From: Olabisi Olaleye
Aside the Etisalat Nigeria proposed take-over other telecommunications operators may also suffer same fate soon.
According to some industry watchers, the remaining telcos are merely striving to thrive in the country because of several odds against them including the weak Naira against Dollar.
One of the watchers, Tony Eromosele, stated that if necessary action was not deployed by the government, telecoms growth and pride of the country may become history because already many of these operators and service providers have started sacking their staff secretly.
He disclosed that findings revealled that only one telco is out of danger due to its dynamic business model and the capacity would not accommodate other extra subscribers.
Meanwhile, the operators under the aegis of Association of Licensed Telecommunications Companies of Nigeria (ALTON), are appealing to President Muhammadu Buhari administration to make foreign exchange flexible for their operations.
They explained that the exemption of telecommunications equipment and services from items to be accorded priority in the allocation of foreign exchange by banks has impacted negatively on their operations.
” The challenges encountered by operators in securing required foreign exchange is limiting the deployment of pervasive broadband network nationwide and has threatened the country’s prime position, as the largest telecommunications market in Africa ahead of South Africa in terms of subscriber base”.
In a statement by Alton’s chairman,Mr Gbenga Adebayo,” telecommunications service providers are similar to manufacturing firms and deserve to be treated in the same manner.
“The core network equipment and other auxiliary equipment procured for providing voice and data services are equivalent to plant and machinery acquired by the manufacturing firms for the production of goods and services in the country”.
ALTON further stated that the challenge posed by the non availability of forex has adversely impacted the industry by increasing operating cost of members; offered unfavourable credit terms; delayed implementation of network enhancement and improvement initiatives and has affected National Broadband Plan (2013 to 2018).
“It appears that the prevailing scarcity of foreign exchange has adversely impacted the deployment of metro fibre network, as the earlier licensed InfraCos are yet to make significant progress in the deployment of optic fibre across their respective licensed locations, hence the need for strategic support to the telecommunications service providers by ensuring easy access to forex to import required equipment and undertake the pending projects, as well as fulfil outstanding obligations to foreign vendors without further delay for the continued growth and development of the industry”.
ALTON also requested the telecoms regulator,Nigerian Communications Commission (NCC) to fast track the ongoing engagement with the CBN to include telecommunications equipment and invisibles among the list of items/sectors to be allocated from the 60 per cent foreign exchange availability by the banks regardless of source of inflows.
Alton noted that items such as Radio Frequency Coverage Equipment, which include (Base Transceiver Stations); Transmission Equipment (Microwave, Optical Fibre, RF Planning Tools) and Customer Contact Equipment (SIM Cards), which are classified as plants and machinery are procured and imported into the country by the service providers.
ALTON said that telecommunications sector is termed ‘infrastructure of infrastructures’ and social overhead capital, which propels productivity in other sectors of the economy including banking, aviation and others, opined “that the industry deserves to be supported through direct foreign exchange allocation from the Central Bank of Nigeria’s (CBN) interventions.”
Meanwhile, reprieve came for Mobile Network Operator, Etisalat following a meeting convened by CBN and NCC to find a quick resolution to the loan default crisis facing the company at the weekend.
CBN Governor, Godwin Emefiele who chaired the meeting, declared what needed to be done by both parties towards a quick resolution. The NCC equally made it clear everything necessary must be done to protect the 23 million Etisalat subscribers and also protect the telecom industry to prevent potential investors from developing cold feet.
A meeting will hold, on Thursday, March 16, to agree on a payment restructuring path going forward. Before then, Etisalat will remain in business while the consortium of banks meet their obligations to their customers.