succeed and survive in this environment.
I encourage you all you (ISPs) to embrace what we share; we are happy to work with each and every one of you and I want reassure each an every operator here to see us as partner that we can sit with and have flexible plan and arrangement that you might not be able to get from the big operators.
With excitement, he said: “Phase3 has built an infrastructure that is fast, reliable and it covers the 36 states, we are doing all we can to expand our metro reach.
“So, let see ourselves as partners. Let us do together and let ensure that together we make a difference and with carefully selected partners we can surmount the obstacles ahead of us.”
…Please read Engr Bello’s riveting interview on how NCC firmed up its regulatory framework, adjudged the best in Africa… his take on Engr. Ernest Ndukwe, Dr. Eugene Juwah (late), Prof. Umar Danbatta…only in the EXTRAORDINAIRE-MAGAZINE/hard copy edition on the news-stand.