Harsh Environment: Experts Ring Worry, NCC Assures

Telecommunications operators have painted a gloomy outlook for the sector over the next 18 months urging for urgent underpins to ensure the survival of the only thriving sector of Nigeria’s economy hobbled by years of mismanagement and neglect, Nigeria CommunicationsWeek can report. With so many issues hanging in the balance including; poor quality of service (QoS); multiple taxation; vandalisation of telecom equipment; and the notoriously unreliable public power supply, the operators warned of uncertain future. But as the operators bemoan the operating environment, the Nigerian Communications Commission (NCC) indicated that a number of licenses would be auctioned this year, painting a reversed viewpoint of the sweet sour nature of the industry. Titi Omo-Ettu, president of association of telecom companies of Nigeria (ATCON) submitted at a one-day stakeholders’ submit convened by the NCC, in Lagos at the weekend that mobile operators expend an incredible N45.9 billion (approximately $2.9B) annual bill on diesels in running power supply to their infrastructure. Omo-Ettu, whose “Critical Issues of Quality of Service & Tariff in immediate future of Nigeria’s Telephone Services’ presentation received wide acceptance from the participating audience waxed worriedly. His words: “Telephone Operators use 25 million litres of diesel monthly to fuel 20,000 generators located at over 15,000 cell sites in the country. At a current pump price of N153 per litre of diesel, operators will spend N3.82bn to fuel their generators monthly”. Elsewhere, Ms. Funke Opeke, CEO of MainOne Cable Company, pioneer open access undersea fibre optic cable system in West Africa noted that the NCC needs more regulatory authority to ensure a framework for shared infrastructure in the country. She noted that some operators were unwilling to share critical telecom infrastructure with other operators, hence the cost of carrying bandwidth from Lagos to Abuja in the North of the country was more expensive that same ratio from London to Lagos. Opeke said that Nigeria cannot attain the envisaged rank of a top 20 economy by the year 2020 without attaining the right infrastructural goals to attract critical investment to the economy. Also, Gbenga Adebayo, president of association of licensed telecommunication operators of Nigeria (ALTON), said one way of resolving the challenge pose by the poor QoS was to regig the NCC to a ‘one-stop-shop’ for telecom investment. “This new framework need be transparent in operation, set approval time-limit for application. There also needs be extensive public education; and more importantly, the passage of a critical national infrastructure law – protection of telecom infrastructure and investment is needed to drive the next phase of development,” said Adebayo. Despite the litany of complaints, the NCC reeled out some cheering news aimed at reinvigorating the sector. Dr. Eugene Juwah, executive vice chairman and CEO of NCC, stated that inspite of poor QoS issues making the top headlines in the country, “definite measures,” are being taken to bring down the situation. “One of such measures is the recent approval and gazetting of the QoS regulations by the Federal Ministry of Justice. This will strengthen the NCC to take some severe measures when services providers are found wanting,” said Juwah. Juwah stated that Broadband development will be vigorously pursued to enhance competitiveness in the telecom sector and bring down pressure on mobile operators. The more cheering gist was intended resuscitation of the moribund fixed line segment of the telephony industry. “We are also looking at resuscitating the fixed line sector by giving out new licenses and in doing this, increase telephony penetration. The choice of this twine action, we expect, will enhance choice of products and services, reduce over reliance on mobile services and encourage internet usage, which is the future of ICT,” said Juwah.