04 May Nigeria: NCC attributes to states, responsibility for low coverage of the country in fiber optics
The Nigerian Communications Commission (NCC) doubts whether the country can achieve a broadband coverage rate of 30% by 2020, given the current conditions for deploying fiber optics. According to Umar Garba Danbatta (pictured), the executive vice president of the national regulator of the telecom market, the right of passage of telecom infrastructure per meter, set by each state, differs and is too expensive. These tariffs are, moreover, in violation with the recommendations of the National Economic Council (NEC).
While the NEC has fixed the right of passage of the optical fiber meter at 145 nairas (US $ 0.4039), some states charge it at 6,000 naira (US $ 16.71). The most expensive states, even fix this right of passage of the optical fiber meter to 25 000 nairas (69.62 US dollars). Exorbitant costs that weigh down the bill for telecom companies, discourage them and hinder connectivity improvement projects in the country.
For Olusola Teniola, president of the Association of Telecommunication Companies of Nigeria (ATCON), as long as “the states will not have realized the economic importance of telecommunications infrastructure and they will focus more on growth in local revenues for economic development, we will not move forward. “
According to the World Bank, growth in the broadband penetration rate of 10% improves developing countries’ gross domestic product (GDP) by 1.21% and 1.38% for developed countries. According to Umar Garba Danbatta, Nigeria currently has about 38,000 kilometers of fiber, while the country needs 120,000 kilometers to reach a broadband that is ubiquitous throughout the country.
Source: Agence Ecofin