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Telcos Decries High Tower Rentals Cost, Data Tariff

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High cost of tower rental as well as unregulated data price have conspired to hobble internet service delivery, according to some telecommunications operators and internet service providers.

Tower rental is a business strategy adopted by telecommunications industry where telecommunications infrastructure companies own and maintain towers and allow operators to use at a fee which are usual per annual.

Today, there are three major players in that space: IHS with 14,000 towers; Helios with 2,000 towers; and the new entrant American Towers Company (ATC) with 7,000 towers.

David Venn, chief executive officer, Spectranet, a 4G LTE internet service provider, told Nigeria CommunicationsWeek that the two key areas of challenge to internet service providers are data price and high tower rentals.

“Since the botched data floor policy of Nigerian Communications Commission, it has become difficult for ISPs and Telcos delivery internet service to operate profitably. We are seeking the review of that policy by the authorities to enable operators deliver quality service and continue to be in business.”

“Another biggest challenge we are facing today is cost of tower rentals which has continued to increase over the year. It is funny, that international capacity cost has reduced by 50 per cent while tower rental cost is increasing unabated. Imagine a situation where cost of tower rental in three times our salary cost,” he added.

He explained that the tower rental contract is usually signed for a period of 5 to 10 years with a clause of annual cost review based on inflation.

“Today, inflation in the country has risen by over 100 per cent necessitating the astronomical increase in the cost of tower rental in the country making the cost in Nigeria the highest in the world,” he said.

He noted that the failure of Multi-Link was as a result of tower rental indebtedness to a tower company-Helios Tower which eventually took over the company.

Sunday Folayan, president, Internet Service Providers Association of Nigeria (ISPAN), said that tower rental cost in the country will not be cheap as it is determined by some factors which include number of user on the tower as well as power and security provided in the base stations.

“I’m not surprise that tower rental cost is high because the cost of powering base stations with generators is high. If we fix power problem in this country every other thing will take shape,” he added.

Corroborating Venn on data price, Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON) added that the industry regulator needs to revisit the data price floor to determine the appropriate data pricing to ensure that investors have certainty in government policies in order for them to bring capital that will be used for infrastructure deployment required for broadband.

“This is important in view of 30 percent broadband target by end of 2018 which we have just over one year to achieve.  It is important that the industry sees government policies as one that creates an enabling environment for businesses to thrive so that investors can bring funds to invest for the development of the sector.”

Engr. Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) also called on NCC to revisit the data floor price determination in order to save and encourage small operators in the sector.

“Data floor price determination is meant for small operators not for big operators who will still survive with the present situation. We are trying to avoid a situation where CDMA operators died because of price war. If data price is determined, it will encourage small operators in the sector. We need to look at it beyond public sentiment and emotions around it and revisit the issue for the growth of the industry,” he said.

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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NCC: US Delegation‎ Visits Commission, Lauds Regulatory Strides

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(L-R): Prof. Umar Garba Danbatta, Executive Vice Chairman, NCC; Rachel Atwood Mendiola, Manager, U.S Embassy; Engr. Ubale Ahmed Maska, Executive Commissioner, Technical Services, NCC; Mudari Aliyu Dura

 

Nigerian Communications Commission NCC, Thursday, received a delegation from the United States Embassy in Abuja,

The team, led by Rachel Atwood Mendiola, Fraud Prevention Manager, United States Embassy, was received by the Commission’s Executive Vice Chairman and Chief Executive, Prof. Umar Danbatta and other top Management staff of the Commission.

The delegation was at the Nigerian Communications Commission’s Head Office to gain insight into the workings of the Commission and to commend NCC’s Management for its regulatory strides in sustaining the growth of the telecommunication industry in Nigeria.

 

Prof.Danbatta while addressing the delegation, recalled to the admiration of his guests some of the Commission’s efforts in ensuring effective regulation of the telecoms sector and providing an enabling environment for telecoms services to flourish, exponentially attributing the Commission’s successes to the faith reposed on it by the consumers and their unflinching loyalty.

 

And that is, the reason the Commission commits itself irrevocably to protecting the interest of consumers and all stakeholders in the industry.

He told his guests that, “NCC continues to be a strategic member and active participant in the activities of many bodies including the International Telecommunications Union (ITU), African Telecommunications Union (ATU), and the West Africa Telecommunication Regulators Assembly (WATRA).”

