Mandate of the Universal Service Provision Fund Towards Bridging Digital Divide

This Article is aimed at analyzing the Universal Service Provision Fund’s mandate in bridging the Digital divide within Nigeria. The aim and objectives of the Universal Service Provision is to make ICT accessible, affordable and available to the underserved, unserved groups in Nigeria. The Universal Service Provision Fund first came into being when the Nigerian Communications Act was enacted in 2003, however it only became operational in August 2006 with the inauguration of its Board.

INTRODUCTION:

Access, availability and affordability are important concepts in Information and Communication Technology (ICT). The ability of individuals and groups to access and use Information and Communications Technology (ICT) is no longer a luxury but a necessity and a right. The modern world has advanced to a level which Technology is an essential aspect of the everyday life of a Nigerian.

Section 4(r) of the Nigerian Communications Act 2003 gives the Nigerian Communications Commission the responsibility of managing and implementing the Universal Access Strategy in accordance to the Federal Government’s policy and objectives.

In line with the provisions of the Act, The Universal Service Provision Fund (USPF) was established to facilitate the achievement of National policy goals for universal access and universal service of Information and Communication Technologies (ICTs) in rural, un-served and under-served areas in Nigeria. The Fund is being managed to facilitate the widest possible access to affordable telecommunications services for greater social equity and inclusion for the people of Nigeria.

CONCEPTUAL CLARIFICATION OF KEY TERMS

Universal Access

Universal Access basically means access for all people to be able to participate equally. In relation to Universal Service Provision; it is the availability, accessibility and affordability of Telecommunication and Information Technologies to the general populace. ?

This means that 100% of a designated population can obtain at a minimum, public access to a particular service at a specified quality, through reasonably available and affordable public or community services.

Digital Divide

The Digital divide refers to the gap in access and affordability of IT and Telecommunication services. Digital Divide can also be defined as the gap, or ‘perceived gap’, between those who have and do not have access to ‘information tools’ and between those who have and do not have the ability to use those tools. Nigeria’s digital divide refers to the inequality of Nigerian individuals or groups with regards to access to ICT infrastructure or to the internet for use within the Nigerian community.

Lack of digital literacy, poor electrical infrastructure, income, and urban drift and a variety of other social and political factors contribute to the growing digital divide. This unequal access to Information and Technology is a multifaceted issue that hinders human productivity and stifles macroeconomic growth. The division that ensues as a result of this inequality of access requires unique policymaking and strategic government intervention to bridge it.

LEGAL FRAMEWORK FOR THE ESTABLISHMENT OF THE UNIVERSAL SERVICE PROVISION FUND

a)?????? The Nigerian Communications Act (NCA) No 19 of 2003

Section 112 of the NCA 2003, provides – for universal service provision. The Act places on the Nigerian Communications Commission the responsibility of designing and determining a system that will promote widespread availability and usage of network services and application services in the country by encouraging the installation of network facilities and the provision of services to institutions, in unserved and underserved area as well as for underserved groups within the country. The Act authorizes the Commission to make regulations for the implementation of universal service provision, and to define ‘institutions’ ‘unserved’ and ‘underserved’ areas, and ‘underserved groups’ within a community. This particularly lends support to the reasoning that basic telephone services, such as publicly available telephone services, should be available to everybody upon reasonable request.

The Act provides for the Universal Service Provision Fund (USPF) in section 114 of the Act to be funded mainly from annual operating levies paid by operating companies and also gifts, loans, aids, and such other assets that may from time to time specifically accrue to the USP Fund. Section 115 provides for the establishment of Universal Service Provision Board that shall supervise and provide policy directions for the management of the USP Fund. The USP secretariat shall serve as the USP Board Secretariat. The USP secretariat shall be responsible for the day – to – day administration of the Universal Service provision.

The Act provides for the management of the Fund, which shall be managed by an independent and competent investment management firm.

b)????? Universal Access and Universal Service Regulation 2007

The Nigerian Communications Act 2003 empowers the Nigerian Communications Commission to make Guidelines and Regulations. Pursuant to its powers as stated under Section 70 and 120 of the Communications Act, 2003 the Nigerian Communications Commission in 2007 published the Universal Access and Universal Service Regulation.

Regulation 1(1) provides that the Regulations are made to provide a framework for the implementation of the design and objectives of a system of Universal Access and Universal Service.

Regulation 1(2) provides that the ultimate objectives of the system of Universal Access and Universal Service provision are to:

1. promote greater social equity and inclusion for the people of Nigeria; and
2. contribute to national economic, social, and cultural development of Nigeria.

Regulation 3 establishes the Universal Service Provision Fund in line with the provision of Section 114 of the Nigerian Communications Act 2003.

Regulation 4 generally provides for the overriding functions of the USP Board which include supervising and providing broad policy directions for the management of the USP Fund and the USP Fund Managers. The NCA 2003 confers on the President of the Federal Republic of Nigeria the powers to constitute an eleven (11) member USP Board.

