Challenges Facing MNOs and InfraCos in Deployment of Telecommunications Network Infrastructure

1.1. Introduction

Telecommunications is a key national critical infrastructure which its importance to national security, economic growth and nation building cannot be over-emphasized. Developed nations which are Economic model to developing nations have in place “working Telecommunications” industry which serve the catalyst for their development and guaranteed security. As global village the world has fast transitioned into digital market where distance no longer poses a threat. The United States of America, Germany, Russia, China, France and other nations built a sustainable development and growth path as a result of a working Communications industry.

Most African countries including Nigeria are fast climbing to the strata of Economic prominence and growth on the threshold of Telecommunications services. Remarkably, in Nigeria the Telecommunications industry worth over $70 Billion.[1] It has over the years contributed immensely to Nigeria’s GDP growth. The industry is among the fastest growing industry in Nigeria with an unmatched potential of revenue drive outside the Oil and Gas industry. With over 200 million population, there is no doubt that Nigeria serves a large market for Telecommunications services and offers high prospects for investors in the sector.[2]

Despite this huge character and economic prospects of Telecommunications, its growth especially in Nigeria in the area of infrastructure spread in the rural areas has nosedived. It is not a thing of debate that the inadequate and snaillike pace in deployment of Telecommunications infrastructure in Nigeria are both a “yes” factor for revenue loss for Telecommunications investors and the government. It also grants leeway for insecurity to thrive giving the fact that most Communities in Nigeria are under policed.

Stephen Okangla
Batch B-2023 Intern
University of Maiduguri

The snail-like or inadequate deployment of Telecoms infrastructure cannot be attributed to Telecommunications operators or investors referencing the fact that the basic goal of business is for a good turn over. Hence it is deducible that there are challenges plaguing the MNOs and InfraCos in deployment of Telecommunications infrastructure in Nigeria. It is on this background, this article posits to discuss the challenges facing MNOs and InfraCos in deployment of Telecommunications Network infrastructure and to proffer “adoptable pathways” aimed at strengthening deployment process. 

1.2. Conceptual framework

2.2.1. MNOs: This means Mobile Network Operators. It is also known as Telcos. They are the major Telecoms operators and are involve different Telecommunications services such as call transmission, internet services and sometimes they provide Telecommunications infrastructure for self-use. Examples of MNOs in Nigeria include but not limited to the following: MTN, Glo, Airtel, 9mobile etc.[3]

1.2.2. InfraCos: This means Infrastructure Provider Companies. Majorly, their role in the Telecommunications industry is to provide infrastructure for Telecommunications services. They are involved in building Base stations, deployment of Metropolitan fibre-optic infrastructure, provision of wholesale broadband network service to retail Telecommunications service providers and deployment of broadband service, etc. Examples of InfraCos in Nigeria include: MainOne, United Capital Limited, IHS, ATC Nigeria, FibreOne Broadband, Zinox Technology Limited, etc.[4] 

1.3. The Challenges Facing MNOs and InfraCos in Deployment of Telecommunications Network Infrastructure in Nigeria

As earlier stated, the Telecommunications industry is plagued with several challenges which do not portray a good image for the country nor serve as a booster for the country’s economic development. It is also not healthy for the country considering the rising spate of insecurity, among other social vices. It is important to note that the challenges confronting MNOs and InfraCos in deployment of Telecommunications Network Infrastructure as discussed below are not exhaustive.

