Nigeria has commenced with the second phase of the process of licensing infrastructure companies in five geo-political zones - North East, North West, South South, South East and South West zones - based on the Open Access Model for fibre-optic network deployment.

According to the Nigerian Communications Commission (NCC), which is handling the Request for Proposal to invite interested applicants, the Model has been examined and found to be appropriate for fibre optic backbone infrastructure.

The regulator expects to address the challenges of congested transmission network, infrastructure sharing and rights of way issues. The infracos will deploy metropolitan fibre infrastructure within an assigned territory on an open access, non-discriminatory, price regulated basis.

Generally, the Model is to help provide open access to everybody under the same conditions. It also encompasses competition because it structures the industry into primarily two layers: the wholesalers and retailers. However, in the Nigerian context, the Model incorporates an additional clause that the environment will be regulated price-wise by the regulator.

When the Model was introduced in 2013, the National ICT policy placed internet penetration in Nigeria at 28% and broadband penetration for both mobile and fixed broadband estimated to be 6.1%. An approximate 56% of the 774 Local Government Areas (LGAs) had backbone optic fibre at the time.

Licensing infracos is a precursor to the expected broadband revolution in Nigeria based on the NCC's broadband plan which was later adopted as a national broadband roadmap.

The first phase of the project which is also expected to help address the challenges of fibre deployment in towns to enhance pervasive Internet penetration, was done in 2014. MainOne Cable won for the Lagos area and IHS grabbed the licence for the North Central. Their rollout was delayed for over a year based on NCC's insistence to improve certain aspects of the license.

In this second phase, NCC notes that the Nigerian government will provide financial support in the form of subsidy, which shall be competitively determined to facilitate the rollout obligations.

Submissions of bid documents have to be completed no later than 15 December, 2016 and bid opening will commence immediately.