How NCC galvanized the telecommunication sector in 2020

 

ABUJA, Nigeria – The magic year 2020 is finally gone with all its many visions.  For the Nigerian Telecommunications Commission (NCC), it is an eventful year, especially for the telecoms sector. It is a year that came with a lot of challenges, among which is the onset of the Coronavirus pandemic, worsened by economic recession.

But the NCC, under the leadership of Professor Umar Garba Danbatta carried on as if things were normal, all thanks to his farsighted wisdom and robust telecommunications policy. Danbatta came into office as Executive Vice Chairman of the NCC in August 2015 for a five year period. But he was reappointed for another term of 5 years by President Muhammadu Buhari following his unparallel landmark achievements in the sector.

Most noteworthy of  the achievements in the sector was the contribution of the sector to Nigeria’s Gross Domestic Product, GDP. According to the National Bureau of Statistics, (NBS)  GDP contribution of the sector  increased to over 14.30% as of second Quarter of 2020. In financial value, the 14.30% translates to N2.272 trillion in Q2, 2020.  Whereas as at December 2019, telecoms contribution  was 10.60 percent. Also, telecoms investment continued to grow in leaps and bounds in 2020 beyond $70 billion.

In addition,  Active mobile voice subscribers in the sector increased from 184 million in December, 2019 to 208 million by October, 2020, representing an additional 24 million active mobile lines accessed by Nigerians across mobile networks from December, 2019 to October, 2020.

Teledensity (the total number of telephone lines per hundred people in an area) increased from 96.76% in December, 2019 to 108.94% by October, 2020. NCC’s regulatory activities also resulted in increased connectivity in the country. From, 126 million in December, 2019, Internet subscriptions rose  to 152.9 million as of October, 2020. In the same vein, broadband (i.e. high-speed Internet) penetration maintained an upward swing to 45.93% in October, 2020, up from 37.80% in 2019.

During the year, 158,128 telecom consumers ported from one service provider to another between January-October, 2020, as against over 120,000 lines that ported in 2019.

In terms of  complaints,  the NCC successfully resolved over 98 percent of the total consumer complaints received from telecoms consumers via the NCC Toll-Free Number 622, NCC Consumer Portal, social media platforms and written complaints.  Besides, subscription by telecoms consumers to the NCC’s Do-Not-Disturb (DND) 2442 service surpassed 30 million in 2020 compared with 22 million in 2019.

In its determination to drive the digital  economy, the NCC in June, 2020, unveiled its new Strategic Management Plan (SMP) 2020-2024 to drive the implementation of the Federal Government’s digital economy vision.

The launch of the SMP demonstrated the Commission determination to improve performance matrix and its efforts to accelerate the implementation of the National Digital Economy Policy and Strategy (NDEPS) and the National Broadband Plan (NBP) 2020 – 2025 of the Federal Government.

The SMP, according to Prof. Danbatta, is the fulcrum that will aid NCC in driving its telecom regulatory mandate in the fast-evolving telecoms industry, in the next five years.

“It will also serve as a roadmap for the future of the Nigerian telecoms sector, taking into consideration the current and emerging trends in the industry and the numerous expectations of the diverse stakeholders. The SMP 2020 – 2024 is the visioning document of the Commission for planning, monitoring, analysing, and assessment of the Commission to meet its goals and set objectives. It has five pillars, which include regulatory excellence, universal broadband, promote development of digital economy, market development; and strategic partnering  with 25 intended outcomes.  Five critical success factors identified for the implementation of the Strategy include: ownership and commitment, effective communication, human resource capacity, development of and adherence to a strategy development manual and implementation discipline”, Danbatta said in one of the plans.

The NCC also continued to drive innovation in telecommunication  through investment of millions of Naira to drive Information and Communications Technology (ICT) innovations in the academia, while also supporting innovative ideas among young Nigerian tech innovators.

Aside several ICT innovation challenge and Hackathon programmes such as the Covid-19 Virtual Hackathon initiated and implemented by the Commission, the NCC, instituted and endowed two additional Professorial Chairs to the tune of N40 million in two more Nigerian universities.