Regulation 27 provides that in consultation with the Commission, the USP Board shall appoint an independent and competent investment management firm as Managers of the Fund.

Regulation 48 of the Regulation states that the USP Projects shall be awarded to one or more bidders, using a competitive selection process designed and implemented by the USP Secretariat in accordance with the Regulations.

THE ROLE AND MANDATE OF THE UNIVERSAL SERVICE PROVISION FUND

To implement the mandate of Universal Service Provision, the NCC has established the Universal Service Provision Fund (USPF). This fund is financed through contributions from telecommunications service providers, as well as other sources such as government grants and loans. The USPF is used to support the expansion of telecommunications infrastructure and services in unserved, underserved areas and communities of the country.

The USP using the Fund has also supported a number of programs and initiatives towards the goal of Universal Service Provision. These include the expansion of broadband internet access, the provision of mobile phone coverage in underserved areas, and the development of community communication centers.

MANDATE OF THE UNIVERSAL SERVICE PROVISION FUND

The mandate of the USPF as stipulated in the Nigerian Communications Act 2003, Part IV, Section 112 is to "promote the widespread availability and usage of network services and applications services throughout Nigeria by encouraging the installation of network facilities and the provision for network services and application services to institutions and in unserved, underserved areas or for underserved groups within the community.

The mandate of the Universal Service Provision Fund includes the following: -

• Create an enabling environment by raising public awareness on the uses and benefits of ICTs, building capacity amongst communities to participate in and take advantage of economic opportunities in ICT.
• Contribute to national economic and social development through enhancing the universal accessibility and availability of telecommunications and ICT infrastructure and services
• Facilitate the provision of infrastructural development to unserved, underserved and rural areas in non-discriminatory manner.
• Promote competition in ICT service deliveries.
• Promote technological innovation in ICT services delivery.
• Ensure effective utilization of funds to leverage investments in rural communications and promote greater social equity and inclusion for all people in Nigeria.
• Support the establishment of efficient, self-sustaining, market-oriented businesses, which will continue to expand access to ICTs infrastructure and services.
• Foster the adoption and use of methods of attaining greater universal access and universal service.

In achieving its mandate and effective utilization of its fund, the USP has listed guiding principles in assessing and implementation of its programs and projects:

• Co-location/Infrastructure sharing with other USPF service providers.
• Social Inclusion of vulnerable groups.
• Geographic Coverage of Nigeria.
• Promote Private Sector Investment.
• Encourage Competition and Promote Consumer Interest.
• Self-Sustainability of projects.
• Foster Economic and Social Development.
• Consultation, Transparency and Accountability.
• Quality of Service.

COMPLETED AND ONGOING PROJECTS OF THE UNIVERSAL SERVICE PROVISION FUND

At its inception in 2006, the USPF developed a 5-year Strategic Management Plan (SMP) covering 2007 – 2011 which focus area was expansion of ICT services in unserved/under-served areas and groups across the country.

In 2012, following the expiration of the first SMP, the Board and Management of the USPF developed a new 5-year SMP (2013 – 2017) which leveraged on the experiences and lessons over the past years. The programs of the Fund were designed and streamlined to focus on two broad areas – Access and Connectivity. Specific corresponding projects were also designed to be implemented under the programs.

The Nigerian Universal Service Provision Fund (USPF) was established in 2001 with the aim of expanding access to telecommunications services in underserved and unserved areas of Nigeria. Some of the successes of the USPF include:

• Expanding access to telecommunications: The USPF has funded a number of projects aimed at expanding access to telecommunications in underserved areas of the country. This includes the deployment of telecommunication infrastructure such as base stations, fiber optic cables, and satellite systems.
• Increasing connectivity: The USPF has helped to increase connectivity in Nigeria, especially in rural areas, by funding the deployment of broadband infrastructure. This has helped to improve access to the internet and other digital services, which can have a positive impact on economic development and social welfare.?
• Promoting entrepreneurship: The USPF has supported the development of small and medium-sized enterprises (SMEs) through funding programs and initiatives aimed at promoting entrepreneurship and innovation. This has helped to create jobs and stimulate economic growth in Nigeria.?
• Enhancing education: The USPF has funded projects aimed at improving access to education, including the deployment of educational content via satellite and the establishment of computer labs in schools. This has helped to enhance the quality of education in Nigeria and improve learning outcomes for students.

CONCLUSION AND RECOMMENDATION

Overall, the USPF has made significant progress in expanding access to telecommunications and promoting economic development in the country. Since its inception and beginning of its functionality, it can be concluded that vast improvement in the development of ICT has been seen in the telecommunication sector through the USPF carrying out its designated functions as well as projects (like the SMP as earlier mentioned) in the interest of facilitating the achievement of the national policy goals for universal access, availability and affordability across Nigeria.

However, the Universal Service Provision Board has to work harder and faster as the digital divide in Nigeria keeps getting wide by the day as new technologies that aid in the basic livelihood of citizens are invented.