Strategies to Promote Broadband and Digitisation

1. STRATEGIES TO PROMOTE BROADBAND &
DIGITIZATION
Chidi Ajuzie
CTO
Backbone Connectivity Network Nig. Ltd

2. Outline
• Strategic themes
– Digital Citizen
– Digital Business
– Digital Government
• Strategic Sub-Themes
– Regulation and Legislation
– Infrastructure
– Human Capital.
• Nigeria’s Broadband Plan &
InfraCo Initiative
Adoption
Enablers

3. “Digitization” - the mass
adoption of connected digital
services by consumers,
enterprises and governments.
Booz&Co: Digitization in Emerging Economies
3

4. User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications and
Content
4
The Broader Digital Ecosystem:
Essential Components

5. The Broader Digital Ecosystem:
Facilitating Environment
User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications
and Content
 Competitive Environment
 Independent Regulator
 Universal Service/Access
 National Broadband Plan
 Frequency Management
5

6.  Competitive Environment
 Independent Regulator
 Universal Service/Access
 National Broadband Plan
 Frequency Management
6
The Broader Digital Ecosystem:
Facilitating Environment
User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications
and Content

7. 7
 Competition in the Marketplace
 Shared International and
National Fiber Backbone
 Adoption of Newer Wireless Broadband
Technologies (4G, 5G etc.)
 Facility Sharing (DCs, Towers etc.)
 Off-Power Grid
Clean Energy Solutions
The Broader Digital Ecosystem:
Broadband Build Out
User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications
and Content

8.  Local Language Content
 Local Application Development
 Local Hosting (+Cloud Services)
 E-Government
 E-Education
 E-Agriculture
 E-Trade & Commerce
 E-Health & Emergency Services
8
The Broader Digital Ecosystem:
Applications & Content
User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications
and Content

9.  Affordability
 Language Literacy
 Digital Literacy
 Access-Use in Schools
 Teacher Education
 Access-Use in
Communities
 Smart Phones & Tablets
 Focus on Rural Users
9
The Broader Digital Ecosystem:
User Adoption
User Adoption:
Government, Business and Citizens
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
Broadband
Build Out
Applications
and Content

10. 10
User Adoption:
Government, Business and Citizens
Broadband
Build Out
Applications
and Content
Facilitating Environment:
Strategy, Policy, Legal & Regulatory
1. Connect villages
2. Connect universities,
colleges, secondary
schools and primary
school
3. Connect scientific and
research centers
4. Connect public libraries,
cultural centers, museums,
post offices
5. Connect health centers and
hospitals
6. Connect all local and central
government
7. Connect Homes to Broadband
1. Develop Local Content
2. Applications and Curriculum
for Schools & Colleges
1. Making broadband affordable
2. Getting people online
1. Making broadband Policies for Universal
Access
2. Provide Regulatory Interventions to
Stimulate Economic Growth
The Broader Digital Ecosystem:

11. “every 10 % increase in broadband penetration in
developing countries results in a commensurable
increase of 1.3 % in GDP” - World Bank
The Broader Digital Ecosystem:
Broadband Build Out
“In the 21st century, the social and economic
development of every country on earth will depend
on Broadband networks” - ITU
“Digital technologies and applications contribute
to the economic strength, societal well-being, and
effective governance of a nation: - Booz&Co

12. • The Nigeria Broadband Plan (NBP) is planned to be implemented over five (5) years (2013 – 2018),
targeting increase of broadband penetration, 6% at 2013 to 30% at 2018. The target areas are:
• Policy and Regulation
• Enabling Infrastructure
• Costing and Pricing
• Funding and Investment
• Driving Demand
• Building Fibre Infrastructure
• Wireless Broadband infrastructure and Upgrade
Nigeria: Broadband Plan & Initiatives
Target Areas

13. Nigeria: Broadband Plan & Initiatives
Target Areas
Policy &
Regulation
 License new operators as required
 Define the open access framework and secure RoW waiver with States
Enabling
Infrastructure
 Incentivise rollout of fibreinfrastructure
 Spectrum licensing for LTE in 2.5GHz and 2.6GHz bands.
 Release spectrum on the sub-40GHz bands for mobile backhaul
Costing &
Pricing
 Agree Cost-based leased pricing model & implement agreed whole price caps
 Agree plan for review of the cost of acquiring spectrumlicences
Funding &
Investment
 Agree Financial Incentives for achieving rollout targets
 Agree Funding options for accelerating broadband Infrastructure rollout
Driving
Demand
 Set up Public Access Points and ICT Training Centres
 Connect all Universities, Schools, Colleges and Hospitals
Building Fibre
Infrastructure
 Set up Public Access Points and ICT Training Centres
 Connect all Universities, Schools, Colleges and Hospitals
Wireless Broadband
Infrastructure Upgrade &
Expansion
 All cell sites to be LTE compatible
 Spread 3G to at least 50% of thepopulation
National Broadband Plan Targets [Source: NCC]

