Broad Street Journal-Challenges Before Bello

By Chikodi Okereocha Stephen Bello, engineer and acting executive vice chairman, EVC, of the Nigerian Communications Commission, NCC, sure has a tough job in his hands. Though, holding forth until the appointment of a substantive EVC, Bello, who stepped into the shoes of Ernest Ndukwe, immediate past EVC a few months ago, is saddled with the challenges of completing ongoing projects inherited from his predecessor. Some of the ongoing projects regarded as critical in consolidating and also improving on the gains of the revolution in the telecoms/ICT industry in the last 10 years include number portability, SIM card registration, emergency communication projects, and broadband deployment. Others are consumer rights protection, tariff reduction and anti-mobile phone theft, among others. For instance, before the exit of Ndukwe, the NCC had held several public hearings aimed at getting inputs from operators before coming out with the directive on Number Portability, NP and how it would be implemented. The initiative, aimed at positioning the GSM subscriber as king, as well as address the challenge of poor quality of services, allows subscribers to move from one GSM network to the other, without necessarily changing their subscriber identification module, SIM, cards or altering their numbers. Although, NP has been in practice in most countries in Europe and America, Ndukwe, who initiated the scheme, noted that the time is ripe for Nigeria to join the rest of the world by breaking the monopoly of GSM operators. He said that NP would help reduce the complaints of â€œpoor quality of service on the network of certain operatorsâ€, as subscribers would have the opportunity to

change networks at will. NP, he also noted, would force operators to reduce their tariffs and improve the quality of services since the monopoly over subscribers would be removed. Dave Imoko, head, public affairs, NCC, shares Ndukwe`s optimism. According to him, NP is a â€œwin-win proposition to all telecoms stakeholdersâ€, adding that for subscribers, it offers freedom to choose network providers, while maintaining the same identity. He noted that operators would also be offered opportunities to acquire new subscribers and generate higher average revenue per user, ARPU with new services. The regulator also stands to benefit since the regime constitutes the cornerstone of fair competition among GSM companies by removing a key obstacle for subscribers. Imoko was, however, quick to add that NP requires a strong working relationship between regulators and operators to succeed. And stakeholders who spoke with the magazine pointed out that with the exit of Ndukwe, the task of engendering a good working relationship between the NCC and operators for the full implementation of NP rests on Bello`s shoulders. â€œThe technicalities involved in number portability are much,â€ says an expert, who preferred not to be mentioned. The expert pointed out, for instance, that already existing switching equipment of operators are programmed to recognise a number from a particular network and now that subscribers would be free to move to another network with a number not recognised by the equipment, it means that GSM companies have to re-programme their operations. He, however, expressed optimism that since NP is working all over the world, there is no reason why it would not work in N

Nigeria in spite of the technicalities involved, provided the person at the helm of affairs at the NCC demonstrates commitment. Another project that would certainly endear the acting EVC of the NCC to the hearts of operators and consumers is the massive deployment of broadband Internet. At the moment, only about 15 per cent of Nigeria`s 150 million population are using the Internet, according to latest figures by the NCC, despite the giant strides in the Nigerian telecoms sector where about 80 million subscribers have so far been connected. The 15 per cent Internet access, which translates to a paltry 15 million Internet users across the country, is a clear indication that the revolution in the sector is yet to substantially rub-off on the data segment of the market. Broadband Internet is, therefore, an area that cannot be ignored by the acting EVC. The expectation is that he would fast-track the completion of various projects initiated by his predecessor aimed at replicating what is now generally described as `the telecoms revolution` in broadband capability. Since 2007, the year Ndukwe declared as year of broadband, the NCC had launched a number of initiatives, such as the State Accelerated Broadband Initiative, SABI, Wire Nigeria Project, WIN, and Universal Service Fund, for the purpose of positioning broadband as the next phase of the revolution in the telecoms sector. For instance, with SABI, a programme unveiled by the commission in 2006 to encourage the private sector to build and run broadband infrastructure with government support and incentives, the NCC was determined to ensure that all state capitals and major commercial centres across the country are covered