The two universities – the premier University of Ibadan, Oyo State and Abubakar Tafawa Balewa University, Bauchi State, which were  endowed with N20 million each over the next two years to embark on massive research to promote innovation to drive socio-economic development in the country.

This new endowments brings to four the number of tertiary institutions of learning that have benefitted from the NCC’s innovation-driving initiative. NCC has previously endowed professorial chairs in Bayero University Kano (BUK) and Federal University of Technology, Owerri (FUTO) in May, 2019.

Remittance to Federation Account

Between 2015 and 2020, the NCC remitted a total of  N344 billion to the federation account. The revenue was essentially generated from spectrum sales, operating surplus and sanctions. Aside spectrum auctions, NCC also engaged in spectrum re-planning, re-farming to optimise the usage of the scarce resource while it continued to address the quality of service (QoS) delivery through effective monitoring of Key Performance Indicators (KPIs) and development of KPIs for Third Generation (3G) and Fourth Generation (4G) networks. All these are in a bid to ensure improved service delivery to telecom consumers.

Besides, the NCC granted approval for two mobile network operators (MNOs), MTN Nigeria and 9Mobile, to carry out trial on the workability of embedded Subscriber Identification Modules (e-SIM) Service in Nigeria.

The trial, approved to run for a period of one year,  involves testing 5,000 e-SIMs by the two networks, subject to compliance with a number of regulatory conditions. Speaking on the development, Prof. Umar  Danbatta said the primary objective of the trial is to assess the technical performance of  e-SIM on telecoms service providers’  towards eventual rollout, if satisfactory.

He described e-SIMs as a technology that will eliminate physical SIM card slots on mobile devices in the near future, adding that the trial is in line with the Commission’s forward-looking regulatory approach to ensure Nigeria’s telecoms ecosystem is in tandem with global best practices.

The NCC also granted approval for trial national roaming service to MTN and 9mobile for a period of three months, commencing  October 14, 2020 to end by January 13, 2020.The two telcos are expected to configure their networks to begin test and simulation for customer experience. The trial approval covers a few local governments, designated as the National Roaming geographic area, in Ondo State.

The roaming service  will make it possible for a mobile subscribers in Nigeria to automatically make and receive voice calls, send and receive data, or access other services when travelling outside a particular network’s geographical area by utilising the network coverage of other networks with roaming arrangements.

Danbatta said the primary objective of the National Roaming Service trial is to encourage resource sharing among network operators. “It is will also lead to operational expenditure (OPEX) optimisation and capital expenditure (CAPEX) efficiencies leading to freeing up of resources to expand mobile network coverage to unserved and underserved communities across the country, which will lead to improved Quality of Service (QoS) delivery to subscribers”, he said.

The  NCC  also began a strategic review of InfraCo framework and their funding options by constituting  a committee to review the framework for the licensing of Infrastructure Companies (InfraCo) and recommend sustainable funding options for effective implementation of the proposed national fibre project.

Constitution of the committee is one of the requirements of the National Broadband Plan (NNBP 2020-2025) and reports of relevant committees set up by the Federal Executive Council (FEC), which include the Inter-Ministerial Review Committee on Multiple Taxation on Telecommunications Operators over Right-of-Way (RoW) and the Technical Sub-Committee on Right-of-Way for Deepening Broadband Penetration in Nigeria.  It is also needed to cater for the delays in take-off, change in exchange rate, supply chain and other challenges imposed by the COVID-19 pandemic. Commenting on this, the EVC said, “The InfraCo project is dear to the government because of its ability to enhance robust and pervasive broadband infrastructure to drive service availability, accessibility and affordability.”

 MVNO Framework for increased telecom access

The NCC has also evolved the Mobile Virtual Network Operator (MVNO) Licensing Framework, which will bring in industry players in other segments  that will rely on existing operators’ network to offer services to Nigerians in the rural, remote, unserved and underserved areas of the country.

