The Nigerian Telecoms Market- Its Uniqueness (2)
Why am I so optimistic about the prospects of a wireless Internet boom in Nigeria?
In my last post, I have already talked about the Nigerian spirit, his doggedness, his aptitude and hard work and his zeal to bootstrap himself out of poverty. This is a major driving force.
Needless to say that the internet boom itself translate to a lot of wealth creation and poverty reduction.
Once we have a low total cost of ownership for both the terminal devices and a broadband internet connection, the Nigerian market will experience a boom. In addition to this I am looking at some policy frameworks that are ongoing; the e-payment system by the government and the e-solutions the banks and other financial institutions are introducing.
The NCC has also put together a robust regulatory framework to this regard and is pushing for an internet for all schemes.
What remains now is to accelerate this processes in addition to a strong legal framework so that if you 419 me through the e-system I can sue your ass off and get quick redress.
Since we have been excluded from the international e-commerce because of the bad image created by fraudsters for us in the international market, (you know what I am talking about… hmmm…. I mean the 419 Scammers) once we can get these e-systems working in our country, we can aim at the sub-region and that can be done pretty fast; and then the international community will be forced to change there perception because we have got it working first at home and offenders are being effectively taking care off through the legal framework.
Then, it will be difficult for the international e-commerce community to keep ignoring Nigeria.
Opportunities
Access to the internet and other information and communication technologies, is commonly recognized as an important route out of poverty.
For example by allowing farmers and traders better access to market information, or enabling easier transfer of money and credit. Efforts to overcome the digital divide frequently focus on the provision of and access to hardware. But having the basic literacy skills is also a necessary requirement for broader use of these tools. Fortunately in Nigeria, this literacy skill is in the range of 88% for the young, (age range 15 to 24) and total national literacy is 71%.
Lagos a special case
Take Lagos for instance; the dead traffic situation, the congestion etc….. with a population approaching 15 mil if not more and a robust literate population. Companies and organizations can immediately take advantage of these and build web based intranets with VPN and similar facilities that will enable people to work from home through creating necessary workgroups. A broadband internet that can support voice, video and data at an affordable rate will be a money spinner in Lagos right now. After all who wants to spend 3 -6 hours just commuting? Most of the work we do can be accomplished at home if there is a reliable communication link to the work place.
Sierra Leone, Niger and Mali have amongst the world’s lowest rates of internet use.
Internet penetration is low in West Africa. Only Benin and Togo have rates
of internet subscriptions which are above average for low-income countries.
Sierra Leone and Niger, meanwhile, have reported levels of two
subscriptions per 1,000 people, a level equal to that in Burma. (Only
Tajikistan has a lower level.) There is considerable attention paid to the fact
that countries with poor civil and political rights records, such as China,
Cuba or Uzbekistan, severely limit access to the internet, and thus to the
information that citizens can share or find through it. In West Africa (and in
many other states), it is poverty and illiteracy that perform this censorship
function. In Cuba, for example, it only became legal to buy home
computers in May 2008, and the US trade embargo prevents Cubans from
accessing the internet via under-sea cables: yet even so, the level of
internet penetration in 2005 was more than three times that in Sierra
Leone, Niger, Burkina Faso, Mali or Guinea. Of course, lack of
infrastructure, electricity and disposable income pose enormous barriers to
connecting to the internet for most Africans. At present, it will cost a whooping 700 dollars to own a blackberry for instance and another 40 dollars every month to maintain the service. This, an average West African cannot afford for now.
Cellular phones, meanwhile, have much greater penetration in West Africa:
In most countries cell phone subscription rates are between six and ten
times the rate for landline telephones , and it is 15 times the landline rate
in Nigeria.
These kinds of internet enabled hand held’s could play a significant role in empowering women and helping them to establish their own social and business
networks.
Recent research on ICT use by women in Africa documents women using mobile phones to contact suppliers and clients, send and receive money as credit, and report domestic violence.
There is therefore no doubt that with strategic thinking on the side of inventors, this market is ripe for another boom with return on investment that will be faster than the traditional voice net in the same region.
