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Friday, November 22, 2024

Are 5G services in Nigeria a scam? And now the Wi-Fi 6 gambit

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By Sonny Aragba-Akpore

When fully implemented, Fifth Generation (5G) technology and services will transform the telecommunications landscape in Nigeria like nothing else before it, Isa Pantami, the immediate past Communications and Digital Economy Minister boasted on the eve of the 5G auction three years ago. He spoke with certainty and confidence.

And like in a relay race, the Chief Executive of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, took the baton and began the spirited advocacy building frenzied hypes around the auction.

Pantami had allegedly misled President Mohammadu Buhari, the Federal Executive Council (FEC) and everyone else in the country to believe that 5G will provide life abundance with unbelievable internet speed like lightening.
The first auction saw MTN and Mafab Communications limited (a Special Purpose Vehicle) winning two available lots at a bid price of $273.6m each.

A little over a year later, Airtel Africa got a third lot thus completing the experimental triumvirate.
But that is where the story of 5G ends, so much that even the people at NCC cannot in all sincerity beat their chests to say 5G exists and will gladly list it as part of their achievements.

If it exists at all, it is better imagined because nothing is being said about it either on earth or elsewhere.

5G networks are not visible. Perhaps they are available and in use by an insignificant fraction of the population.

Even the licence beneficiaries speak about it in subdued tones and perhaps see the investment like it’s often said in local parlance as “bad market“.

Elsewhere in Africa, some countries are in the race and even though they are yet to fully achieve meaningful milestones, there are strong indications that they are coasting home to victory in this race.Not yet in Nigeria.

The India example is exemplary. Perhaps, many countries should visit India and ask them how they were able to achieve the milestones, especially in a country of over 1.428 billion population.

The Indian regulator created a workable template introducing a business model that allows beneficiaries of the bid to stagger license fees payments over a period of 10 years to enable them deploy services sensing that equipment and infrastructure for 5G is not a walk in the park.
And the operators appreciate that move.
But in Nigeria,the people who midwifed 5G did it to raise money for government and allegedly made some consultants smile to the bank after collecting their well appointed commissions.

And now neither the license beneficiaries nor the people they are supposed to serve have anything to show for all the troubles.

But while consumers are in a dilemma waiting for when the services will ever come, the NCC on September 19,2024 announced in Lagos another experiment, if not a gamble. It is introducing Wireless Fidelity (Wi-Fi 6) which they claim will bridge the digital divide whereby the speed of internet will be “amazing.”

Globally, Wi-Fi 6 is not new. It has taken root in parts of the world including the United States,(USA),South Korea,Canada,U.K and many others.
The International Telecommunications Union (ITU) created workable templates for it some of which the Federal Communications Commission (FCC) of the USA had adopted with a home grown modification.

So, if Nigeria adopts it, the question is how prepared is the regulator in Abuja to manage it for the benefit of consumers? Will it be another hype like we saw in 5G?

Speeches and more speeches were made on September 19, 2024 in Lagos on the subject with a number of participants having their reservations and misgivings.

When the NCC conducted the 5G auction of two lots of 100 MHz slots of 3.5 GHz band for the deployment of 5G networks in Nigeria it was done with funfare likened to bazaar of sorts.

Three companies participated in the auction process and the bidding commenced at $199.37m, as against the reserve price of $197.4m (75 billion naira) set by the NCC. After 11 rounds of bidding, the auction ended at $273.6m for each available lot with MTN Nigeria Communications Plc (MTN) and Mafab Communications Limited (Mafab) emerging as preferred bidders.

The preferred bidders were expected to pay the winning bid price, less the Intention-to-Bid Deposit, no later than February 24, 2022.

MTN was to pay an additional sum of $15.9m to be assigned the preferred Lot One (3500-3600
MHz), while Mafab was assigned Lot Two (3700-3800 MHz), at no extra cost.

In addition, Mafab was required to acquire a Unified Access Service License, which is the operational license for the frequency spectrum at an additional fee of N374.6m (approximately $905,000 then).