The MVNO framework hopes to improve access and connectivity and it is based on NCC’s determination to introduce MVNOs’ services within the telecommunications market in the country.  To this end, a  document was uploaded on the Commission’s website on December 10 and inputs from stakeholders on the MVNO document is expected to be obtained from members of the public within 21 days.

Upon closure of this period, the Commission, Danbatta said will engage in deliberation sessions in an expedited manner to finalize its decisions about MVNO introduction in the market. “A consultation report will then be generated and published to create awareness on the Commissions decisions”, the EVC explained.

In the year 2020,  the NCC  leveraged its social media platforms and other legacy media to sensitise consumers who are dissatisfied with services rendered by service providers on the procedures for lodging their complaints to the Commission. Consumers were informed that they have the right to seek redress on any service-related issue by reporting to NCC if response to issues raised from their service providers is unsatisfactory.

As a responsible organisation, the NCC continued its consultation on planned deployment of 5G technology following misinformation, miscommunication, misunderstanding and misconception that greeted the trial of 5G by the NCC in 2019. The trial, among others, was to study and observe any health or security challenges the 5G network might present.  “For the avoidance of doubt, as with the previous technologies such as 1G, 2G, 3G and 4G, the Commission will not commence 5G deployment without due consultation with all relevant stakeholders”, the EVC said.

The commission has developed a Draft Consultation Document on the Deployment of Fifth Generation (5G) Mobile Technology in Nigeria. The document offers information on the benefit of 5G technology and outlines the Commission’s plans and strategies for a successful implementation of 5G in Nigeria and clearly presents guidelines for the relevant areas of the technology and the expectations of the Commission from the operators.

NCC and National Security

The Commission is currently working with mobile network operators (MNOs) with other agencies such as the National Identity Management Commission (NIMC) in line with Federal Government’s directive, through the Minister of Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami, for telecoms subscribers to link their National Identification Number (NINs) with the SIM database with a view to addressing SIM-related crimes.

For national security, the NCC ensured that improperly-registered SIMs  were removed from the networks and a number of arrest  and convictions of fraudulently-registered SIM  by ‘operators agents’ were  made  to serve as deterrent to others.

According to NCC, the use of pre-registered SIM cards gives cover for unwholesome activities like kidnapping, call masking, threat to lives, bullying, armed robbery, identity theft financial crimes and SIM swap fraud, among others. The commission also embarked on cybercrime sensitization, culminating in a more widespread social media campaign in the month of October, with greater emphasis by the Commission on child online protection, considering the fact that most children now take Internet-based learning and educational instructions as a result of the COVID-19 pandemic and its attendant restrictions and the need to protect them online was taken as a priority for the Commission, as the regulator of the industry.

The Commission also facilitated listing of MNOs like MTN and Airtel on the Nigerian Stock Exchange, NSE. Already market analysts are of the view that MTN investors, alone, have raked in approximately N1 trillion in price appreciation and dividends since April 2020.

The NCC also lifted the suspension on Spectrum Trading Guidelines (STG), 2018, pending the conclusion of ongoing review of the Guidelines. The lifting of the suspension followed deliberations by the Board of NCC at its Special Board Meeting, which held on Wednesday, September 16, 2020.

According to the Commission, the Nigerian National Broadband Plan (NNBP), 2020-2025 launched by President Muhammadu Buhari in Abuja in March 2020, requires that these Guidelines be reviewed to ensure that unutilised Spectrum is fairly traded to facilitate rollout by other operators amongst others. The Guidelines will also help to address the need for ubiquitous broadband deployment to accelerate penetration and access in line with the economic Agenda of the Federal Government.

In September, the NCC  embarked on a cost-based study to set the new pricing regime for mobile international termination rate (ITR) for inbound international voice calls in the country. The ITR is the rate paid to local operators by international operators to terminate calls in Nigeria.

Addressing  stakeholders in Abuja recently, the Executive Vice Chairman of NCC, Prof. Umar Danbatta, said the study became imperative, following the various implementation constraints arising from contending industry and market dynamics that met previous efforts at finding an optimum price for the termination of international voice services in Nigeria.

