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Patronage, Multiple Taxation Hobble Broadband Network Expansion

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Lack of state governments’ patronage of broadband services to enhance their operations of governance as well as multiple taxes have been identified as major obstacles to broadband expansion drive of telecommunications operators.

 

Myke Ofili, general manager, Coloplus Nigeria Limited, explained that expansion of broadband network of operators does not require building of physical infrastructure such as towers but expansion of existing network through laying of fibre and upgrade to deliver broadband services.

 

He noted that most state government are reluctant in buying into operators broadband services required to enhance online service delivery of governance.

 

“State governments can approach operators to lay fibre around their state which will enhance broadband service for their citizens to access government services online. Forensic audits are made possible with ubiquitous broadband service in a state among other services. These are in addition to right of way issues and multiple taxes that have made business environment in most states non conducive for operators to invest their money in expansion,” he added.

 

He commended operators over their recent efforts in extending coverage to rural areas through the support of Universal Service Provision Fund (USPF) of federal government.

 

“There has been a lot of drive towards expanding coverage to underserved areas with the assistance from government. They are doing this to help government because providing telecommunications services to rural areas is not commercially viable,” he said.

 

Also responding, Engr. Ike Nnamani, first vice president, Association of Telecommunications Companies of Nigeria (ATCON) identified funding as a challenge to operators’ quest to expand their network for broadband services.

 

“Source of funding for building of telecommunications infrastructure has been a challenge for operators as Nigerian banks are not willing to give operators long term long loan and foreign investors are sceptical on investing in the country because of bad image of the country. It is against this backdrop that MTN Nigeria and Airtel are listing in Nigeria Stock Exchange to get fund for network expansion among others,” he said.

 

Engr. Samuel Adeleke, managing director, Steineng Ltd, said: “As an operator in the market, I’m unwilling to invest in the telecom space because of the present climate. Mobile operators are behaving as if the market is saturated; they are looking at bulk of the population in the urban areas that have been covered and turning away from potential 80% of rural dwellers that are yet to be penetrated.

 

“There is no urge for them to invest in providing coverage to 80% rural dwellers that are unpenetrated like they are investing in providing services to the financial sector, instead operators are busy upgrading their networks from 3G to 4G not making available data for the technology,” he said.

 

 


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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