To demonstrate the resilience of the telecommunication sector even in the face of challenging economic climate, Danbatta stayed that the sector contributed about 9.5% to Nigeria’s Gross Domestic Product in the second quarter of 2017 and credited the Nigerian telecom consumers with the successes recorded because of their patronage.

The EVC/CEO of NCC said it is the faith the consumers have demonstrated in the sector that made the Management of the Commission to declare the 2017 as the Year of the Telecom Consumer to celebrate the primacy of the consumer and to rededicate itself to addressing the challenges of the consumer.

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NCC Ignores Telcos, Says No to OTT Regulation

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Prof Umar Garuba Danbatta, NCC’s executive vice chairman

Nigerian Communications Commission [NCC] has said it can’t regulate Over The Top Technology [OTT] for now, refusing the telecom operators’ call that the technology be regulated in the country.

 

OTT operators are firms like Facebook, WhatsApp, 2go, Instagram and others who ride on social media to reach their audience.

 

Prof Umar Garuba Danbatta, NCC’s executive vice chairman disclosed this Thursday when a delegation from the United States [US] embassy paid a working visit to the commission’s headquarters in Abuja.

 

‘’ The operators are saying we should do something about the OTT. That the OTT is riding on their infrastructure to make money and all other. But it will be very difficult to regulate OTT,” Prof Danbatta said.

 

According to him, though NCC understands the operators’ plight ‘’ the truth is that there is nothing we can do for now’’.

 

The NCC EVC, said he had interacted with head of telecom industry’s regulatory agencies in US and some other advanced economies and he was indirectly told that OTT couldn’t be regulated for now.

 

He also said NCC couldn’t regulate content in the social media as this falls within the jurisdiction of its sister regulatory agency, the National Broadcasting Commission [NBC].

 

He also told the US embassy delegation which was led by Rachael Atwood Mendiola to convince US investors to come and invest in Nigeria’s telecom industry as this is the best time to stake their money in the country.

 

‘’We want investors to come and invest in telecoms infrastructure across the country. I believe they will make their money in no time. Our investment environment is becoming friendlier, our security has improved greatly and the Federal Government had promised some number of incentives for would-be investors.

 

‘’ Plus we still have access gap. We still have about 200 locations across the country yet to have telecom services. This has cut off about 40million people, including people in my local government in Kano. So, investors can come in and take this opportunities.’’, he said.

 

But he said the NCC was working to see the access gaps blocked in the next two years.

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Nigeria to Increase Mobile Broadband Subscriptions to 50% by 2020

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NCC headquarters, Abuja, Nigeria

By peter oluka

Nigeria has disclosed plans to increasing the current coverage of the active mobile broadband subscription per 100 from 20.95 per cent to 50 per cent by 2020.

This was disclosed by Mr Bolaji Akinremi, minister plenipotentiary, Permanent Mission of Nigeria to the UN, while delivering Nigeria’s statement on ‘Information and Communications Technologies for Development’ at the UN General Assembly’s debate in New York.

Active mobile broadband subscription is the number of subscriptions to mobile cellular networks with access to data communications – like the Internet – at broadband downstream speeds of 256 kilobit per second.

Nigeria’s mobile broadband subscriptions per 100 inhabitants increased from 1.0 inhabitant in 2012 to 11.7 inhabitants in 2016.

Akinremi said Nigeria recognised the direct impact of Information and Communications Technologies (ICT) on the wellbeing of Nigerians.

“The Government of Nigeria recognises the reality that Information and Communications Technologies has direct impact on the nation’s ability to improve the economic wellbeing of its people.

“The Government of Nigeria is committed to facilitating universal availability and cost-effective access to communications infrastructure and promoting utilisation of ICT in all spheres of life.

“Nigeria is committed to achieving cutting-edge global ICT standards, encourage rapid ICT penetration among all socio-economic levels.

“The Government of Nigeria is also committed to increasing the current coverage of the active mobile broadband subscription per 100 from 20.95 per cent to 50 per cent by 2020.

“Nigeria is committed to promoting and encouraging local production of ICT hard and software so as to reduce import dependence and generate foreign exchange by exporting to the regional and continental markets”.

He said that involving developing countries in the ICT revolution would bridge the wide gap of access to information among people.

According to him, if the information gap keeps widening, the possibility of attaining sustainable development by 2030 is not certain.

“It is in this vein that Nigeria further calls on Member States to consider giving Information and Communications Technologies a pride of place in the education curriculum. By so doing, they will undoubted bridge the digital divide,” Akinremi added.

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