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THE NATION MONDAY, FEBRUARY 4, 2013
COMMENTS
Issues in NTA-StarTimes agreement
I
WAS elated and surprised recently when I read in the newspapers that StarTimes, the Chinese-owned and operated pay television company was launching DVB-T 2 decoders in the Nigerian market. Elated because I am aware that T2 decoder is the latest technology has to offer in that area; and surprised that the Chinese company had been selling something less to Nigerians before now. The decoders StarTimes’ was selling before now use the first generation Digital Video Broadcast Terrestrial technology, which has been phased out in a number of African countries like Kenya, Uganda and Rwanda. These countries, in readiness for the digital migration deadline, have adopted Digital Video Broadcast Terrestrial (DVB-T2), the second generation decoders, as the standard for digital broadcasting. The sale of first generation decoders by StarTimes implies that subscribers may be faced with unpleasant consequences at the expiration of the digital migration deadline. Though an upgrade from DVB-T to DVB-T2 technology is a possibility, attempting to upgrade after the digi-
‘The NTA, as the public signal distributor, will have almost unlimited control over broadcasters, who will be dependent on it for frequencies. Any operator that shows signs of irritation with the arrangement may have to face grotesque consequences. The dice, as it is, is heavily loaded against other players in the industry’
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By Sunday Adigun tal switchover may cost subscribers more. DVB-T is not compliant with DVB-T2. This may necessitate a recall of the first generation decoders and a need by subscribers to buy new decoders not long after buying the ones they currently use. The authorities in Kenya and Uganda have banned the importation of DVB-T, the first generation decoders. In Uganda, the deadline for a halt to the use of DVB-T expired on 21 December 2012. Dr. Ruhakana Rugunda, Uganda’s ICT minister, was quoted as warning Ugandans against further purchase of DVB-T (T1) decoders. “Before, you purchase any decoder, inquire which technology it is. If it is DVB-T1, don’t buy or else you stand to lose as the decoder will expire at the end of the year. The adoption of DVB-T2 technology means that we must ban the importation and sale of the old technology (DVB-T1). It will affect many people but it is the right thing to do,” Rugunda told Uganda’s Daily Monitor last year. Last July, Kenya, also announced a ban on the importation of the analogue broadcast technology. As far back as 2008, Nigeria, according to Engr. Yomi Bolarinwa, NBC DirectorGeneral, had committed to the DVB-T2 technology. Yet, when StarTimes kicked off in the country in 2010, it treated the commitment with indifference by selling T-1 decoders. But why, despite the country’s commitment to T-2 since 2008, did the regulator allow StarTimes to sell first generation decoders to Nigerians? For some obscure reasons, the Joint Venture, JV, agreement between the Nigerian Television Authority, NTA, and Star TV Network Limited has escaped the headlights of public scrutiny. This, inevitably, has granted a free rein to StarTV Network Limited, promoters of StarTimes, to provide Digital Terrestrial Television, DTT, in Nigeria. The JV agreement produced NTA/StarTV Net-
F you want to be rich, you must first build roads.” This is a time-honoured and well-known Chinese proverb which truism has been tested by nations that desire progress and development. China not only knows the truth of this aphorism but she believes and practices it conscientiously. Today, like most developed European countries and America, China’s emergence on the world stage as a giant economic nation is indubitable – very visible to deaf and audible to the blind. And what did Asian Leviathan do to climb the ladder like other great nations? What has been an essential element in this communist nation’s success story is nothing other than a colossal investment in road construction. That is the magic wand that opened the way to riches as the Chinese proverbs recommends. Interestingly, China did not put a stop to its riches within the four corners of its ancient Great Wall. It carried it beyond the shores of China, seeking much more riches this time on the African continent. With the benefit of its own fruitful and prosperous experiences, China has made heavy investments in Africa’s infrastructure. This is against the backdrop of the realization that infrastructure is the foundation for economic development and a sign to judge the level and potential of a country’s economic development. Conversely, deficient infrastructure poses an enormous obstacle on the path of a nation’s development, growth and progress. This exactly is what inhibits frustrates Africa’s economic development. The unfledged transportation system and bungling traffic conditions not only hamper quick and easy movement man and materials but also raise the cost of trade and domestic trade and hinder foreign investments to Africa. Since its foray into the continent, China has assisted Africa in building more than 2,000 kilometres of railways, 3,000 kilometres of road, more than 100 schools and 60 hospitals. China has also relieved them of more than 20 billion Yuan of debt. In a World Bank survey entitled: “Building Bridges: China’s Growing Role as Infrastructure Financier for Sub-Saharan Africa,” published in July 2008, it was reported that China had invested a lot of money and built a lot of bridges, railways and highways in Sub-Saharan Africa, where the natural conditions are extremely harsh, with a total investment jumping from less than $1 billion per year before 2004 to more than $7 billion U.S. dollar in 2006. It is instructive to know – albeit sadly too – these African leaders know and are well aware that these colossal Chinese investments will lay a solid foundation for the continent’s economic development in the future. What they did not want to say is: At what cost? After all, it is the English man that says ‘waste not want not.’ The Chinese may speak Mandarin as his official language: he is well acquainted with this English idiom. Has Nigeria any lesson to learn from this? The answer is resoundingly in the affirmative. As to the question whether she has learnt or is learning, the answer is, pitiably, negative. In November 2012, an assessment by Federal Road Maintenance Agency (FERMA) revealed that over 80% of Nigerian roads are in deplorable conditions, leading to rising wave of motor accident across the country. The survey also showed that another major reason for the ter-
work, in which the NTA has 30 per cent shareholding. This cost the Federal Government N750million, paid on behalf of the NTA to the National Broadcasting Commission, NBC, in form of operating licence fee. The agreement started running on March 1, 2010, initially as a trial, before being fully launched on July 29, 2010, four months after. But there are issues which are festering because of public disinterest in scrutiny. Closely examined, the NTA is involved in something akin to a master-serf relationship. For one, the purpose of the agreement, according to the website of NTAStarTV Network Limited, is “to provide digital pay television services to Nigerians”. But this is contrary to what the Federal Government prescribed as mandate of the agreement. Specifically, the Federal Government mandated NTAStarTV Network Limited to assist the country in its bid to realise the aims of digital migration, the deadline of which is January 1, 2015. Though the agreement allows the parties involved to provide part pay-TV and part free-to-air services on their DTT platform, NTAStarTV Network only provides pay TV service. A clasping evidence of this is provided by the expiry of subscription. When subscription expires, viewers are immediately disconnected from the pay-TV platform as well as the free-to-air channels. This way, subscribers’ freedom to information is effectively abridged. Another issue is the promotion of unfair competition. The absence of a local legislation on competition has engendered an anti-competitive spirit. According to the terms of the JV agreement, the NTA is forbidden from entering into any relationship with another broadcaster, satellite or terrestrial, and was compelled to annul those entered into prior to the agreement. The NTA was thus a victim of its own agreement! On account of its relationship with such
broadcasters, it had a steady income stream from monies paid for the shared sites. The annulment of the relationship, naturally, turned off the income tap. The potential for further erosion of Nigeria’s interest is also contained in the Digital Migration Whitepaper, which many knowledgeable people in the industry say recommends that the government will licence a minimum of two or a maximum of three signal distributors when the transition analogue to digital terrestrial technology begins. The government has constituted a Digital Implementation Team, which is made up of industry experts and stakeholders in both the private and public sectors. On account of its 157 transmission sites across the country, the NTA has been recommended as the public broadcasting signal distributor. One of the team’s first steps may be the ratification of the NTA as the signal distributor. This will make NTA the custodian of all distribution frequencies in the country and operators will have no other option other than to go to the NBC for licensing and the NTA for their respective lashings of frequencies. Ordinarily, this does not appear inimical. But with the NTA/StarTimes combo in place, the implication may be that the responsibility for a matter as sensitive as broadcasting is effectively in the hands of a Chinese firm. NTA, for instance, is performing no technological role in relation to the Direct Terrestrial Television roll-out, having conceded this to StarTimes. Also, the NTA, as the public signal distributor, will have almost unlimited control over broadcasters, who will be dependent on it for frequencies. Any operator that shows signs of irritation with the arrangement may have to face grotesque consequences. The dice, as it is, is heavily loaded against other players in the industry. • Adigun, journalist and public affairs analyst, wrote from Abuja
