BlogIT_Naija
Abridging the DigITal Divide Between 3G World & "Africa's Eco-hub."
Saturday 25 August 2007, 7:33 PM
Last mile telecom licensing – NIGCOMSAT’s controversy.
Opening vignette:
Claims and counter claims have continued to hallmark the desire of Nigeria Communications Satellite Company Limited (NIGCOMSAT) to wrest a last mile service provider license from the Nigerian Communications Commission (NCC). Unfortunately, the national policy on telecommunications and the regulatory body sanctioned with licensing, numbering and related activities repudiate the unilateral approval of the ex-military dictator president licensing such services contrarily to due process.
Modus operandi:
A last mile service provider is a term for operators that offer telecommunications services directly to end users – the subscribing public. Indeed, a last mile service provider passes for a retail service provider because of domestication of such services and offering it to members of the public. But by the status setting up the NIGCOMSAT especially in the Articles of Association and Memorandum of Understanding (MoU), it is to serve as a wholesale service provider of satellite communications by selling or offering for sale to other telecommunications service providers such services as; transponders or space segment, to enable such beneficiary service providers carry and transmit their traffic from one point to another – NIGCOMSAT is likened to a carrier’s carrier.
NIGCOMSAT’s case:
The management of NIGCOMSAT led by Dr. Ajayi Borofice lays claims to a May 5, 2007 letter by former President Olusegun Obasanjo endorsing a last mile license for it which the NCC says it is not aware of such development.
NIGCOMSAT launched Nigeria’s first satellite into space early in the year in China; the Chinese government as loan to Nigeria wholly funded the cost of the project put at about $400 million.
NIGCOMSAT’s quest for last mile service is to enable it quickly recoup the money by selling telecom services to subscribing public at about N10 (7 cents) per minute call irrespective of the networks.
The argument ensues:
In paid newspaper advertorial recently, titled: “Setting the records straight: Irrefutable facts of the dispute between NIGCOMSAT and NCC” states,
“On May 5, 2007 Mr. President approved specific spectrum allocation to NIGCOMSAT Limited and total frequency license for any telecommunications services NIGCOMSAT may wish to offer.”
The advert further states, “it is germane to state that under the extant regulations, NIGCOMSAT as government owned company, is required to apply to the Federal Government through the Ministry of Information and Communications or the president for spectrum allocation and not to the NCC.”
NIGCOMSAT states further that since the decision has been communicated to the NCC, it (NCC) ought to have complied by allocating the said frequency spectrum to it.
But NCC says after its board rose from a meeting recently that it is not aware of such directives. The NCC statement signed by Mr. Dave Imoko states among others:
“Having deliberated on the said publication by NIGCOMSAT in some national dailies, the board will not wish to join issues with NIGCOMSAT or any other government agencies on the pages of newspapers.”
It adds, “It is however important to clarify the commission’s position and put into proper perspective the salient issues in this case.”
- in the said publication, NIGCOMSAT had stated that they had applied for the use of certain frequencies and licenses to enable them provide fixed, mobile and last mile services. It is pertinent to note that with the approval of the Federal Executive healthy competition among licensed telecoms operators may be unduly rocked; therefore government should restrict itself to policy and regulation.
Furthermore, the NTP (National Telecommunications Policy) clearly recognizes the imperative of competition and states thus:
“The Federal Government of Nigeria will actively liberalize the telecommunications market and encourage the participation of the private sector at all levels. Accordingly, the Nigerian Communications Commission (NCC) will be charged with the responsibility of issuing licenses to all telecommunications operators, assignment of frequencies and numbering, and establishing and enforcing regulations that ensure fair and equitable competitive practices among all telecommunications operators.”
Defense’s citation:
The commission is empowered by the Nigerian Communications Act to implement the National Telecommunications Policy and government’s general policies on communications. States section 4(1)(t) of the act:
(t) Implementation of the government’s general policies on communications industry and the execution of all such other functions and responsibilities as are given to the commission under this Act or are incidental or related thereto.
The NCC is therefore clearly charged by the policy and the law to issue licenses to all operators and service providers in Nigeria. This is why NITEL/M-TEL were licensed by the NCC and the two organizations also paid in full for their GSM frequencies and other licenses just like every other operator even when they were fully owned by government.
