FG urged to accelerate economic growth with broadband

The GSM Association, an umbrella body representing the interest of over 750 mobile communications operators worldwide, has urged the Federal Government to accelerate economic development in the country with mobile broadband technology.

The Special Government Advisor, GSMA, Mr. Ross Bateson, made this call following a recent study, which found that mobile broadband could contribute over N862bn to the nation’s economy by 2015.

Bateson, in a document made available to our correspondent on Friday, said that government’s action was required to meet the high consumers’ and business demand for mobile broadband.

This, according to him, is capable of growing the economic in many folds.

The GSMA expert urged the government to unlock the potential of the N862bn Gross Domestic Product growth by 2015 by supporting the roll-out of mobile broadband across the country.

He said, “It is essential that the new Nigerian government acts quickly to support mobile broadband expansion, as failure to do so could hinder the country’s social and economic growth. Not only could the country realise as much as N862bn of incremental GDP, but the people of all ages and livelihoods would benefit from the vast amount of information and opportunities mobile broadband can unlock.”

Bateson, who outlined the findings of the new independent report by an analyst firm, Analysys Mason, called on the Federal Government to speed up the process of unlocking the 2.6GHz spectrum to support the high demand for mobile broadband in urban areas.

He also called on government to release the digital dividend spectrum to deliver broadband services to rural areas and reduce the 35 per cent tax level imposed on Nigerian mobile operators. A tax, which he said, was doubled the global average.

In a detailed highlight of the study, Bateson said that only six per cent of Nigerians currently had access to broadband services, with 74 per cent of them doing so through mobile broadband.

This, according to him, is because there is little fixed broadband connectivity outside of Lagos, arguing that most cybercafés now connect to the Internet using wireless services.

The study found that mobile broadband could potentially contribute more than one per cent of GDP or 1.7 per cent of non-oil GDP by 2015 and would facilitate the much needed diversification of the economy.

According to the report, government’s support for mobile broadband services can facilitate significant advantages to the wider wireless ecosystem and the way in which other sectors use the Internet.

The report established that 55 per cent of the annual growth would be seen from the online retail industry, growing from N4.5bn in 2010 to N44.9bn in 2015.

If the Federal Government actualised the country’s broadband potential, the GSMA expert said that the financial services industry would grow by 95 per cent Compound Annual Growth Rate, as a result of mobile access to bank accounts and money transfer services, from N0.6bn in 2010 to 16.8bn in 2015.

The use of the Internet and mobile broadband to deliver social services, including health care and education, would generate a growth of 70 per cent CAGR, from N2.2bn to N30.3bn in 2015, the report said.

It would also rub off on the overall corporate market, especially agriculture and utilities, where a 55 per cent annual growth rate would be recorded through the provision of services online, from N3.6bn in

2010 to N32.1bn in 2015, the report added.

The study showed that wider availability of mobile broadband could also vastly improve the overall industrial productivity through the improvement in business processes.

A 73 per cent annual increase in the working population with access to mobile broadband, reaching 5.2 million users by 2015, would deliver additional N140bn to the Nigerian economy each year, the report said.

Excited about the potential of mobile broadband to the Nigerian economy, Bateson said, “Mobile is the most cost-effective way of delivering broadband services in Nigeria. Nigeria already has advanced mobile networks, such as Glo’s recently launched LTE network.

“The laying of submarine data cables between Lagos and Europe has provided much of the international backhaul needed, but mobile is vital in providing ‘last mile’ connectivity to consumers, especially in the rural areas.

“However, without proper spectrum allocation in line with the internationally harmonised band plans and broader government support, it will not be possible to realise the full potential of mobile broadband.”

According to the study, it is widely acknowledged that mass-market broadband availability will only be possible using mobile technologies, adding that the Federal Government must take certain steps to promote mobile broadband growth.

source : Punch