Congratulations class of Tekedia Mini-MBA edition 4. Thanks for joining us throughout this academic festival. We concluded the edition this evening.

I have called it an asymmetric disruption when Elon Musk’s SpaceX decides to arrive Nigeria with its Starlink: “SpaceX has been in discussion with Nigerian Communications Commission (NCC) virtually over the past several months to begin the process of pursuing all necessary licenses to bring Starlink, its satellite-based broadband services to Nigeria. Having made substantial progress in the discussion, the Commission granted SpaceX’s request for a face-to-face discussion to gain better insights on the prospects of their proposal. … the company provided an overview of its plans, expectations, licensing requests and deployment phases during the meeting.”

Yes, MTN, Glo and Airtel may have to watch if what they did to CDMA could happen to them via satellite-based broadband. I have a couple of friends who have migrated to Starlink in the United States, and they are just happy with it. If that becomes available, it simply means that the telcos have lost most parts or rural Nigeria.

I expect SpaceX to offer a new level of competition against terrestrial players like MTN, Glo and Airtel in Nigeria.  Satellite-based broadband is a product displacement threat and companies like MTN would see massive threats in coming years from satellite providers. But one thing is certain: customers will rejoice because quality will improve and cost will drop.

As that happens,  we will see how the telco industry body lobbies: expect a new dimension of bank-led and telco-led mobile money debate to resurface, but now GSM-led and satellite-led broadband connectivity in Nigeria. Yes, would telcos expect SpaceX Starlink to come into the open party just as they have expected the Central Bank of Nigeria (CBN) to allow them to join the mobile money redesign in Nigeria. The argument was that telcos would improve the mobile money customer experience better than banks due to their better distribution outlets. 

But here, since Starlink is coming from satellite, I do think it has a huge chance to also improve the experiences of customers on broadband connectivity, unbounded and unconstrained by the usual terrestrial challenges.

People, everything will be tested and it all depends on what the regulator does with SpaceX, because if you allow Starlink carelessly, these telcos will fade. The telcos which have made a case for mobile money, that the government should allow the best to win, have an opportunity to tell Nigerians if it truly believes in a totally free market system in our telecommunication sector.

But this is what I expect to happen as the debate begins: the Nigerian telecom sector should be GSM-led, and not Satellite-led, and by that, even if SpaceX Starlink comes, it must be mandated to pipe its data through partnerships with GSM-based broadband providers. The telco lobby will argue for protecting jobs and investments. It would be a fierce one.

Elon Musk’s Starlink satellite internet service has been approved by the UK regulator Ofcom.
Starlink, from Musk’s aerospace company, SpaceX, will compete with the likes of BT Group and OneWeb to provide internet to people across the UK.

People in the UK have already started receiving the Starlink kit.

One user told Insider that he received his Starlink equipment on New Year’s Eve and that his download speed jumped from 0.5 megabits per second to 85 Mbps.

The Full Press Release

The Nigerian Communications Commission (NCC) has emphasised that in light of disruption in the technology world, it is keen on balancing healthy competition with entry of disruptive technologies to ensure sustainable telecoms industry growth and development in Nigeria.

The Executive Vice Chairman (EVC) of NCC, Umar Danbatta, stated this during a presentation to the commission by a delegation from SpaceX, an American aerospace manufacturer and space transportations services company, in Abuja on Thursday, May 6, 2021.

SpaceX is in the process of launching a low-earth orbiting (LOE) constellation of satellites to provide low latency, high bandwidths Internet to all corners of the globe and has identified Nigeria as a critical market.

SpaceX has been in discussion with NCC virtually over the past several months to begin the process of pursuing all necessary licenses to bring Starlink, its satellite-based broadband services to Nigeria.

Having made substantial progress in the discussion, the Commission granted SpaceX’s request for a face-to-face discussion to gain better insights on the prospects of their proposal.

Led by SpaceX’s Starlink Market Access Director for Africa, Ryan Goodnight and supported by the company’s consultant, Levin Born, the company provided an overview of its plans, expectations, licensing requests and deployment phases during the meeting.

After the presentation by SpaceX team, the Executive Commissioner, Technical Services, NCC, Ubale Maska, who stood in for the EVC, said NCC will work on necessary modalities to ensure that it balances the need for healthy competition vis-a-vis the entry of new technologies, in order to protect all industry stakeholders.

