Telecoms operators, NCC disagree over InfraCos

The aim of the InfraCos, which was unveiled by the NCC last week, is to fast-track telecoms infrastructure deployment across the country.But the Association of Licensed Telecoms Operations of Nigeria (ALTON) has said that the InfraCos may be in for “serious challenges in achieving the regulatory mission for which it was set up.”Speaking at a […]

The aim of the InfraCos, which was unveiled by the NCC last week, is to fast-track telecoms infrastructure deployment across the country.
But the Association of Licensed Telecoms Operations of Nigeria (ALTON) has said that the InfraCos may be in for “serious challenges in achieving the regulatory mission for which it was set up.”
Speaking at a Telecoms Executive and Regulators Forum 2013 organised by the Association of Telecommunications Companies of Nigeria (ATCON) in Lagos, ALTON President, Mr. Gbenga Adebayo, who decried the various operating challenges being faced by exiting telecoms companies, said unless those threats were removed, the InfraCos might not have a peaceful sail.
Adebayo  said: “Until we address the issues that are peculiar to our industry in terms of the challenges we are currently facing as operators in our environment, most especially the problem of Right of Way and others, we would continue to have issues for a long time to come and new players are not shielded from these challenges as well.”
According to him, the “InfraCos are not likely to be immuned from the challenges and barriers we are facing and if we don’t address these barriers, I don’t see InfraCos surviving the tide of the operating environment.”
ALTON President stressed the need for NCC to intensify efforts towards resolving the Right of Way challenges, multiple taxations, vandalism as well as the need to recognise telecoms infrastructures as critical national security infrastructure with backing laws from the National Assembly.
However, the Executive Vice Chairman of NCC, Dr. Eugene Juwah disagreed with ALTON.
Juwah said:  “I disagree with the speculation regarding the survivability of the new licensees (InfraCos). In less than 10 years, Nigeria has become one of the fastest growing telecoms market in the world because of the competition we are creating in the industry.
“InfraCos are also going to compete just like other players. It would be a defeatist attitude to say that the InfraCos might not succeed. I was in London recently to discuss with potential investors who are willing to come to Nigeria to invest in spite of the challenges we claim to be having in the industry. Studies have also shown that Nigeria continues to remain an investors’ delight in the telecoms market.”
Speaking in the same vein, the Former President, ATCON and Chairman, Teledom International, Dr. Emmanuel Ekuwem, who suspected unease among the telecoms companies on the NCC’s plan to licences the InfraCos, cautioned the operators to be calm, saying the NCC move would benefit the country including the existing service providers.
“There is no point for the existing operators to be uncomfortable about the InfraCos because their coming will help the industry in the sense that while the new licensees focus on deploying infrastructures, especially to new areas not yet covered, the service providers only need to leverage such infrastructure to deploy services in a more cost effective manner,” he said.