Nigeria-based Voix Networks Ltd plans to deploy a reliable fixed-line service that will provide high-quality and affordable connectivity in Nigeria. Nelly Nyagah interviewed managing director Emeka Onyeama to find out the progress Voix Networks has made so far in deploying critical infrastructure.

What are the benefits of having an extensive fixed-line network in Nigeria?

The benefits of a fixed-line network in Nigeria cannot be over emphasised because right now we don't have this kind of service to support growth, particularly in e-commerce. Services taken for granted elsewhere such as 'point of sale' terminals for credit-card transactions are not fully operational yet Nigeria is a huge economy, where millions of dollars circulate in the economy on a daily basis.

A reliable fixed-line network can help eliminate instances of criminal activity associated with mobile phones and can also lower the cost of basic communication, which is currently very high in Nigeria. For instance consumers are paying very high fees via GsM networks that could be reduced by up to 60% if carried on fixed lines. Key growth areas for the fixed-line market segment in the country lie in e-commerce and social security.

How has the tremendous growth in Nigeria's mobile market affected the fixed-line segment? Which survival strategies have fixed-line providers adopted?

The only reason wireless service providers are currently having a field day in Nigeria is because there is no reliable fixed-line service network, which can obviously provide better quality and cheaper rates for services.

Voix Networks' survival strategy lies in the deployment of a multi-faceted infrastructure - that does not solely depend on voice. Another strategy we are adopting is the deployment of fibre-optic cables. The availability of high-speed broadband network means consumers are able to access high-speed data through a fixed-line service.

Is the migration of traditional fixed-line operators to fixed-wireless technologies the way forward?

No. In this part of the world there are various existing variables that go against wireless operations and as long as those issues exist, the cost of services is higher on fixed-wireless networks. Fixed-wireless technology is not the way forward for any growing economy.

A market study published this year by Technology Strategies International predicted a positive outlook for investors interested in Nigeria's fixed-line market, due to the low number of fixed-line connections and also the arrival of several undersea cables in 2010 and 2011. What is Voix Networks' long-term plan to capitalise on the existing gap and the expected positive developments in the ICT sector?

Voix Networks' long-term plan lies in infrastructure deployment, which is going on right now. Voix intends to capitalise on the existing gap as quickly as possible by deploying infrastructure in key areas notably in Abuja and Lagos, and then the rest of the country. Commercial premises are a priority target for our first-stage network because it is the customer group that has the highest commercial rationale for using a high-speed fixed line. Hotels, embassies and private residences present another key market for us.

The arrival of undersea cables in Nigeria will enable Voix Networks to capitalise on the downstream market by deploying infrastructure to service various groups of consumers. This will strategically place us in a position to take advantage of any emerging technology in the future.

The undersea cables are expected to bring a bandwidth boom in Nigeria. Can this development make the country a major supplier of bandwidth in sub-Saharan Africa? What kind of investment would be needed to enable Nigeria's trade in bandwidth, and particularly to the land-locked countries?

Given the number of submarine cables expected, Nigeria could become one of the leading suppliers of bandwidth in the West African region, and indeed the rest of Africa. This kind of development would not only enable end users to access the Internet at international broadband speeds, but would also create huge opportunities for players in the upstream and downstream sectors. Nigeria would, however, need to first invest in appropriate technology and a cross-national terrestrial fibre backbone that can service landlocked countries in the region.

Regarding Nigeria's challenging business environment, how have you gone about trying to allay the fears of potential investors in Voix Networks?

We are looking to raise up to $50-million to support client take-up on our current network that went live in May this year, as well as to begin the next stages of our network deployment, which will enable us to extend our services countrywide. Accessing new debt at this time can be very challenging for businesses worldwide, and particularly in Nigeria where most investors in the telecommunications sector are focused on the mobile market segment.

I believe that the lack of a reliable fixed-line broadband network that can provide high-quality and affordable service, is a lucrative opportunity that should attract investors, despite the challenging business environment in Nigeria. The federal government, which is very accomodative to investors, is working to address the critical state of the infrastructure and power sectors. Resolving these challenges will definitely encourage the much-needed investment into Nigeria's non-oil sectors of the economy.