“As the regulator of a highly dynamic sector in Nigeria, the Commission is conscious of the need to ensure that our regulatory actions are anchored on national interest. We have listened to your presentation and we will review it vis-à-vis our regulatory direction of ensuring effective and a sustainable telecoms ecosystem where a licensee’s operational model does not dampen healthy competition among other licensees,” Mr Maska told the SpaceX delegation.

Mr Maska further stated that the commission is interested in making necessary regulatory efforts to drive the coverage of rural, unserved and underserved areas of the country through the accomplishments of the lofty targets contained in the Nigerian National Broadband Plan (NNBP), 2020-2025. He noted that the plan’s target of 70 per cent broadband penetration target, covering 90 per cent of the population by 2025, is also in line with government expectations in the National Digital Economy Policy and Strategy (NDEPS), 2010-2030.

Other senior management staff of the commission at the briefing include the Executive Commissioner, Stakeholder Management, Adeleke Adewolu; Director, Licensing and Authorisation, Mohammed Babajika; Director, Technical Standards and Network Integrity, Bako Wakil; Director, New Media and Information Security, Haru Alhassan and Director, Spectrum Administration, Oluwatoyin Asaju, among others.

Section 70 (2) of the Nigerian Communications Act (NCA), 2003, empowers the Commission to regulate the provision and use of all satellite communications services and networks, in whole or in part within Nigeria or on a ship or aircraft registered in Nigeria.

This is for the purpose of ensuring a well-developed and organised satellite communications market with appropriate legal framework that meets international best practices, encourages innovation, promotes competition and guarantees public safety in the rendering of commercial satellite services.

NCC signs MOU with NigComSat on 5G Spectrum

Meanwhile, the Nigerian Communications Commission (NCC) and the Nigerian Communications Satellite (NigComSat) have signed a Memorandum of Understanding (MoU) that will facilitate the release of contiguous bandwidth in one of the most suitable frequency spectrum bands for early deployment of fifth Generation (5G) Network services in Nigeria.

The MoU signing ceremony was the high point of discussions by the two organisations on how to relocate the NG-1R satellite of NigComSat to the standard C-band 300MHz (3.9GHz – 4.2GHz) portion of the band, which is considered more suitable in terms of satellite service offering because of the advantage of cheaper terminal devices for end-users.

Accordingly, such relocation will leave the non-standard C-band 400MHz (3.5GHz – 3.9GHz) portion of the band for 5G use while the cost of relocating the NG-1R is expected to be offset from the proceeds of the auction of the 5G spectrum.

There used to be a time when Nigerian leaders made things happen. This is Michael Okpara’s three year report. Look at the number of industries ( yes, industries, not companies) he opened in one year. When Sam Mbakwe was running his show, Imo State had a similar party. Go to the northern part of Nigeria, industries everywhere with Kaduna the industrial capital. Then, Awolowo was always overbooked for commissioning plants in Lagos. Nigeria was at its zenith on industrial development.

But today, where are we? Last year, 26 states did not attract a single FDI. Adamawa state made the list of outperformers because it attracted $20,000 (not a typo). You know what happened and brought this paralysis? The 1999 Nigerian Constitution, in my opinion. That document upended the comparative advantages within states.

It is that bad constitution that has made Sani Abacha a better economic custodian than most current political leaders. Babangida was light years ahead of these politicians when you note that he planned and built Abuja within less than 5 years. Some are ruling for 8 years with nothing to show.

When your strategy is wrong, even a great execution will diminish you. I do hope we revisit the 1999 constitution and bring fiscal federalism back.

Comment on LinkedIn Feed

Comment #1; We are seeing graft, corruption, and gross mismanagement. The constitution does not control or change politicians and people in power.

My Response; You wrote in irony. Without the constitution, corruption would not have scaled as we have now. People do not steal from themselves. If Abia does not get Abia working and at month end, it gets nothing from Abuja, then, you will see a different governor. But because it is sure something is coming at month end, it can relax. That is a grand corruption enabled by a bad constitution!

Comment 1 follow up: Not in irony. I’m sure the constitution does not permit mismanagement or corruption. So, it is redundant to change the constitution. It may seem to enable it but it’s more like post hoc fallacy. The underlining issue is the lack of accountability and enforcement mechanisms and I believe this lies more to culture than legislation.