In my last post, I have already talked about the Nigerian spirit, his doggedness, his aptitude and hard work and his zeal to bootstrap himself out of poverty. This is a major driving force.
Needless to say that the internet boom itself translate to a lot of wealth creation and poverty reduction.
Once we have a low total cost of ownership for both the terminal devices and a broadband internet connection, the Nigerian market will experience a boom. In addition to this I am looking at some policy frameworks that are ongoing; the e-payment system by the government and the e-solutions the banks and other financial institutions are introducing.
The NCC has also put together a robust regulatory framework to this regard and is pushing for an internet for all schemes.
What remains now is to accelerate this processes in addition to a strong legal framework so that if you 419 me through the e-system I can sue your ass off and get quick redress.
Since we have been excluded from the international e-commerce because of the bad image created by fraudsters for us in the international market, (you know what I am talking about… hmmm…. I mean the 419 Scammers) once we can get these e-systems working in our country, we can aim at the sub-region and that can be done pretty fast; and then the international community will be forced to change there perception because we have got it working first at home and offenders are being effectively taking care off through the legal framework.
Then, it will be difficult for the international e-commerce community to keep ignoring Nigeria.
Opportunities
Access to the internet and other information and communication technologies, is commonly recognized as an important route out of poverty.
For example by allowing farmers and traders better access to market information, or enabling easier transfer of money and credit. Efforts to overcome the digital divide frequently focus on the provision of and access to hardware. But having the basic literacy skills is also a necessary requirement for broader use of these tools. Fortunately in Nigeria, this literacy skill is in the range of 88% for the young, (age range 15 to 24) and total national literacy is 71%.
Lagos a special case
Take Lagos for instance; the dead traffic situation, the congestion etc….. with a population approaching 15 mil if not more and a robust literate population. Companies and organizations can immediately take advantage of these and build web based intranets with VPN and similar facilities that will enable people to work from home through creating necessary workgroups. A broadband internet that can support voice, video and data at an affordable rate will be a money spinner in Lagos right now. After all who wants to spend 3 -6 hours just commuting? Most of the work we do can be accomplished at home if there is a reliable communication link to the work place.
Sierra Leone, Niger and Mali have amongst the world’s lowest rates of internet use.
Internet penetration is low in West Africa. Only Benin and Togo have rates
of internet subscriptions which are above average for low-income countries.
Sierra Leone and Niger, meanwhile, have reported levels of two
subscriptions per 1,000 people, a level equal to that in Burma. (Only
Tajikistan has a lower level.) There is considerable attention paid to the fact
that countries with poor civil and political rights records, such as China,
Cuba or Uzbekistan, severely limit access to the internet, and thus to the
information that citizens can share or find through it. In West Africa (and in
many other states), it is poverty and illiteracy that perform this censorship
function. In Cuba, for example, it only became legal to buy home
computers in May 2008, and the US trade embargo prevents Cubans from
accessing the internet via under-sea cables: yet even so, the level of
internet penetration in 2005 was more than three times that in Sierra
Leone, Niger, Burkina Faso, Mali or Guinea. Of course, lack of
infrastructure, electricity and disposable income pose enormous barriers to
connecting to the internet for most Africans. At present, it will cost a whooping 700 dollars to own a blackberry for instance and another 40 dollars every month to maintain the service. This, an average West African cannot afford for now.
Cellular phones, meanwhile, have much greater penetration in West Africa:
In most countries cell phone subscription rates are between six and ten
times the rate for landline telephones , and it is 15 times the landline rate
in Nigeria.
These kinds of internet enabled hand held’s could play a significant role in empowering women and helping them to establish their own social and business
networks.
Recent research on ICT use by women in Africa documents women using mobile phones to contact suppliers and clients, send and receive money as credit, and report domestic violence.
There is therefore no doubt that with strategic thinking on the side of inventors, this market is ripe for another boom with return on investment that will be faster than the traditional voice net in the same region.
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