Telcos call for spectrum release as new administration emerges

The timely allocation of spectrum resource to aid the deployment of efficient and affordable broadband service across the length and breadth of the nation, is at the summit of mobile operators’ wish-list as the Buhari-led administration takes the reins of power.

The federal government has already set the target of an 80 percent growth penetration in 3G services by 2018, in line with the National Broadband Plan (NBP). Market observers are of the view that spectrum is the lifeblood of the country’s telecoms  industry.

Ross Bateson, the special government advisor at GSM Association (GSMA), a lobby group protecting the interest of operators globally, said Muhammadu Buhari, the President-elect, should, as a matter of urgency, unlock the 2.6GHz spectrum to support higher demand for broadband in urban areas as well as release the Digital Dividend spectrum to deliver services to rural areas.

“It is essential that the new Nigerian government acts quickly to support mobile broadband expansion. Failure to do so could hinder the country’s socio-economic growth,” he said.

According to him, not only could Nigeria realise as much as N862bn in incremental GDP, but people of all ages would benefit from the vast amount of opportunities mobile broadband can unlock.

Observers say the big operators are keen on acquiring 2.6GHz spectrum, in view of the rising demand for mobile data. Funmi Onajide, general manager, corporate affairs at MTN, said “the release of new spectrum will enable Nigeria achieve the objectives clearly laid out in the broadband plan”.

According to market observers, the 2.6GHz band can be used for broadband services worldwide, providing equipment makers with better economies of scale, enabling them to lower the cost of infrastructure.

But, for the second time in five months, the Nigerian Communications Commission (NCC), has cancelled the auctioning of the 2.6 GHz spectrum band. Market observers are all agreed that spectrum unavailability constitutes a major drawback to perators’ ability to migrate to 4G/LTE technology.

In view of this, Internet Service Providers (ISPs) are edging out bigger telecoms operators in the race to deliver broadband services to Nigerans. ISPs are out-performing bigger operators on the basis of pricing, speeds and network performance, as well as overall customer service. Industry observers are of the view that ISPs, including Spectranet, Smile Communications, Swift Networks, ipNX Limited and Mobitel, are miles ahead of GSM operators in terms of broadband service provisioning considering that they have all rolled out more advanced technological platforms in 4G (Fourth Generation)/Long Term Evolution (LTE) and FTTH (Fibre-To-the-Home).

According to them, these superior technological platforms gives these ISPs the capacity to provide sophisticated offerings well beyond mundane voice and data services. But interestingly, major ISPs only offer lightening fast services to customers in a hand-full of state capitals and cities like Lagos, Abuja and Port Harcourt.

There is concern that poor network coverage limits these ISPs from further maximising the advantage which they currently have over larger GSM operators. 4G/LTE is a wireless communication standard far superior to the 3G (Third Generation) platform currently been used by mobile operators such as South Africa’s MTN, India’s Bharti Airtel, United Arab Emirates’ (UAE) Etisalat and Globacom, the country’s national carrier.

Speaking with BusinessDay in an interview, Jide Akomolafe, a Smile 4G broadband customer, said, “In my area at Surulere, the internet speeds are unbelievable. New connections are established pretty quickly.

“Web pages load faster and applications are much more responsive. Beyond that, there is improved reliability in delivering this high performance throughout the coverage area.”

Kamar Abass, managing director, Ericsson Nigeria, says, in the future, LTE/4G will play a bigger role in broadband delivery than existing 3G. “It is quite possible that 2G outlast 3G as a radio standard in Nigeria,” Abass said in an interview with BusinessDay.

According to him, ISPs currently offering 4G broadband service to Nigerians have an advantage over GSM operators’ 3G offering because both services are often priced the same way.

“These ISPs have got a valuable product in 4G broadband, which is twice as efficient as 3G,” he added. On the Smile network, a 4G, 5GB data bundle, with 30 days validity period costs N5,500. On Swift Networks, a 4G, 3GB data bundle, with 30 days validity period costs N4,000.

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