Telecom
Government should provide subsidy for LTE deployment in hinterlands- Adeyeye
By peter oluka
Following the recent deployment of Fourth Generation Long-Term Evolution (4G LTE) network services in mainly in the cities of Lagos, Abuja and Port Harcourt, there are growing concerns on the inability of telcos and tier two service providers to replicate same feat in the hinterlands.
According to industry expert, Smile Communications with 800 MHz band spectrum operating a 4G LTE licence for nationwide coverage, it has the best spectrum to reach the rural areas.
But the odds against service providers are numerous.
In a recent interview with Nigeria CommunicationsWeek, Mr. OlusolaTeniola, the president of the Association of Telecommunications Companies of Nigeria (ATCON), suggested that reforms are needed in the telecom sector in a way that it identifies the opportunities that exists in truly exploring the emerging digital realm.
Nodding in agreement Mr. Aderemi Adeyeye, president, Enext Wireless Inc., traced the inability of operators to move to the hinterlands to lack of motivation or incentives from the government.
Although, the Nigerian Communications Commission (NCC) through the Universal Service Provision Fund (USPF) has tried to support the operators to meet the needs of the underserved areas, experts are of the view there are still economic bottlenecks facing the operators.
Adeyeye said in an interview with Nigeria CommunicationsWeek, “In my view, a company like Smile Communications, by the nature of its ownership structure, shouldn’t be expected to have a national focus at the present. Yes, they want to deploy services and make money in the process; I mean there is a very little money for them from the rural areas, so they focus on the cosmopolitan areas where they could make money.
“We started our work when only Smile had LTE for deployment in Nigeria. You can see the quality of their network going down because the customer base has increased, but they are not investing in improving the quality. At the early stage Smile stood out in terms of Quality of Service (QoS). In Victoria Island, for instance, it stood out. Now Glo, MTN and other service providers are focused on LTE in VI and you can see Smile’s quality nose-diving.
“When you have limited spectrum and want to attract a lot of customers, you either have to improve on the engineering so that the spectrum could accommodate more customers or you have additional spectrum you could use to service a segment of the customer base.”
“I think currently, they are focused on getting the most out of their current investment because they seem not to be improving on the engineering of the 10 MHz. We could see it from our data. The way Smile could go to the rural areas is if government mandated them, which might not be advisable.
“Also, they could be given subsidy to achieve that purpose. We also have Bitflux which has a bigger spectrum with 30 MHz bandwidth and its license is also nationwide, even though the frequency is high at 2.3 GHz.
But, to Teniola, Nigeria cannot afford to miss the new Industry 4.0 paradigm which dwells, solely, on digitization.
“We needia reform of the telecom sector in a way that it identifies the opportunities that exists in truly exploring the emerging digital realm.
“The funding of all this is a steeple chase hurdle to the realization of this new future and it requires continuous change in the way regulation and policies are formulated.
“Right now, we are undergoing consolidation in the market what we seek are for the Government to react quickly to these changes and adapt as the technology adapts to the new Industry 4.0. paradigm”, he said.
Telecom
Telcos Threaten to Shut Down Services in Some Parts of Nigeria over Tariff
Telecommunications operators in Nigeria have threatened to shut down their services in some parts of the country this year if their demand for tariff review is not considered by the Nigerian Communications Commission (NCC).
The operators under the aegis of the Association of Licensed Telecommunications Operators of Nigeria (ALTON) said this in a statement signed by Engr. Gbenga Adebayo, its chairman.
According to Adebayo, the survival of the telecom sector demands immediate and bold reform for its sustainability, adding that tariffs must be reviewed to reflect the economic realities of delivering telecom services at a minimum for industry sustainability.
“If nothing is done, we might begin to see in the new year grim consequences unfolding, such as Service Shedding; operators may not be able to provide services in some areas and at some times of the day leaving millions disconnected, there will be significant economic Fallout, because businesses will suffer from a lack of connectivity, stalling growth and innovation.
“There will also be National Economic Disruption where Key sectors like security, commerce, healthcare, and education which rely heavily on telecom infrastructure, will face serious disruptions,” Adebayo said.
Telecom industry is under heavy burden. Emphasising that without the tariff review, operators cannot continue to guarantee service availability, the ALTON Chairman said though the challenges being faced by the telcos are not new, they have become more acute and more threatening with this passing year.