Through the new ITR pricing, the Commission will be able to balance the competing objectives of economic efficiency and allow operators the latitude to generate reasonable revenue.

Additionally, the Commission, in furtherance of its mandate to protect the interests of consumers and support a robust telecommunications sector, revised its Determination on Unstructured Supplementary Service Data (USSD) pricing earlier published on the 23rd of July, 2019 and suspended by the Federal Government in the wake of its implementation by the operators.

 Accounting Framework for Telecoms Industry

The NCC also commenced implementation of the Accounting Separation Framework (ASF) in the Nigerian telecoms industry effective from July 15, 2020. The policy document, “Determination on the Implementation of an Accounting Separation Framework for the Nigerian Telecoms Industry”, which was developed via a consultative process in 2015, has undergone a comprehensive review by the regulator in collaboration with telecoms licensees and other critical industry stakeholders.

Danbatta considers the Accounting Separation Framework “as an effective, least evasive and less costly solution to implement to meet its regulatory objectives”, adding that the implementation of the Framework is also a key deliverable for the Commission in the new National Broadband Plan (NBP), 2020-2025.”

Digital Economy Department to drive NDEPS

In July 2020,  the NCC created  a Digital Economy Department, principally responsible for implementing programmes and policies aimed at fully supporting and promoting the national digital economy agenda of the Federal Government.

The creation of the new department is in line with the Commission’s strategy to create a dedicated team, with the sole responsibility of giving necessary push to the promotion of digital economy vision of the Federal Government.

Speaking on the development, Prof. Danbatta said,  “placing the newly-created department under the Office of the EVC also underscores the importance the Commission places on the need to successfully drive the overall national digital economy strategy of the government through ensuring its effective monitoring and supervision.”

In addition to working with the eight pillars of the National Economy Policy and Strategy (NDEPS) document, the Broadband Implementation Unit in the Commission, hitherto placed under the Special Duties Department and all the staff of the Unit, have been moved to the newly-created Digital Economy Department.  Already, Engr. Babagana Digima, an Assistant Director in the Special Duties Department has been moved and designated as the pioneer Head of the new department.

The NDEPS, as a national policy document, was unveiled by President Muhammadu Buhari in November 2019 to add the needed impetus to the actualisation of the Federal Government’s Economy Recovery and Growth Plan (ERGP).

To facilitate smooth operation, the NCC signed a Memorandum of Understanding (MoU) with the Federal Inland Revenue Service (FIRS) in May, 2020, to ensure the tax agency ascertains accuracy and completeness of value added tax (VAT) elements and other taxes payable in the transactions of telecoms operators.

With the MoU, the FIRS will be able to integrate an application programming interface (API) technology solution with the systems of telecom Operators for independent verification of the amount of VAT that should be paid by mobile network operators (MNO) rather than relying entirely on the Operators’ books of accounts. The MoU with FIRS joined a long list of other orgainsations both in the public and private sectors which the NCC has collaborated with towards ensuring regulatory excellence, since telecoms percolates all the spheres of our society.

Zik Prize leading the pack of awards

As a testament to its far reaching policies, the NCC was recipient of several awards during the year. Leading the pack is the Zik Prize  for Leadership won by Danbatta in the professional leadership category. The prestigious award, was presented to the EVC at an elaborate and well-attended annual Zik Prize 2020 organised by Public Policy Research and Analysis Centre (PPRAC) in Lagos on Sunday, December 6, 2020.

The award was in recognition of Danbatta’s excellent regulatory finesse, which has resulted in accelerated growth of the industry since 2015. Other awards received in the course of the year include: The International Public Relations Association (IPRA) Golden World Awards (GWA) 2020 won by the Commission for its harmonized emergency number, 112 and the construction of Emergency Communications Centers (ECCs) in 36 states of the Federation and the FCT with 19 states already operational and additional five ready for activation.

At the Security and Emergency Management Award (SAEMA) 2020, the NCC was declared Winner of ‘Emergency Management Security and Emergency Management Award and was additionally presented with a Certificate of Excellence for ‘Outstanding Accomplishments in Category of Emergency Management’ at the award.