Closing statement
It is therefore in view of this clear understanding of both the provisions of the policy and the law that government did not consider it improper for the NCC to be represented on the board of NIGCOMSAT. It is obvious that government clearly did not intend NIGCOMSAT to be a fixed or mobile telecommunications service provider that will be in competition with other such licensees.
The commission has a duty to ensure a level playing field for all operators in line with the Act and international best practice.
Finally, the commission is committed to the attainment of a robust, efficient, ubiquitous and high quality national network and will continue to provide the necessary regulatory oversight that will guarantee the attainment of this goal in the nearest future.
Addendum
Recently, a special committee of the Science and Technology Ministry reviewed agencies under its portfolio (NIGCOMSAT is an agency of Science and Technology Ministry) rose with a decision forwarded to the Presidency, “NIGCOMSAT currently brokered by the Nigerian Airspace Research Development Agency (NASRDA) should be privatized because delivery of telecommunications services to end-users is outside its (NIGCOMSAT) mandate.
According to the report by the peer review committee, “the panel does not find any relevance between the mandate of NASRDA and the activities of NIGCOMSAT with respect to telecoms service delivery to subscribers.”
While calling on the government to review its stakes in companies, the committee which was set up by former Science and Technology Minister, Prof. Turner Isoun frowned at the stance of NIGCOMSAT for portraying Mr. Ernest Ndukwe, NCC chief executive as the clog in its wheel of progress.
The panel’s recommendation may put a smile on the faces of critics of NIGCOMSAT in its quest for a last mile license to provide services. Many operators have openly or secretly criticized the company that if the NCC bent to the alleged blackmail of NIGCOMSAT, it will encourage anti-competition in the sector.
President, Association of Telecoms Companies in Nigeria (ATCON), Dr. Emmanuel Ehuwem explained that it was an anathema for government to set up another telecom service provider of its own while it is privatizing others.
“Indeed, I think NIGCOMSAT should put its acts together, gain more experience in satellite business before venturing into an area for which it has none or little expertise.”
For Gbenga Adebayo, president, Association of Licensed Telecom Operators of Nigeria (ALTON), “it is against the grain of efforts to let government leave business to those who know how to do business.”
(Adapted from the Guardian newspaper - August 8, 2007)
-Dis na Naija!
-doregos.
Tributes:
The Guardian - http://www.ngrguardiannews.com
Claims and counter claims have continued to hallmark the desire of Nigeria Communications Satellite Company Limited (NIGCOMSAT) to wrest a last mile service provider license from the Nigerian Communications Commission (NCC). Unfortunately, the national policy on telecommunications and the regulatory body sanctioned with licensing, numbering and related activities repudiate the unilateral approval of the ex-military dictator president licensing such services contrarily to due process.
Modus operandi:
A last mile service provider is a term for operators that offer telecommunications services directly to end users – the subscribing public. Indeed, a last mile service provider passes for a retail service provider because of domestication of such services and offering it to members of the public. But by the status setting up the NIGCOMSAT especially in the Articles of Association and Memorandum of Understanding (MoU), it is to serve as a wholesale service provider of satellite communications by selling or offering for sale to other telecommunications service providers such services as; transponders or space segment, to enable such beneficiary service providers carry and transmit their traffic from one point to another – NIGCOMSAT is likened to a carrier’s carrier.
NIGCOMSAT’s case:
The management of NIGCOMSAT led by Dr. Ajayi Borofice lays claims to a May 5, 2007 letter by former President Olusegun Obasanjo endorsing a last mile license for it which the NCC says it is not aware of such development.
NIGCOMSAT launched Nigeria’s first satellite into space early in the year in China; the Chinese government as loan to Nigeria wholly funded the cost of the project put at about $400 million.
NIGCOMSAT’s quest for last mile service is to enable it quickly recoup the money by selling telecom services to subscribing public at about N10 (7 cents) per minute call irrespective of the networks.
The argument ensues:
In paid newspaper advertorial recently, titled: “Setting the records straight: Irrefutable facts of the dispute between NIGCOMSAT and NCC” states,
“On May 5, 2007 Mr. President approved specific spectrum allocation to NIGCOMSAT Limited and total frequency license for any telecommunications services NIGCOMSAT may wish to offer.”
The advert further states, “it is germane to state that under the extant regulations, NIGCOMSAT as government owned company, is required to apply to the Federal Government through the Ministry of Information and Communications or the president for spectrum allocation and not to the NCC.”
