Transcript Slide 1

INDUSTRY ROUND TABLE
Partnering to Deliver Sustainable
Universal Access and Service
Presentation by:
Maikano Abdullahi
Secretary, Universal Service Provision Fund
July 2013
Outline

Session Objectives

Background/Introduction

Review of Past Performance

Proposed Operating Model

Conclusion/Q & A
2
Session Objectives
The objectives of the session are to:

Provide an understanding of the USPF’s approach to implementing
universal access and service programmes/projects

To obtain the buy-in and participation of relevant stakeholders in the
USPF’s programmes and projects

To obtain inputs/comments
3
2.0
Background/Introduction
Background/Introduction
The USPF’s key objective is to ensure the availability, accessibility and
affordability of telecommunication services to underserved and unserved
groups and communities across Nigeria.
To achieve this, the USPF in its SMP 2007 – 2011 designed the following
projects
along
two
programme
focus
areas:
Connectivity
Access
BTRAIN
(BackboneTransmission
Infrastructure)
School Access Project (SAP)
Accelerated Mobile Phone
Expansion (AMPE) –
BTS & CIP
Rural Broadband Initiative
(RUBI)
Tertiary Institution Access
Project (TiAP)
E-Library
Community (Communication
Centres CCCs)
5
Background/Introduction (cont’d)
The two broad programmes of the USPF were designed to
complement each other in facilitating universal access and service:
Connectivity
Access

Mostly subsidy provision

Mostly grant provision

Lowering the entry level in rural
areas

Create demand

Result in viability of projects

Sustainability of projects by
the new “digital lifestyle’’

Increase availability of services
6
3.0
Review of Past Performance
Introduction
Following the expiry of the SMP 2007 – 2011, KPMG conducted an
independent review of the USPF’s performance over the past five (5) years.
The review was two-pronged and examined the following:
Strategy
Has the USPF clearly articulated its strategic goals, priorities
and initiatives?
Execution
• Were projects appropriately designed and planned?
• Was the USP able to implement planned programmes/
projects effectively ?
• Was the expected impact of these projects felt by the
beneficiary communities?
8
Key Operating Principles
USPF’s planned projects were implemented using the following operating
principles:
Projects were designed and
implemented uniformly
across all target
communities
Bidders were required to
select target communities
from identified geo-political
zones
Grants were awarded for the
implementation of access
projects and the operational
costs of these projects borne
by the USPF
A standard % of capital
expenditure incurred on
infrastructure projects was
given as subsidies to project
Implementers
9
Performance Results
Our review showed the following:
Strategy
In tandem with tested practice,
the USPF had developed a
medium
term
strategy
document
which
clearly
cascaded its mandate down to
the level of its programmes and
projects
Execution
Execution of planned strategy
and programme/projects was
challenging and did not yield the
excellent results anticipated by
the USPF
10
Performance Results (cont’d)
The results achieved by the USPF through the SMP 2007 – 2011 are
outlined in the table below:
Projects
Targets
Achievements
Connectivity Projects
1,000 KM
500 KM
RUBI
183
12
AMPE – BTS
403
59
AMPE – CIP
203
5
SAP
1,858
766
TiAP
374
193
E Library
74
74
364
224
BTRAIN
Access Projects
CCCs
11
Key Barriers to Effective Execution
Some of the reasons identified for the sub-optimal implementation of the
USPF’s projects are highlighted below:
1
2
Inadequate information about the features and characteristics of target
areas/communities
Projects were designed and implemented using a “one size fits all”
approach resulting in a mismatch between the needs of beneficiaries
and USP interventions
3
The scale of projects implemented was inadequate to effectively
engage the Industry Operators
4
Some of the projects were designed and implemented as stand-alone
projects. This increased the costs of deployment while diminishing the
ability of the projects to be sustainable
5
Subsidies were given only in relation to capital expenditure incurred on
infrastructure, thus diminishing the incentive for Industry Operators to
participate in project implementation
12
4.0
New Operating Model
Introduction

