Rollout Services or Lose Licenses, NCC Tells Infracos

Infrastructure Companies (Infracos) must roll out visibly in one year after issuance of the licence, or they have their licences withdrawn, according to Umar Danbatta, executive vice-chairman, Nigerian Communications Commission (NCC).

Danbatta said that the commission attained a milestone with licensing of four infracos in line with the recommendations of the National Broadband.

NCC recently licensed Zinox Technology Ltd. for South-east and Brinks Integrated Solutions Ltd. for North-east and had earlier licenced MainOne Cable Company Ltd., which should provide services in Lagos Zone and IHS, which is to cover the North-central zone including Abuja.

“These infracos must roll out visibly in one year after issuance of the licence, or the NCC withdraws the licences,’’ the executive vice-chairman said.

He said that the NCC had also introduced a subsidy for the infracos to be given to them on attainment of deployment milestones.

As regards mobile money payment system, Danbatta identified security as a challenge to the system.

He said that networks in Nigeria were not as secure as they should be, adding that stakeholders were concerned about it.

Danbatta said that inclusiveness was one of the strategies of the National Broadband Plan.

“There should be an arrangement that the rural populace has equitable access to telecom service. Discussions are ongoing to see how we can overcome the security issue in service penetration.

“Kenya had 60 per cent penetration; Ghana has 40 per cent, while Nigeria’s service penetration is nowhere near these figures.

“The reason for the low service penetration in the Nigerian model is because it is bank-driven, and one of the challenges is security,’’ he said.