NIGCOMSAT states further that since the decision has been communicated to the NCC, it (NCC) ought to have complied by allocating the said frequency spectrum to it.
But NCC says after its board rose from a meeting recently that it is not aware of such directives. The NCC statement signed by Mr. Dave Imoko states among others:
“Having deliberated on the said publication by NIGCOMSAT in some national dailies, the board will not wish to join issues with NIGCOMSAT or any other government agencies on the pages of newspapers.”
It adds, “It is however important to clarify the commission’s position and put into proper perspective the salient issues in this case.”
- in the said publication, NIGCOMSAT had stated that they had applied for the use of certain frequencies and licenses to enable them provide fixed, mobile and last mile services. It is pertinent to note that with the approval of the Federal Executive healthy competition among licensed telecoms operators may be unduly rocked; therefore government should restrict itself to policy and regulation.
Furthermore, the NTP (National Telecommunications Policy) clearly recognizes the imperative of competition and states thus:
“The Federal Government of Nigeria will actively liberalize the telecommunications market and encourage the participation of the private sector at all levels. Accordingly, the Nigerian Communications Commission (NCC) will be charged with the responsibility of issuing licenses to all telecommunications operators, assignment of frequencies and numbering, and establishing and enforcing regulations that ensure fair and equitable competitive practices among all telecommunications operators.”
Defense’s citation:
The commission is empowered by the Nigerian Communications Act to implement the National Telecommunications Policy and government’s general policies on communications. States section 4(1)(t) of the act:
(t) Implementation of the government’s general policies on communications industry and the execution of all such other functions and responsibilities as are given to the commission under this Act or are incidental or related thereto.
The NCC is therefore clearly charged by the policy and the law to issue licenses to all operators and service providers in Nigeria. This is why NITEL/M-TEL were licensed by the NCC and the two organizations also paid in full for their GSM frequencies and other licenses just like every other operator even when they were fully owned by government.
Closing statement
It is therefore in view of this clear understanding of both the provisions of the policy and the law that government did not consider it improper for the NCC to be represented on the board of NIGCOMSAT. It is obvious that government clearly did not intend NIGCOMSAT to be a fixed or mobile telecommunications service provider that will be in competition with other such licensees.
The commission has a duty to ensure a level playing field for all operators in line with the Act and international best practice.
Finally, the commission is committed to the attainment of a robust, efficient, ubiquitous and high quality national network and will continue to provide the necessary regulatory oversight that will guarantee the attainment of this goal in the nearest future.
Addendum
Recently, a special committee of the Science and Technology Ministry reviewed agencies under its portfolio (NIGCOMSAT is an agency of Science and Technology Ministry) rose with a decision forwarded to the Presidency, “NIGCOMSAT currently brokered by the Nigerian Airspace Research Development Agency (NASRDA) should be privatized because delivery of telecommunications services to end-users is outside its (NIGCOMSAT) mandate.
According to the report by the peer review committee, “the panel does not find any relevance between the mandate of NASRDA and the activities of NIGCOMSAT with respect to telecoms service delivery to subscribers.”
While calling on the government to review its stakes in companies, the committee which was set up by former Science and Technology Minister, Prof. Turner Isoun frowned at the stance of NIGCOMSAT for portraying Mr. Ernest Ndukwe, NCC chief executive as the clog in its wheel of progress.
The panel’s recommendation may put a smile on the faces of critics of NIGCOMSAT in its quest for a last mile license to provide services. Many operators have openly or secretly criticized the company that if the NCC bent to the alleged blackmail of NIGCOMSAT, it will encourage anti-competition in the sector.
President, Association of Telecoms Companies in Nigeria (ATCON), Dr. Emmanuel Ehuwem explained that it was an anathema for government to set up another telecom service provider of its own while it is privatizing others.
“Indeed, I think NIGCOMSAT should put its acts together, gain more experience in satellite business before venturing into an area for which it has none or little expertise.”
For Gbenga Adebayo, president, Association of Licensed Telecom Operators of Nigeria (ALTON), “it is against the grain of efforts to let government leave business to those who know how to do business.”
(Adapted from the Guardian newspaper - August 8, 2007)
-Dis na Naija!
-doregos.
Tributes:
The Guardian - http://www.ngrguardiannews.com
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