Going by numbers, Nigeria’s internet users would make any investment promotion commissioner very proud. By February 2019, the Nigerian Communications Commission (NCC) said there were more than 114 million people on the internet. That is about 20 per cent of the population of all the countries in the European Union.
The data showed that overall internet users increased to 114,725,357 in February from 113,875,204 recorded in January showing an increase of 850,153 new subscribers.
In a normal investment pitch, that should be a bull’s eye. Among other things, it clearly shows there is a healthy demand for the digital space whether people are going there for social reasons or for commerce, advertisers especially are sure to look favourably on it.
But as with many things in this corner of Africa, there is a twist. While thousands of people are migrating to digital platforms there is every reason to worry on the quality of internet services they are getting from operators.
The NCC claims it has surpassed the 30 per cent target set in the National Broadband Plan set in 2013. In January the commission said Nigeria now has 33 per cent broadband penetration. However, BusinessDay’s findings have revealed that much of the metric is from mobile broadband as the country is yet to tap its fixed broadband assets.
Insiders in Nigeria’s fixed broadband market tell BusinessDay that there is no shortage of capacity. There are about 40 Gigabytes of broadband lying on the country’s shores as a result of the five submarine cables that operate in the country.
Mobile vs Fixed Broadband
While both are very critical to driving the digital revolution in any society, it is important to note that both do not give equal benefits.
First of all, broadband is what enables people to get connected to the internet faster.
Mobile broadband basically refers to a service with which you are connecting to the internet using the same mobile networks that your phone uses. It works wherever a 3G or 4G signal is available. Mobile broadband can come in the form of a little thumb-sized gadget that plugs into the USB port of your computer and connects it to the internet. It also comes in the form of a personal WiFi device known as Mi-Fi or portable hotspot, in-car WiFi and data-only SIM-cards.
Nigeria’s broadband growth is mostly around mobile broadband and it is distributed mainly around four telecommunication companies namely Globacom, Airtel, MTN and 9Mobile. By February, MTN remained the largest network provider with 46.53 million internet subscribers, Airtel Nigeria came in second with 30.89 million subscribers, Globacom took 27.48 million subscribers at third position, while 9Mobile accounted for 9.80 million subscribers.
Fixed broadband on the other hand refers to high-speed connectivity for public use of at least 256 kbit/s or more in one or both directions (downloading and uploading). It includes cable modem internet connections, DSL (Digital Subscriber Line) internet connections of at least 256 kbit/s or higher, fibre and other fixed broadband technology connections (such as satellite broadband internet, Ethernet LANs, fixed wireless access, Wireless Local Area Network, WIMAX etc).
Nigeria’s fixed internet sources are majorly from fibre optic cables and satellite. Part of the reason is that deployment of mobile broadband is much cheaper as it only requires cell phone towers. Nevertheless, neither source has been utilised to capacity.
What is the difference?
Before we look at the differences, it is equally important to look at the similarities between fixed wireless and mobile broadband. One major connection is that both deliver internet through the “last mile” and into your hands – either at home or on the go.
Fixed broadband delivers broadband from the backbone of the internet by using base stations to transfer the signal from building to building, like a local satellite. The dedicated wireless connections are usually much faster than mobile 4G networks and have low latency.
Unlike mobile broadband however, fixed wireless are limited to densely populated areas because they require line-of-sight connectivity. For instance, a large portion of the operations and services from the five fibre optic cables that land on the country’s shore are concentrated Nigeria’s major cities, Lagos, Abuja and Port Harcourt. The implication is that rural communities are left out of connectivity.
Notwithstanding, Nigeria requires fixed broadband technology to scale its digital economy. The bandwidth per household of a fixed wireless is designed to be more consistent than mobile wireless, even in peak times of use. Additionally, the more people on a mobile broadband service the heavier on the capacity resulting in poor signal. Whereas the capacity available on fixed wireless is designed to remain relatively steady.
Fixed broadband remains the best option for digital activities like streaming HD videos, download files in a reasonable amount of time or allowing multiple people to come online at the same time.
Fixed wireless also guarantees unlimited data usage that drives financial technologies like Point of Sale (POS), ATMs, interbank money transfers and the rest of the industry 4.0.
Although the cost of mobile broadband may seem reasonable compared with fixed wireless services, those who use large amounts of data may find that they are paying more, if it’s the only solution.
Nigerian internet users can certainly gain more from a deliberate action to improve the business environment for fixed wireless operators. Solutions to problems like Right of Way for cables, security of technology and human resources, multiple taxation and levies are not impossible, it only requires the will and leadership to address.
