ON THE PROPOSED PRIVATIZATION OF NIGCOMSAT
The raison d’etre for the establishment of NIGCOMSAT is to bring ray of hope to Nigerians and indeed the African continent as it aims to revolutionize interconnectivity and interaction between Africans and the rest of the world; to improve traditional lifestyle with greater abundance and sophistication through the introduction to innovative technologies previously unavailable or otherwise restricted in Africa. The company is positioned to enhance the socio-economic and socio-political outlook of Africa and boost African lifestyle and provide a technological platform for African countries to bridge the digital divide and participate more effectively and beneficially in the digital.
The mission statement of Nigcomsat Ltd as stated in its working papers is to: “…manage and exploit the commercial viability of the Nigerian Communication Satellite (NIGCOMSAT-1) for the socio-economic benefit of the nation.” In line with this mission, the Company’s Memorandum and Articles of Association states explicitly that the Company shall; Acquire and take over the management, property, rights, privileges, assets and liabilities of the NigComSat Project Management Office relating to the design, manufacture, in-orbit launch (whether in low, medium or geostationary earth orbits) of communication satellites. Carry on the business of establishment, operation, management and maintenance of communication satellites in respect of but not limited to telephony, television, radio, broadcasting, broadband, internet services, navigation, global positioning systems, other services or facilities, earth stations, terminals, antenna, frequency bands ( whether C, Ku, Ka or L bands), acquired or erected therefore, held or enjoyed in connection therewith appertaining thereto and all investment and cash relating to satellite communications. Provide on commercial basis, comprehensive transmission services via digital or analogue systems and to operate same by either fixed or mobile satellite, direct broadcast satellite services, end to end solutions and to engage in transponder leasing and such business for profit. Pursuant to this, the company, a truly Nigerian investment is set up under a special scheme of ownership by the Government, Private Sector and the Public, and it is to connect with the following activities in continuation of the activities of the PMO: Provision of critical ICT infrastructure and coordinated via its ground s tation in Kashi, China and Network Operating Center in Abuja, and to launch Nigeria into the elite club of major global satellite players. Creation of job opportunities through enhancement of private sector investment in the communications satellite downstream. Enhancing the capabilities of Nigerian engineers and scientists in the design, manufacture, operation and maintenance of communication satellites through strategic partnership with technical partners. Over 50 Engineers and Scientists were trained in China under a Know-How Technology Transfer (KHTT) Program. Unsurprisingly, they have surpassed the training by developing and rolling out self initiatives in the areas of heating, ventilation, air-conditioning, robotics and radio frequency identification systems including hard and software skills in wireless technology.
These innovative technologies and networks will place Nigeria ahead of nations positioned to make significant impact in indigenously developed technological product. This will not only support our local industry but a guarantee of resources for export. This will in addition accelerate the diversification of the Nigerian economy from a mono-product or mono-sector economy – that is heavily dependent on oil revenues . Research and development of new applications in collaboration with NASRDA and other technical partners. In addition, the company is positioned to carry out the following additional objectives: To enhance increase in telecommunication growth rate to a minimum 13.5% annually such that 10% of the rural communities is served in the short term, 30% mid term and 60% long term. To enhance the affordability of communication services with target call rate of N10 (Less than 10cents) per minute. To achieve a tele-density of over 10% by 2010 according to ITU standard and a tele-distance of less than 5km per telephone.
To provide a continental access capacity to deliver voice, Internet and data access to deprived urban, city center, rural and remote areas, as well as enhancing their profitability, wealth creation and innovation through access to worldwide market and information. To provide a platform for operation of a public service telecommunication networks in Africa providing linkages to educational institutions, regional organizations and government in Africa in order to facilitate developmental activities. To provide an enabling environment for African ICT business industry to have a fair share of the world telecommunication market revenue currently projected at over $1.2 trillion dollars.