14. Nigeria: Broadband Plan & Initiatives
Scorecard
 Nigeria's Active Mobile
Broadband
Penetration is 20.95 %
 Percentage of
Broadband Internet
Penetration has
reached 47.44 %
 Broadband is driven
mostly by Mobile
Operator Networks
 <1% is Wired and
Fixed Wireless
Broadband
Market Share by Technology
[Source: NCC]
 There is wired
infrastructure gap
in the Access,
Metro and Long
Distance
Backhaul
segments.

15. Nigeria National Fibre Optic Map
[Source: USPF]
There is presence
of some deployed
broadband fiber
infrastructure in
the country, but it
is insufficient
Total
37,104km
7
Nigeria: Broadband Plan & Initiatives
The Broadband Challenge

16. Nigeria: Broadband Plan & Initiatives
InfraCo Model
• Coverage land area of over
900,000 sq km & population
over 180million, Nigeria’s
37,000km of built fiber
coverage is insufficient to
meet the national broadband
targets
• The InfraCo plan was
conceived to bridge the fiber
broadband infrastructure
gaps

17. Nigeria: Broadband Plan & Initiatives
InfraCo Model
License Regional
Operators focused on
Wholesale Layer 1 & 2
Services on Open Access,
Non-discriminatory basis
to every Access Seeker &
RSPs

18. Nigeria: Broadband Plan & Initiatives
InfraCo Model
 7 Infrastructure regions
modelled along the geo-
political zones + Lagos
 North West
 North East
 North Central
 South East
 South South
 South West
 Lagos
North West
North East
North Central
South West
South South
Lagos

19. Nigeria: Broadband Plan & Initiatives
InfraCo Model
• The model is a Subsidy agreement in a Public-Private Partnership (PPP) scheme in the provision of
price regulated broadband services in Nigeria.
• Bid Winners are provided Subsidy Reimbursements to build and expand Open Access broadband
infrastructure in licensed areas
 Additional licenses advertised in 2017 and
awarded in 2018
 Zinox Technology Limited – South East
 Brinks Integrated Sol Ltd – North East
 BCN Consortium – North West
 ?? - South South
 ?? – South West
 Initial licenses awarded in 2014 to 2
infrastructure companies ,
 Infraco Ltd (MainOne) - Lagos
 I-Connect Ltd (IHS) - North Central

20. – Provide wholesale Layer 2 transmission
services on a non discriminatory, open
access, price regulated basis.
– Provide Layer 1B (metro dark fibre) services
on a commercial basis.
– Focus on the deployment of metropolitan
fibre and provide transmission services,
available at points of access (PoAs) to
access seekers.
Nigeria: Broadband Plan & Initiatives
InfraCo Model
- Leverage existing inter-city fibre to deploy their
services.
- Purchase/lease transmission or long haul fibre
capacity from other providers, where available, for
the purpose of interconnection.
- Connect with the inter-city/ regional fibre to provide
seamless connectivity to access seekers.
- Connect last mile access providers (Fixed, PNL &
Wireless Carriers)
The InfraCo licensees are expected to:

21. • Backbone Connectivity Network
(BCN) Ltd leads a Consortium that
just won the NW InfraCo bid
– Galaxy Backbone
– Phase3 Telecom
– NNDC
• Planned build of 505 POAs in the
180 LGAs across 7 states
• Construct over 8,000km of OFC
over the next 4 years
Nigeria: Broadband Plan & Initiatives
InfraCo Model
North West

22. Mobile
Operators
Wireless
Operators
Fibre
Operators
Business and Retail Customers Business and Retail Customers
DirectConnectionstoHomes
Wholesale
BCN Consortium
Mobile Operators
• BTS Backhaul
• Enterprise Ethernet Services
• Metro Access Connections
Wireless Operators
• BTS Backhaul
• Collocation Services
• Metro Connections
Business/Retail
• IP MPLS Services
• Collocation Services
• Connectivity/VPN
Services
• FTTH
• Internet Services
• Converged Services
Nigeria: Broadband Plan & Initiatives
InfraCo Model
Develop &
Deliver Products
& Services
across the
Broadband
Value Chain
BCN Consortium Business Model

