Presentation by:

Maikano AbdullahiSecretary, Universal Service Provision Fund

July 2013

INDUSTRY ROUND TABLE

Partnering to Deliver Sustainable Universal Access and Service

Outline

Session Objectives

Background/Introduction

Review of Past Performance

Proposed Operating Model

Conclusion/Q & A

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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

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2.0 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:

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Background/Introduction

Connectivity

BTRAIN (BackboneTransmissio

n Infrastructure)Accelerated Mobile Phone Expansion

(AMPE) – BTS & CIP

Rural Broadband Initiative (RUBI)

Access

School Access Project (SAP)

Tertiary Institution Access Project (TiAP)

E-Library

Community (Communication Centres CCCs)

Background/Introduction (cont’d)

The two broad programmes of the USPF were designed to complement each other in facilitating universal access and service:

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Mostly subsidy provision

Lowering the entry level in rural areas

Increase availability of services

Mostly grant provision

Create demand

Result in viability of projects

Sustainability of projects by the new “digital lifestyle’’

Connectivity Access

3.0 Review of Past Performance

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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:

Introduction

Has the USPF clearly articulated its strategic goals, priorities and initiatives?

• 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?

ExecutionExecution

StrategyStrategy

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USPF’s planned projects were implemented using the following operating principles:

Key Operating Principles

Projects were designed and implemented

uniformly across all target communities

A standard % of capital expenditure

incurred on infrastructure

projects was given as subsidies to project

Implementers

Grants were awarded for the

implementation of access projects and the operational costs

of these projects borne by the USPF

Bidders were required to select

target communities from identified geo-

political zones

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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

Performance Results

Strategy

Execution Execution of planned

strategy and programme/projects was challenging and did not yield the excellent results anticipated by the USPF

Our review showed the following:

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The results achieved by the USPF through the SMP 2007 – 2011 are outlined in the table below:

Performance Results (cont’d)

Projects Targets Achievements

Connectivity Projects

BTRAIN

RUBI

AMPE – BTS

AMPE – CIP

Access Projects

SAP

TiAP

E Library

CCCs

1,000 KM183

403

203

1,858

374

74

364

500 KM

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59

5

766

193

74

224

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Key Barriers to Effective Execution

Some of the reasons identified for the sub-optimal implementation of the USPF’s projects are highlighted below:

Inadequate information about the features and characteristics of target areas/communities

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The scale of projects implemented was inadequate to effectively engage the Industry Operators

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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

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Projects were designed and implemented using a “one size fits all” approach resulting in a mismatch between the needs of beneficiaries and USP interventions

2

Subsidies were given only in relation to capital expenditure incurred on infrastructure, thus diminishing the incentive for Industry Operators to participate in project implementation

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4.0 New Operating Model

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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

Introduction

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The highlights of the SMP 2013 – 2017 are represented below:

Strategic Management Plan 2013 - 2017

A full version of the SMP 2013 – 2017 can be downloaded from www.uspf.gov.ng

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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

Access

Sch

ools

A

ccess

Pro

ject

E-Health Projects

E –

A

ccessib

ilit

y

Pro

jects

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.

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Strategic Management Plan 2013 – 2017 (cont’d)

Connectivity Programmes

• 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.• Provide subsidy for the

deployment of 1,000 BTS every year

• Support the deployment of

3,000 KM of fibre every year

• Deploy Internet POPs in 5 clusters every year

Key Targets

Basic

Tra

nsm

issio

n

Infra

stru

ctu

re (B

TR

AIN

)

BTS Project

Backb

on

eTra

nsm

issio

n

Infra

stru

ctu

re (B

TR

AIN

)

University Inter-

Connectivity

(UNICC)Connectivity

Ru

ral

Bro

ad

ban

d

Inte

rnet

(RU

BI)

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The strategic goals of the USPF as defined in the SMP 2013 – 2017 are anchored on the following key changes in operating model:

Operating Model

Integrated approach to project planning and implementation

Meaningful engagement of stakeholders

Sustainability!!!

Industry Operators as Implementing Partners

Implementation of a Robust

Monitoring and

Evaluation Framework

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How will we achieve the key thrusts/principles of our Operating Model?

Service Delivery Model

Clustering of Target Areas

Underserved/unserved areas shall be grouped into manageable clusters/bundles. Projects will be clusterspecific

Clustering of Target Areas

Underserved/unserved areas shall be grouped into manageable clusters/bundles. Projects will be clusterspecific

Reverse Auction Clusters shall be bided for

by Industry Operators on a

competitive basis

Reverse Auction Clusters shall be bided for

by Industry Operators on a

competitive basis

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

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

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

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

All Request for Proposals (RFP) for selecting Connectivity projects will include the criteria for evaluating the bids, e.g. the BTS Project:

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Simplified Request for Proposals

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

Expected Benefits of the Operating Model

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IMPACT!

SUSTAINABILITY!

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

• Availability of telecom infrastructure in unserved and underserved areas which provide a foundation for universal access

• A holistic approach to implement affordable and sustainable access projects in unserved and underserved areas

Conclusion

We will like to obtain your comments/Inputs…

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