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As Nigeria’s telecom industry continues to expand, there is growing advocacy for a shift from service-centric licensing to spectrum-centric licensing. Chief Charles Alaba Joseph, President of Mobitel and the Association of Telecommunication Companies of Nigeria (ATCON), shares insights with IT Edge News on why the Nigerian Communications Commission (NCC) should embrace this shift. In this interview with Segun Oruame, Joseph discusses the dynamics shaping Nigeria’s telecom industry, including the need for operators to have more flexibility in service delivery, price fluctuations, and the future of telecom infrastructure.
Telecom Development in Nigeria
IT Edge News: Nigeria recently celebrated its 44th anniversary. How would you assess the state of telecom development?
Chief Charles Alaba Joseph: For the first 40 years of Nigeria’s existence, inadequate telecom infrastructure was a major challenge to national development. However, in the last four years, we’ve seen tremendous growth. We’ve made significant strides in catching up in many areas, though much work remains.
Quality of Service and Pricing
IT Edge News: Has this progress been reflected in the quality of service?
Joseph: While the quality isn’t yet where it should be, it’s important to understand that the network is still being rolled out. Supporting infrastructure is still under development. Given the progress of the last four years, I think things are moving in the right direction.
IT Edge News: Recently, we’ve seen a price drop in entry-level services. What’s driving this?
Joseph: Initially, there were concerns that prices were too high. But breaking even in telecom is more about usage than line acquisition. Even if phones were handed out for free, the real revenue comes from airtime usage. Operators have quickly realized that the key to profitability in this market is to get people using their phones. Hence, we’re seeing lower prices to encourage more usage.
Future of Telecom Pricing
IT Edge News: When can Nigerians expect to enjoy lower tariffs and longer talk times?
Joseph: Tariffs will drop when operators can sustain quality with a larger subscriber base. Currently, network congestion makes reducing prices impractical. Once there’s more capacity, competition will naturally drive prices down.
Addressing Congestion and Quality Issues
IT Edge News: Some critics argue that operators are prioritizing profits at the expense of consumers, leading to congestion and poor service quality. What’s your take?
Joseph: We need to acknowledge the significant investments operators have made to bring us to where we are today. Building a national telecom network in a country like Nigeria, where other infrastructures are lacking, takes time. Comparatively, countries like the UK took over a decade to achieve reliable GSM services. While the quality isn’t perfect yet, we’re on the right path. Operators are incentivized to improve because poor service leads to subscriber loss.
Spectrum Licensing for Better Service Delivery
IT Edge News: Advocates for spectrum-centric licensing argue it could allow operators to offer multiple services—like mobile, landline, and broadcast—on a single license. What’s your opinion?
Joseph: The world is moving towards a multimedia environment where service providers can offer a wide range of services. Instead of restricting operators to specific services, licensing should focus on spectrum. Give an operator a specific frequency, and they should be able to provide any service that frequency allows. This would remove the need for rigid service definitions, which often cause conflicts between operators.
The Role of NBC in a Converged Telecom Environment
IT Edge News: How does the National Broadcasting Commission (NBC) fit into this converged telecom environment?
Joseph: In a multimedia world, traditional distinctions between broadcasting and telecommunications are becoming irrelevant. We need regulatory convergence. The NBC and NCC should focus on spectrum management, allowing operators to offer any service that their allocated spectrum can handle. This will accelerate growth and encourage innovation across both industries.
Conclusion
IT Edge News: Do you envision Mobitel offering multiple services, such as broadcasting and telecom, under a single license?
Joseph: Absolutely. If I have a license to provide wireless services, I should be able to deliver not just voice calls but also video, telemedicine, internet services, and more. The future lies in operators delivering a range of content to subscribers through efficient use of spectrum. It’s a commercial decision that encourages growth and ensures the optimal use of scarce resources.
