Nigeria: Internet Entrepreneurship, A new paradigm for internet                       penetration in Africa               ...
IntroductioneGYAfrica is a bottom-up effort by scientists from across the globe but mainly inAfrica who aim to achieve bet...
Introduction It is argued that Internet penetration in Africa will be mainly driven by theeducation sector due to its high...
IntroductionRecently, the International Telecommunications Union (ITU), held its TelecomWorld 2012 Conference at Dubai’s W...
INTERNET USAGE STATISTICS                           The Internet Big Picture                  World Internet Users and Pop...
Internet Usage Statistics for Africa                   ( Africa Internet Usage and Population Stats )                INTER...
Source: Internet World Stats 2012   7
Source:Internet World Stats 2012   8
Background to Nigeria’s Telecoms Environment                                                                             S...
Internet StatisticsInternet Users & Penetration rate – 1996; 1998; 2000 – 2011Note: Internet users are those accessing the...
Internet Services Providers                                       Fixed                     ISP      Mobile               ...
Main One is a communications services company providing open access wholesale international    connectivity and broadband ...
Partners for internet Penetration   Source:Mobitel/ Main One Cable Company   13
Main One Points of Presence    Source: Main One Cable Company   14
Source: Main One Cable Company   15
1          Network Infrastructure: National Data Network    Globacom owns a robust infrastructure and is the only operator...
1   Fiber Network        Source: Globacom Nigeria   17
1   Microwave Network        Source: Globacom Nigeria   18
MTNN’s backbone microwave and fibre optics cable transmission                      infrastructure                         ...
Network Infrastructure   Source: Phase 3 Telecom   20
NITEL        Source:Mobitel   21
Internet Usage and Growth470,068                              • Internet usage is growing rapidly.                        ...
Source:Mobitel   23
2012                                                             Source:Mobitel   24Source: Informa Telecoms & Media, Sep ...
The Way Forward: Partners                            25
The Way Forward: Nigeria Broadband Forum•   The Nigerian Communications Commission held the maiden Nigeria Broadband Forum...
Government Policy and NCC RegulationPolicy                                                        RegulatoryThe following ...
DEMAND DRIVERS, COMPETITION AND TARIFFa.   Government to drive demands for Broadband Services through extensive use of the...
What is 4G?                                            The 4G                                                  Provided mu...
Emerging Trend for Wireless Broadband                                                      Source:Mobitel        30Source:...
THANK YOU ALL                                                           AcknowledgementI am deeply grateful to Ken Esenwah...
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Nigeria: Internet Entrepreneurship, A new paradigm for  internet penetration in Africa

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Paper presented at the eGYAfrica workshop on better Internet connectivity for research and education in Africa held during 24-26 October 2012 in Nairobi, Kenya

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Nigeria: Internet Entrepreneurship, A new paradigm for  internet penetration in Africa

  1. 1. Nigeria: Internet Entrepreneurship, A new paradigm for internet penetration in Africa Victor U. Chukwuma Department of Physics, Olabisi Onabanjo University, P. O Box 351, Ago-Iwoye, Nigeria Tel : +2348055075270, Email: victorchukwuma@yahoo.com 1
  2. 2. IntroductioneGYAfrica is a bottom-up effort by scientists from across the globe but mainly inAfrica who aim to achieve better Internet access for tertiary institutions in Africa.The plan is to ensure that African scientists corroborate, without a digital divide,with their colleagues from the rest of the world. eGYAfrica’s strategy is threefold: 1. Influence Policy makers at National and Continental levels 2. Partner with Internet Service Providers 3. Encourage formation of National and Regional Focus Groups to drive (1) and (2)In our presentation, we will attempt to show the reason the engagement ofInternet Service Providers, the internet entrepreneurs, is crucial to theachievement of the goals of eGYAfrica 2