The Information Memorandum (IM) provided for a validity period of 10 years for the awarded
spectrum and further requires licensees to roll out service in at least one state in each geo-political zone within the first two years from the effective date of the license. Further roll out was expected in six additional states in the 3rd and 5th years.

The technology is expected to have been fully deployed nationwide between the 6th and 10th year of the award of the license. Roll out in each state was expected to be a minimum of five sites per state.

The Federal Government earned $820.8 million from the auctioning of the 5G licence processes.
Pantami who said it was a game changer told President Muhammadu Buhari administration then that 5G will make a world of difference.
According to Pantami , in addition to the revenue generated from the 5G spectrum, revenue is being generated from other spectrum fees. “For example, in 2020, N26,428,642,451.61 was generated as spectrum fees.”

“MTN, Mafab and Airtel all have participated in the auction process and each obtained a lot of 100 MHz from the 3.5GHz spectrum after successfully participating in the auction process.The story has not gone beyond that.

Now another experiment, the Wi fi 6 which ITU says could be accessed on the 5925–7125 Megahertz (MHZ) band, and is designed to deliver optimized performance for next-generation use cases.

As with any wireless technology, Wi‑Fi depends on access to radio frequency spectrum. But a lack of spectrum threatens future Wi‑Fi performance and functionality.

“ Policymakers, recognizing this, are expanding Wi‑Fi spectrum access with a focus on the 5925–7125 megahertz (MHz), or 6 gigahertz (GHz), frequency band. Opening this band to Wi‑Fi will enable a wide range of new use cases,”ITU submits.

These — combined with expanded broadband access via fibre or satellite — promise to deliver versatile and extremely affordable connectivity. This makes Wi‑Fi an ideal force multiplier for connectivity.

ITU explains that the case for allowing Wi‑Fi services in the 5925–7125 MHz band is clear and compelling, with 6 GHz Wi‑Fi already delivering real socio-economic benefits in many countries.

“The diverse and growing product ecosystem for 6 GHz Wi‑Fi fits perfectly with broadband objectives in developed and developing countries — and without disrupting incumbent operations.”
Granting Wi‑Fi access to the 5925–7125 MHz band would be the best way to maximize the socio-economic value of this spectrum. Conversely, 6 GHz IMT “vaporware” looks far from achieving commercial feasibility, particularly given a total absence of equipment at this stage.”
The ITU says in Real-World Speed and practical real-world scenarios, WiFi 5 typically provides speeds ranging from 300 Megabit per second (Mbps) to 1.7 Gbps. “On the other hand, WiFi 6 can provide speeds ranging from 600 Mbps to 4.8 Gbps or more in real-world usage.”
According to ITU,”Wi-Fi 6 is the latest standard from the Wi-Fi Alliance based on the 802.11ax protocol, and provides critical capabilities needed for next generation enterprise requirements. “
Wi-Fi 6, also known as 802.11ax, is the latest generation and standard for wireless networking that replaces the 802.11ac, or Wi-Fi 5, standard. Prior to the release of Wi-Fi 6, Wi-Fi standards were identified by version numbers ranging from 802.11b to 802.11ac.
Wifi 6 is capable of connecting no fewer than eight devices simultaneously and creates a seamless connection to these devices at minimal costs.
Despite the beauty and robustness of Wi-Fi 6,there are drawbacks .

“If iPhone is older than the iPhone 11, it can’t use Wi-Fi 6. But there are other ways to make your phone’s internet run as fast as possible. An older laptop won’t be able to take advantage of Wi-Fi 6 either. A Wi-Fi 6 router will still work with older devices, you just won’t enjoy all the benefits listed above.”ITU submits.

Although it is not clear when services on Wi-Fi 6 will flag off and modalities for licences will be issued, or whether it will be an open market for all comers, there are strong indications that licensing may be very flexible especially with regards to assignment of the frequency to power the system.

But the question that is on the lips of service providers and the enthusiastic consumers is whether this will not go the way of 5G?

Time will tell.

Aragba-Akpore, an analyst on infotech matters, lives in Abuja.

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