Innovation Nigeria

With the Federal Government of Nigeria’s consideration of merging the National Broadcasting commission and the National Communications commission, the Nigeria landscape is getting ready for convergence regulation that reflects the reality of 21st century. With the launch last week of Mobile Tv by MTN and DSTV, It is goodbye to the old order. Without the merging of these two key regulators, their functions will be over lapping. The old order of regulation does not accommodate the new realities of convergence where Telecommunications, Information technology and media are now moving into new frontiers in technology, content and media.

The concept of “convergence” is frequently used to describe the development of global information society. The process of convergence starts when previously separate technologies coming closer together as a direct consequence of the advances made in ICT. The most profound changes will probably take place as a result of the process of technological convergence of the previously separate telecommunications, cable, information, publishing and mass media industries. These industrial sectors are often referred to as ‘converging industries’. Borders that once separate them are now increasingly being blurred. Presently, we have different types of networks for telephony, broadcasting ,radio and television and they are regulated differently and usually by separate authorities. National Broadcasting commission regulates, Radio and television while National communications commission regulates telecommunications.

Convergence regulation, encompassing telecom, IT and broadcasting while Multi-sector regulation, where telecom is joined together with other infrastructural
Utilities such as electricity, gas and railroads. While Competition regulation is a broad range of different industries, where telecom is only a tiny fraction.

In my own opinion, I believe strongly that Government is trying to achieve convergence regulation though they did not clearly state it because government business always has political undertone at the detriment of excellence.

Convergence of technology is breaking new content aggregation, delivery and consumption of communication services. The major technological changes that have facilitated the convergence processes are digitalisation and computerization.

Digitalisation enables new possibilities for development and creation of services within and beyond the framework of traditional communication sectors. It is, for example, likely that services that go beyond the traditional broadcasting services, like Internet services, Mobile Tv, Triple play services will have a certain weight on the broadcasting market in the future, as demand for these services is increasing with the penetration of the ICT. When transmission capacity for end-user sites reaches that needed for transmission of video services, the Internet can be one of the platforms for interactive TV services.

Emerging new infrastructures with more capacity, developments in the traditional networks
enabling them to offer more capacity to end users, and developments in compression and
coding technologies resulting in less bandwidth requirements for audio and video services all
have diminished the technically based limitations for different networks to provide an increasing variety of different types of services. But there is still a long way to go before network capacity constraints are substantially eliminated.

Emerging new infrastructures with more capacity that can provide these new innovative services are Strong compelling reasons why the NBC and NCC Merger should be consummated soon so that they can offer regulatory policing because of the new changes in content that were formerly dedicated for specific industries can now be conveyed on a single or similar infrastructures because of the common digital form. This presents new possibilities for end users and new market potentials for producers, but it also presents
regulatory problems that have to be solved.

Some countries like Indian had been able to foresee the future possibilities and hence they have planned ahead.
They merged infrastructure regulation and content regulation. The new Communications Commission of India (CCI),is a regulatory framework that
facilitates the efficient utilization of available resources in different networks. The Indian communications regulator, integrates infrastructure and content regulation in one institution.

The UK is another example, in which the government united five existing regulatory bodies dealing with communications into one regulator, OFCOM, with authority in both infrastructural and content questions.

The challenges of such merger in Nigeria will be availability of highly skilled and knowledgeable helmsman to pilot the affairs of this new regulatory commission. There will be new challenges in a new way entirely because of the blurred border line between Telecommunications and Broadcasting. While the National communications was able to become the toast of the nation and a role model for regulators all over the continent was because the focused and purposeful leadership under Engr Ndukwe and his team mates.

The question is that with the Nigerian way of doing things, will they allow excellence and right judgment to reach a decision in choosing a new regulator or they will merge them with NCC still in control?

Since the movement of the convergence seems and is from telecommunications sectors,it will be more productive and more visionary to allow the telecommunications regulator to midwife the emerging convergence regulator.

Nigeria as a nation should invest more in ICT regulation training and studies to be able to consolidate its ICT successes in recent years. Convergence is shaping the present and future development of the ICT and media industries in ways
that challenge the existing institutional set-up.

Emmanuel Okoegwale
Emmanuel@mobilemarketingafrica.com

Farmed out License Holder, Etisalat Nigeria sure understand how to engage the subscribers in the 3G Era. During the launch of the Network last week in Lagos, the company spokesperson mentioned something significant. He Etisalat will deploy innovative Mobile Services like the mobile cam.Mobile cam allows 3G subscribers to dial into a gadget at home or office and be able to take a quick look around the location and even record voices.

The significance of this is that while other operators in Nigeria are trying to sell 3G Services based on Television services, the late entrant is looking at it from a strong compelling side, security. I am quite disappointed that the operators do not clearly understand what the technology can do. They keep stressing on TV while not offering a strong reason why subscribers will want to switch from their non paying terrestrial tv or satellite pay Tv to yet another Mobile pay Tv. Mobile operators are not even making a pretence about building contents around the ever popular and money spinning Nollywood. Two to five minutes mobisodes of Nigeria Drama, musicals and comedy will be a huge hit in the 140 million fun loving Nigerian market but the operators are rather focused on full length sports and news channles.This does not come cheap for an average Nigeria whose ARPU is hovering around 10 dollars.

