The Federal Government is contemplating plugging into a new global thinking in the usage of C-band communications frequency spectrum. The new philosophy entails the reallocation of the 3.6-4.2 GHz band of spectrum, known as the ‘C-band,’ to mobile operators.
C-band is a name given to certain portions of electro-magnetic spectrum, including wavelengths of microwaves that are used for long-distance radio telecommunications.
The Federal Government had set a target of a five-fold increase in broadband penetration, in consonance with the National Broadband Plan (NBP). The purpose of this is to facilitate e-governance, e-health, e-education, and to enable Nigerians employ themselves on the back of the myriad of opportunities availed by the internet.
It would also enable retirees contribute to the economy by working from home through the internet, and allow Diaspora Nigerians contribute to national development. The GSM Association (GSMA), a group protecting the interest of operators globally, is of the view that the reallocation of C-band could help the country achieve the said targets by decreasing marginal cost for mobile operators, leading to lower prices for mobile broadband in Nigeria.
According to GSMA, reallocation of the spectrum would earn the country an income of between $2.2 billion to $4.6 billion. This development is not sitting well with operators in the satellite communications industry.
The European Commission, confirming satellite industry fears, has decided to allow terrestrial broadband operators to use a portion of C-band spectrum that had been reserved exclusively for satellite use, a senior commission official told SpaceNews in October.
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The decision is likely to tip the position of the broader grouping that represents European governments at the International Telecommunication Union (ITU) as it prepares for the upcoming World Radiocommunication Conference (WRC) in late 2015. A source close to one of the prominent satellite communications operators in the Nigeria said that the C-band was widely used to provide critical services that include satellite broadcasting communications, air traffic control, meteorology services, internet access, disaster relief, as well as, government and enterprise communications.
Deepu Krishnan, senior consultant, EuroConsult, in a recent report titled, ‘Assessment of C-band usage in African countries, warned African government to tread with caution, in their decision to support reallocation of C-band spectrum. He said , “C-band contributions directly feed the TV industries of Nigeria, Democratic Republic of Congo (DRC) and Angola.
“Their transmissions are a key component of the distribution of free-to-air and pay Direct Terrestrial Television (DTT) services.” According to Krishnan, the access of millions of viewers to TV content is largely dependent on the availability of high quality C-band transmission.
Looking at the its impact on Nigeria’s oil and gas sector, Krishnan identified the use of more than 200 C-band VSAT (Very Small Aperture Terminal) in each of the three countries, for a combined total of more than 1,000 units. “Connectivity is key in both exploration and daily production activities, and any impact on C-band networks would have a direct impact on the productivity of the industry, directly impacting the country’s economy and government budgets,” he said.
In the banking sector, C-band VSAT networks are widely used to connect bank branches to headquarters, supporting banking services to millions of citizens on a daily basis, in each country.
In total, banks currently use around 1,900 VSAT networks in the three countries. The availability of C-band connectivity is an important tool to support the expansion of banking networks and electronic channels such as the Automated Teller Machines (ATMs). BusinessDay gathered that the GSMA is engaging in intense lobby as the group looks to persuade the Nigerian government to push the agenda of reallocation at the World Radio-communications Conference 2015 (WRC-15), holding in November this year.
It would be recalled that Nigeria, the continent’s largest economy by GDP, was very instrumental to securing additional spectrum allocation for Africa at the WRC -12. The African team, led by the executive commissioner at the Nigerian Communications Commission (NCC) had submitted proposals on the additional spectrum allocation of 694-790MHz on the 700MHz band to region-1 of the ITU, including the African continent.
An industry source told BusinessDay that telecommunications operators were already baiting government with the revenue potentials of reallocation. He noted that considering the falling prices of oil, and government’s renewed efforts to open up alternative revenue streams, satellite operators could be in for tough times ahead, if government gives in to the pressure from mobile operators.
The source said that the GSMA had launched a new -50 page report in Abuja during the African Telecommunications Union’s third preparatory meeting for the WRC-15). The report clearly outlined the economic benefits accruable to nations that go ahead with C-band reallocation. Supporting the lobby, Mortimer Hope, director, Spectrum and Public Policy Africa, GSMA, in Abuja averred that, “at WRC-15 in November 2015, Africa has a rare opportunity to secure the future of the mobile internet. Decisions on frequency spectrum allocation made at WRC-15 will define mobile connectivity well into the next decade.”
According him, exponential growth in the use of mobile phones, tablets and other wireless devices accessing the internet would be putting intense pressure on existing spectrum allocation in Africa.
“Unless governments choose to grant mobile operators access to sufficient spectrum, countries across the continent will miss out on the substantial socio-economic benefits that mobile broadband delivers,” he said.
The GSMA director urged government and regulators to use the opportunity that WRC-15 provides to take strategic and decisive actions on spectrum allocation that would safeguard the future of mobile broadband in Africa.
Satellite service providers are however demanding that C-band be maintained for their use, but are very reluctant to share. The Nigerian Airspace Management Agency (NAMA), Nigerian Meteorological Agency (NIMET), Multichoice Nigeria, Daar Sat, NIGCOMSAT, all provide services on C-band.
Speaking on behalf of the international satellite community, Michel de Rosen, chief executive officer of Eutelsat, warned African states of the consequences for the continent if C-band frequency resources are reallocated to mobile operators.
Addressing delegates from African countries gathered in Abuja, for a meeting organised by the African Telecommunications Union (ATU) to prepare them for the WRC-15 Conference scheduled to take place in November, he said that opening up the C-band to operators would not herald the expansion of its use for innovative services. “It would mean the end of services, with no guarantee that new mobile services would actually be deployed. Terrestrial operators already have access to a very broad range of spectrum and should be using this first before seeking to acquire more, “he summed.
Ben Uzor & Dan Ojabo