23. 1
0
Bandwidth
Video
MPLS/
Layer 3
VPN
Layer
2 VPN
IP Voice
Backhaul
Services
HSI
If we sell just the bandwidth pipe, we are only
solving part of the problem & making just a
fraction of the money
• The subscriber loyalty is driven by his
experience.
• The subscriber experience is driven by our
ability to provide premium services
• Our Premium Services & Competitiveness
will be driven by platform convergence &
elimination of multiple service nodes at
subscriber end.
We will not decouple the pipe from the
services infrastructure
BCN Consortium Business Model
Nigeria: Broadband Plan & Initiatives
InfraCo Model

24. Bandwidth Commercialization: As raw capacity becomes abundant, service providers
and operators must move up the value chain
DWDM/Wavelengths
Ducts/Fiber
Collocation/Space/Power
Metro Ethernet - Wholesale
Cloud Computing Infrastructure
Wholesale IP Transit
E-education and e-government
VPN Access
Wholesale
Capacity
Content
Driven
Services
Infrastructure
Elements
Content Rich Applications
High level services will drive
increasing capacity utilization
and digital adoption
Base level assets likely already
commoditized
Video Streaming
HDTV Programming, Satellite Content
Telemedicine and Telepresence
Disaster Recovery/Content Mirroring
Long Distance and WAN Ethernet
Additional products that
drive differentiation

25. Open Access Service Architecture
Copper
MDU
ONU 1
ONU 2
ONU 4
ONU 3
ONU 5
ONU 1
ONU 2
ONU 3
ONU 5
ONU 6
ONU 4
ONU 7
SP1 Clients
SP2 Users
SP1 Users
•Flexible Services Access
•Security Mechanism using L2/L3 technologies
•Shared Infrastructure Cost by all SPs
•Combined FTTB/C & FTTH Solution
Optical Splitter
SP2 Clients
Internet
Internet
Telephone
Internet
Telephone
IPTV
PSTN
SS/IMS
IPTV
Operator
OSP Node
SP1
SP2
BCN Nigeria

26. Summary
• Sharing networks or using existing infrastructure can cut CapEx, transform
Operator business models and promote broadband adoption & digitization.
• Partnership between Operators and local municipal authorities & Utility
companies can lead to positive outcomes for all market players
• Operators should consider multiple network strategies (fixed & wireless/mobile
broadband) to provide convergent services across devices & platforms
• Regulation should be focused on measurable outcomes. Regulating Technology
is chaotic

27. Summary
• While country strategies are mostly focused on
Expanding Access, it is worthy to note that the true
Value of Broadband is
– Derived from Applications and Content, and
– Realized through User Adoption.

28. “Embracing broadband development will help drive growth and deliver benefits right across
society and right across every industry sector – including, of course, the consumer
electronics industry.
Build broadband networks and everything else will follow.
• The ability to control and use energy supplies more efficiently.
• The ability to manage healthcare in ageing populations.
• The ability to deliver the best possible education to future generations.
• The ability to help meet the Millennium Development Goals.
• And the ability to take better care of our environment.
Let’s make the world a better place – and put broadband first” – ITU (CES Show 2010)

29. A Neutral, Open-Access, Wholesale Operator providing services to Governments, Businesses, Carriers & Operators
The Company Products & Services
NCC Licenses
• Unified access service license
• Metropolitan license
• Long distance license
Experience (in collaboration with Abuja Federal
Capital Development Agency)
• 500km fibre optic cable in metropolitan Abuja
• Connectivity and internet to banks, embassies,
multilateral organizations, and residential
• Direct linkage via cable to Tier-1 Carriers ensuring
high quality and scalability
• Networks in Gombe, Bauchi, Katsina, Kaduna
29
About BCN
• Broadband Network Infrastructure
• Triple Play Platform and Services
• Managed Services & Collocation Data Centers
• Business Analytics & Intelligence
• Business Collaboration Systems
• Business Advisory Services
BCN provides the platform for project Implementers and
providers; and facilitates increased competition, lowering
prices and increasing product offerings.
Recent Users of Our Platform/Services include City Wi-fi
Operators, Security Agencies, CCTV Operators, ISPs etc

30. Thank You
Backbone Connectivity Network Ltd
60 Lake Chad Crescent
Maitama, Abuja
Nigeria
Email: chidi.ajuzie@bcnnigeria.net