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The Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has hinted that network operators may soon be allowed to roll out 5G technology in a bid to increase affordable data access and help achieve the country’s 70 per cent broadband penetration by 2025.
“We cannot have pervasive broadband with only 37,000 4G-enabled Base Transceiver Stations (BTS) of the total 50,000 BTS currently in the country. We need more next-generation technologies as we work through addressing infrastructure deficit occasioned by the spike in data usage in the country.”
In this regard, Nigeria’s chief telecoms regulator said the 5G trial conducted by the NCC in 2019 and its eventual safe deployment in the country will increase data speed and boost efficiency in service experience for the consumers.
Both MTN and Vodacom launched commercial 5G mobile network weeks back in South Africa to set the tone for the continent.
Danbatta spoke at the weekend during an interactive session with senior media chiefs where he also noted the increase in Foreign Direct Investment (FDI) into the telecom sector.
Rising telecoms FDI
According to him, FDI in the telecom sector stood at $1 billion but declined to $212 million by 2018.
He, however, noted that through regulatory efforts, the FDI in the sector has picked up again reaching $930 million according to recent figures from the Central Bank of Nigeria (CBN).
According to Nairametrics, in reference to a report by the National Bureau of Statistics (NBS), “foreign capital investment in the telecommunications industry rose by 725% in 2019 from the $114.43 million recorded in 2018; which was the lowest annual investment in the sector in more than five years”
The NBS report showed “that in 2019, when the telecoms industry experienced a significant 725% increase, about $829.62 million was invested into the industry, increasing the foreign capital to $944.05 million.”
Priority areas
Danbatta, who was recently reappointed for another five years in office following the expiration of his first term in August 2015,enunciated his major policy initiatives that have produced record broadband penetration and enhanced the growth in the telecoms sector, especially in the contribution to the nation’s Gross Domestic Product (GDP).
He also reeled out NCC’s regulatory priority areas for the next five years to include facilitating the attainment of 70 per cent broadband penetration by 2025; consumer protection and empowerment; and consolidation of spectrum trading to ensure maximum and efficient usage of available frequencies.
Other areas of focus, according to him, will include continuous SIM registration audit to provide security and curtail incidences of banditry, kidnapping, and armed robbery; creation of Emergency Communications Centres (ECCs) in more states of the federation; and execution of the counterpart funding agreements with the licensed Infrastructure companies (InfraCos) to facilitate the digital transformation of the economy.
