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  • RURAL TELECOMMUNICATIONS RURAL TELECOMMUNICATIONS CONSULTANCY CONSULTANCY

    CASE STUDYCASE STUDY

    By Mr. Anthony c. OjoboSpecial Assistant to the

    Executive vice-chairmanNigerian communications commission

  • October 10, 2001 2

    INTRODUCTIONINTRODUCTION

    New Telecom Policy

    NCCs responsibility for Universal Access under the NTPPromote market initiativesDefine development targets etc for short and long term national community accessDesign appropriate strategies for achieving the above which will include; but not limited to the following;

  • October 10, 2001 3

    Continuation:Continuation:

    l Establishment of USFl Opening the market in unserved areas i.e. (Rural

    areas)l Public call offices (PCOs) Projectsl Establishment of multipurpose Community

    Telecenters (MCTs)l Roll-out obligations on operators etc.l Encourage public/private financing of

    infrastructure developments.

  • October 10, 2001 4

    CHARACTERISTICS OF A RURAL CHARACTERISTICS OF A RURAL AREAAREA

    l Lack of infrastructures such as; water, roads, electricity etc.

    l Lack of skilled or limited skilled manpowerl Difficult topographyl Severe climatic conditions in some casesl Low level of economic activityl Low income per capital Lacking social amenities, hospitals, post offices,

    schools etc.

  • October 10, 2001 5

    ..Continuation:..Continuation:

    l Low Population densityl High cost of service provision per line

  • October 10, 2001 6

    RATIONALE FOR NCC RT INITIATIVERATIONALE FOR NCC RT INITIATIVE

    l Responsibility under the new NTPl Inadequate infrastructurel Low penetration in RAsl Telcos reluctance to deploy in RAsl Low teledensityl Urban migration.

  • October 10, 2001 7

    HOW NIGERIA HAS FAIRED IN PROVISION OF TELECOM HOW NIGERIA HAS FAIRED IN PROVISION OF TELECOM SERVICES COMPAIRED TO A NUMBER OF COUNTRIESSERVICES COMPAIRED TO A NUMBER OF COUNTRIES

    l COUNTRY POPULATION TELEDENSITYl Nigeria 120 million 0.4 (1999)l Senegal 8.6 million 1.2l Cameroon 13.5 million 0.86l Algeria 29 million 6.20l Egypt 57.5 million 6.12l Kenya 29 million 0.98l South Africa 34 million 11.2l USA 94.0l CANADA 97.0

  • October 10, 2001 8

    CURRENT WORLD REPORTCURRENT WORLD REPORT

    l ITU World Telecom Report 1998 on rural telecom penetration indicates that;

    l Rural areas in developing countries have 8.9 residential lines per 100 household and 0.56 Public Payphones per 1000 inhabitants.

    l 102.7 and 5.17 respectively for developed countries.

  • October 10, 2001 9

    l RURAL AREA DEFINEDAn isolated and poorly served area, where various factors interact to make establishment or provision of telecommunications services difficult.

    l Universal Access What is it?

    l Universal Service What is it?

  • October 10, 2001 10

    UNIVERSAL SERVICEUNIVERSAL SERVICE

    At least a telephone per household.

  • October 10, 2001 11

    Appointment of ConsultantsAppointment of Consultants

    lWorld Bank (Funding)l USAIDl NTCA (International Consultant)l GBF (Local Consultant)

  • October 10, 2001 12

    ROLE OF CONSULTANTSROLE OF CONSULTANTS

    Advise onl Ownership structurel Technologyl Financing Mechanismsl Trainingl Programme viabilityl Sustainability

  • October 10, 2001 13

    WORKSHOPWORKSHOP

    l (CBOs) and NGOsObjectivesl Identify and design appropriate Community

    Consultation model including theCommunities

    l To draw from the experience of CBOs on modalities for executing Community based programmes.

  • October 10, 2001 14

    l Identify relevant stakeholders.l Articulate a programme for a National

    Stake holders workshop.

  • October 10, 2001 15

    ISSUES COVERED AND ADOPTEDISSUES COVERED AND ADOPTED

    l Necessity and Rationall Universal Accessl Rural Telecoms Services Agency l Ownership and Controll Subsidiesl Equitabilityl Government Support through

  • October 10, 2001 16

    l Enabling regulatory environmentl Provision of Infrastructures, electricity,

    roads, etc.l Universal Access Fund.l Funding and FinancinglManagement structurel Stakeholders participation

  • October 10, 2001 17

    l Training/capacity buildingl National Stakeholders forum and the

    launching of initiative.

  • October 10, 2001 18

    DECLARATIONSDECLARATIONS

    l That CBTs providers be set up l Rural Communities be empowered through

    provision of RTsl To be Community based, owned and controlledl Pilot projects to start in some communities in the

    six geo political zonesl Nation-wide Community Consultations

  • October 10, 2001 19

    l Involve all stakeholdersl Government role to be reducedl Low interest loans for start-up to be provided

    through the USF.l Training should be providedl Set up an agency for USF.