He said that rising operational costs, skyrocketing energy costs, the relentless pressure of inflation, and volatile exchange rates, amongst others, have all placed an unsustainable burden on network operators. He said that despite these mounting pressures, tariffs have remained stagnant, leaving operators trapped in a financial quagmire.
According to him, the resources needed to maintain, expand, and modernise telecom networks are no longer available and without intervention, “the future of this sector is at grave risk.”
The ALTON chairman noted that stakeholders have done their best over the years to sustain the sector by upholding the values and importance of telecommunications in society.
“However, let me be clear: our work is far from over. It is not enough to have kept the sector afloat; we must now focus on securing its future. The sustainability challenges we face today are not just a passing storm—they are a clarion call for decisive action to ensure that this industry thrives for generations to come. Despite the dire warnings, we still believe that a better 2025 is possible—but only if we act now. Let this be the moment when we come together, acknowledge the urgency of the situation, and commit to saving this sector,” he said.
Telecom
Subscribers Say Telcos Cannot Hike Tariff Business without Consultation
Association of Telephone Cable TV and Internet Subscribers of Nigeria (ATCIS) has said that operators would not review tariff without consulting stakeholders.
ATCIS was reacting to fears to rumours that telecom operators were planning tariff increment early this year.
Recall the operators had threatened service disruption without an increment in tariff even as the operators await regulatory nod to effect an increase in tariff.
But Prince Sina Bilesanmi, national president, TCIS-Nigeria, said the association confirmed from the Nigerian Communications Commission (NCC) that there has not been an increment.
“ATCIS had written a letter to the NCC dated December 24th, 2024 requesting the Commission to clarify the new tariff increment proposed to be announced on December 13, 2024 as reported by the national daily and the online platforms, which they said would take off in January 2025.
“Firstly, there are procedures for tariff review like; cost study, consultation, enlightenment, engagement of Stakeholders like ATCIS being telecom subscriber advocacy body and all these requirements are not yet met by telcos,” he said.
He urged telecom subscribers not to panic, saying the NCC is the authorised body to announce tariff increment.
“The commission would have made an official statement regarding tariff increase. Therefore, people should disregard whoever said he is the spokesperson of NCC.
“Telecom subscriber members of the public should watch out for some unscrupulous reporters that are being used to destabilise the telecommunication industry. There’s no new tariff, and if such will happen every stakeholder would be carried along,” he said.
He assured that the association would not rest on its oar to ensure sanctity of information, saying their mission is to promote mutual co-existence, fair play and defend the rights of telecom subscribers.
Telecom
NCC Dismisses Rumours of Telecom Tariff Hike in January
Nigerian Communications Commission (NCC) has dismissed claims of a telecommunications tariff hike allegedly set to take effect in January 2025.
The Commission described the reports as false and unfounded, urging subscribers to disregard the misinformation.
A senior NCC official, emphasised that the regulatory body operates under a transparent framework guided by the Nigerian Communications Act, according to Punch Newspaper.
According to the official, this framework requires stakeholder consultations and strict adherence to due process before any tariff adjustments are approved.
“These rumours are baseless and misleading. The NCC is committed to protecting consumers and ensuring that any potential tariff changes are communicated clearly and transparently,” the official stated.
“Subscribers can rest assured that no tariff increase has been approved,” he added.
The NCC also appealed to journalists and industry stakeholders to verify information before publication, stressing the importance of accurate reporting to avoid unnecessary public panic.
Reiterating its commitment to consumer interests and the stability of the telecommunications industry, the Commission assured Nigerians that updates on tariffs or related matters would always be communicated through official channels.
The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) also addressed the rumours.
Speaking in Lagos, Mr Sina Bilesanmi, national president, ATCIS, stated that the association sought clarification directly from the NCC on December 24, 2024.
“The NCC confirmed there is no truth to claims of call charges increasing to N15.40 per minute from N11, SMS charges rising to N5.60, or 1GB of data costing N1,400 instead of N1,000.
“Any changes in tariffs, if necessary, will follow due process and involve input from all stakeholders, including ATCIS. There is no cause for alarm,” Bilesanmi said.
Both the NCC and ATCIS emphasised their commitment to consumer protection and urged subscribers to rely on verified information from credible sources.
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