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Subsidy Agreement Delays InfraCos’ Service Rollout

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The inability of federal government to workout subsidy agreement with licensed infrastructure companies (infraCos) for the deployment infrastructure expected to assist in transmission of bandwidth capacity is delaying their take-off, Nigeria Communicationsweek has learnt.

 

InfraCos are licensed to provide Layer 1 (dark fibre) services on commercial basis; focus on the deployment of metropolitan fibre and provide transmission services, available at access points (Fibre to the Node or Neighborhood – FTTN) to access seekers.

 

They can also leverage existing inter-city fibre to deploy their services; purchase/lease transmission or long haul fibre capacity from other providers, where available, for the purpose of interconnection.

 

Prof. Umar Danbatta, executive vice chairman, Nigerian Communications Commission (NCC), who disclosed this at the side line in Lagos during a media interactive session, said that the InfraCos licensed more than two years ago are yet to rollout services because of the delays in signing subsidy agreement with government which is a motivation for them to rollout service.

 

He explained that the InfraCos are faced with the challenge of ‘Right of way’ approval in some states. He cited FCT where the administration in the city has set up joint technical committee to work-out a way to address ‘Right of Way’ issues in FCT which has lingered for some years now.

 

He urged for the review of the present cost of N145 per meter of fibre as prescribe by the federal government to a more realistic cost as well as make any agreed cost national as against a situation where every state charge differently.

 

“If we can borrow from Kaduna State which has gazetted its cost at N800 per metre of fibre in the state will be good. However, a review panel is ongoing to come up with a new rate that will have a national outlook instead of individual states coming up with high rate,” he noted.

 

Engr. Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), said that InFraCo licenses were created to address the neutrality in accessibility, affordability and availability of undersea fiber into the hinterland that was the missing piece to ensure that ubiquitous broadband infrastructure can be made available to the masses.

 

“What we witnessed and the records are there for all to see, is the numerous delays and slowing down of government to assist in the realization of the implementation – without government’s full buy-in, there were mixed signals sent to the investment community as to exactly how this was going to be realized. So, in 2018 we are still yet to witness any rollout of any fiber by the two InfraCo operators that were licensed in 2015-16,” he said.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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