Digital Switchover: Nigeria’s Economy To Gain ₦320bn Annually

The National Broadcasting Commission (NBC) has said the planned switchover from analogue to digital television will add N320 billion yearly to the economy, creating over 55,000 direct and indirect jobs.

This is even as the federal government has approved ₦51 billion to be raised from the private sector to fast-track Nigeria’s digital switchover (DSO) which will lead to the production of set-top boxes and viewing of digital channels by TV viewers in line with the directive of the International Telecommunications Union (ITU).

Digital TV broadcasting offers many advantages over analogue systems for end-users, operators and regulators. Apart from increasing the number of programmes, it allows for interactive TV, electronic programme guides and mobile TV, as well as transmit image and sound in high-definition (HDTV) and ultra-high definition (UHDTV).

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Digital TV requires less energy to ensure the same coverage as for analogue while decreasing overall cost of transmission.

The more efficient use of radio spectrum brought on by digital TV also allows for the so-called Digital Dividend resulting from the freeing up of much-needed spectrum for use by other services, such as mobile broadband.

Digital Dividend spectrum is released when television broadcasters switch from analogue platforms to digital-only platforms. Part of the electromagnetic spectrum that has been used for broadcasting will be freed up because digital TV needs fewer spectrum than analogue television. After the auction, GSM operators on the 2100MHz bands will move to the new band slots.

Director-general, National Broadcasting Commission (NBC), Mr. Emeka Mba, yesterday in Lagos told technology media practitioners to clear the air on the award of digital pay TV broadcasting services licence to MTN Nigeria, adding that Nigeria will migrate to digital TV broadcasting by June 20, 2017.

He said when it became obvious that government could not spare the money, and in order to avoid missing another deadline, NBC began to consider other options.

“Our broadcast frequency, which is to eventually form part of the digital dividend after the DSO, had portions of it lying fallow while our broadcasters were still using parts of it.

“We, therefore, proposed and got proper permission from government to license part of our spectrum lying fallow and to use the proceeds to finance the DSO. I am pleased to inform you that we have successfully licensed MTN Nigeria Ltd to use a part of the 700 MHz to provide digital pay TV broadcasting services.

“We have thus raised ₦34 billion, slightly less than 50 per cent of our budget, through this singular move. Nigeria has once again pointed the way for other African countries struggling with the effort of finding financing for their own digital switchover programmes. It may be necessary to clarify that the use of the band, 470 – 862MHz solely for UHF television broadcasting service on a primary basis in Nigeria, predates both the NBC and the Nigerian Communications Commission (NCC),” he said.

According to Mba, most administrations in ITU Region 1 use the entire 470 – 862 MHz for UHF television broadcasting prior to ITU WRC-2007 conference.

In 2006, ITU planned the entire 470-862MHz frequency band for Digital UHF television broadcasting for ITU Region 1 to which the Nigerian Administration belongs, he said.

“As a matter of fact, the planning of 470-862MHz frequency band for Digital UHF television is referred to in the ITU circle as GE-06 Plan and after the signing of the agreements resulting from this plan, it is now referred to as the GE-06 Agreement.

“This should clear any doubts as to where these frequencies belong until after the completion of the digital switchover,” he said.

Announcing new switchover critical milestones and planned timelines for achieving them, the NBC boss said Nigeria had coordinated another agreement with its West African neighbours and had agreed on a new deadline of June 20, 2017 to complete the digital switchover and achieve analogue switch-off.

“Off-shore mass production and delivery of initial subvented boxes for Jos pilot project is envisaged to be completed by the end of October, while local manufacture of the set-top boxes (STB) is expected to begin in April 2016. Consumers will receive over 30 new free-to-air channels yearly for the price of a ₦1,500 STB.”

Mba further stated that the DSO long term economic impact on Nigeria will lead to a host of value added services such as news, information and video on demand, establishment of a leading digital economy, development of a whole TV and content ecosystem and N200bn yearly boost from additional advertising, content and Nollywood income streams.

Also, it will lead to development of high tech STB manufacturing industry with government receiving N100bn income from spectrum sales (digital dividend); ₦30bn yearly boost from the digital dividend; news and information channel to 20m plus homes and a thriving digital economy generating at least 55,000 highly skilled jobs, he explained.