Without a perfect understanding of the 3G Marketing, the Nigerian 3G Project might be heading for doom.

The advantages of 3G is that it has a higher bit rate and operators can therefore deploy more data intensive applications. It allows for increased call volumes and support multimedia data applications, such as video and photography.

The operators need to start thinking along the three spheres of 3G applications.

First is the Business Sphere which allows for Mobile videophone, video conferencing, database management and informational services.

Second area is the private sphere which allows karaoke on demand, music on demand, portable Television, interactive games and video on demand while third area is Business sphere. This allows traffic informational service, personal security, remote monitoring systems, Electronic newspapers, Home schooling systems and remote monitoring systems.

Etisalat’s understanding of 3G marketing gives some hope and something to look forward to. At least in the Nigerian telecommunications market, there is clear differentiator. All the operators need to do is to see an operator launch a service and all others will follow suit.

Emmanuel Okoegwale-Gomobile

The granting of the 3g license to four companies without auction finally settles the hotly debated issue of 3g licensing. Apart from Alheri Engineering, other winners of the license are already operating GSM Networks in the last few years and the acquisition of the license will help to consolidate their positions and with the last Gsm Licence Holder, Mudabala finally settling for Etisalat as partner in the Nigerian deal,the stage is now set for keen competition.

Over the last few years, voice has always been the major revenue base for National Mobile Operators In Nigeria. However, with the rapid development of mobile communication and the licensing of 3g Spectrum, this will greatly increase ability to perform lots of other services that will drastically change the business pattern of the telecom industry and bringing a set of new challenges.

Mobile value added services are those services that are not part of the basic voice offer and are availed off separately by the end user. They are used as a tool for differentiations and allow the mobile operators to develop another stream of revenue. As time goes on, a value added service may become commoditized. Nigerian VAS market is grouped along the following categories informational, entertainment and Mobile commerce.

For the Nigeria Vas Market to grow rapidly to meet expected demands of the 3G technology, all stakeholders will have to work together to create a self sustaining ecosystems for this growth to sustain. It would take the joint efforts of the all concerned to address significant roadblocks and thus unlock the true potential of mobile VAS in Nigeria. Unfavorable Revenue sharing model between operators and value added service providers and the focus mainly on entertainment based services which appeal only to a segment rather than utility and enterprise based services seems to be a leading cause of slow growth in this sector.

To maximize the advantage that 3g technology presents, Operators will have to develop and deploy innovative services that will appeal to subscribers. Mobile phone has gone beyond their fundamental role of communications and have graduated to become the extension of the personality of the subscribers. Phones are no longer only to get in touch but to express themselves, their attitudes, feelings and interest and for these reason, subscribers always want more from their phones. Perception of a good Network is not only from the voice angle but from benefits and value added services they provide. Voice has simply become commoditized and it is no longer basis for differentiations in the mobile Sector.

Operators need to focus on Value added services to survive the cut throat competition they are experiencing right now, reduction in voice revenues and to achieve growth forecast. Though presently there are quite a handful of innovative Value added services like the Remote mobile phone book back up, Savemycontacts, Vehicle tracking systems, ring tone downloads and the highly successful caller Tunes. Caller Tunes has demonstrated that subscribers are ready to adopt a service that offers them an option of personalization. Mobile users always want to carry forward their individuality to their mobile phones.

While the informational and Mobile Commerce are really struggling in the mobile VAS market in Nigeria, Entertainment Value added services seems to be more popular because they are designed for mass appeal and leisure time usage while Mobile commerce is popular in Banking industry but with few users. Simple reason is that subscribers have not just seen or perceived a compelling reason to engage the Mcommerce and others. British Broadcasting Corporation reported that Nigerians are leading visitors to its site worldwide with 61% and distantly followed by South Africa at 19%.This is a classic example of usage due to compelling reason.

In other parts of the world, sport and Adult contents (where allowed) are the chief revenue earners in the mobile value added service industry. Entertainment VAS seems to be the leading service that is driving the VAS market in Nigeria, this is because entertainment based VAS drive the market both value and volume terms. It will make whole lot of economic sense to build Entertainment content drive around the local Nigeria Music and Nollywood which is reputed to have generated N522 Billion Naira. The Nigerian Film industry has grown rapidly to become the third largest film producing industry in the world after Hollywood in the US and Bollywood in India. With the production of over 500 movie titles per year, Nollywood, as the Nigerian film industry has come to be known, is beginning to attract the attention of global cinema and it is increasingly seen as one of Nigeria ’s positive cultural contributions to the international community. The Indian Bollywood has just completed the testing of short Bollywood Movies on Mobile phones at the 3gsm conference at Barcelona, Spain and by implication Indian is set for the second invasion and colonization of local movie industries worldwide but this time via the mobile phones.