1. Insecurity: Insecurity is one of the major challenges confronting MNOs and InfraCos in deployment of telecommunications network infrastructure in Nigeria. Insecurity is weaponized by non-State actors to unleash mayhem on hapless Nigerians and Expatriates on official assignment.[5] The rise and unchallenged growth of crime, ranging from killing, kidnapping for ransom, banditry, terrorism especially in the North and South Eastern part of Nigeria constitutes a serious “roadblock” for the deployment Telecommunications network infrastructure by both MNOs and InfraCos mostly in areas which are grossly under policed. Gbenga Adebayo, the Chairperson, Association of Licensed Telecoms Operators of Nigeria (ALTON) attributed poor deployment of infrastructure to maintenance as well as expansion to risk of kidnapping personnel and insecurity in troubled regions of the country.[6]
2. Multiple Taxation: It is a notorious fact that tax control mechanism in Nigeria has remained the bane of investors including Telecommunications investors. The menace of multiple taxation is a clog in the wheel of MNOs and InfraCos in deployment of Telecommunications network infrastructure in Nigeria in unserved areas and in repairs and maintenance of infrastructure. Tax system in Nigeria is negatively polarized and highly under controlled thereby creating leeway for unauthorized Agencies and “Thugs” to cash in and suck dry MNOs and InfraCos who bear the brunt. Unabated cases of multiple taxation has force many Companies to wind up and to leave Nigeria for business friendly countries. Multiple taxation has also sent several multi-national companies who could not bear the heat packing and has rendered stunted small Companies which are mostly indigenous. It is indeed penitent to note that uncontrolled multiple taxation by both Federal and state government which serve a window for unauthorized Agency and persons to operate pose a serious challenge to MNOs and InfraCos in deployment of Telecoms network infrastructure in Nigeria.
3. Lack of Access to Foreign Exchange: Lack of access to foreign exchange is another challenge confronting MNOs and InfraCos in deployment of Telecommunications network infrastructure. Lack or poor access to foreign exchange had grounded the operation of several business in Nigeria including Telecommunication service. Many a time flight were cancelled as a result of unavailability of aviation fuel which is traceable to trapped foreign funds and/or inability to access foreign exchange. This factor has also greatly impede the procurement of Telecommunications equipment by MNOs and InfraCos thereby resulting in infrastructure deficit in the sector. Forex scarcity has been linked to harsh government policy and sometimes to administrative bottleneck occasioned when sourcing for funds.[7]
4. Demand of High Rates by State Government for Issuance of Right-of-Way (RoW) Permits: This factor constitutes a great challenge to the operation of Telecommunications service in Nigeria. MNOs and InfraCos are faced with exorbitant rates by some government who see the industry as cash cow. Lack of uniformity in rates chargeable for the issuance of RoW permits has greatly impede the deployment of Telecommunications network infrastructure in Nigeria.[8] Rotimi Akapa, Esq., head of Telecommunications, Media and Technology practice Group at Advocate Law Practice, stated that the main challenge militating against the deployment of infrastructure by MNOs and InfraCos is the opposition of State government to reach agreement on friendly terms for the issuance of Right-of-Way permits.[9] The Federal Government had at some point proposed a uniform RoW of N 145 per linear meter which did not sail through at State level. More challenging is the fact that some InfraCos were charged at high rates between the range of N 1,000 and N 7,000 per kilometer mostly in States in the South-South.[10] In spite of the fact that some States have zero-rated RoW permits or charge little, others still charge extortionist rates. This factor has in no doubt, push back operational power of MNOs and InfraCos in deployment Telecoms network infrastructure.[11]
5. Natural Disaster: Natural disaster constitute great challenge to MNOs and InfraCos in deployment of Telecommunications network infrastructure. Natural disaster such as flooding which is now an annual visitor also pose a great threat to the operation of MNOs and InfraCos especially in deployment of infrastructure. Recent flooding in Nigeria occasioned devastating effects across various sectors.[12] Houses were submerged, road broken apart and left several Telecommunications facilities especially Masts destroyed. The case of uncontrolled flooding poses a serious challenge to both underground and over-ground cables and disturb the seamless operation of MNOs and InfraCos in deployment of new network infrastructure.[13]
6. Lack of Access Road to Rural Areas: Deployment of telecommunications network infrastructure is unarguably tied to accessibility of communities. Lack of access Road in most communities constitute a challenge to deployment of Telecommunications facilities.[14] Statistics from the Nigerian Communications Commission (NCC) show that over 114 communities and more than 25 million Nigerians residing in those areas don’t have access to basic telephony service. Report by the Guardian Newspaper indicated that seventy percent of the 114 communities are found in the North, twenty percent in the South-East and South-South while the remaining ten percent are found in the South West respectively.[15] This unserved Telecommunications service reality in the aforementioned Communities is traceable to lack of access roads which make deployment of infrastructure near impossible if not impossible.
7. Vandalism, Theft and Epileptic Power Supply: Vandalism and theft of Telecoms facilities by “Community thugs” and “Area Boys” constitute a great impediment to the operation of MNOs and InfraCos in affected areas. Most times, fiber-optic cables, broadband and Base stations are vandalized. Stolen equipment are sold to unsuspecting members of the public and sometimes to their collaborators within and outside the Community. This act greatly constitute financial burden on MNOs and InfraCos thereby forcing the closure of many Base stations.

