1. BROADBAND NIGERIA: THE JOURNEY AHEAD Austin Okere C.E.O. COMPUTER WAREHOUSE GROUP 1

2. A cry for help

3. 3

4. broadband statistics SPEEDS (mbps) Ghana- 10.1 South Africa- 2.95 Nigeria- 1.38 Global average- 8.48 4

5. 5 Broadband in Ghana

6. 6 Broadband in SA

7. 7 Broadband in Nigeria

8. Network service providers entrepreneurs in in the value chain More providers means More infrastructure to increase access More competition to decrease prices  Possible intervention  Facilitate market entry  Support sustainable existence of all players  Segmentation for fair competition 8

9. Ample capacity at shore International access is good Very good submarine and satellite capacity One operator has 1.92 TB A second consortium is adding 5.0TB an operator spent $250m on undersea cable Prices have gone from $1300 to $350/mbps Yet only 2% of capacity inshore Price target of $86/mbps based on supply Prices may reach $25/mbps with right volume 9

10. 10 capacity limitations Inland

11. Some problems along the way… NLDO is challenged There is core network fibre to 27 states Operate as islands Cost is high (4 times international trunk) Access is discriminatory  Possible intervention  Open Access National Backbone  Interconnectivity  Establishment of price framework 11

12. More bottlenecks on the way RLDO is seriously challenged Some states not linked to the National backbone Many key cities yet to be linked Right of way hindrance & cost Lack of national interconnection  Possible intervention  Fiscal incentive (long term loans, USPF)  Right of way support/incentive 12

13. Metro Distribution is worse hit … Less than 6% penetration Interconnection issues Right of way and barriers to deployment Multiple and illegal taxation Multiple regulation e.g. Masts & Base stations  Possible intervention  Fiscal incentive support  Simplification of licensing process  Solving right of way and taxation issues 13

14. Metro Ring Provider

15. Race to the Bottom Major concerns Majority of service providers have become moribund substantially lessening competition Almost all medium sized operators (mostly Nigerian start ups) are failing This group is critical to vibrant competition and prevention of oligopoly in the market  Possible intervention  Closer regulation of anti-competitive practices  Fiscal incentives through special purpose funds e.g. USPF  Dealing with transmission market incongruences in prices and access  Digital Access Broadcasting policy and regulatory framework 15

16. The Rat Race… 16

17. 17 Thinking outside the box

18. Crux issues role of Government Role od service providers Requirements of service providers to Roll out to rural areas Underserved areas Possible quick wins Establish true cost of right of way (1 km of Fibre) How to optimize frequency segment 18