The main players in the Mobile value added service chain in Nigeria apart from the National mobile operators are the content aggregators. They provide content to mobile operators, perform in-house content development and aggregating contents from other small players. They own the short codes and they have a tie up with multiple operators to ensure subscribers of all operators can access same short codes. Revenue sharing chain percentages will either encourage more independent developers or discourage them from rolling out innovative services that will promote the 3G. As it stands right now, if the operators do not radically change the present revenue sharing structures which allows them to retain chunk of the value added services revenue, development efforts might not be encouraging after all.

Growth is stifled in the Vas market in Nigeria because National mobile operators are playing safe and concentrating only on mass services for which content is readily available and chances of failure less. Entertainment value added service despite the fact that its practical value is minimal, is popular because of is mass appeal especially to youth segment and it is promoted over Mobile commerce and infotainment which has the capacity to create real value for subscribers. Mere deployment of the 3G Networks will not automatically incite Content aggregators to start developing contents. Additional investments in supporting infrastructure like in areas of Digital map for those going into location based VAS which promises to be one of the leading services in Enterprise solution VAS in Nigeria.

Prevalence of low end Mobile Handsets is a major factor in the uptake and penetration of advance mobile technologies. Many services are not performing to their potentials despite their usefulness and many others which cannot be introduced. As the mobile markets grows, most new entrants are the low ARPU end users as most big spenders had already been taken up and hence most mobile handset coming on board might not have the features that support advance technologies. Operators worldwide are taking initiatives to collaborate with Mobile phone makers to make 3G services available to more people with less entry cost through handset development, logistics and marketing initiatives. Notable among such collaborations is the 3G for All campaign spearheaded by the Gsm Association that will reduce 30% off from the LG phone that has been chosen. The 3G for All campaign is the second programme designed by the GSMA to create economies of scale for handset makers and their component suppliers. The GSMA’s Emerging Market Handset programme stimulated the development of a range of ultra-low cost mobile phones aimed at first-time buyers in developing countries.
Absence of utility services, with high practical value but for lack of publicity and marketing from the developers or Value added service provider side is resulting in unpopularity of such services. National mobile operators will have to review their policy on third party services marketing. While there are no uniform policy regarding third party services marketing across the industry but most operators do not promote third party service no matter how viable such services are. Mobile commerce and infotainment services should be promoted by operators as this will assure subscribers on its workability and dependability rather through rather unknown third party value added service providers.

Lastly pricing will play a significant role on the success of Mobile VAS. Presently entertainment VAS has the best pricing because of its perceived value and operators tend at most times to use that as a benchmark for other Mobile VAS like infotainment and mcommerce which are still struggling to gain foothold. While some operators are making Gprs service available to all segments of subscribers, some are actually attempting to make it available to only post paid subscribers. Since Gprs is the chief 3g driver, its fee strategy is an important element in service development. Though monthly rent systems is the most popular method of using the internet worldwide but it might not be suitable for the Nigerian subscribers because they are still unsure of their Gprs usage. Subscribers will seldom buy unlimited use time for a service they are yet to trust and accept. Subscribers are not willing to accept a reduced suite of services in the context of acquiring a degree of cost control which is normally associated with pre-paid accounts while postpaid users have realized that they need better and more timely information to manage their spending on new services. As new 3G services start coming board and homegrown content becomes the norm, users want to have control and visibility over spend limits and service packages and will want to explore other billing options including hybrid prepaid/postpaid accounts and pay per use options. With this method subscribers can quickly sign off any service which they do not find useful.
For Mobile Value added services to deliver expected benefits in Nigeria, National mobile operators and 3g license holders must pay attention to overall service development ,value chain reforming and commercial mode creation. There is also need to gather the power of the industry chain, balance the roles in the chain ,cooperate with each other and thus build up the competitive advantage in the development of Nigerian 3G mobile value added service industry.

Okoegwale Emmanuel

This study examined the nature and extent of the agricultural biotechnology R&D and innovations in Nigeria. Data were collected from the Directors, Heads of Crop Units and Research Scientists in the agricultural research institutes using structured and unstructured questionnaires and interview schedules. The data collected were analysed using frequencies, means and percentages. The study revealed that there were 48 researchers engaged in the various aspects of agricultural biotechnology R&D, in the research institutes considered. About 32.9% were females, 67.1% were males with mean ages of 38 and 39.5 years, respectively.

The majority, 53.2% of the researchers, possessed MSc qualifications with 46.6% specialising in conventional biotechnology. A total of 308 research outputs were recorded in all the research institutes. The most important motivation for embarking on these research projects was the need of the market (72.1%) and the existence of facilities (27.9%). The various bodies responsible for commercialisation of research results were the research institutes (83.3%), entrepreneurs (6.7%), the financial institutions, cooperative farmers and the National Seed Service (3.3%). Only two scientists possessed intellectual property rights and received royalties regularly. However, the majority did not patent their research results because of the lack of interest (45.4%), ignorance (32.0%) and the rigours of the procedure (32.3%).

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