…As stakeholders demand govt’s active support

By Juliet Umeh

The Association of Telecommunications Companies of Nigeria, ATCON, have called on the Nigerian Communications Commission, NCC, for more support as over 568 Internet Service Providers, ISPs licensees’ licences have become inactive.

According to the umbrella body, the collaboration will ensure growth and sustainability on the services of ISPs.

This call was made during the panel session at the Telecoms Sector Sustainability Forum organised by Business Remarks media platform held recently.

Chief Executive Officer of Dotmac Technologies, Mr Michael Ayoade tasked ATCON for more advocacies as regards issues militating against their survival and growth in the industry.

According to Ayoade, ISPs are charged a higher rate than others for Right of Way in most states. Using Lagos State as an example, he said licensed operators pay a cheaper rate compared to ISPs, who are charged 10 times more than the agreed N145 per meter rate linear for RoW.

He said ISPs lack unified backup to fight their cause and push for the agreed rate from the state government and taxes demanded by the Federal Inland Revenue Service, FIRS.

He emphasized that without ATCON speaking for them in the industry, the cost overhead carried by individual company for survival will eventually lead to their untimely death.

FiberOne Broadband Head of Sales and Marketing, Mr Kehinde Joda stated that multiple taxations, high cost of RoW, and operating in silos kill small businesses in the ISPs sub-sector.

Speaking further during the panel session, he said although there is excess capacity landing at the sea shores, there is a need for last-mile internet connectivity in the hinterlands. He also decried the high cost of fuel, vandalism, activities of street thugs, and disruption of mobile network operators, as part of the challenges ISPs face.

“There will be healthy competition, pricing and collaborations if the Nigerian Communications Commission can make the right policies for ISPs sustainability,” Joda noted.

Also, Managing Director of MangoNet Integrated Technologies, Mr.  Tony Emoekpere, said the ISPs sub-sector is too fragmented to scale up. He berated the fact that ISPs players are close to 1000 in number. Emoekpere said this shows that indigenous players do not understand the market terrain.

“Local content is a real challenge. The telecommunications business is a long-time investment which requires continuous investment and pressure to upgrade infrastructure.

FiberOne Broadband Head of Sales and Marketing, Mr Kehinde Joda stated that multiple taxations, high cost of RoW, and operating in silos kill small businesses in the ISPs sub-sector.

In her opening speech, the convener of the Forum and Managing Editor of Business Remarks, Mrs. Bukola Olanrewaju said: “Over the years, studies have shown that the licence renewal rate of ISPs in Nigeria continues to drop, even as others take up the licence. In view of the critical need for internet connectivity for the digital economy and for mass digitalisation of Nigeria, the role of ISPs is central also for uptake of internet of things (IoT).”