Despite the petitioning of NigComSat by well-meaning telecom pundits and economists over its seeking undue nudging from the presidency, it is saddening and debasing that President Yar’Adua would mandate the Nigerian Communications Commission to grant a mobile operating license “immediately” to the cry-baby.
The status quo
It is pertinent to note that with the approval of Federal Executive Council, the adoption and publication of the National Telecoms Policy (NTP), the Nigerian Government firmly resolved to liberalize the telecommunications market and promote competition. One of the policy objectives of the NTP was the restructuring and privatization of NITEL and M-TEL by the divestment of majority shares owned by the government to the private sector. This has been achieved by the sale of a substantial portion of government interest in NITEL and M-TEL to Transcorp.
The NTP clearly recognizes the value effect of competition and regulation when it states:
“The Federal Government of Nigeria will actively liberalize the telecommunications market and encourage the participation of the private sectors 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”.
The argument didn’t sit well with the NigComSat officials who easily pointed to the license granted Abu Dhabi based Mobadala Trading Company early in the year for $400 million. They insisted that Mobadala, an UAE government owned company was not a telecom operator but still got a license from NCC. NigComSat viewed that as ‘double’ speak.
However, this line of argument is punctured because Mobadala came into Nigeria under a bi-lateral trade agreement between both governments in Abuja and Abu Dhabi.
All is not rosy –GSM subscribers
Nigeria’s major mobile operators have come under public scrutiny recently over poor quality of service. The National Assembly has also held a public hearing on the mobile operators QoS, whilst the Minister of Communications, John Odey, has had to call on the NCC to penalize the operators for their poor services.
In September, the NCC issued a directive to the operators on the poor QoS with a warning the may face sanction from November 1, 2007 if they continue to offer poor services to the public. The sanctions may include daily surcharge on their billings to the customers, which the NCC insists may be offered to their subscribers as airtime rebate.
NigComSat prides its services and mandate
Ahmed Rufai, Managing Director of NigComSat believes the company is better placed to not only offer last mile mobile services, and insisted it would also be in position to offer rural telephony which the existing operators promised but are not yet offering. He had argued that NigComSat mobile operation would e devoid of the current poor QoS experienced on existing operators.
Mr. Niyi Ibietan -Head, Corporate Communications of NigComSat Ltd- stated last week in Abuja that the letter from President Yar’ Adua to the Minister of Science and Technology, Mrs. Grace Ekpiwhre, conveying the directive has been delivered to its chief executive, Rufai.
Part of President Yar’ Adua’s directive to the NCC stated that the “Ministry of Science and Technology is to liaise with the NCC to implement the directive”. Ibietan expressed appreciation of the satellite firm’s management to the president’s directive. “The management of NigComSat remains thankful to all practitioners of mass communication and other stakeholders for their rational articulations in defense of our position.”
The grey licensing
NigComSat Limited is s company operating under the Federal Ministry of Science and Technology with a mission to be the leading communication satellite operator and service provider in Africa. It is a public–private partnership with the private arm envisaged to have a controlling share.
It launched the first geostationary communication satellite – NigComSat-1 – in Sub-Saharan Africa last May, which has C, Ku, Ka, and L bands. It promised to “provide comprehensive, transmission and application services via digital or analogue system. And would operate same by either fixed or mobile satellite, direct broadcast satellite services, end-to-end solution and also engage transponder leasing services”.
What is however not clear from the presidential directive to the NCC is on the nature of ‘express’ license that NigComSat got. Industry analysts argued that if the directive exempt it from paying licensing fee, that would have negated the principle of ‘free enterprise’.
(Adapted from the Vanguard newspaper – October 29, 2007)
