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How Nigeria ICT Sector Fared in Q3 2012

Mrs. Omobola Johnson

Following the payment of the N1.18 billion quality of services (QoS) fines by MTN, Airtel, Glo and Etisalat to the Nigerian Communications Commission at the end of June, the third quarter 2012 began with emphasis by the regulator and the affected operators on improving quality of service across the country.

While that was ongoing, Mrs Omobola Johnson, Minister of Communications Technology revealed that government is working on a local content policy, guidelines and legislation with implementation date of January 2013 that would see to local production of subscriber identity module (SIMCard), base station transceiver station (BTS), debit, credit and other payment cards aimed at growing the economy and reducing foreign dependence.

In a country with an addressable market of over 100 million in the ICT industry only a minuscule percentage of devices used to access voice or data ICT infrastructure is made or assembled in Nigeria. She said they are in discussions with the Ministries of Finance and Trade and Investment on the most appropriate import and tax regime to introduce as incentive for local manufacturers. She bemoaned the level of capital flight in the ICT industry despite a 30 per cent recorded in the last two years. ICT contributed 5.6 per cent to the gross domestic product (GDP) in 2011, making it one of the fastest growing sectors in the Nigerian economy.

Within the quarter, government revealed that it was establishing a N2.41 billion ($15m) fund to for young software developers who come up with very bright ideas on software. The fund would be used to conduct research and development (R&D) and commercialise new applications with global appeal.

A study on federal government’s presence on the internet revealed that out of 810 MDAs, 440 MDAs representing 54.32 per cent don’t have internet websites. Only 370 MDAs have internet presence. Out of 36 ministries, 21 have online presence while 15 ministries representing 41.6 per cent have no internet websites. The government also set a target of 20 per cent broadband penetration for the NCC and operators as well as inaugurating a Presidential Committee on Broadband Development by President Goodluck Jonathan. Currently broadband penetration stands at six per cent with only 28 per cent of Nigerians with access to the internet.

There was also news that Multi-Links, Starcomms and MTS plans to transform into a mega network operator with the name CAPCOM thereby attracting $200 million investments.

The controversy over the merger of NCC and National Broadcasting Commission (NBC) was settled by the presidency with approval-in-principle for the transfer of Digital Dividend Spectrum management to the NCC in line with digital migration of TV stations by while NBC still retains its regulatory role of the broadcast sector.

Unfortunately within the quarter, terrorists struck in northeast Nigeria destroying over 25 base stations in Maiduguri office of MTN thereby cutting off communication from that part of the country.

Meanwhile, GSM operators escalated sales promotions with massive rates cuts aimed at increasing calls and revenues and attracting customers on the network.

Source: leadership.ng

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