Osun: Building an enduring legacy By Kunle Owolabi rible shapes of Nigerian roads is because the roads have outlived their usefulness, many of them constructed more than four decades ago. The report said inter alia: “Some roads were constructed many years ago and they have outlived their life span. Most roads are designed for 25 years but many roads are far older than that. Bad roads do cause accidents, so drivers must apply caution when driving on bad roads. However, you maintain what is good, not bad, and the deplorable condition of our roads is now beyond the scope of FERMA.” Yes, as the name suggests, the agency is not established to repair roads but to maintain them. Back to square one! The twin tragedy of bad road network and acute if not near total absence of power supply have remained intractable for the federal government. The nation’s economy is largely generator-driven and n nothing could be more nightmarish than travelling on Nigerian roads. Yet the nation is blessed with human and material resources. What a country (apology to the late human rights crusader, Beko Ransome-Kuti)! Despite this national despondency, a state chose to have a break with this traditional miscarriage of vision that has for long characterised the centre. The government in the State of Osun not only shares the Chinese vision and notion of the nexus between ‘road and riches,’ it is also walking the Chinese footpaths in building roads so as to pave way for riches and abundance of life for the people. What is this State of the Virtuous doing differently? And how? For a leader to be outstanding among his peers, he must have vision; he must be foresighted, practically peering into the womb of future and bringing it to bear on the immediate. This is what sets the State of Osun apart and makes its government an unusual one. For the past two years, the administration of Ogbeni Rauf Aregbesola saw road construction as a condition precedent for growth, development and investment, both domestic and foreign. Those who were familiar with the terrain of the state then will today appreciate the colossal transformation of its social infrastructure, particularly road construction, rehabilitation and networking of both rural and urban areas. Before 2010 when he assumed office, the story about the state’s infrastructure was nothing to write home about. To put it mildly is to say that roads across the state had become death-traps. There were numerous abandoned road projects than completed ones. Some major gateway roads to the state signposted a state of affair where neither government nor governance was in existence. The atmosphere at that period was better exemplified by the Hobbesian state of nature, where, habitually, life is nasty, brutish and short. Today – two years on – the situation of the roads; intra and inter-
state, have changed considerably. Few can only be mentioned here. From Osogbo, the state capital to Ikirun, from Iree to IlaOrangun, Ilesa to Ile-Ife, Iwo to Ikire, Esa-Oke to Ijebu-jesha and Orile-Owu to Gbongan, road construction and rehabilitation are going on with specific deadline for the contractors handling the various projects. Osogbo alone has over 20 intra-city roads at various stages of construction and completions. And this is what goes on across the 31 local government areas. Few months ago, government signed a N17.8 billion contract for the dualisation of the 45 kilometres Osogbo-Ikirun- Kwara State Boundary Road. Though a federal road, which was constructed in the 70s, the expressway had become a minefield to road users. The dualisation was segmented into three phases of OsogboDagbolu (International Market) to Alamisi Market in Ikirun (9.52 kilometers); Osogbo (Old-garage) to Ikirun junction road (20.5 kilometers) and Ikirun-Ila-Odo- Kwara State Boundary road (16.5 kilometers). Besides, government awarded N3.3 billion contract for the construction and rehabilitation of selected roads in four communities, which included the Iwo-Ejigbo Road (35.20kilometres), EdeAra Ejigbo Road (30.7 kilometres), and Ejigbo-Aye-Oguro Road (Alaase village), which shares boundary with Oyo State. Also under construction or nearing completion include eight roads inherited from past administration totalling 144.29 kilometres, dualisation of Osogbo-Kwara boundary road totalling 43.37 kilometres and dualisation of Gbongan-Orile-OwuIjebu Igbo Road. Others under rehabilitation are 15 Ilesa township roads, 14 Ede township roads, 20 intercity roads totalling 319 kilometres, 13 intra-city roads totalling 79.46 kilometres and rehabilitation of select roads in six zones totalling 74.1 kilometres. The state introduced another innovation only peculiar to Osun. The governor flagged off a 218 km with minimum of 10-kilometre road per local government project on December 31, 2012 with a whopping sum of N16 billion. And by January 8, he paid N5.5 billion to major contractors handling the 218 kilometres in all the local government. Similar amount would be released to the contractors when the projects, which has maximum of nine-month completion period, are 40 percent completed. This kind of project is first of its kind in Nigeria no doubt! The state government had since 2010 been saving the Excess Crude funds of all the local governments in the state towards this 10-kilometre road per local government project to the tune of N10 billion, out of which N6 billion was drawn for the project. To be certain, the 281km roads are local government projects which is being supervised by the state government. • Owolabi is of the Bureau of Communications and Strategy, Office of the governor of the State of Osun.