  • October 10, 2001 20

    COMMUNITY CONSULTANTIONSCOMMUNITY CONSULTANTIONSA) Consultation Modell Baseline Data gathering such as;

    Demographic and geographical data (e.g. population, location, Age distribution etc.)

    Economic data (e.g. income levels, principal economic activities etc)

    Available infrastructure (e.g. roads, water, electricity etc)

    Nearest telecom infrastructure (e.g. telephone exchange, masts, towers etc).

  • October 10, 2001 21

    INTERACTIVE SESSIONSINTERACTIVE SESSIONS

    B) Introductions Overview of NCC objectives Discussions of the objective Questions and Answer Sessions on; Community needs and priorities Previous CD initiatives or efforts Ownership structure

  • October 10, 2001 22

    l Cost considerationsl Fundingl Trainingl Previous or Current ICT initiatives if anyl Methods for distance Communicationsl Explanations of terms such as telecenter, phone

    shop, cybercafe, MCTs etc.

  • October 10, 2001 23

    Over view of States and Over view of States and Communities visitedCommunities visited

    l Enugu State - Ukana, Udi Local Government Area - CBO, CIDJAP

    l Umokpala, Egede LGAl Delta State - Isheaga, Ogawashu LGAl Anambra State - Oraifite, Ekwusigo LGAl Edo State - Egbae, Uhunmwode LGAl Abia State - Amaekpu, Ohafia LGAl Cross River State - Akamkpa, Akamkpa LGA

  • October 10, 2001 24

    l Akwa Ibom State - Ukuo, Esit Eket LGAl Ogun State - Atan, Ijedu North-East LGAl Oyo State - Igangan, Ibarapa LGAl Ekiti State - Itapaji LGAl Kano State - Yadakwari, Garum Mallam LGAl Gombe State - Tula, Kaltungo LGAl Yobe State - Fika, Fika LGAl Bauchi State - Gar, Al Kaleri LGA

  • October 10, 2001 25

    NEGATIVE FINDINGSNEGATIVE FINDINGS

    l Lack of basic social infrastructuresl Low income level, mostly peasant farmers, and

    small scale tradersl No access to telecom services in all communities

    visitedl Average of 30km to the nearest call centre in all

    communities visited.l Low literacy level

  • October 10, 2001 26

    l Dispersed population in some areas (e.g. Northern regions)

    l Higher costs incurred on transportation than cost of telephone calls for same distance e.g. Ukana Community (Enugu State) one way transportation cost is higher than the cost of a 3 minutes trunk call to same distance.

    l Limited skilled manpower.

  • October 10, 2001 27

    POSITIVE FINDINGSPOSITIVE FINDINGS

    l Willing Partnersl History of CD efforts and strong desire for

    telecom servicesl Expressed preference for Community ownershipl Most Communities were within 30 - 40km away

    from a NITEL Microwave relay towerl Ready to donate lands, buildings, and in some

    areas, volunteered to pay the local personnel.

  • October 10, 2001 28

    l LGA willing to fund RT in some of the Communities

    l Ready to pay for use of services

    l Good understanding of benefits.

  • October 10, 2001 29

    NATIONAL WORKSHOP ON PROMOTING UNIVERSAL NATIONAL WORKSHOP ON PROMOTING UNIVERSAL ACCESS TO TELECOMMUNICATIONS IN RURAL AREAS ACCESS TO TELECOMMUNICATIONS IN RURAL AREAS

    OF NIGERIAOF NIGERIA

    lWorkshop objectives Create awareness Consultation with stakeholders Discuss findings of Community Consultations Articulate ideas for sustainable Rural Telecom Institutional arrangement options

  • October 10, 2001 30

    l Issues Institutional arrangement Ownership structure Funding USF Government Participation Technology Legal/Regulatory Framework

  • October 10, 2001 31

    COMMUNIQUECOMMUNIQUE

    l Telecom-Key to socio-economic development and transformation

    l Community ownership and managementl Empowerment through capacity building for

    the RTSPl Public/Private Partnership

    l FGN should offer incentives to Communities

  • October 10, 2001 32

    Waivers, tax holiday, L&R Framework. Provision of infrastructures, roads electricity,

    water etc.

    Establish a USF to be privately managed Create appropriate conditions for funding of

    RTSPs. Collaboration with Rural Micro-finance

    Intermediaries, CBOs and NGOs

  • October 10, 2001 33

    Encourage transfer of ICT skills by building capacity for management staff and other personnel of RTSPs.

  • October 10, 2001 34

    CURRENT TRENDSCURRENT TRENDS

    l Policies adopted by some countries to achieve universal access.

    l POLICY COUNTRYl Placing Service obligations to reach certain categories of l community on newly privatized monopoly operators Mexico, Argentina, Venezuela, Perul Enforcing rural percentages for new competitive entrants, l monopoly concessions, reformed or partially privatized operators India, Indonesia, Malaysia Botswanal Offering monopoly licences for services areas which

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