My further response: This is the fact: Nigeria’s corruption of today is “grand corruption”. That will translate to ALL CORRUPTIONS. IBB spent 8 years in power, and built many things because he kept Nigeria’s money. OBJ spent 8 years using the new constitution, he spent that time sharing Nigeria’s money with states. What did OBJ do that cost money? Put GEJ and of course Buhari. The difference is clear: Abuja cannot plan because Abuja cannot even SAVE because constitution made it illegal: share all at month end is the law.

Comment #2: Whilst agreeing with you that the constitution needs to be re-jigged but the constitution is not all that is wrong with our country. How many of our governors’ have tried working on enabling environment for businesses? How many have gone around to meet with wealthy citizens from their States with a plan for where and what they can invest in. We have an irresponsible set of political leaders period. Let me start with my State Anambra. We have about the richest set of individuals as far as Nigeria is concerned. After Dr Chukwuemeka Ezeife have you heard of any of the recent ones canvassing for think home investment? Which part of the constitution prevents them from establishing industrial estates? Go and ask around, it is mostly Buhari’s mismanagement of our diversity and Nnamdi Kanu’s propaganda that has made some wealthy people to start moving their investment to the South East. I have lived and worked in Warri. It’s proximity to Onitsha makes it the Port of choice for the traders but youth restiveness have made even traders in Warri to start patronizing other Ports’ yet their governor’s have not deemed it fit to read the riot act to the rascals. Again I say it this constitution will not do us any good but the politicians have arguably done their worst not their best. How many are thinking of industries? We have people in diaspora who want to come back and invest, do you know of any State that has an office where such people can go to for guidance. Recent reports show that the industrialized countries have been stock piling metals that they think have low deposits remaining, how many of our governors’know the quantity of minerals in their States and what they can be used for?

My Response: “How many of our governors’ have tried working on enabling environment for businesses?” -there is no incentive for a governor to do that today because the system is designed to make them lazy. Yes – the state gets a huge alert in its bank account at month end whether it works or not. Also, its income is taxed by Abuja and that income is later shared. So, your gains on productivity are marginal and that is why most do not care since at the end, everything is shared together. With fiscal federalism, everyone runs at its own pace, pushing comparative advantages to rule.

Dear Member,

Let me begin by congratulating you for completing this academic excursion with Tekedia Institute. I am very confident that your business capabilities have been deepened, and that you are ready to go into the markets, and advance the wealth in nations.

We thank you for joining us for the 4th edition of Tekedia Mini-MBA. At 7pm WAT today, we will bring this edition to a closure (Zoom link in the Board).  On behalf of our Faculty, staff and the entire community, thank you for choosing Tekedia Institute for your learning journey.

From today, you are part of the Tekedia alumni community. Yes, today does not end the knowledge excursion; this is just the beginning of this co-learning and co-advancement relationship. (Because we do not like sending many emails, please open an account at hub.tekedia.com for updates. We created it to keep our members and alumni engaged.)

We will be back with Tekedia Innovation Week and Tekedia Career Week later in the year.

May 8, 7pm-8.30pm WAT | It’s Graduation Day  –  Tekedia | Zoom in board

Regards,

Tekedia Team

When the Greek philosophers postulated that the zenith of all knowledge is philosophy, they did not know that a Nigerian prophet was yet to be born. As they debated, pushing all the constructs on the foundation of natural philosophy, and crafting logic as the epicenter and finality of all knowledge, with the knowledge baptism of PhD (philosophy) as the height of formal knowledge pursuit, they did not get the memo from Prophet Tayo Olaniyi, HD.

Yes, when they give you a Doctor of Philosophy, Economics; Doctor of Philosophy, Mathematics;  Doctor of Philosophy, Electrical Engineering, etc, after your studies, the world is saying: you have mastered the logic of economics, mathematics, electrical engineering, etc, respectively.

But now read what Prophet Olaniyi has: HD, which is higher than degrees meant for small men and women (masters, PhD, PhD-Professors) and which are substandard to state-level Adam!

National Universities Communion (NUC), Nigeria, your classification of degrees is missing HD – and that needs to be fixed. Hahaha.