  3. 3. Introduction It is argued that Internet penetration in Africa will be mainly driven by theeducation sector due to its high demand. However, the education sectorwith its genuine needs and demand does not have the resource, for nowin Africa, to deploy its own fibre optics network and must leverage theprivate sector. Its our hypothesis that internet penetration in Nigeria andby implication most of Africa is driven almost solely by a new class ofprivate sector entrepreneurs who are motivated by the power andfinancial rewards of the internet. Given that the future of the internet inAfrica will depend on the growth of this clan, eGYAfrica must point out tothe private sector that if both sectors build synergy it will createinnovation and mutual wealth. 3
  4. 4. IntroductionRecently, the International Telecommunications Union (ITU), held its TelecomWorld 2012 Conference at Dubai’s World Trade Center during October 14-15,2012. This event which was five days of high-level meetings, discussions,workshops and other activities and networking events held by the 120 delegations,85 ministers, presidents of telecommunication companies, and numerous expertsaddressed key issues in the field of Information and Communications Technology(ICT) including affordability and availability of internet access to everyone.At one of the sessions, the Secretary General of the ITU, Dr. Hamadoun I. Tourehighlighted the benefits of broadband deployment, and encouraged Africanleaders to invest in broadband development and penetration, insisting that thefuture of every nation lies with broadband. The sentiments of Dr. Toure arecongruent with the objectives of eGYAfrica and should strengthen one of ouraforementioned strategies, leaving us with only ways of thinking out of the box toengage partners we identified in this presentation who will drive us to our goals. 4
  5. 5. INTERNET USAGE STATISTICS The Internet Big Picture World Internet Users and Population Stats WORLD INTERNET USAGE AND POPULATION STATISTICS June 30, 2012 Internet Growth Population Internet Users Penetration Users % World Regions Users 2000- ( 2012 Est.) Latest Data (% Population) of Table Dec. 31, 2000 2012Africa 1,073,380,925 4,514,400 167,335,676 15.6 % 3,606.7 % 7.0 %Asia 3,922,066,987 114,304,000 1,076,681,059 27.5 % 841.9 % 44.8 %Europe 816,372,817 105,096,093 518,512,109 63.5 % 393.4 % 21.5 %Middle East 223,608,203 3,284,800 90,000,455 40.2 % 2,639.9 % 3.7 %North America 348,280,154 108,096,800 273,785,413 78.6 % 153.3 % 11.4 %Latin America / Caribbean 592,994,842 18,068,919 254,915,884 43.0 % 1,310.8 % 10.6 %Oceania / Australia 35,815,913 7,620,480 24,279,579 67.8 % 218.6 % 1.0 %WORLD TOTAL 7,012,519,841 360,985,492 2,405,510,175 34.3 % 566.4 % 100.0 % Source: Internet World Stats 2012 5
  6. 6. Internet Usage Statistics for Africa ( Africa Internet Usage and Population Stats ) INTERNET USERS AND POPULATION STATISTICS FOR AFRICA Pop. % Population Internet Users, Penetration Users Facebook AFRICA REGION of (2012 Est.) 31-Dec-11 (% Population) % World 30-June-12 WorldTotal for Africa 1,073,380,925 15.3 % 139,875,242 13.3 % 6.2 % 43,404,160Rest of World 5,939,122,375 84.7 % 2,127,358,500 36.1 % 93.8 % 824,642,360WORLD TOTAL 7,012,503,300 100.0 % 2,267,233,742 32.7 % 100.0 % 868,046,520 Source:Internet World Stats 2012 6
  7. 7. Source: Internet World Stats 2012 7
  8. 8. Source:Internet World Stats 2012 8
  9. 9. Background to Nigeria’s Telecoms Environment Strong signs of growth of Internet users in Nigeria – basic facts Nigeria. • Most populous African nation with 150m people • Nigeria’s broadband market was dominated by • GDP of ~$180bn Nitel until 2006, albeit at a very low level. Other • Over 50 million mobile players had a share of a round 20% of a market subscribers with only around 20,000 subscribers. • Regional HQ of major • At the same time the operators are rolling out regional, multinational coy’s national fibre backbone networks to support the in Africa ever increasing demand for bandwidth. • Nigeria has one of the largest Internet user communities in Africa, about one quarter ofWhy Nigeria? them live in Lagos state.Significant consolidation has • Yahoo has an estimated five million unique usersoccurred in Nigeria’s Internet monthly in Nigeria, generating over 250 million impressions every month. This puts Nigeriaand broadband sector, from second in Africa after Egypt which has over aover 400 ISPs three years ago billion impressions created monthly.to around 150. New powerful • Nigeria has overtaken South Africa to become theplayers from the fixed-wireless continent’s largest mobile market with now overand mobile network operator 75 million subscribers, and yet marketcamps have entered the penetration stands at only around 50% in earlymarket with 3G mobile and 2010.advanced wireless broadbandservices such as WiMAX Source:Mobitel 9