Following the independent review of the USPF’s performance by KPMG
and an Impact Assessment conducted by Unilag Consult, the Board and
Management of the USPF conducted a retreat to examine the lessons
learnt and ensure previous mistakes are not repeated

As an outcome of the retreat, a Strategic Management Plan (SMP),
responsive to the issues identified in previous years, was developed for
the period 2013 – 2017

This section of the presentation provides an overview of the SMP 2013
-2017 and the Operating Model which the USPF will implement to
facilitate the achievement of its overall strategic targets
14
Strategic Management Plan 2013 - 2017
The highlights of the SMP 2013 – 2017 are represented below:
A full version of the SMP 2013 – 2017 can be downloaded from www.uspf.gov.ng
15
Strategic Management Plan 2013 – 2017 (cont’d)
The current SMP will retain the two broad programmes of the USPF i.e.
Connectivity and Access
Access Programmes
Schools
Access
Project
Community
Communication
Centres
• Projects defined under the Access
Programme will be retained from
the previous SMP, however, they
will be designed differently to
accommodate the varied needs of
the target beneficiaries.
• Other Access projects will be
designed and implemented in the
five year period.
E–
Accessibility
Projects
Access
E-Health
Projects
16
Strategic Management Plan 2013 – 2017 (cont’d)
Connectivity Programmes
Backbone
Basic
Transmission
Transmission
Infrastructure
Infrastructure
(BTRAIN)
(BTRAIN)
University
InterConnectivity
(UNICC) Connectivity
• Our aim is to use the projects under the
Connectivity Programme as a platform
for facilitating the sustainability of the
Access projects. Thus, in the next five
years, we shall pursue mobile expansion
programmes vigorously
• The RUBI project will provide Internet
PoPs in target communities for last mile
access using a range of technologies like
Wifi, WiMax etc.
BTS Project
Rural
Broadband
Internet
(RUBI)
Key Targets
• Provide subsidy for the deployment of
1,000 BTS every year
• Support the deployment of
of fibre every year
3,000 KM
• Deploy Internet POPs in 5 clusters
every year
17
Operating Model
The strategic goals of the USPF as defined in the SMP 2013 – 2017 are
anchored on the following key changes in operating model:
Integrated approach
to project planning
and implementation
Meaningful
engagement of
stakeholders
Sustainability!!!
Implementation
of a Robust
Monitoring and
Evaluation
Framework
Industry
Operators as
Implementing
Partners
18
Service Delivery Model
How will we achieve the key thrusts/principles of our Operating Model?
Clustering of Target Areas
Underserved/unserved areas shall
be grouped into manageable
clusters/bundles.
Projects will be cluster
specific
Subsidy:
(CAPEX + OPEX)
The USPF shall explore a
mix of financial and
non-financial subsidy for
operational costs for connectivity
projects e.g. BTS, FOC, etc
Reverse Auction
Clusters shall be bided for by
Industry Operators on a
competitive basis
Simplified Processes
The USPF will
streamline internal
processes to improve
efficiency, transparency and
reduce unnecessary
bureaucracy both in RFP
document, selection of bids and
of project implementation
19
Simplified Request for Proposals
All Request for Proposals (RFP) for selecting Connectivity projects will
include the criteria for evaluating the bids, e.g. the BTS Project:
S/N
Description
Maximum Marks
Services
1
Voice
10
2
Voice + VAS
20
3
Voice + VAS + Data
30
4
Mobile Broadband
40
Power Solutions
1
Public Mains
10
2
Public Mains + Generator
20
3
Public Mains + Generator + Solar
30
4
Hybrid (Public Mains + Generator + Solar + Others)
40
Financial
1
Subsidy
20
20
Expected Benefits of the Operating Model
Key Benefits of the New Operating Model
• Increased participation of Industry Operators
• Implementation
of well planned and
adaptable projects which suit a variety of ICT
needs
of telecom infrastructure in
unserved and underserved areas which
provide a foundation for universal access
IMPACT!
• Availability
SUSTAINABILITY!
• A holistic approach to implement affordable
and sustainable access projects in unserved
and underserved areas
21
Conclusion
We will like to obtain your
comments/Inputs…
22