Telecom operators meet Reps, seek intervention on sector’s woes

• Decry lack of permit to roll out infrastructure in Abuja
• Want approval to increase cost of services, cut in multiple taxations

Telecommunications operators have asked House of Representatives to intervene on some of the challenges confronting Nigeria’s $77 billion telecoms industry.

The telcos, under the aegis of Association of Licensed Telecoms Operators of Nigeria (ALTON), met at the weekend with the House Committee on Communications, led by the chairman of the committee, Peter Akpatason, and deputy chairman and clerk, Mrs. Bukola Ayeni.

The operators were led by the chairman of ALTON, Gbenga Adebayo.

In a document presented at the meeting, a copy of which was obtained by The Guardian, yesterday, they listed areas of concern as: refusal of the Federal Capital Development Authority (FCDA) to grant build permit for infrastructure roll-out to service providers in Abuja; non-passage of the Critical National Information Infrastructure Bill into law; multiple taxation; and non-review of pricing regulatory framework, among others.

ALTON explained that provision of telecoms service in Abuja has been hampered by the refusal of FCDA and Abuja Metropolitan Management Council (AMMC) to permit members to build sites.

Adebayo said despite concerted engagement, FCDA has insisted that due to the need to maintain the Abuja Master Plan, it would not grant approval to telecoms operators to build new sites. He noted that telecoms services depend on terrestrial infrastructure. And without these, quality of service cannot be guaranteed.

He said: “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.

“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 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 other highly regulated sectors, such as power and insurance, have implemented price increases over the last year. He said insurance prices have risen 200 per cent, with power hiking prices by over 40 per cent.

He added that telecommunications is the only sector that has not experienced a pricing regulatory framework review, notwithstanding local and global macroeconomic realities.

Adebayo, who pleaded for reduction in about 49 different taxes imposed on the industry, said: “The impact of increase in diesel cost is dire for telecommunications operations, particularly for our members in the collocation segment.

“The 300 per cent increase in diesel cost, which was implemented at the beginning of the year, humongous indebtedness in the industry, lack of access to and increased rate of foreign exchange to service their operations, dire levels of insecurity across the country with increased theft and damage to our members’ sites, have all prevented members from running their business efficiently and profitably.”