ISPs seek NCC intervention to prevent sector collapse
ISPs seek NCC intervention, warning 568 licences already inactive
By Jeph Ajobaju, Chief Copy Editor
More than half of the total 1,000 Internet Service Providers (ISPs) have gone under, prompting a warning from the Association of Telecommunications Companies of Nigeria (ATCON) the rest also face extinction without government intervention.
ATCON urged the Nigerian Communications Commission (NCC) for more support as the licences of more than 568 ISPs have become inactive.
The call was made during the panel session at the Telecoms Sector Sustainability Forum organised by Business Remarks Media Platform.
Dotmac Technologies Chief Executive Officer Michael Ayoade implored ATCON to do more advocacy against the threat to the survival and growth in the industry.
Ayoade disclosed that ISPs are charged a higher rate than others for Right of Way (RoW) in most states.
He cited Lagos where he said operators pay a cheaper rate compared with ISPs who are charged 10 times more than the agreed N145 per metre rate linear for RoW.
He lamented that ISPs lack a unified backup to fight their cause and push for the agreed rate from state governments and against excessive taxes demanded by the Federal Inland Revenue Service (FIRS).
Without ATCON speaking for them, the cost overhead carried by individual ISPs for survival will eventually lead to their untimely death, Ayoade warned.
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Hinterland internet connectivity
FiberOne Broadband Head of Sales and Marketing Kehinde Joda added that multiple taxations, high cost of RoW, and operating in silos will kill small businesses in the ISPs subsector.
He said although there is excess capacity landing at the sea shore, there is need for last-mile internet connectivity in the hinterlands.
He also decried the high cost of fuel, vandalism, the activities of street thugs, and disruption of mobile network operators, all of which ISPs face.
“There will be healthy competition, pricing and collaborations if the Nigerian Communications Commission can make the right policies for ISPs sustainability,” Joda counselled, per Vanguard.
MangoNet Integrated Technologies Managing Director Tony Emoekpere noted the ISP subsector is too fragmented to scale up.
He berated the fact ISPs players are about 1,000 which to him shows indigenous stakeholders 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,” Emoekpere stressed.
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Forum convener and Business Remarks Managing Editor 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 the Internet of Things (IoT).”
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