Telecom
Lagos Withdraws New Charge on Telecom Masts
Lagos state government may have shelved its recently introduced service charge on telecommunications masts in a landmark gesture that will lessen the burden on operators in the state, Nigeria CommunicationsWeek can now revealed.
The state government had issued a directive through its Urban Furniture Regulatory Unit (UFRU) to telecom operators to pay service charge on all their masts located in the state after the memorandum of understanding (MOU) it signed with telecom operators.
The directive, Nigeria CommunicationsWeek investigations revealed did not go down well with Association of Licensed Telecommunications Operators of Nigeria (ALTON), the umbrella body of operators in the country, which cited breach to the MOU the state signed with it, as part of efforts to mitigate the challenges hindering the roll-out of telecommunications facilities across the state.
Nigeria CommunicationsWeek gathered that as a result, the Association last month wrote to the state Governor Babatunde Fashola complaining of the perceived breaches and stating its position of not complying with the said directive from UFRU.
The association also noted that such move by UFRU is capable of undermining the MoU it signed with the state government which has put her as the most telecom friendly state in the country.
A source from ALTON said that the state governor is yet to respond to its letter on the subject matter, but, Joe Igbokwe, general manager, UFRU confirmed to Nigeria CommunicationsWeek that his unit did send such directive and also has received the complaint from ALTON resisting to comply with the directive.
“ALTON said they won’t pay the service charge, we have left them. There is no problem,” he said.
It would be recalled that Lagos State government in January this year signed Lagos state government has signed a memorandum of Understanding with Association of Licensed Telecommunications Operators of Nigeria.
The MoU is expected to remove hiccups operators face on Right of Way (RoW) issues, while also checking cases of multiple regulation and taxation, as well as vandalism, among others
It also guides the deployment telecommunications infrastructure in the state.
Biyi Mabadeje, Ccommissioner for Science and Technology, Lagos State, said the MoU will enable telecommunications operators to deploy up-to-date network and rollout services to the benefit of consumers in the state.
“We are looking at development in the state which telecommunications infrastructure will drive. To this end, we have slash the approval fee for ‘right of way’ approvals by 85% to allow operators build quality network for effective service deliver for the benefit of Lagosians,” he said.
Gbenga Adebayo, chairman, ALTON, said that major problem of quality of service is deployment of infrastructure and that by the agreement the Association signed with Lagos State, the state has shown that development of telecommunications infrastructure assist in economic development.
He reaffirmed the determination of operators to deploy infrastructure in the state more than any other state in the country.
“Lagos will experience the best quality of service in telecommunications service delivery in the country within the next 6 to 12 months. This will make Lagos will become a smart city.”
He said that the MoU allows Lagos state to be apart owners of telecommunications infrastructure deployed in the state and also ensure a more healthy relationship between operators and Lagos state government.
He noted that the agreement has given telecom infrastructure first layer of protection by the state government, eliminate multiple approval in the state as all the necessary approvals have been streamlined.
“We have also agreed to co-share infrastructure and to deploy the most modern equipment in our network upgrade required to make the city a smart city it is aspiring to become.”
Association of Licensed Telecommunications Operators of Nigeria (ALTON) is planning to encourage geo-political regions that grants zero charges for ‘Right of Way’ approvals as well not implementing arbitrary charges on telecommunications base stations in their regions with zero tariff.
Engr. Gbenga Adebayo, chairman, ALTON disclosed this to Nigeria CommunincationsWeek against the backdrop of incessant closure of base stations in some states.
He said that operators believe that the way out of this arbitrary charges and high cost of RoW approvals is regional tariffs.
“Operators are advocating for a regional tariff which means that geographical regions of Nigeria where cost of doing business for telecommunications operators is extremely high will attract high tariff compared to regions where there is low operating cost.
“Our advocacy of regional tariff is not based on a particular state but on regions. As at today there are regions where we have zero cost of “Right of Way” and low cost of doing business. Tariffs should reflect on operating environment. This means that national rate plan should consider high and low cost of doing business.
“If this is implemented, in a long run we could witness some regions having zero tariff because operational cost in such regions are friendly to operators,” he said.
It would be recalled that Kogi State recently shut down some operators’ base stations on account of local levies which raises the call for discriminatory tariff among geographical locations.
Federal Competition and Consumer Protection Commission (FCCPC) has hit back at Meta Platforms Inc, warning the tech giant that its threat to exit Nigeria will not erase its legal responsibilities or liabilities under the Nigerian law.
Meta said earlier today, May 3, that it “may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures.”
Meta’s warning came after it lost a legal bid last week to overturn a ₦220 million fine imposed by the FCCPC for violations of data protection and consumer rights laws.
Reacting to Meta’s threat, FCCPC, in a statement on Saturday, May 3, described Meta’s statement as “a calculated” move aimed at “inducing negative public reaction and potentially pressuring the FCCPC to reconsider its decision.”
FCCPC said that Meta threatening to leave Nigeria does not absolve the company of liabilities for the outcome of a judicial process.
“These infringements included denying Nigerians the right to control their personal data, transferring and sharing Nigerian user data without authorisation, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies,” FCCPC wrote on X.
“Interestingly, Meta had been fined for similar breaches in Texas ($1.5b) and only recently was asked to pay $1.3 Billion for violating E.U. Data Privacy Rules.
Elsewhere in India, South Korea, France and Australia, Meta had faced varying penalties for similar breaches. But Meta never resorted to the blackmail of threatening to exit those countries. They obeyed.”
Meta may shut down its Facebook and Instagram services in Nigeria in protest against the substantial fines imposed by multiple government agencies.
The tech giant has been ordered to pay nearly $300 million in fines in Africa’s most populous nation, following regulatory demands which Meta described as “unrealistic.”
In July 2024, the Federal Competition and Consumer Protection Commission (FCCPC), imposed a $220 million fine on Meta for allegedly discriminatory and exploitative practices against Nigerian consumers.
The commission stated that Meta had failed to engage a Data Protection Compliance Organisation and had not submitted a Nigeria Data Protection Regulation audit report for two consecutive years.
Similarly, the Advertising Regulatory Council of Nigeria (ARCON), demanded $37.5 million over unapproved advertising, while the Nigerian Data Protection Commission (NDPC), announced a $32.8 million fine for an alleged data privacy breach.
Meta challenged the decisions at the Federal High Court in Abuja but was unsuccessful, as the court upheld the fines in a ruling delivered last week.
The court directed the company to comply with payment by the end of June, but Meta has indicated it may not do so, according to the BBC.
“The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures,” the company stated in court documents.
Responding to the NDPC’s assertion that Meta’s data processing could expose Nigerian users to health and financial risks, the company said the agency had failed to “properly interpret the laws guiding data privacy.”
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