Moreso, epileptic power supply to Base station also constitute great challenge to the operation of MNOs and InfraCos especially in Base stations that are neither powered by Generator or Solar. Epileptic power supply hinders the effective operation of Base stations and increase the OPEX of the MNO or InfraCo running such Sites and discourages further investment especially where the Base station neither a hub nor generate much revenue.[16]

1.4. Adoptable Pathways towards Addressing the Challenges Confronting MNOs and InfraCos in Deployment of Telecommunications Network Infrastructure in Nigeria

It is pertinent to note that Telecommunications service is a critical national infrastructure that has contributed immensely to the growth of Nigerian GDP and can help in effectively curbing the rising spate of insecurity if priotize. There is no gainsaying, the acute shortage or inadequate spread of Telecoms infrastructure contributes greatly to poor quality of service (QoS) and informs the rise in drop calls, poor internet service, aborted and undelivered Short Message Service (SMS) and innumerable failed calls. The following are adoptable pathways towards addressing the challenges confronting MNOs and InfraCos in deployment of Telecommunications network infrastructure in Nigeria.

1. Increase Forex Supply to MNOs and InfraCos: As a way of addressing the challenges, the Federal Government should supply Forex directly or make it accessible for MNOs and InfraCos in order to ensure a seamless procurement of Telecommunications network equipment and run other activities.
2. Set and Implement a Uniform Right-of -Way (RoW) Rates: The Federal Government has taken a good step towards addressing this challenge by setting N 145 per linear meter as Rate for RoW permits. It should further take necessary steps towards reaching a handshake with State governments on agreeable rates and sanction non-compliant State(s).
3. Address Multiple Taxation: The Federal Government should wild the big stick in addressing multiple taxation which is fast making the Country unattractive to Investors. Tax system should be highly controlled and policed in order to prevent unauthorized Agency especially in States and Local governments and “individuals” from extorting MNOs and InfraCos. The problem of “Areas Boys” and “Community Thugs” should also be addressed head on by State(s) government in order to avail unobstructed access to MNOs and InfraCos in their operations.[17]
4. Tackle Insecurity: To enable speedy and unhindered deployment of Telecommunications network infrastructure in Nigeria, Government should take pragmatic steps in addressing security threats in the Country. Tackling insecurity will address the challenges of equipment theft and vandalism perpetrated mostly in unpoliced areas. Escort Team should be attached to MNOs and InfraCos when transporting facilities to sites in rural areas in order to arrest any planned attack or kidnapping among others. Expatriates and workers on the field should also be given Escort Guards in order to allay the fear of adoption. Increasing access to telephony service will help security Agencies forestall security breach and generally improve security in Nigeria.
5. Provide Access Road: Government across all levels should provide access road and link communities in rural areas as a way of tackling the challenges confronting MNOs and InfraCos in deployment of Telecommunications network infrastructure. Provision of access road will enable MNOs and InfraCos access Communities hitherto unserved and deploy Telecommunications network infrastructures in those areas.[18]
6. Quick response to Incidence of Natural Disaster: Government should set up an Independent Telecommunications Response Team (TRT) under the Nigerian Communications Commission (NCC) to address cases of natural disaster especially flooding and to oversee assistance to MNOs and InfraCos and where possible fix broken road network and carry out damage assessment of Telecommunications facilities for immediate financial support.

 1.5. Conclusion

As a critical national infrastructure, it is necessary for all hands to be on deck in addressing the various challenges confronting the Telecommunications industry as discussed herein. As earlier stated, Telecommunications is one of the fastest growing industry in Nigeria and has provided thousands of employment for Nigerians. Beyond this, proper Telecommunications coverage in the Country is a feasible pathway towards guaranteeing a secure environment for Nigerians, Expatriates and for proper digitalization of the economy for optimal performance.

