Market liberalization and prmotion of competition has enabled the rapid growth of telecoms markets around the world. Current estimates put the number of unique mobile subscribers at around 3.8 billion. Yet, majority of the world's population currently live without access to basic ICT services. Government's and regulators around the world have adopted a number of approaches including the use of Universal Service Funds to bridge the digital divide and make services accessible and affordable to the widest number of people. This presentation is intended to provide a brief overview to the public on the programmes being implemented under the Universal Service Provision Fund in Nigeria, together with challenges currently being faced as well as possible solutions.

1. Connecting the Unconnected:
Overview of Programmes of
the Universal Service Provision
Fund (USPF) in Nigeria
By
Mohammed T. Ibrahim

2. Outline
 Introduction
 Strategies
 Programmes & Projects of the USPF
 Access Gaps
 Challenges
 Way Forward
 References

3. Introduction
The Nigerian Telecoms Industry has
witnessed tremendous growth in the last
15 years
1.57 million mobile
subscribers in 2002
Today there are about 152,800,848 active lines in
the country (August, 2016)
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4.  Despite this growth, millions remain without access to basic voice and data services
 A policy goal of telecommunications regulators is to make services universally accessible and
affordable to the widest number of people;
 Concept of Universal Service is guided by three principles:
 Availability: users should be able to access services anywhere, anytime irrespective of geographical location
 Affordability: price of service should be affordable to all users;
 Accessibility: No discrimination of users in terms of price, service and quality of the service regardless of race,
sex, religion, etc.
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5.  A number of approaches have been used by different countries to address Universal Service
objectives:
• Market based reforms
• Mandatory service obligations
• Cross-subsidies
• Access deficit charges
• Universal Service funds
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6.  In Nigeria, the Universal Service Provision Fund was established by Section 112 of the Nigerian
Communications Act (NCA), 2003 to “promote the widespread availability and usage of network
services and applications services throughout Nigeria by encouraging the installation of network
facilities and the provision for network services and applications services to institutions and in
unserved, underserved areas or for underserved groups within the community”
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7.  Consistent with Section 114 (2) of the
NCA, 2003 the USP Fund shall
comprise funds derived from but not
limited to the following sources:
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7 Introduction
USPF
Funding
Gifts, loans, aids, and
such other assets
that may from time
to time specifically
accrue to the USP
Fund.
Such monies as may
be specifically
appropriated to the
USP Fund from time
to time by the
National Assembly
Contributions from
the Regulator based
on a portion of the
annual levies paid to
the Commission by
licensees

8. Strategies
Strategies for
Implementation
Subsidies Grants
Projects under the Universal Service
Provision Fund are implemented through
Subsidies or Grants

9. Strategies
The two broad programmes of the USPF
are designed to complement each other
in facilitating universal access and service
Mostly provided
through subsidies
Lower entry level in
rural areas
Increase service
availability
Connectivity
Mostly provided
through grants
Intended to stimulate
demand
Ensure project viability
& sustainability
through digital
inclusion
Access

10. Programmes & Projects of the USPF
 School Access Project: an e-learning initiative that focuses on Junior and Senior
Secondary Schools. Targeted beneficiaries are grouped into three categories based on
location and needs
 Category A: Public schools in urban areas
 Category B: Public schools in semi-urban areas
 Category C: Public schools in remote rural areas

11. Programmes & Projects of the USPF
 Tertiary Institutions Access Project (TiAP): this project is intended to facilitate provision of
up to 1 Mbps broadband internet connectivity to selected tertiary institutions through
supply of computers, chairs, tables, printers, network facilities and fire walls.

12. Programmes & Projects of the USPF
 E-Library Project: this is a platform that provides online access to library materials as well
as educational database for selected libraries in Nigeria thereby stimulating local
development in the ICT industry. Beneficiary libraries are given computers, servers, VSAT,
UPS, printers, desks, chairs, air conditioners, library software, scanners, generators, and
one year bandwidth subscription.