  10. 10. Internet StatisticsInternet Users & Penetration rate – 1996; 1998; 2000 – 2011Note: Internet users are those accessing the network from school, university or work, as well as from individualHousehold or business accounts. Subscribers are those who pay for Internet access. Source:Mobitel 10
  11. 11. Internet Services Providers Fixed ISP Mobile (Fixed Wired & (Broadband, (GSM, CDMA) wireless) VSAT, ADSL)GSM:MTN, Airtel, Glo, Etisala Direct-on-t pc, IPNX, SwiftCDMA: Nitel Networks, Netcom,Starcomms, Multilinks- Linkserve, MobitelTelkom, Visafone, Reltel(Zoom) Phone & Internet Phone & Internet Phone & Internet Services Services Services Source:Mobitel 11
  12. 12. Main One is a communications services company providing open access wholesale international connectivity and broadband capacity to countries in West Africa. Main One built and own the first privately owned submarine cable over a distance of 7,000 kilometres along the West African coastline, with initial landing stations in Nigeria, Ghana and Portugal. The Cable currently delivers high speed bandwidth of 1.92 terabits per second (but has been proven to provide capacity of at least 4.96 tbps) with branching units in Morocco, Canary Islands, Senegal and Ivory Coast. Main One provides open access, wholesale, international broadband capacity to countries along the western coast of Africa. Main One is present at various internet exchange points both regionally and internationally. We are available to interconnect at Internet Exchange Point of Nigeria (IXPN) Ghana Internet Exchange (GIX) London Internet Exchange (LiNX) As a result MainOne is able to provide shorter routes, lower latency service and bandwidth scalability at affordable prices. Source: Main One Cable Company 12
  13. 13. Partners for internet Penetration Source:Mobitel/ Main One Cable Company 13
  14. 14. Main One Points of Presence Source: Main One Cable Company 14
  15. 15. Source: Main One Cable Company 15
  16. 16. 1 Network Infrastructure: National Data Network Globacom owns a robust infrastructure and is the only operator in Nigeria with integrated domestic and International network.• Globacom high speed optic fibre network spans more than 10000 km covering almost entire Nigeria. The network covers all the major cities– Lagos, Ibadan, Benin, Warri, PortHarcourt, Abuja, Zaria, Kaduna, Kano, Abeokuta etc.• The network is configured in multiple ‘self-healing’ rings to ensure error free service.• Besides this, Globacom is establishing a Metro ring across all the 20 major cities of Nigeria.• The backbone and metro rings of Globacom are equipped with Single Mode 96 F Optic Cable with ITU-T G.652 standard. It is armoured cable for extra protection from rodent. Source:Globacom Nigeria 16
  17. 17. 1 Fiber Network Source: Globacom Nigeria 17
  18. 18. 1 Microwave Network Source: Globacom Nigeria 18
  19. 19. MTNN’s backbone microwave and fibre optics cable transmission infrastructure Source:MTNN 19
  20. 20. Network Infrastructure Source: Phase 3 Telecom 20
  21. 21. NITEL Source:Mobitel 21
  22. 22. Internet Usage and Growth470,068 • Internet usage is growing rapidly. • Existing operators are aggressively expanding even though quality of service is poor. • Glo sold out 60,000 in one month but was forced to recall due to poor performance. 218,309 165,000 141,266 132,365 85,000 70,000 40,000 25,000 20,000 5,000Starcomms MTN dongle Multilinks 21st century Zoom (Reltel) Visafone ipNX Swift MTN (VGC)Cobranet (UGO) GLO Source:Mobitel 22
  23. 23. Source:Mobitel 23
  24. 24. 2012 Source:Mobitel 24Source: Informa Telecoms & Media, Sep 2010; mobitel , 2012
  25. 25. The Way Forward: Partners 25
  26. 26. The Way Forward: Nigeria Broadband Forum• The Nigerian Communications Commission held the maiden Nigeria Broadband Forum, with the theme “Demand as catalyst for broadband services in Nigeria,” on 26thJuly 2012 in Lagos. The Forum was motivated by the need to deepen internet and data penetration in order to further drive economic and market growth in the country, which will accentuate the level of demand for broadband services that would accelerate nation-wide deployment.• The Secretary General of the International Telecommunications Union (ITU, Dr. Hamadoun I. Toure encouraged Nigeria to urgently establish and follow through transparent and effective regulatory framework and policy for broadband development in order to achieve massive broadband development.