Broadband penetration and its resultant effects

Broadband has been globally acknowledged as the foundation and propeller of development in a knowledge-driven economy. Every economy that must remain relevant and competitive in the business world, especially in the 21st century environment, must invest both human and material resources in development of its digital technology via broadband penetration and enhancement, which has unlimited potential of enabling entire new industries to emerge, invariably reducing youth unemployment through job and wealth creation. This will culminate in introduction of significant efficiencies into critical sectors like education delivery, payments systems, shopping, health care provision, energy management, electoral process, security reinforcement, information dissemination and management, etc. It has been empirically proven that every 10 percent increase in broadband penetration in developing countries results in a commensurate increase of 1.3 percent in GDP. Therefore, no progressive-minded government can underestimate the resultant effects of broadband penetration in its economy.

Recently, the number of Nigerians accessing the internet through the Global System for Mobile Communications networks leaped by 18.42 million in the last one year. It was raised from 63.4 million in February 2014 to 81.9 million by the end of January 2015, which was as a result of relentless effort being made by the nation’s telecom watchdog, the NCC, to increase broadband penetration in Nigeria’s economy by creating enabling business environment in the telecom sector. The number of active subscriptions within the period showed an increase of 29.02 percent.

The rising rate of internet subscription on the GSM networks reflects the increasing importance of data services to subscribers and also as a stream of income to mobile telecommunication service providers. At the earlier stage of the introduction of digital mobile services in the country, the network operators had concentrated on the voice services without giving much thought to data services, but with the increasing demand for data services and the availability and affordability of smartphones and tablets, operators have had to expand their offering for data services, with a number of them upgrading the data capacity of their networks in order to accommodate pressures emanating from additional broadband users.

Resultant effects of broadband penetration in Nigeria can be felt all over the critical sectors of the economy such as online shopping outlets, electronic payment systems, online social media platforms, online advertisement, online exams/interviews, improvement in electoral process via Card Reader machines, e-Library, efficient criminal investigation, etc. It is on record that online shopping became a means of exchange of goods and services in the country as a result of availability and affordability of internet access by subscribers. Broadband penetration has gone a long way in encouraging online shopping outlets like Jumia.com.ng, Konga.com.ng, OLX.com.ng, and other economic activities on the internet to thrive by engaging in a healthy competition with offline shopping outlets like Shoprite, Roban Stores, Exclusive Stores, etc.

One of the most notable features of online shops, since online retail debuted in Nigeria, is the affordable prices of their goods. Compared with the offline market prices, these online shopping outlets, despite free delivery in some cases and high cost of logistics, still manage to maintain clear edge in terms of price while still offering quality goods. Online shopping business has not only helped in easing purchase of goods and services, but has also succeeded in liberalizing the sector via its numerous outlets which have assisted a lot of Nigerians to create value.

One of the major resultant effects of broadband penetration in the country is e-Payment system. E-Payment platforms such as Online Fund Transfer, Automatic Teller Machines (ATM), Point of Sale (PoS) terminals, etc have revolutionized Nigerian banking sector. Electronic banking is now being taken for granted in the banking industry as a result of ICT revolution being propelled by broadband penetration. The introduction and successes recorded by the Cashless Policy as was conceptualized by the CBN cannot be celebrated without mentioning the role being played by broadband penetration in advancement of this policy. Online Fund Transfer has reduced long queues normally experienced in the banking halls; it has also minimised the risk associated in business transactions, especially when huge cash is involved. Commercial banks can attest to these irrefutable facts that broadband penetration in the country has reduced the cost of money transactions, because business transactions worth billions of naira can be done via online money transfer without single note of Nigerian currency exchanging hands, thereby reducing risks and cost associated with carrying huge cash around. Offline shopping outlets which used to be cash-based transactions are now leveraging on PoS technology to thrive, as the latter gives the customers the flexibility in decision making as regards purchase of goods and services. The almost indispensible role played by ATM in providing banking services to customers cannot be over-emphasised. This is as a result of enterprise data services being provided by telecom operators via broadband-linked channels. Though these services powered by broadband still encounter challenges caused by slow browsing speed and network congestion, these issues are being tackled by the Nigerian Communications Commission in alliance with the Federal Ministry of Communications which recently initiated steps to ensure a fivefold increase in broadband penetration in the country by 2018 via the National Broadband Plan.

In furtherance of its resultant effects on the nation’s economy, broadband penetration is encouraging Nigerians to venture into online media platforms as a means of information dissemination and wealth creation. Social media platforms like Facebook, Twitter, Wasp, Saharareporters.com, Premiumtimes.com, Elombah.com, etc would not be enjoying the popularity and patronage they are experiencing now in Nigeria if not for the availability and affordability of data services via broadband penetration. It has enabled Nigerians to access news online without having to visit a vendor’s stand for newspapers and magazines. Nigerians are now empowered to update themselves on the current development just by a flip of the touch screen of their smartphones.

The current trend in the social media where millions of Nigerians access breaking news using their smartphones and tablets has made information dissemination more flexible and accessible which has integrated Nigeria into 21st century global community. Apart from the increasing use of smartphones, telecom operators are also offering modems that help subscribers use SIM cards to connect their laptops to the internet. Telecom operators are investing heavily in provision of internet services via broadband penetration by building of more reliable network infrastructure to increase the efficiency of data services being rendered to subscribers. The government of President Muhammadu Buhari should therefore ensure speedy implementation of the National Broadband Plan as this will go a long way in revolutionizing the ICT industry while also assisting the government in the creation of millions of jobs for the unemployed youths.

Chidiebere Nwobodo