Emeka Aginam
19 November 2008
The current monopoly in the provision of Internet Access services to MDAs by the Galaxy Backbone has been faulted by the National Council of the Information Technology (Industry) Association of Nigeria (ITAN).
ITAN in a letter to the President dated 7th November, 2008 stated among other things that the federal government should intervene the current posture of Galaxy Backbone Plc monopoly as the exclusive provider of Internet Access services to its Ministries, Departments and Agencies,( MDAs)
The appeal letter jointly signed by the ITAN President Jimson Olufuye and Yunusa Yau Secretary-General respectively which was copied to the The Senate President, The Speaker Federal House of Representatives, The Secretary to the Government of the Federation
The Honourable Minister Ministry of Finance, The Honourable Minister Ministry of Science and Technology, The Honourable Minister Ministry of Commerce & Industry and The Governor Central Bank of Nigeria stated that, "Galaxy Backbone is a company set up with public funds and is now constituted into a monopoly to solely provide ICT services to MDAs particularly on the provision of Internet Access Bandwidth, e-Government and other contents"
In the letter, ITAN believes that setting up such a monopoly will create imbalances in the economic sphere of the country for the following reasons;
*It creates an unlevel playing field for all stake holders in the industry.
*Creating a monopoly using government funds in an era of de-regulation and competitiveness negates the reform policies of government.
*The monopoly created for Galaxy Backbone denies several of our members and hundreds of non-members engaged in similar business their legitimate livelihood.
*Such monopoly will not only challenge their businesses but potentially put several thousands of Nigerians out of work.
*It challenges the underlying principles of free market and free competition in a manner that vigorously negates the world wide accepted principles of "anti-trust".
"It is a well known fact that the government is the largest buyer of goods and services in our economy. Setting up such a monopoly is inimical to the underlying principles and philosophies of our young but vibrant democracy. It seriously puts in jeopardy the resultant reforms and deregulations that we as Nigerians and as an association admit has led to the development of a vibrant and growing economy in the last 9 years of our country's history.
"In the last 9 years, the combined efforts of your specific ministries and agencies and others have bestowed on this country the rapid development that we have seen. Even we in the private sector acknowledge that the economy of this country has been the better for it. Deregulation and consolidation of the communication and banking sectors, just to mention two examples, have opened up our country's economy in a manner hitherto unprecedented. These gains must not only be appreciated, they must be commended, supported and not be allowed to fail or be reversed.
"You will therefore understand why we find it difficult so juxtapose philosophy and its resultant gains with the creation of a monopoly that not only challenges this philosophy and momentum but imminently stands to reverse the huge gains made in the last 9 years.
"For this reason, we as an association will like to urge your Excellency to kindly review this situation" the letter added
Although ITAN was not advocate the scrapping of Galaxy, seeing that it was set up to harmonize Federal Government's investment in IT & Services and as such reduce waste in this regard; the following were recommended in the letter.
*That galaxy backbone not position itself as a "SOLE PROVIDER" of Internet Access to government MDAs as it has been doing; rather
*Galaxy Backbone should serve within the limits and letter of its founding and that is to harmonise and coordinate Federal Government investment in IT infrastructure and services. It is NOT to be the provider and implementer of solutions but to facilitate it.
*If there be laws or government instruments in existence that formally confer such powers on Galaxy Backbone, that such laws or instruments should be reviewed.
*Being a company setup with tax payer's money, that Galaxy Backbone not be unduly favored in providing related services at the detriment of the other companies who not only borrow from the capital market, but who pay taxes to government, the same taxes that have been used to set up the company which now ironically poses a threat to these companies.
*That even when above issues have been resolved, that Galaxy Backbone, being a government company provide any such services as it may have through bonafide registered companies in the country that it may openly and competitively pre_qualify.
Meanwhile, ITAN is the association of IT companies in Nigeria servicing and adding critical values such as jobs to the Nigerian economy in the area of local assembly of computer systems, provision of IT solutions and services; and capacity building, software research, development and deployment. Our constitutional objectives include:
*The promotion of Information Technology literacy, penetration and usage in Nigeria *Negotiation with the Federal and State Governments and their agencies rates of import duties, levies and taxes payable for the importation and usage of computers and allied products.
*Representation of members of the Association in all negotiations and consultations with Federal and state governments and their agencies on computer technology (IT) and related matters.
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