NigComSat: The Fears, The Benefits

Communication satellite facility anywhere in the world spins enormous revenue for owner-states, governments, organisations and other investors in satellite technology.

When in 2004, the administration of Chief Olusegun Obasanjo initiated moves to launch Nigeria’s own communication satellite into orbit,  many citizens applauded the move, which, apart from its revenue potential, added to the nation’s prestige.

In 2007, the satellite was successfully launched into orbit under the auspices of the National Space Research and Development Agency (NASRDA) to sign-post Nigeria into space technology. Unfortunately, however, the launched satellite, which cost the nation several billions of naira failed and was subsequently de-orbited in November, 2008, having lasted for just a year out of its original 15-year life span.

Many critics called the project a disaster, while scientists termed the setback as a “solar array failure”. There were yet others, who suspected a sabotage of the nation’s space adventure and called for an extensive probe.

Apparently undaunted by the setback, the Federal Ministry of Science and Technology, NigComSat limited  and the China Great Wall Industry Corporation (CGWIC), in 2009 signed a contract for an in-orbit replacement of the lost satellite. The replacement – NigComSat-1R  which officials said,  is at no cost to the Nigerian government,  is expected to be launched into orbit tentatively on December 25.

Analysts and officials have expressed optimism that the new communications satellite will indeed earn considerable income for the country in course of time, while saving for the nation, the huge foreign exchange expended annually on satellite related services from foreign firms.

The Minister of Science and Technology, Prof. Ita Ewa, particularly shared this viewpoint. He said that Nigeria currently spent hundreds of millions of dollars annually to access bandwidth from Europe and America, to facilitate Internet access, telephony and television broadcasting in the country.

Ewa said that the markets of Europe and America were already saturated, whereas, Africa offered a new and virtually untapped market for investors in satellite technology.

“In fact, sub-Saharan Africa alone contains 10 per cent of world’s population, while it can only boast of 0.2 per cent of the world’s one billion telephone lines.

“Nigeria alone is spending more than 450 million US dollars annually on the importation of bandwidth from Europe and America to facilitate Internet access, telephony and broadcasting in the country.

“With the launch of the Nigeria-owned communication satellite, the revenue being made from Nigeria on bandwidth will be retained in country and used for our development,” he said.

The minister stressed that the revenue expectations from  the new satellite from customers in the African region and other countries would be a viable alternative to the nation’s over-dependence on crude oil.

He, therefore, called on local and foreign investors to take advantage of the hybrid quad-band satellite, which was built with special consideration for the African environment.

As many analysts have pointed out, the benefits of the satellite are not limited to revenue generation alone, but extend to business development, and youth empowerment, aside from national prestige.

Satellite technology affects every aspect of our lives through e-banking, e-governance, telecommunications, broadcasting, e-commerce, among others.

It also has a great capacity for improving the quality of life because of its application in internet services, telephony, broadcasting, public security and safety, etc.

According to  the Managing Director of NigComSat Ltd.,  Mr Tumasaniyu Ahmed-Rufai, the NigComSat-1R satellite is now about 93 per cent completed.

“As I speak to you, the replacement satellite NigComSat-1R is actually 90 to 95 per cent completed. The last test will be made between Sept. 7 and 15.

“From the results we are already getting, we are very optimistic that by the Sept. 15, we would be ready to start moving to the launch site and  start the launch campaign,” he said.

Observers are optimistic that the December 25, 2011 launch date would become a reality.

As part of efforts to avoid the pitfall of the past, Ahmed Rufai disclosed that the Federal government has given the go ahead for NigComSat-2 and NigComSat-3 to be procured and launched immediately afterwards, to serve as backups to the replaced satellite.

By his company’s projection, the NigComSat-2 backup will be launched in 2014, while NigComSat-3 will go into orbit in 2015, baring any unforeseen circumstances.

Ahmed-Rufai underscored the economic benefits of the project, saying that over 400 million U. S. dollars will be saved by the country from bandwidth importation from the U. S.

Concerns have, however, been expressed by some observers over how NigComSat would function, when there were some other indigenous Internet Service Providers (ISPs) like Glo-1 and Main-1 already existing.

Ahmed-Rufai said there was no problem with that  as NigComSat Ltd was in a partnership with the service providers, to uplink them to the satellite.

“Once we take the content from Lagos to the satellite, then we would be able to have broadband to home everywhere that we have footprints; not only in Nigeria but the whole of Africa, parts of Asia and some European countries.

Reiterating the benefits of the satellite in terms of revenue accruals, Adajah said that there was no doubt, whatsoever, that NIGCOMSAT-1R, when launched, would rake in enormous revenue for the country annually.  President, Information Technology Association of Nigeria (ITAN), Mr Jimson Olufuye, said that the global ICT industry was worth four trillion U.S. dollars, with 58 per cent of that amount accruing from communications alone.

“Close to a third of the world’s population is now on the Internet and more than three-quarter on mobile subscription. Social media is transforming socio-political order,” he said.

He pointed out that presently, about six per cent of the global Internet penetration was in Africa, while 40 per cent of Africa’s internet users came from Nigeria. The figures, he assured, were bound to rise once the new satellite became operational in orbit.

Olufuye pointed out that ICT had great impact on the Gross Domestic Product (GDP) of any nation and the potential of taking people out of poverty.

“As the nation begins the countdown to the launch date, the general expectation is that the satellite replacement will be successfully delivered into the earth’s orbit, to boost the nations’ technological and economic transformation.

Nwoko writes for News Agency of  Nigeria (NAN).

Ifeanyi  Nwoko,