• The Honourable Minister of Communication Technology, Mrs. Omobola Johnson, in her opening speech, assured the audience of the Federal Government’s support on universal access and national broadband deployment, while advising the NCC to determine appropriate pricing in order to foster affordability of the broadband internet services at the grass root levels.• The Executive Vice-Chairman/CEO of the NCC, Dr. Eugene Juwah in his keynote address, showcased the NCC proposed workplan and announced the adoption of Equal Access Model to facilitate rapid development of Broadband in Nigeria, noting that this model has been successfully implemented in countries like Singapore and Australia. Source: Nigeria Broadband Forum 26
  27. 27. Government Policy and NCC RegulationPolicy RegulatoryThe following are policy considerations for Government: Economic, Legal and Regulatory framework toa. Government to provide broad policy framework for facilitate Broadband national growth include: the development of infrastructure that will support a. NCC to provide incentives for broadband the growth and access to broadband services at deployment and penetration in Nigeria. affordable cost to consumers. b. NCC to address Spectrum congestion throughb. Strong government and political commitment variety of available options. towards broadband provision is imperative.c. Provision of incentives by government will stimulate c. NCC to facilitate infrastructure sharing for investments in Broadband deployment similar to the efficiency through innovative models. tax exemption granted to GSM operators at the d. 4G frequency spectrum will need to be licensed inception of GSM mobile services in Nigeria. by 2015.d. Government to facilitate access to low cost funding e. Develop innovative spectrum optimization and and financing of long term Broadband deployment harmonisation scheme. loan facility by the Commercial Banks. Government intervention on high bank interest rate is required to encourage investment in broadband.e. Government to drive the development and creation of local content in broadband service delivery and create a venture capital fund for software entrepreneurs.f. Build a business case with states and local governments to stress the need and importance for right of way for the provision of telecommunication services in a mutually beneficial approach. Source:Nigeria Broadband Forum 27
  28. 28. DEMAND DRIVERS, COMPETITION AND TARIFFa. Government to drive demands for Broadband Services through extensive use of the internet and on-line data services for immigration services, Company Registrations, Tax filings, Customs and Excise Duties Services, contract administration, Universities Admission processes and selections, etc.b. Demand for Broadband identified in the various multi-sectors such as; health, e-commerce, education, aviation, banking, maritime activities etc.c. Need for regulatory framework to drive competition and sustainability in the various layers of the proposed model.d. Stimulate content demand through innovative applications, services and products.e. Increase in Broadband infrastructure will drive innovation for new businesses and SME growth.f. Different categories of services should be developed to suite the different needs of various customers.g. Broadband would facilitate the growth and availability of innovative and evolving ICT services which will increase the national GDP.h. The rapid deployment and availability of broadband will lead to the introduction of innovative services.i. Deployment of digital on-line services in at least 20 Government ministries by first quarter 2013 will increase demand for bandwidth.j. Need to bridge the huge demand gap for broadband services in Nigeria.k. Connecting homes to Broadband Source: Nigerian Broad band Forum 28
  29. 29. What is 4G? The 4G Provided multi-media support features, spread spectrum transmission and increased data A narrow band digital transfer speeds network that provided digital data services as 3G SMS and EmailDeveloped as a narrowband analog mobiletechnology thatfacilitated voice calls 2G 1G 1981 1992 2002 2009 Source:Mobitel 29
  30. 30. Emerging Trend for Wireless Broadband Source:Mobitel 30Source: Informa Telecoms & Media, Sep 2010, Mobitel
  31. 31. THANK YOU ALL AcknowledgementI am deeply grateful to Ken Esenwah of Mobitel Nigeria for materials used in this presentation. I also thank the management of glo, Main One CableCompany, MTN, Mobitel and Phase 3 Telecoms for the the network maps that were used in preparation of this presentation 31
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