Stakeholders worry over possible collapse of $76b telephony sector

•Task FG on CNI, NCC on tariff hike, others

Telecommunications bodies in the country have raised fear of a possible collapse of the industry if urgent measures are not deployed to tackle the perennial challenges confronting it.

Today, Nigeria’s telecoms sector, whose worth is put at about $76 billion, has connected over 300 million telephone lines, created over 15,000 jobs and paid taxes in trillions.

Indeed, the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), representing Mobile Network Operators and telecommunication companies in Nigeria, have called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.

In a statement jointly signed by Chairman of ALTON, Gbenga Adebayo and ATCON President, Tony Izuagbe Emoekpere, the associations underscored the urgent need for collaborative efforts between the public and private sectors to overcome obstacles hindering the sector’s growth and development.

According to them, ALTON & ATCON members still lack access to essential telecommunication services due to a myriad of challenges, including multiple taxation and regulations and prohibitive Right of Way (RoW) charges, inadequate electric power supply and vandalism of telecommunications infrastructure.

Advocating for legislation that designates telecommunications infrastructure as Critical National Infrastructure (CNI), both bodies expressed deep concern over the escalating security threats facing telecommunications infrastructure in Nigeria.

They explained that telecommunications infrastructure undisputedly plays a pivotal role in Nigeria’s national security and socioeconomic growth, especially as the country currently contends with multiple security challenges that require urgent and immediate actions in response to these threats.

The bodies noted that attacks on cell towers, fibre optic cables, and other critical assets disrupt telecommunications services and result in significant financial losses for operators.

The associations urge the government to prioritise the security of telecommunications infrastructure and collaborate with law enforcement agencies to enhance protection measures and combat vandalism and sabotage effectively.

On the need for a cost-reflective tariff of services, ALTON and ATCON respectfully reiterated that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.

According to them, despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last 11 years, primarily due to regulatory constraints.

“For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” they stated.

ATCON and ALTON called upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.

The bodies advocate for the sustenance of a culture of independence in the regulatory landscape to safeguard against undue influence and unwholesome incursion into the Nigerian Communications Commission’s (NCC) or (Commission) domain, which will inspire trust in the telecommunications sector and encourage investment.

“Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector. Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement noted.

ALTON and ATCON reaffirmed their commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

“By fostering a conducive regulatory environment, prioritizing infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria’s telecommunications sector, driving economic growth and societal development,” they stated.