Though Nigeria currently prides herself as having the largest economy by GDP in Africa, her low rating in one of the economic metrics of the 21st century may be her undoing. At this time, every nation seeking economic growth places premium on ensuring every policy cascades into having a connected society, as indeed communications and connectivity have been proven to be among the best springboards for economic growth, political stability and social equilibrium.
And, for many nations, connectivity goes beyond mere voice and mobile telephony; because prevalence of and access to the internet, broadband connectivity and affordable access for all are not just for the enhancement of life and living for the citizens but for the huge positive impacts on the economy.
Unfortunately, while government officials in Nigeria are never tired of paraphrasing the cliché: “every 10 per cent increase in broadband penetration in developing countries such as ours results in an increase of 1.3 per cent in GDP”, which of course, speaks to their understanding of the opportunities in broadband availability, the government policy; the infrastructure on ground; and even the approach to addressing challenges facing the telecom industry do not portray the country as moving towards this direction.
Here is an industry where several Small and Medium Enterprises that are supposed to help drive telecom growth and broadband spread are dying by the day without any form of protection or bail out from the government.
To see that the country still trudges on with about 6 per cent broadband penetration leaves much to be desired. And while the government may claim to be on its way to increasing the current penetration level through the implementation of the National Broadband Policy, which has a target of achieving 30 per cent penetration by 2018, we have yet to see the trace of any such move nearly two years into the unveiling of the policy.
Perhaps a cue from the United States’ latest efforts at getting every American connected to broadband will give our government a clearer picture of how important the world is taking broadband access.
The Federal Communications Commission has just announced plans to bridge the existing gap in Internet adoption by expanding a subsidy program for poor Americans to enjoy broadband at their homes. Coming under a programme known as Lifeline, the FCC believes that greater Internet access would help pull millions of Americans out of poverty.
“Too many of our citizens are stuck in digital darkness, without the primary tool needed for seamless communications for health care, education, civic participation and professional advancement”, an FCC Commissioner Mignon Clyburn said in support of the new subsidy regime for Broadband.
Giving even greater commitment to the words of the FCC Commissioner, the FCC Chairman, Tom Wheeler, captured it better:
“In 2015, broadband access is essential to find a job: more than 80 per cent of Fortune 500 job openings are online. Americans need broadband to keep a job, as companies increasingly require basic digital literacy skills. We rely on broadband to manage and receive healthcare, and to help our children do their homework.
“A 2012 study estimated that broadband helps a typical U.S. consumer saves $8,800 a year by providing access to bargains on goods and services. But nearly 30 per cent of Americans still haven’t adopted broadband at home, and low-income consumers disproportionately lack access. While more than 95 per cent of households with incomes over $150,000 have broadband, only 48 per cent of those making less than $25,000 have service at home. A world of broadband “haves” and “have-nots” is a world where none of us will have the opportunity to enjoy the full fruits of what broadband has to offer.”
Those words of Tom Wheeler, in a country that has virtually everything going for it, speaks volumes of a country with the right policy in place for practical application and an agency just more than ready to translate such policy into visible and tangible reality.
The above scenario in America makes mockery of whatever we claim to have been doing here in Nigeria as far as broadband is concerned. As a matter of fact, it is an indication that we have not even started the so called broadband revolution in the real sense of it. Looking at it this way, America with all its resources, with the wealth of its people, with the entire infrastructure, still gives subsidy to the poor, to be able to be on the internet – because of how important they see the internet and connectivity.
On the other hand, over 70 per cent of US households are already connected to broadband internet; yet, the country is aggressively rolling out infrastructure and even introducing subsidy to get more of her citizens connected in their homes. Where does Nigeria stand in all these?
Here we are only talking of broadband; yet, SMEs in telecom are dying; no incentives for companies to stay alive while multiple taxation is killing those still operating. Certainly, expecting any broadband spread or increased penetration under this condition will be tantamount to holding onto false hope.
Consequently, the government must realise the importance of broadband, not just for the people to enjoy but for national development and economic growth, hence, it must be given the attention it requires by addressing all the challenges from policy direction to infrastructure, to multiple taxation as well as providing incentives to support companies offering services in the industry to stay alive and to drive accelerated expansion of connectivity. More importantly, companies and citizens in the rural and underserved areas must be given subsidy to be able to stay in operation provide connectivity and for the citizens to be able to access broadband through affordable pricing.
The current government should treat the issue of broadband connectivity as of critical national importance and priority; giving all the players, especially at SME level, the required support to ensure connectivity at rural and underserved areas.
This is what will unlock the much talked about mass growth thereby providing mass employment and economic re-engineering of the country.