Besides, at the Nigeria Tech Innovation and Telecoms Awards (NTITA), which held in November, 2020, Danbatta was honoured with the “Broadband Oxygenator of the Year” for his remarkable role and commitment to the development of broadband infrastructure to support the country’s digital economy drive while NCC, as a corporate organisation received the “Outstanding Contribution to Driving Greater Broadband Penetration Award of the Year.”

Earlier in August, 2020, two awards, ‘Human Rights Telecoms Defender’ for the EVC and ‘Human Rights Guard’ for the Commission, as a corporate entity, were presented by Wheel of Hope Human Rights Foundation (WHHRF), a frontline Nigerian Non-Governmental Organisation while the ‘Icon of a Greater Nigeria’ was also presented to the EVC by the Youth Coalition Against Corruption (YOCAC), a coalition of Nigerian youths from all walks of life. Coincidentally, WHHRF and YOCAC adduced similar reasons for finding the EVC and Commission deserving of the recognitions: for keeping Nigerians seamlessly connected in the peak of the COVID-19 pandemic.

Also, in September, 2020, the National Association of State Assembly Legislators (NASAL)  honoured the Executive Vice Chairman (EVC) and Chief Executive of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta with a “National Service Excellence Award” for his transformational leadership in deepening access to telecommunications services across state constituencies of Nigeria in the last five years.

Compliance with Ethics

Besides, the NCC has been ranked number 1 in terms of compliance to ethics and integrity among other sister agencies under the Federal Ministry of Communications and Digital Economy.

This outstanding performance of NCC was contained in the recently released Ethics Compliance and Integrity Scorecard (ECIS), 2020 by the Independent Corrupt Practices and Other Related Offences Commission’s (ICPC).

With a total score of 81.15 per cent, the Commission topped the list among three other agencies under the Ministry, which featured in the intra-ministerial agencies’ ranking in ethics compliance and institutional integrity.

The National Identity Management Commission (NIMC) emerged second with a total score of 74.05 percent; Nigeria Communications Satellite Limited (NIGCOMSAT) came second with a score of 31.9 per cent while the National Information Technology development Agency (NITDA) occupied the fourth position with 17.65 per cent. The report underscores NCC’s critical role as a member of the Anti-Corruption and Transparency Unit (ACTU), which is the Federal Government’s vanguard for promoting ethics and ensuring compliance to ethical codes within the Nigerian Public sector.

The ranking by ICPC, in addition to demonstrating NCC’s commitment to the orderly growth and development of the Nigerian telecommunications industry, underscores the Commission’s strategic role as a key enabler of positive change within Nigeria’s socio-economic landscape. Further to this, the ICPC has on Thursday, December 10, 2020 in Abuja, inaugurated the NCC’s Anti-Corruption and Transparency Unit (ACTU).

The ACTU is the initiative of the ICPC, approved by the Federal Government to serve as an in-house mechanism for corruption prevention within MDAs, in line with global best practices of building strong institutions and institutionalizing good governance in the fight against corruption.

At the inauguration, Danbatta noted that that the ICPC itself has recently attested to the NCC’s high ethical values and professionalism as evident in the 2020 ICPC Ethics and Compliance Scorecard (IECS) report, where NCC topped other agencies in ratings.

The EVC said the ICPC’s verdict also lends credence to the 2017 report of the Bureau of Public Service Reforms (BPSR)-piloted Self-Assessment Tool (SAT) deployed in MDAs, where the NCC came off with a Platinum Level (Exceptional) award that NCC was a level 5 (Platinum standard) organization, the highest rating possible under the BPSR Assessment.

The Commission has also received commendation on its overall performance from the House Committee on Telecommunications, who visited on an oversight function sometime in October, 2020.

The committee commended the leadership of the Commission for its transparency in ensuring remittances to FG’s CRF, considering the current revenue drive of the government. The committee urged the NCC to sustain its current template of ensuring effective regulation of the telecoms sector in a manner that would be more mutually beneficial to the industry players, the consumers of telecoms services and to the Nigerian government.