‘Broadband growth requires investment greater than annual budget’
Olu Teniola, chief executive officer, Internet Solutions, in this interview with BEN UZOR, says the current growth being witnessed in the telecoms industry will be impeded if the government fails to resolve the epileptic power supply. Teniola is of the view that the Open Access Framework advocated by the Nigerian Communications Commission (NCC) should be implemented in a timely manner.
Nigerian market
The Nigerian telecommunications market is very dynamic. It is evolving and transforming into a matured voice and an emerging data and broadband services. This phase has happened over the last 5 years and is one that should last another 5 to 8 years. I am personally happy to be a part of this evolving story.
Challenges
The challenges are multifaceted and multi-pronged and relate to the business environment (geographical, physical and regulatory) and macro-economics. The business environment has been well documented and the major challenge that needs to be immediately addressed is the issue of unstable power supply and the resulting cost which is borne by over 120 million mobile subscribers in the country. It is evident that the current growth being witnessed in the telecom sector will be impeded if the government fails to urgently resolve the current problem beclouding the power sector in the country. IS Internet Solutions is part of Dimension Data, a global reach multi-national company that can leverage on its economies of scale to survive and adopt creative and innovative solutions across its pan African operations and we have been able to benefit from our size.
Service offerings
Our services cover what we term as the 4C(s) with the client at the center of whatever we do. These C’s are (Connectivity, Carrier, Cloud and Communication). Under each C are various offerings and solutions which address our Clients’ needs (Enterprise Segment) and solve their underlying Connectivity issues in order for their Enterprise Resource Planning (ERP) suite of applications to optimally work.
For instance, bank branches operations are interconnected over our national secure Multi Protocol Label Switching (MPLS) network that allows their everyday clients to perform transactions seamlessly during business hours and outside office hours when their ATM machines are operating. We are an all-inclusive communications service provider and that means that we are able to mix and match solution offerings from the many companies that make up the Dimension Data brand. This uniqueness is unprecedented in our industry and as we are also 100 percent owned by Nippon Telegraph and Telecommunication (NTT), we are fortunate to also have access to the best research and development (R&D) facilities in the world which is a multi-billion dollar investment. These set us apart from other service providers operating in Nigeria today and it’s a legacy we are proud of.
Disruptive changes
Innovative solutions and customer driven client services will be the new benchmark that will lead to further consolidation in this industry and I see only a handful of players operating in this market.
Competitive advantage
It is the combination of our Connectivity and Cloud offerings for both the Small and Medium Enterprise (SME) and Enterprise Segments. We are looking forward to launch a new offering in the market in 2015 that will define the new era of Internet in Nigeria. It is an exciting time to be a part of this industry. We are very much a focused company and we treat our clients with the best uptime, and always available network engineered for guaranteed bandwidth speeds (both upload and download) as well as a customer service relationship second to none in this industry. Our monthly customer service feedback attests to that and we always seek to continuously improve on our ratings.
Low broadband penetration
Broadband penetration will improve over time and requires an amount of investment greater than the annual Federal Government’s budget (both recurring and CAPEX) to achieve an accelerated penetration that shifts the dial. Currently, we at IS Internet Solutions have been given a funding commitment that contributes to the development, expansion of our coverage and reach of our network and will work with the regulator to deploy in areas deemed viable.
Regulatory impediments
The Open Access Framework advocated by the Nigerian Communications Commission (NCC) needs to be implemented in a timely manner in order to make the necessary impact in this ever changing and dynamic environment.
Technology Intervention Fund
This is a great start and should be considered seed capital to kick start the ICT revolution Nigerians badly need. The initiative should be applauded by all stakeholders and further rounds of funding should be provided to keep the momentum going – I pray we follow the Indian software industry, a worldwide recognized success story.
Target market
The fixed line market is a very critical part of our success story across the globe and in particular the Enterprise Segment and the SME Segment. These are sectors or sub-sectors that we concentrate our efforts on and are focused most on implanting our R&D know-how and solutions. Our DNA is to solve complex problems and to date this has been business driven and business-led. A lot of the future is based on how we work, rest and play. The work part of this theme is what we make possible and the rest will follow. Africa is on a digital journey and the problems confronting us are typically how we carry out business in these very important emerging markets.
Partnerships
It is definitely an advantage, as IS Internet Solutions is also part of the evolving eco-system and partnership formations are the underlying fundamental building blocks in succeeding in this industry. We welcome more successful partnerships.
Threats
The threats are the same and one that I see most is the threat of lack of innovation and complacency. Without innovation an organisation cannot transform and grow in the Information Communications Technology (ICT) space. ICT is the most dynamic space to operate in and finally, past successes are no guarantee of future successes. The ICT space is filled with casualties that can attest to that – we need to always be on our toes!
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