Operators list threats to FG’s broadband plans – Vanguard

By Emeka Aginam LAGOSBroadband service providers in Nigeria have warned that the broadband plan of the Federal Government might be derailed unless difficulties threatening to cripple their operations were addressed immediately by the government.

The operators, made up of broadband companies in Nigeria, also asked the Nigerian Communications Commission, NCC, to take immediate and decisive steps to avert the looming threat of strangulation facing its members.

The delegation of operators made the call during a visit to the Executive Vice Chairman of the NCC, Prof. Umar Garba Danbatta, in his office in Abuja.

The operators noted that the industry was in a situation where they were all finding it difficult to justify the required investment case for additional CAPEX for network capacity expansion to improve quality of service to customers.

The delegation included Mr. Godfrey Efeurhobo, Managing Director of Smile Communications; David Venn, Managing Director of Spectranet; Mr. Osondu Nwokoro, Director Regulatory and External Affairs of NTel and Mr. Chuma Okoye, Chief Commercial Officer of Swift Networks.

Warning on a systemic industry failure threat, with likely negative collateral and great national socio-economic implications, the group further noted that the Network OPEX of Telecommunication Operations had skyrocketed in the last 15 months by over 85%, with revenues remaining relatively flat.

Most operators, according to the group, are currently struggling with meeting obligations to their suppliers, particularly Network Vendors, TowerCos and servicing Loan obligations.

This worrying trend, they noted, includes even some of the Tier I Operators.

According to them, a perfect storm is brewing and if not headed off will result in the collapse of key players in the industry.

According to the operators, the domino effect of bankruptcy of any of the Tier I or Tier II operators on the entire ecosystem, particularly, banking, employment, corporate and SMEs businesses constitutes a major threat to the Economic Recovery and Growth Plan, ERGP, of the current administration.

Such bankruptcy and consequent collapse, they noted will also substantially lessen competition with its attendant deleterious impact on consumer choice and attainment of the Broadband objectives of the country.

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Operators list threats to FG's broadband plans - Vanguard