Telcos Seek FG’s Intervention to Address Critical Industry Issues that Impede Telecoms’ Growth

Emma Okonji

Worried about some identified industry issues that are impeding growth of the telecoms sector, telecoms operators (Telcos), under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), has appealed to the House of Representatives Committee on Communications to support its drive for the federal government’s intervention in addressing the identified issues.

The Chairman of ALTON, Gbenga Adebayo during a visit to the committee presented critical issues that are negatively affecting growth of telecoms operations, and called for urgent government intervention to enable its members deliver better quality of service to the nation. 

According to Adebayo, the provision of telecoms service in the Federal Capital Territory (FCT) Abuja has been hampered by the refusal of the Federal Capital Development Authority (FCDA) and Abuja Metropolitan Management Council (AMMC), to grant permits to telecoms operators to build sites. 

“Despite concerted engagement, FCDA has maintained that due to the need to maintain the Abuja Master Plan, it will not grant approval to our members to build new sites in the Federal Capital Territory, Abuja. Telecoms services depend on terrestrial infrastructure and without the infrastructure in place, the quality of services cannot be guaranteed.

“In view of the huge investment towards deployment of telecoms infrastructure in the FCT, our members are indeed concerned about this development, given its significant impact on their ability to meet regulatory obligations and consumer expectations in the FCT. Given its position as the seat of government and host to several key functionalities of government, with an ever-increasing population, our members have been unable to match infrastructure deployment with the growth patterns and on-ground requirements of the FCT.  This is evidenced by unsatisfactory service reception within locations in the FCT, resulting in dropped calls and complaints of unsatisfactory service experience,” Adebayo said.

Telcos also complained of multiple taxation emanating from government agencies, which they said, had adversely affected telecoms growth.

According to Adebayo, ALTON’s members currently pay at least 49 different taxes and levies. “Additionally, our members continue to bear the brunt of multiple taxation and coerced compliance with tax and levy demands that have no legal basis by sub-nationals. This threatens investment, sustainability and industry growth,” Adebayo said.  

The Telcos also complained about non-review of pricing regulatory framework and called on members of the House Committee on Communications to issue policy guidance to the Nigerian Communications Commission (NCC) to commence implementation of targeted interventions, starting with an upward review of the Mobile Termination Rate for voice services and institution of an interim adjustment of the industry floor price for voice and data services, pending the conclusion of a cost study and issuance of a substantive pricing regulatory framework in this regard.

According to Adebayo, the cost of doing business in the country has risen sharply in the preceding months due to a myriad of factors generally impacting businesses including macroeconomic headwinds such as inflation, currency devaluation; sustained difficulty in accessing FOREX at an affordable rate; rising energy costs; the rising cost of securing telecommunications facilities and field personnel in the face of worsening insecurity, among others.

The Telcos therefore urged members of the House Committee on Communications to drive collaborative partnership with key stakeholders such as Office of the National Security Adviser (ONSA) to secure Executive and Legislative action on the declaration of telecoms infrastructure as Critical National Infrastructure (CNI) and criminalisation of malicious site sealing, access denials, and willful/negligent destruction of telecommunications infrastructure.

The Telcos suggested that it could be done either by an Executive Order or relevant amendment of the Cybercrimes Act; adding that an attempt was made by the immediate past National Security Adviser (NSA) to secure Presidential approval for an Executive Order (EO).