Overhead expenses rendered 568 internet service providers inactive – See details

By Adeleye Kunle

The Association of Telecommunications Companies of Nigeria, ATCON, has requested additional assistance from the Nigerian Communications Commission, NCC, as the licenses of over 568 Internet Service Providers, ISPs, have expired.

According to the umbrella body, the collaboration will ensure ISP growth and sustainability.

This call was made during a panel discussion at the recent Telecoms Sector Sustainability Forum, which was hosted by the Business Remarks media platform.

Mr Michael Ayoade, Chief Executive Officer of Dotmac Technologies, tasked ATCON with more advocacy on issues threatening their survival and growth in the industry.

According to Ayoade, ISPs are charged a higher rate for Right of Way in most states than others. Using Lagos State as an example, he stated that licensed operators pay a lower rate than ISPs, who are charged ten times the agreed-upon N145 per meter rate linear for RoW.

He claimed that ISPs lacked a unified front to fight for their cause and push for the agreed-upon rate from the state government as well as the taxes demanded by the Federal Inland Revenue Service, or FIRS.

He emphasized that if ATCON does not speak for them in the industry, the cost overhead carried by individual companies for survival will eventually lead to their premature death.

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

During the panel discussion, he added that, while there is excess capacity landing at seashores, there is a need for last-mile internet connectivity in the hinterlands. He also cited high fuel prices, vandalism, street thugs’ activities, and disruption of mobile network operators as challenges for ISPs.

“If the Nigerian Communications Commission can make the right policies for ISP sustainability,” Joda said, “there will be healthy competition, pricing, and collaborations.”

Mr. Tony Emoekpere, Managing Director of MangoNet Integrated Technologies, also stated that the ISPs sub-sector is too fragmented to scale up. He berated the fact that there are nearly 1000 ISPs players. According to Emoekpere, this demonstrates that indigenous players do not understand the market landscape.

“Creating local content is a real challenge.” The telecommunications industry is a long-term investment that necessitates ongoing investment and pressure to upgrade infrastructure.

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

“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,” said the Forum’s convener and Managing Editor of Business Remarks, Mrs. Bukola Olanrewaju, in her opening speech. Given the critical importance of internet connectivity for the digital economy and mass digitalization in Nigeria, ISPs play a critical role in the adoption of internet of things (IoT).”

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