Technology

November 27, 2013

Worry over ROW, multiple taxation, as 2.3 GHz frequency set for auction

By Emeka Aginam

Although the proposed industry structure based on Open Access model  for Broadband Nigeria  has been applauded for its strategic goals and objectives,   Information technology experts who gathered last week in Lagos at  the Nigerian Communications Commission, (NCC) industry stakeholder’s forum on Broadband Nigeria  were still  worried that  issues around high cost and approval of  right of way, long delay in approving permits, multiple taxation, multiple regulation, damage to infrastructure, lack of reliable, clean grid electricity supply among  others need to be resolved urgently for full implementation.

Benefits of Open Access Model:

The Open Access Mode when fully implemented  will potentially help optimize the cost of broadband access across Nigeria and ensure that all operators, whether large or small, have equal access to broadband infrastructure.

However, the NBN is envisaged to be an open-access carrier-neutral backbone and metropolitan fibre network that spurs service innovation. The NBN framework will provide an open access, non-discriminatory and non-exclusive pricing to all service providers.

Accordingly, the proposed industry structure, based on Open Access, would see to the licensing of infrastructure companies (InfaCos) that are geographically focused.

InfraCos as entities

The proposed industry structure offers InfraCos as entities that complement the existing industry players by focusing on the market gap (primarily metropolitan fibre) and offering non-discriminatory open access wholesale bandwidth services to the industry players.

He said that InfraCos  will be established in each geop-political region , adding that one will be in Lagos as the commercial hub of the country.

Going by the current proposition,  InfraCos, according to NCC will  leverage the existing intercity fibre to offer a more seamless wholesale service delivery at Layer 1 and Layer 2.

This proposed industry structure consists of the following players including  InfraCos (Layer 1B and Layer 2),  Licensed InfraCo(s) that are geographically focused.

Under the new arrangement,   InfraCos would provide wholesale Layer 2 transmission services on a non discriminatory, open access, price regulated basis. InfraCos may also provide Layer 1 (dark fibre) services on commercial basis.

The infrastructure company is also expected to focus on the deployment of metropolitan fibre and provide transmission services, available at access points (Fibre to the Node or Neighborhood – FTTN) to access seekers.

It will also leverage existing inter-city fibre to deploy their services, purchase/lease transmission or long haul fibre capacity from other providers, where available, for the purpose of interconnection.

Nigeria is positioned to transit to digital economy:

Earlier in her keynote speech, the Minister of Communications Technology, Mrs. Omobola Johnson while expressing optimism to actualize the Broadband by the target year told the gathering that Nigeria was well positioned to the transition to the knowledge economy.