13. Programmes & Projects of the USPF
 Community Resource Centres: construction and equipping of Community Resource
Centres in unserved and underserved rural areas to promote ICT penetration. The USPF
also intends to partner Community based organizations in host communities with the aim
of developing relevant services to ensure sustainability of these centres
 University Inter Campus Connectivity: this project is based on a partnership between
USPF and Nigerian Universities Commission (NUC) for provision of ICT infrastructure for
the National Research and Education Network (NREN). This is to enable bi-directional
communication between Universities and their Medical Colleges and Teaching Hospitals
 Provision of Connectivity for the Challenged Groups (ICT for all): Consistent with the
principle of ICT inclusion, this project involves the provision of connectivity and assistive
technology solutions to institutions that cater for People Living With Disabilities (PLWD)

14. Programmes & Projects of the USPF
 Accelerated Mobile Phone Expansion – Base Transceiver Station (AMPE-BTS): this project
is intended to facilitate deployment of about 155 Base Transceiver Station (BTS) sites to
provide access to voice and data services.

15. Programmes & Projects of the USPF
 Accelerated Mobile Phone Expansion – Co-Location Infrastructure Projects (AMPE-CIP):
this intervention is intended to facilitate network roll-out in rural unserved and
underserved areas through subsidy payments for construction of sharable infrastructure
sites thereby leading to cost savings
 Backbone Transmission Infrastructure Network (BTRAIN): through subsidy payments, the
USPF is deploying over 3,250km of fibre optic cable to connect rural and semi-urban
areas to the national transmission backbone infrastructure to facilitate expansion of ICT
access and service delivery. This is expected to facilitate access to broadband services to
about 9,229,182 people.
 Rural Broadband Infrastructure (RUBI): conceived to provide wireless broadband network
for internet connectivity in rural areas for residential, commercial, government, health,
educational, and other groups etc.

16. Access Gaps
 Despite efforts of the USPF, millions of Nigerians remain without access to ICT services
 A study was carried out in 2013 to identify clusters of voice telephony and transport network
gaps or blind spots in the country
 This study would provide the required information to assist the USPF in designing projects and
strategies that will facilitate the achievement of the twin policy goals of providing universal
service and universal access for all
 Study also enabled USPF to identify ICT needs in unserved areas as well as type of intervention
required
 Accordingly, 207 clusters with an estimated population of about 36.8 million were identified,
grouped and mapped into categories tagged as unserved or underserved
 USPF is currently working to ensure coverage of identified areas by 2018

17. Challenges
 Poor infrastructural facilities such as buildings, access roads in rural areas
 Inadequate/non-availability of public power supply in rural areas
 Delay in budget approval for USPF projects
 Bureaucracies in procurement process
 Lack of network infrastructure such as national transmission backbone, internet exchange
points etc. in rural areas
 Security challenges: civil unrest, theft, vandalism etc. of installations
 High bandwidth costs: affects project sustainability

18. Way Forward
 Timely budget approvals: necessary to ensure timely execution of projects
 Effective Project Monitoring & Evaluation: necessary to avoid project failure/replication
 Branding & Awareness Campaign: to ensure stakeholder buy-in necessary for project
sustainability
 Support for local start-ups to ensure development of relevant local content
 Sustainable collaborations/partnerships with industry players as well as community based
organizations in host communities
 Explore other policy options such as active network sharing in order to deepen
penetration

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20. References
 http://www.ncc.gov.ng/index.php?option=com_content&view=article&id=125&Itemid=73
 http://www.uspf.gov.ng/
 http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2014/10/GSMA-USF-Key-
findings-final.pdf
 http://www.uspf.gov.ng/files/Nigerian_Communications_Act_2003.pdf
 http://www.uspf.gov.ng/files/2011_Annual_Report.pdf
 http://www.uspf.gov.ng/files/USPF_Annual_Report_2012.pdf
 http://www.uspf.gov.ng/images/files-
temp/SUSPF_PRESENTATION_AT_FOCUSED_INDUSTRY_STAKEHOLDERS_FORUM.pdf
 http://www.uspf.gov.ng/index.php?option=com_phocagallery&view=category&id=1&Itemid=164
 http://www.uspf.gov.ng/index.php?option=com_phocagallery&view=category&id=1&Itemid=164&li
mitstart=9
 http://www.uspf.gov.ng/index.php?option=com_phocagallery&view=category&id=1&Itemid=164&li
mitstart=18
 http://www.uspf.gov.ng/index.php?option=com_content&view=article&id=32&Itemid=134