Transcript oyonet2005sf

Broadband and Multimedia in Oyo State
– Myth or Reality? Luxury or Necessity?
By
Sunday A. Folayan
Managing Director
General Data Engineering Services
[SKANNET]
ICT – Product service portfolio...
Myths about Access in Nigeria
We need food, and not Access
Nigeria Lacks basic Access infrastructure
There is a death of competent manpower
The Private Sector alone, drives ICT
Service Providers are not doing enough,
to provide access in Nigeria
Government has more pressing problems
In reality, there are some Challenges
Some Barriers or Challenges are …
Aided by Government
Lack of planning
Access to capital or credit
Capital flight
Lack of R & D Efforts
Aided by the Governed
Inordinate greed and lack of foresight
Poor Quality of Service
Lack of Cooperation
The Value Chain
MultiMedia Consumer service
Video/Voice/IP Enabled Services
Basic Internet Access
Transport/Connectivity Services
Everything e:
From e-birth
registration to e-cemetery
allocation
X- Service Provider
ISP and IAP
Network Operator
Multimedia Networking
Telephony
Single Network Fabric
Facsimile
Computer/Dat
a
Video
Converged
platform
Objective is to Reduce Complexity and Costs
Multimedia Service requires
Broadband Access
Available and functional Access and
connectivity can be disaggregated into:
Global Backbone Connectivity
In-Country Connectivity
Last-Mile Connectivity
Available Backbone internet
Connectivity
Limitations
Technology
Latency
Throughput
Cost /MB/Mth
Satellite
Connectivity
1200ms
8Mbps
N600,000
NITEL
Submarine Fiber
(SAT3)
180ms
1,860Mbps
N450,000
GLO Submarine
Fiber (Promised)
TBD
TBD
TBD
Available in-Country Connectivity
Solutions
Limitations
Technology
Latency
Throughput
Cost /MB/Mth
Cellular Companies’ 40ms
Backbone Radio
Network
Not Declared
Not for Sale
NITEL’s Terrestrial
Fiber Network
12ms
Not Declared
N120,000
GLO National
Express (Promised)
TBD
TBD
TBD
In reality, 75% of existing Operators
have Wireless Connectivity
 This is one of the fastest growing markets today. The buyer
needs to plan well with good research prior to selecting a
platform
 Some Operators have legacy platforms with high equipment
costs
 New standard equipment are now consumer products in
Europe, North America and Asia
 Affordable technologies are those which are standardized.
 IEEE 802.11 a/b/g for 5GHz and 2.4GHz Wireless ISM band is
now standard.
 CDMA/2000 is fast approaching maturity
 WiMax would take time to mature. Caution!
Last Mile Solutions & User Costs
Limitations
Technology
Distance
Bandwidth
Providers (TCO/Annum)
Wireless ISM
4000m
1Mbps
80 – (N200,000)
Modem
8000m
28.8kbps
20 – (N300,000)
CDMA
5000m
256Kbps
6 – (N250,000)
DSL
2000m
1.5Mbps
4 – (400,000)
B’dband VSAT
N/A
128Kbps
3 – (950,000)
FTTH
10000m
1000Mbps
2 – (N600,000)
Ethernet
300m
100Mbps
1 – (N550,000)
MMDS
2000m
1.5Mbps
1 – (N350,000)
All costs are estimated based on 2 hours access per day
Benefits of Costs Reduction
• Subscriber growth
in Africa is coming
from markets with
low Communication
penetration
• Revenue potential
is from a very high
volume of very low
ARPU increments
Share of population
Example income distribution
High
Upper mid
Mid
Low
Very low
Income classes
Population unserved
Penetration served now
Expected penetration in 2008
Workable and Affordable
(Appropriate) Technologies
Once upon a time, this was a means of
Transportation … a 4x4 All Terrain!
What Governments at all
levels can do …
 See ICT as a tool, for taking Government to the people
 Support initiatives such as the NEGST.
 See Fiber as another critical infrastructure, and lay it in
the middle of roads henceforth
 Invest in rural telephony via Public private sector
partnership (PPP).
 Step up literacy campaign for improved societies.
 Be more liberal in granting permits/licenses for ICT
development. Some tiers of Government cannot see the
big picture!
 Decide and commit to be transparent
Conclusion
 Infrastructure exists, but needs to be restructured to serve critical
sectors of development
 There will be the need to make additional investments, but these
must be carefully planned, to take advantage of the overall
economy of scale
 Technological acquisition for the sake of consumption over and
above development is retrogressive.
 Acquisition without adequate capacity building for optimal utilization
and management should be avoided
 Except for Research and Development, Stable and standard
technologies have less risks and will serve as better pedestals for
leveraging on existing infrastructure.
 Governments and initiatives such as NEGST needs the support of all
stakeholders to make it easy to leverage on existing infrastructures
and technologies, to realize this noble objective
 Leveraging on existing Infrastructure is a good idea, as it would
give stagnated players the needed patronage to push them up the
value chain
Thank You!
This Presentation is available online
at
http://www.skannet.com/sfolayan/oyonet2005sf.ppt