Telecom
FG, Bayelsa Sign MoU with on Smart State initiative
A Memorandum of Understanding (MOU) has been signed between Bayelsa state and the Ministry of Communication Technology making Bayelsa a Smart state, an initiative being promoted by the Ministry of Communication Technology and the Broadband Council geared at engaging governors and relevant authorities at the state and federal level to address the issue of multiple taxation impeding the acceleration of the roll out of critical infrastructure across Nigeria.
The main aim of the Smart States initiative is to ensure that effective measures are adopted to remove arbitrary charges and eradicate multiple taxations across the nation.
Bayelsa is one of the Smart States selected by the Broadband Council to facilitate ICT infrastructure rollout critical for development.
Other Smart states selected by the Broadband Council include Anambra, Gombe, Katsina and Ondo. Lagos has already reduced ROW charges by 85%.
The MoU was signed during the Bayelsa State Investment and Economic Forum held over the weekend in Bayelsa.
Dr Omobola Johnson, minister of Communication Technology at the BSIEF 2014 Forum in Bayelsa made a Presentation on ‘Technology Infrastructure & eCommerce Growth’.
She highlighted the current scenario and future opportunities in the Nigerian ICT Industry, the growth prospects, primary drivers and factors influencing adoption of e-commerce in Nigeria and the Communication Technology Ministry’s role in facilitating ICT development and e-commerce growth in Nigeria.
Emphasising the role States play in ICT play in enabling speedy infrastructure deployment, Dr Johnson urged Gov Seriake Dickson of Bayelsa state to focus on ICT infrastructure development in the state by waiving Right of Way ROW for two years, making it easy for fibre to be built in Bayelsa by reducing multiple taxation, enabling new roads being built or rehabilitated in the state to have fibre duct infrastructure, assign a single agency to collect levies, taxes and fees on behalf of the state and protect ICT infrastructure in the state.
Governor Dickson at the event immediately pledged a 50% reduction in ROW charges and the setting up of a single agency to administer the collection of all taxes and levies in Bayelsa.
He promised that the state is proud to be selected as a Smart state and will put in place all the necessary measures needed to make Bayelsa a model ICT state in Nigeria.
Recall that the Ministry is working to ensure that the bottlenecks that mitigate service quality delivery are removed.
To tackle quality of service issues in the industry, the Ministry in partnership with the Ministry of Works developed new Right of Way RoW guidelines for Federal Government roads to enable operators have unencumbered means of laying fibre optics which is critical for infrastructure development and quality of service.
To remove arbitrary charges and eradicate multiple taxations that impede telecoms development across the nation, the Ministry for the first time in the history of Nigeria’s telecoms revolution got state governors and relevant authorities at the state and federal level to address the issue of multiple taxation and adopt measures that will remove arbitrary charges and eradicate multiple taxations to enhance service delivery across the nation.
A landmark agreement with the Lagos state government facilitated by the Ministry was brokered to address issues of RoW, base station deployment etc. Cost of RoW was slashed from 3000 to 500- a reduction of 85%.
The Ministry is working replicate this in other states by convincing other state governors and relevant authorities at the state level to eliminate multiple taxation and adopt measures that will remove arbitrary charges and enhance telecoms service delivery.
An assessment of the deployment of ICT infrastructure revealed that almost 70 percent of deployment cost was spent on processing ROW; taxes and levies on infrastructure, which makes the landmark agreement with the Lagos State Government even more significant.
The ministry strongly believes that the elimination of multiple taxes will result in cost effective, accelerated and massive deployment of ICT infrastructure across the country, which will enhance quality delivery issues currently being experienced by telecoms subscribers.
The accelerated deployment of ICT infrastructure, cannot be done without due consideration for the environment. The industry has been plagued with inter-agency conflicts and unduly long approval processes in ensuring that laid down standards are adhered to.
The ministry further committed itself to maintaining environmental standards and fostering inter-agency cooperation when it reached an Agreement with the Ministry of Environment and National Environmental Standards and Regulations Enforcement Agency (NESREA) on the construction of Base Transceiver Stations (BTS).
Telecom
Suspected Lakurawa Terrorists Kill 3 Telcoms Workers in Kebbi
Terrorists belonging to Lakurawa group have reportedly killed three staff of a leading telecommunication firm.
The insurgents were said to have invaded a construction site at Gumki village in Arewa Local Government Area of Kebbi State.
The bandits reportedly attacked a construction site at Gumki village in Arewa Local Government Area of Kebbi State when their victims were installing a surveillance mast for the Nigeria Immigration Service and killed them and one other person who is yet to be identified.
There was a conflicting report of which organization the victims belonged as the police said three of the deceased were Airtel staff and the residents identified them to be Immigration staff.
A staff of Sir Yahaya Specialist Hospital however corroborated the villagers, saying the three victims brought to the hospital were Immigration staff.
But SP Nafiu Abubakar, police spokesperson, said four persons lost their lives, one indigene and three staff of Airtel.
He said from the report the police got, Bello M Sani, state Commissioner of Police, alongside with CIS Muhammad Bashir, Comptroller, Nigeria Immigration Service, Kebbi State Command, Lawali mobilized their men to the scene to evacuate the corpses to Sir Yahaya Memorial Hospital in Birnin Kebbi.
He said his CP has deployed additional tactical teams to the area and charged them to decisively deal with the suspected bandits operating in the area.
He said the CP also had meeting with people in the area and appealed to them to always assist the police and other security agencies with relevant information for their prompt response.
Telecom
Nigeria Has World’s Most Affordable Data Costs – GSMA
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Telecom
Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
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