by broadband. With the WIN project, the regulatory agency hopes to address the problem of lack of infrastructure suitable for data transmission and increasing transmission capacity. Its ultimate aim is to provide a nationwide fibre optic transmission infrastructure. Also, through the Digital Appreciation Programme, DAP, the NCC has been sending computers and satellite links to schools around the country to get them connected. While the initiative is aimed at encouraging the appreciation and use of ICT in primary and secondary schools, the Advanced Digital Appreciation Programme-Tertiary trains lecturers in tertiary institutions on ICT in conjunction with the Digital Bridge Institute, DBI, Abuja. The NCC, before the exit of Ndukwe, envisaged that within the next few years, the country would have the capacity to support the expected large increases in demand for broadband, data and voice services. The protection of the rights of telecoms consumers, full implementation of SIM card registration, including deliberate regulatory intervention to encourage a more pocket-friendly tariff, are other issues that would certainly task the acting EVC. Already, the consensus among stakeholders is that if most of the ongoing projects initiated by Ndukwe are pursued to a logical conclusion, consumers and the industry in general would be better for it. Failure to do so, some of them argued, might fritter away the gains so far recorded in the sector. The argument is that Bello`s capacity or lack of it to deliver would make or mar the sector regarded as the most vibrant. Such fears are anchored on the fact that despite the huge and indelible mark left on the country`s telecoms landscape by hi

by his predecessor within a remarkably short period of ten years, the sector is still in its infancy, requiring all the necessary push to take it to the next level. And to further heighten fears over the future growth of the sector, the choice of a substantive EVC of the NCC has been an issue of serious politicking. The worry is that if the choice is eventually based on ethnic or other pecuniary considerations rather than managerial and technical competence, the sector may be thrown back into the dark days prior to the revolution. Although, Bello gave his word recently that the NCC under his watch would not waiver in all the projects and other issues agitating the minds of consumers and operators, not a few Nigerians insist that while holding forth he must consolidate on the gains of the revolution and also improve on it. He promised, for instance, that his administration would review the processes designed to flag-off the NP programme to widen the frontiers of choice available to telecoms consumers. He said he had taken time to study the projects and have decided to fast-track completion of the projects mainly designed to increase access to broadband and telecoms services in the country. The acting EVC also disclosed that that registration of SIM cards had commenced since May 1, 2010, as planned. While noting that some operators have expressed reservations with the deadline, he said that experience has shown that operators always resist anything that would cost them extra money. â€œEven when they believe in it and they believe that it`s necessary because they are always looking at the bottom line, they want to maximise their profit. The same thing happened with per s

per second billing. We have been on this thing and we have given enough time to get ready, all the issues have been discussed, we have had many meetings so the issue of publicity we are addressing it immediately,â€ he said. The acting EVC emphasised that his office has given a transition window during which some of the issues would be addressed. â€œWith that, we believe that that cushion of three months during which we have the transition period is enough for everybody to take care of some of the delays,â€ he stated, adding that there would be a transition period and the details of that would come out later on. Bello also assured that the NCC would revisit price cap regime in the telecoms sector. Price cap regulation is a policy developed by the NCC where the commission gives a price and allows competition to make operators to operate within that degree of freedom but not beyond it. The acting EVC said that price cap regime, which existed at the inception of mobile phone services is one of the issues that the commission would tackle soon to ensure that operators are within a bar relative to interconnect rates. â€œIn 2001 when GSM started, we said that nobody should charge above N50 per minute and that was many years ago. Now, we have the fact that the number of lines has increased, there is economy of scale and you know that as you have advantages of economy of scale the unit price comes down,â€ he declared, stressing that NCC believes that the competition in the industry would control prices. He explained that there are many methods of regulating prices in the industry but the current government policy is that the NCC would not engage in direct price control as existed

