FG begins processes for 5.4GHz spectrum licensing

Federal Government has commenced processes for the licensing of broadband services on the 5.4GHz spectrum band and allocation of 70/80 GHz band (E-Band).

Speaking on the growth of broadband penetration in Nigeria, Adebayo Shittu, minister of communications, said penetration levels had now reached 20.95 percent, from just 10 percent in under a year, and internet penetration level had increased to 47.44 percent.

However, there was still a pressing need for Nigeria’s Foreign Direct Investment to increase from its current $38 billion and for penetration rate to attain the set target of 30 percent by 2018, Shittu said.

The minister disclosed this at a conference organised by the National Council on Communication Technology at the weekend in Kaduna.

To achieve this, the minister said that in addition to the government’s plan to license broadband services on the 5.4GHz spectrum, the government had also licensed six slots of the 2.6MHz spectrum for the deployment of 4G-LTE in Nigeria.

Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), said: This is great improvement in the penetration level. However, affordability is a big issue with broadband in Nigeria. At the moment, market conditions are responsible for the price gap on broadband as the government is not in the business of building broadband. The government only creates the enabling environment.”

Teniola listed the three key challenges of broadband development in Nigeria as accessibility, affordability and availability, saying the 30 percent penetration target contained in the National Broadband Development document was mainly for the starting process.

With increased deployment of broadband and more equitable access for the majority, huge opportunities would be created for self-development in the country, experts say.

Development of digital technology via broadband penetration and enhancement has unlimited potential of enabling entire new industries to emerge, invariably reducing youth unemployment through job and wealth creation.

Admitting that ICT has become a fulcrum of the nation’s economy, the minister said the “challenge is how to harness and leverage the opportunities thrown up by the new economy powered by ICT to address the issues of revenue, investments and cost savings.”

According to Shittu, ICT innovation, entrepreneurship, penetration and the broadening of investment opportunities is one of the key avenues for increasing generated revenue in any economy, including Nigeria.