Cheap Internet Services to Cost Nigeria N900bn
- By Abimbola Tooki
- Published September 26th, 2011
- News
- Unrated
Nigeria will require a combined investments of about N900 billion to develop about 300 data centres needed in the country to achieve cheap internet services. An internationally recognized data centre costs between $20 and $30 million to establish.
The development of data centres has become essential to enable Nigeria join the comity of developed nations of the world where data services contribute significantly to Gross Domestic Product (GDP). These data centres will facilitate cheap and easier access to the internet as being enjoyed in other parts of the world. Internet services are also one of the key ingredients needed by operators of big and small scale enterprises to get their businesses to the global centre-stage where they can be more competitive.
Mrs. Omobola Johnson, minister of communications technology, disclosed at a stakeholder forum in Lagos that internet penetration is low, predominantly via mobile phones. And while international bandwidth capacity has improved, terrestrial national capacity is lagging behind.
Nigerians currently pay $3 per megabits per second (mbps) to terminate local internet traffic, while $600 is paid to terminate internationally. This explains why the cheapest service in the country today costs about N10,000 per month. However, UK residents pay about 10 pounds to enjoy 10 times what Nigerians pay N10,000 to get.
Participants at the forum are of the opinion that due to the huge investment required in the establishment of world class centres, it would require a partnership between the public and private sector to achieve. The minister said that her ministry would create the enabling environment to accelerate the roll-out of broadband infrastructure to secure critical resources and essential facilities as well as increase online presence of Nigerian businesses and institutions through collaborations ad partnerships
Available researches show that United States of America has over 1, 200 data centres at the moment and is planning to build more. Google, the foremost search engine in the world, has spent over $800 million on data centre infrastructure within the first three months of this year. At the moment, Nigeria cannot boast of a single functioning data centre which explains why over 90 per cent of electronic mails (e-mails) and addresses originated in the country, both corporate and individual including that of President Goodluck Jonathan, are terminated outside Nigeria due to lack of data centres that can process them. According to the latest figure released last week by the minister at the forum, there are about 33.5 million internet users in Nigeria which represents about 22 per cent of the population. The penetration broadband technology which can facilitate faster access to the internet currently stands at 6.1 per cent.
This development is also responsible for why the operations of all internet service providers in the country are hosted in foreign countries of the world. Nigeria can boast of many young school leavers who can develop good websites locally but which cannot be hosted within the country due to lack of required infrastructure.
Sola Bickersteth, chief executive officer of Cosmos Technologies and one of the participants at the forum, advocated the establishment of a tele-house, fashioned after a similar initiative in United Kingdom that can serve as exchange hub and which can be connected to the rest of the world to join network of all networks.
Johnson noted that the Nigerian ICT industry is a predominantly service-based industry that is characterized by dominance of basic voice and data communication services provided by telecom companies, in particular mobile (GSM) operators as well as limited manufacturing and assembly capabilities for ICT equipment and devices. “Delivery of content is mainly through conventional media such as television, radio and newspapers,” she said. “Content delivery via the internet is limited but increasing.” The minister further noted that Nigerian ICT industry is fragmented and this increases cost to businesses and results in weak inter-organisational linkages that are key to a robust national ICT industry and economic productivity. “There is perceived success of the telecoms industry and the tendency for it to be viewed as a source of revenue generation by different tiers of government and their agencies,” she said. “It is characterised by vulnerability and insufficient management of critical resources and essential facilities which are important prerequisites for efficient infrastructure development.”
Johnson disclosed that part of the mandate of the new ministry is to advise and consult for government on necessary ICT developmental and support mechanisms that will enable the achievement of universal access to ICT services, thus generate wide usage of ICTs and leverage this access and usage to accelerate national development. “We are to lead and coordinate, with the support of the public and private sector, Nigeria’s engagement of the international community on the area and subject matter of ICTs,” she said.
Johnson also said that the government would engage in sustainable investments that provide long-term value and develop local talent in line with the vision of the government to build a digital economy and information society.
The development of data centres has become essential to enable Nigeria join the comity of developed nations of the world where data services contribute significantly to Gross Domestic Product (GDP). These data centres will facilitate cheap and easier access to the internet as being enjoyed in other parts of the world. Internet services are also one of the key ingredients needed by operators of big and small scale enterprises to get their businesses to the global centre-stage where they can be more competitive.
Mrs. Omobola Johnson, minister of communications technology, disclosed at a stakeholder forum in Lagos that internet penetration is low, predominantly via mobile phones. And while international bandwidth capacity has improved, terrestrial national capacity is lagging behind.
Nigerians currently pay $3 per megabits per second (mbps) to terminate local internet traffic, while $600 is paid to terminate internationally. This explains why the cheapest service in the country today costs about N10,000 per month. However, UK residents pay about 10 pounds to enjoy 10 times what Nigerians pay N10,000 to get.
Participants at the forum are of the opinion that due to the huge investment required in the establishment of world class centres, it would require a partnership between the public and private sector to achieve. The minister said that her ministry would create the enabling environment to accelerate the roll-out of broadband infrastructure to secure critical resources and essential facilities as well as increase online presence of Nigerian businesses and institutions through collaborations ad partnerships
Available researches show that United States of America has over 1, 200 data centres at the moment and is planning to build more. Google, the foremost search engine in the world, has spent over $800 million on data centre infrastructure within the first three months of this year. At the moment, Nigeria cannot boast of a single functioning data centre which explains why over 90 per cent of electronic mails (e-mails) and addresses originated in the country, both corporate and individual including that of President Goodluck Jonathan, are terminated outside Nigeria due to lack of data centres that can process them. According to the latest figure released last week by the minister at the forum, there are about 33.5 million internet users in Nigeria which represents about 22 per cent of the population. The penetration broadband technology which can facilitate faster access to the internet currently stands at 6.1 per cent.
This development is also responsible for why the operations of all internet service providers in the country are hosted in foreign countries of the world. Nigeria can boast of many young school leavers who can develop good websites locally but which cannot be hosted within the country due to lack of required infrastructure.
Sola Bickersteth, chief executive officer of Cosmos Technologies and one of the participants at the forum, advocated the establishment of a tele-house, fashioned after a similar initiative in United Kingdom that can serve as exchange hub and which can be connected to the rest of the world to join network of all networks.
Johnson noted that the Nigerian ICT industry is a predominantly service-based industry that is characterized by dominance of basic voice and data communication services provided by telecom companies, in particular mobile (GSM) operators as well as limited manufacturing and assembly capabilities for ICT equipment and devices. “Delivery of content is mainly through conventional media such as television, radio and newspapers,” she said. “Content delivery via the internet is limited but increasing.” The minister further noted that Nigerian ICT industry is fragmented and this increases cost to businesses and results in weak inter-organisational linkages that are key to a robust national ICT industry and economic productivity. “There is perceived success of the telecoms industry and the tendency for it to be viewed as a source of revenue generation by different tiers of government and their agencies,” she said. “It is characterised by vulnerability and insufficient management of critical resources and essential facilities which are important prerequisites for efficient infrastructure development.”
Johnson disclosed that part of the mandate of the new ministry is to advise and consult for government on necessary ICT developmental and support mechanisms that will enable the achievement of universal access to ICT services, thus generate wide usage of ICTs and leverage this access and usage to accelerate national development. “We are to lead and coordinate, with the support of the public and private sector, Nigeria’s engagement of the international community on the area and subject matter of ICTs,” she said.
Johnson also said that the government would engage in sustainable investments that provide long-term value and develop local talent in line with the vision of the government to build a digital economy and information society.