in the 1970s when government publishes the price of commodities which no seller would go above. He pointed out that NCC recently reviewed the interconnect rates, which is the rate at which operators pay when they transfer calls amongst themselves, but these are yet to trickle down to the subscribers. He, however, disclosed that the NCC has resolved to revisit the price cap to ensure that these advantages trickle down and that it would begin the process with consultation with the operators and collection of some data to implement it. Bello also allayed fears over his capacity to consolidate the gains of the revolution in the telecoms sector. His words: â€œI have been involved so it is a matter of just continuing the process. There is nothing that is on the line that we are doing that I have not been fully involved in. So I am familiar with all the antecedents and all the issues and how to take it to a logical conclusion. So, definitely I will just flow along and make sure that all these things are put in place and completed.â€ Incidentally, Bello fits into the mould of a thoroughbred professional canvassed by Titi Omo-Ettu, president, Association of Telecommunications Companies of Nigeria, ATCON. â€œI don`t know how anybody who is not an engineer would be able to supervise the management of spectrum. The position needs a sound engineer that has been involved in management at senior level. The person must also understand management and finance,â€ Omo-Ettu said, adding that since most of the problems in the sector in Africa are about spectrum, whoever emerges must have sound knowledge of the international politics of telecoms. That was in the heat of the politics over

over Ndukwe`s successor. Bello is an engineer by profession and he is currently the most senior executive commissioner at NCC, in charge of licensing and consumer affairs. He has over 30 years experience working as a professional in the private and public sectors as well as the academia. He obtained a B.Sc. in Electrical/Electronic Engineering from the University of Ife (now Obafemi Awolowo University) in 1975. During his youth service, he was a pupil engineer with the National Electric Power Authority. In October 1976, Bello joined ITT (Nigeria) Limited as an Engineer-in-Training and was sent for a two-and-half year on-the-job training in some ITT companies in Europe. He acquired an Advanced Certificate in Telecommunication Engineering from ITT-Standard Telecommunication Laboratory, Harlow, England in 1978 before returning to ITT (Nigeria) the following year to assume the position of Senior Project Engineer. He joined GTE (Nigeria) Limited in June 1980 as Senior Project/Sales Engineer and moved to the Department of Electrical Engineering of the University of Ilorin in June 1987 as Principal Technologist, rising to the position of Chief Technologist in 1995. He was appointed Director of Engineering of the Nigerian Communications Commission in 2000 and Executive Commissioner, Engineering and Standards, in 2005. He took charge of the NCC following Ndukwe`s exit in April this year after serving out the maximum 10-year tenure of five years each as stipulated by the Nigerian Communications Act 2003. Ndukwe`s exit paved the way for the intense lobbying and power-play that has characterised activities at the commission`s headquarters in which Bello is one of the major contenders.

The former NCC boss was first appointed as EVC of NCC on February 18, 2000, but at the expiration of his five-year tenure, the federal government led by President Olusegun Obasanjo reappointed him on April 2, 2005 for a second tenure of another five years, which ended in April 2010. In ten years, the industry under the regulatory direction of Ndukwe witnessed â€” and continues to witness â€” a revolution that has taken the global arena by surprise. For instance, under Ndukwe`s watch, the country and the international community saw the first transparent digital mobile licence, DML, auction. The successful conduct of the mobile licence sale was to usher in the big mobile operators, a development that also set off the famed mobile telephony revolution in the country, and a positive market evolution for which the head of the telecoms regulator became the reference point in regulatory matters. His deft management and regulation of the sector in the last 10 years has been described by the International Telecommunications Union, ITU, as exemplary. Many countries across the globe have since been coming to Nigeria to understudy the NCC and replicate same in their countries. The opening of the sector has since deepened the country`s investment portfolio to the tune of over $18 billion, N2.7 trillion. From less than 400,000 telephone lines in 2001, the sector has since witnessed a geometric growth in subscriber base of over 80 million fixed and mobile telephone lines. Ndukwe, however, says that his achievements could be summarised in three areas, namely, the building of a regulatory institution that now has international recognition and respect; the impact on the economy and the