The Chief Executive Officer (CEO), Rack Centre, Ayotunde Coker, has given more reasons why telecoms Infrastructure Companies (InfraCos) licensees may remain in the dark and dormant for years.
Addressing the press recently, he observed that several InfraCos had remained lifeless because the terms and conditions for access to highways for the laying of fibre optic cables which will deliver the needed last mile for broadband penetration.
In his lead submission, Coker averred that time has come for the Federal Government to give incentives that attract fibre services rather than imposing multiple charges that discourage investors.
He said “in emerging economies, it is actually about 2 to 2.5 per cent, and that depends on the broadband penetration level. But when you speak to the carriers, some states still want to charge fees for Right of Way (RoW).
While calling for outright removal levy on RoW, Coker recalled that “In our country, you have to import these technologies, and we pay customs duties of all kind depending on what aspect of it. There are two things, you are either going to price uncompetitive or you take margin cut. It is important that we make a fair margin on our investment. The fact is that you have to pay off your investment to be able to reinvest in the future. If you don’t get the ROIs, you can’t grow the technology fundamentals base.”
“The Association of Telecommunications Companies of Nigeria (ATCON) and Association of Licensed Telecommunications Operators of Nigeria (ALTON) said they have made some changes and reached the standard ROW rate but I would rather educate the governors to attract fibre services by giving incentive to these companies.
“This will bring more industries and about 1.5 per cent GDP for the state. They need to think strategically for the good of the state, even after their tenure.”