This article thoroughly addressed the various challenges confronting MNOs and InfraCos in deployment of Telecommunications network infrastructures in Nigeria, which as discussed above include but not limited to: multiple taxation, insecurity, demand of high rates by State government for issuance of Right-of-Way permits, lack of access to forex, vandalism, theft among others. This article also provided and discussed what is termed “adoptable pathways” towards addressing the challenges confronting MNOs and InfraCos in infrastructure deployment.

FOOTNOTES:

[1] [1] FX challenges slow rural telephony drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 31 July 2023

[2] Ibid                                                                                    

[3] Lecture on Telecommunications Law & Practice by Babatunde I.G Lawal, Esq.

[4] InfraCo can Help Nigeria Speedily Overcome its Infrastructure Challenges <https://businessday.ng/interview/article/infraco-can-help-nigeria-speedily-overcome-its-infrastructure-challenges/ >accessed 29 July 2023

[5] Achumba, IC. Ighomereho O.S and Akpor-Robaro M.O.M (2013). Security Challenges in Nigeria and the Implications for Business Activities and Sustainable Development, Journal of Economics and Sustainable Development, 4(2)

[6] Insecurity Slow Rural Telephone Drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 30 July 2023

[7] FX challenges slow rural telephony drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 31 July 2023

[8] InfraCos to face Telcos challenges < https://guardian.ng/technology/infracos-to-face-telcos-challenges-as-industry-awaits-take-off/>accessed 30 July 2023

[9] InfraCos fail to Deliver Telecom facilities Eight years after <https://businessday.ng/technology/article/infrcos-fail-to deliver-telecom-facilities-eight-years-after/ >accessed 29 July 2023

[10] Ibid                                           

[11] InfraCos to face Telcos challenges < https://guardian.ng/technology/infracos-to-face-telcos-challenges-as-industry-awaits-take-off/ >accessed 30 July 2023

[12] Ibid

[13] Insecurity Slow Rural Telephone Drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 30 July 2023.

[14] Y. A Adediran, N. Faruk, J.F. Opadiji, O.W. Bello, On Issues and Challenges of Rural Telecommunications Access in Nigeria

[15] Insecurity Slow Rural Telephone Drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 30 July 2023.

[16] Electricity Access in Nigeria <https:/spidersolutionsnigeria.com/wp-content/uploads/> accessed 31 July 2023 

[17] Ibid

[18] Y. A Adediran, N. Faruk, J.F. Opadiji, O.W. Bello, On Issues and Challenges of Rural Telecommunications Access in Nigeria

REFERENCES:

1. FX challenges slow rural telephony drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 31 July 2023

[1] Ibid  

2. Lecture on Telecommunications Law & Practice by Babatunde I.G Lawal, Esq.
3. InfraCo can Help Nigeria Speedily Overcome its Infrastructure Challenges <https://businessday.ng/interview/article/infraco-can-help-nigeria-speedily-overcome-its-infrastructure-challenges/ >accessed 29 July 2023
4. Achumba, IC. Ighomereho O.S and Akpor-Robaro M.O.M (2013). Security Challenges in Nigeria and the Implications for Business Activities and Sustainable Development, Journal of Economics and Sustainable Development, 4(2)
5. Insecurity Slow Rural Telephone Drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 30 July 2023
6. InfraCos fail to Deliver Telecom facilities Eight years after <https://businessday.ng/technology/article/infrcos-fail-to deliver-telecom-facilities-eight-years-after/ >accessed 29 July 2023
7. InfraCos to face Telcos challenges < https://guardian.ng/technology/infracos-to-face-telcos-challenges-as-industry-awaits-take-off/ >accessed 30 July 2023
8. Insecurity Slow Rural Telephone Drive < https://guardian.ng/technology/telecoms/insecurity-fx-challenges-slow-rural-telephony-drive/ > accessed 30 July 2023.
9. A Adediran, N. Faruk, J.F. Opadiji, O.W. Bello, On Issues and Challenges of Rural Telecommunications Access in Nigeria