To provide a platform for community and regional integration through the dissemination of social and cultural information, and the promotion of peace and stability in the African sub-region. To enhance good governance, transparency and accountability and there by bridge the gap between political leaders and their communities by relaying the affairs of governance to rural communities. To provide the backbone for tele-education and tele-medicine, and thereby optimizing expenditure infrastructure whilst also bringing these services to the rural communities. In addition to the marketing and sale of satellite capacity, NIGCOMSAT Ltd would also be actively engaged in the provision of end-to-end services while continuing in the research and development of new applications in collaboration with NASRDA and other technical partners. The company aims at achieving a minimum of 55% transponder fill within the 1st year of operation and to provide multimedia & broadband services to cover the entire African satellite market within the first 2 years of operation.
It important to note that no private service provider can successfully carry out these functions without thinking of profit over service, which is what, has characterized the modus operandi of operators since the introduction of GSM in Nigeria. Hence, this is an area the Nigerian government should guide jealously and use optimally, using it to take the country to the next level in terms of growth and development.
However, the Federal Executive Council (FEC) meeting of Wednesday 15 th July 2007 decided that NIGCOMSAT ltd should be privatized after which the new owners may seek spectrum and frequency licenses to undertake the businesses NIGCOMSAT was incorporated to do. The reason for this hasty decision is because of the on-going tango between NCC and NIGCOMSAT. If indeed, NCC had discharged its duties and responsibilities very well then by now, the prices of GSM would have crashed. But NCC that is supposed to regulate the telecommunications industry in Nigeria has benefited so much from the various service provides that they the ones now justifying the failures and poor services of the GSM operators in Nigeria. If Nigcomsat is left alone the want it is, to function optimally, there is no doubt whatsoever that the ordinary people of Nigeria will be the greatest beneficiary. This is because there will be a very big reduction in the price, but those who are benefiting from the present horrendous system will want the present horrible system to continue.
Even if FEC wants to privatize such a very importance and strategic national asset which has serious security implications, the government should hold controlling shares that should range between 51% - 60%. The reason is that the L-band on the satellite (nigcomsat) is configured to be deployed for security purposes and other surveillance activities. If the government does not hold majority shares then the country’s security and other ancillary activities will be jeopardized. More so that, there is no way of monitoring and knowing who the buyers will be.
Similarly the laws setting up the NCC should be reviewed to whittle down the enormous powers that are given to the executive vice chairman of NCC who is not responsible to anybody. He is a lord of the manor that should be reduced to size the overall interest of Nigeria and Nigerians. He has no in anyway justify that he is eminently qualify to occupy the position because the activities of GSM operators in the country are a massive rip-off and he is keeping sealed lips because, he is beneficiary of the prevailing rot in the tele-communication industry. Hence, the presidency, the Senate committee on telecommunication and the House Committee on telecommunication should look into the activities, structure, financial of NCC since its creation so that the place can be restructured to meet the needs, desires, expectations and aspirations of the people.
Again, it is germane to underscore the fact that, there no situation anywhere in the world where a country launched a satellite and allow private investors to own the controlling shares. For instance, EUTESAT had put tremendous pressure on the management of Nigcomsat to sell all the transponders on the ka-band to it, but the management refused because of national interest. You know nigcomsat-1 is the first satellite to beam that band over the African continent and it is a strong band for international communication. Again, INTELSAT had equally requested for lease of the L-band because America feels threatened by the bands capacity to deconstruct some of the myths and lame conceptions about America security and defense systems.
Again over a decade ago, some 40 African countries established the Regional African Satellite Communication Organization (RASCOM) based in Abidjan, Cote d’Ivoire. For some reasons RASCOM’s first satellite could not be launched on, but it will now come on, in December 2007. RASCOM has already set in motion processes to deploy its applications to offer what nigcomsat wanted to do as a government owned enterprise, including offering end-to-end services which will cover Nigeria. In any case, Nigeria owns 6.5% of RASCOM. It is a paradox that the Nigerian government is refusing to do what is necessary to strengthen its people and its own investment. Government should be very careful so that, it will not be stampeded into taken a rash decision that it would regret later what is required now is perspicacity on part of the government.
Saliu Iyanda,
No 170, Ibrahim Road,
Ilorin ,
Kwara State .
