Internet service provider Global iBurst Nigeria has secured a licence to operate in Nigeria and is confident the investment will pay off. TradeInvestNigeria talked to acting chief executive officer Petteri Paasila who says there is a huge gap in the market waiting to be bridged.
Global iBurst Nigeria will soon launch in Lagos to provide Internet connectivity. The company has planned a roll-out for Abuja later in the year. Increasing demand for more information and communication technology services has created the need for more investment in the sector.
Explain Global iBurst Nigeria service offering?
Global iBurst will offer affordable, reliable and mobile high-speed Internet connectivity to millions of Nigerians. We will make it very easy to get connected. Most Internet Service Providers mainly target the business sector, medium to large companies and other large
institutions. Unfortunately, for the ordinary citizen, be it a businessman, a student or just a regular household, this makes getting connected a challenge because of the high cost, contractual obligations and poor levels of service. This is the gap we want to bridge. Our offering is really simple: buy a very affordable modem; connect it to your laptop, netbook or PC; buy airtime like you do for a prepaid phone; and off you go to offer high-speed Internet.
Are you in partnership with a local investor?
We are in partnership with a local investor. While POP Broadband, the mother company of Global iBurst, is a Pan-African group with operations in several countries, it is very important for us to have a strong local partner wherever we go. This is particularly true for Nigeria, the powerhouse of West Africa, with its unique dynamics and exciting opportunities. Our offering will be tailored to suit the needs of the Nigerian people. In addition, we
will be looking for Nigerian talent to take up key roles in the operation. As I mentioned, we will make mobile Internet available to millions who might have been previously denied access to affordable and reliable Internet services as well as SMEs.
Quite a number of operators are already established in Nigeria. How do you intend to deal with the competition?
We are well aware of the competitive environment, our management team has extensive experience in Nigeria among many other African markets. The Nigerian broadband market is very fragmented. While there are many players in the market, they are struggling to put together a compelling service for the end-user. What the Nigerian market is lacking, is an operator who can offer reliable, fast and affordable Internet at the same time. This is where we will come in.
What other challenges do you anticipate as you enter the Nigerian market?
Of course there
will always be challenges when entering a new market, but as I said, with our experienced management team it is the end result that counts: a great service that will change the life of millions of Nigerians for the better. Further, I have to say that the Nigeria Communications Commission (NCC) has done a great job in regulating the market in a fair and transparent way. The regulatory environment in Nigeria is as solid as in the most advanced economies globally and we are very happy about the way the NCC has facilitated our licence application. We look forward to a good relationship going forward.
What are the future expansion plans for Global iBurst?
Our aim is to bring the Internet to as many Nigerians as possible and thus play our part in bridging the digital divide. Ideally this will result in coverage for the majority of the population. But for now we will take a realistic approach and start rolling out the network in
Lagos and Abuja. In phase two, we will extend the coverage to other major cities such as Kano and Port Harcourt and so on. Having said this, network deployment of this size is a very costly business, therefore we are inviting Nigerian investors to talk to us to accelerate the process.
What is your assessment of the ICT sector in Nigeria, particularly the provision of Internet services? Is there room for growth and further investment?
The ICT sector is very dynamic and a lot of investment has come in, especially through the big mobile operators. However, they are still focused in the battle over the voice market and the Internet market, in particular the broadband market, is very much in its infancy. There is still a lot of room for growth and we will see a lot of activity and investment in the future.
Do you think the federal government has in place an attractive incentives package for investors in the ICT sector? What
improvements do you think should be effected in the sector in order to encourage investment?
The federal government has recognised the role that the ICT sector will play in the economy and the development of the country as a whole. This has resulted in a transparent and efficient regulatory framework which encourages investment and progress in the sector.
What are the prospects for ISP business worldwide?
What we have seen in the GSM industry over the past 20 years or so was only the beginning of a digital revolution. The next big wave is the Internet and all the related sectors. Globally, it has affected all aspects of our lives: the way we do business, the way we live our social lives and even the way our children get educated. There is no denying that the Internet has fundamentally changed most societies in the world and this will be no different in Nigeria.
Nigeria has been labelled a high risk
country, yet many companies continue to invest and make profits. Please comment.
Nigeria is the powerhouse of West Africa and one of the powerhouses of the continent. Such a dynamic environment comes with certain risks and uncertainty. However, as many multinational organisations and Nigerian entrepreneurs have proven with their success, the opportunities and potential growth far outweigh the risks if the business is run the right way.
