Telecoms industry still operating below potential – Airtel CEO

In many respects, the Nigerian telecoms market still seems to operate below potential, the Chief Executive Officer, Airtel Nigeria, Mr. Segun Ogunsanya, has said.

 Addressing journalists in Lagos, the Airtel boss said strong, mobile penetration was still lower in Nigeria compared to a number of other African markets.

Describing broadband penetration in the country as low at less than 10 per cent, he said with government setting a target of 20 per cent by 2017, there were adjacent, yet fundamental systemic challenges related to the need to build up broadband infrastructure reliable enough to provide the platform for a vibrant Internet economy and attract data centres, providers of content and other technology companies.

According to him, Ministries, Departments and Agencies of government and other public institutions like post offices, hospitals, among others, had remained underserved by broadband.

He said, “How further government is to leverage technology to improve public service provision will hinge in no small part on how aggressively telecoms market challenges are addressed.

“It is expedient to state that in other jurisdictions, such as Finland and Costa Rica, broadband access is regarded as a fundamental human right.  To ensure that Nigeria is not left behind in this direction, it is necessary for government to take steps toward providing conducive and friendly operating environment to drive expedited broadband deployment.

The Airtel CEO commended government for its role in developing the telecommunications sector and urge it to urgently finalise and conclude the 700MHz allocations.

He said there should be effective coordination between the Nigerian Communications Commission, National Broadcasting Commission and National Frequency Management Council to ensure that the 700MHz spectrum band was cleared and released for telecoms services as recommended by the International Telecommunications Union.

Ogunsanya added, “It is instructive for government to apply Administrative Charge Regime in setting reserve price for future spectrum auction.  Spectrum auction should not be seen as a revenue generation activity, but rather an avenue to drive the socio-economic development of the country.

“It is vital therefore for reserve price of future spectrum auction to be kept low, so that the initial financial outflow in respect of the spectrum fee does not adversely impact the capacity of the successfully bidders to satisfy immediate roll out obligations.”