NIGERIAS REACTION TO CONVERGENCE IN ICT, TELECOMMUNICATION AND BROADCASTING

ICT Convergence ICT (Information and Communication Technology) convergence can be defined as the erosion of boundaries among previously separate services, networks, and business practices in the ICT Sector (Singh and Raja, 2010).

There are three main forms of ICT convergence:

Service Convergence: This form allows the use of a single network to provide several communication services that traditionally required separate networks. Communication companies, such as Globacom Telecommunication and Airtel Nigeria, employ this to offer telephony and internet services to their subscribers through the use of wireless networks.

Network Convergence: This allows several types of networks to communicate with each other through a consensual standard. Example is the incorporation of streaming NTA news contents automatically to Youtube.

Corporate Convergence: This is the development of new business entities that offer expanded range of services and/or address multiple markets. This form of convergence results from mergers or acquisitions among ICT firms. An example is the acquisition of VGC Communications (a fixed and wireless phone provider) by MTN Nigeria (a GSM provider) in 2007. This acquisition was aimed at giving MTN MAN (Metropolitan Area Network) the ability to deliver high bandwidth, reliable data and advanced voice services to its corporate customers (MTN Integrated Business Report, 2006).

Benefits of ICT Convergence Various benefits that can be attributed to ICT convergence include:

Convergence provides ICT users with a distinctly expanded variety of services. A household telephone subscriber that previously received only one service can now receive three: voice, video, and data (triple-play service)

ICT convergence has created a situation whereby a number of networks provide similar services, thereby increasing the competition in the market; which in turn reduces the cost per service. For example, Globacom Telecommunication led a significant price reduction in the triple-play market by reducing its bundled tariff (Adeyanju and Okwori, 2010): In 2001, MTN and Vmobile sold their starter packs for N20,000 ($US163). In 2003, a few months after the launch of Globacom Telecommunications into the market, Globacom sold its starter pack for N1 (less than $US0.01). The rest of the market soon followed in their bundled tariff reduction: MTN and Vmobile to N1000 ($US8.13) and Mtel to N2500 ($US20.3)

Wireless triple-play significantly enhances access to services and content for rural areas. Mobile cellular subscribers in Nigeria (57.8 per 100) is more numerous than number of personal computer users (4.5 per 100) within the lower middle-income group (The World Bank, 2011). As a result, cellular operators that implement public services, entertainment applications can reach a larger proportion of the population.

Reaction to ICT Convergence Governmental Response through Policy, Regulatory Frameworks and Programs A government may choose to react to ICT development and convergence through policies and regulatory frameworks it may put in place to steer the market (Singh and Raja, 2010). There are three main responses a government may have to ICT Convergence.
2

Resist: In situations where a government believes convergence may undermine social, political, cultural, or economic objectives; it may choose to resist it.

Wait & Watch: This approach is usually adopted by a government that chooses to maintain a free market. In this case, the government will not regulate for or against ICT convergence. As a result, it does not make changes to its policy frameworks. Rather, it relies on existing frameworks to deal with rising ICT convergences.

Enable: In cases where a government believes that convergence can benefit the ICT sector as well as its economy, it many choose to create conditions conducive for convergence. These include opening the market, promoting competitions, and removing regulatory barriers to new technology and business models.

A review of governmental activities and processes indicates that the Nigerian government adopts an enable approach to ICT convergence. Such activities include market liberalization; an action which constituted to the success of mobile telephony in Nigeria. As at 2004, Mauritius and Nigeria were the only two countries in Africa to have legalized VoIP and Wi-Fi (Cohen and Southwood, 2004). Also, a review of Chapter 16 of the Nigerian National Policy for Information Technology highlights the positive disposition of Nigeria towards ICT convergence. Sample strategies indicated include: (xix) (xx) Giving ISPs approval to develop high-speed gateways with no licensing fees. Encouraging the private sector to develop software for government and non-classified defense projects

(xxvi) Encouraging Internet telephony as well as Voice over Internet Protocol (VoIP), to reduce the cost of telephony and make such services affordable to the populace.

Apart from policies and regulations, the Nigerian Federal government has launched several programs to enable it foster and cope with ICT integration:

In 2009, it launched two basic programs: State Accelerated Broadband Initiative (SABI) and the Wire Nigeria Project (WiN) under the coordination of Nigerian Communication Commission (NCC) to boost internet accessibility and availability.

In 2004, it launched Digital Bridge Institute (DBI) with the aim of training Nigerian citizens and African policy makers in management of telecommunication networks and services.

Local Businesses and Individuals Reaction to ICT Convergence Statistics also indicate a relatively high level of acceptance of ICT convergence by local business and Nigerian citizens. For instance, in a 300,000-person survey conducted in Nigeria by Opera in its State of Mobile Web report revealed that 9 out of 10 respondents (between the ages of 18-27) said they browse the web on their handsets more than they browse on a laptop or desktop (Opera, 2010). References
Adeyanju A. and Okwori J.K. (2010). Africa Media Development Initiative: Nigeria Research Finding and Conclusion. United Kingdom: BBC World Service Trust Cohen T. and Southwood R. (2004). An overview of VoIP Regulation in Africa: Policy Responses and Proposals.UK: Department of International Development (DFID) The International Bank for Reconstruction and Development/ the World Bank (2010). The Little Data Book on Information and Communication Technology. Washington: The International Bank for Reconstruction and Development / the World Bank. MTN Integrated Business Report, 2006: http://www.mtn-investor.com/mtn_ar06/pdf/ceo.pdf Nigerian Federal Government. Nigerian National Policy for Information Technology Opera: http://www.opera.com/press/releases/2010/11/24_2/ Singh R. and Siddhartha Raja S. (2010). Convergence in Information and Communication Technology: Strategic and Regulatory Considerations. Washington: The International Bank for Reconstruction and Development / the World Bank.