The nation’s regulatory agency, the Nigerian Communications Commission (NCC), has revealed that out the 756 internet service providers licensed by the Commission, only 188 is still active as at March 2022.
This revelation is coming on the heels of calls by stakeholders for the regulator’s assistance in sustaining the sector and making it vibrant again.
The stakeholders, which gathered recently in Lagos for the Telecoms Sector Sustainability Forum, organised by Business Remarks Limited, called on the NCC to enable a conducive environment for ISPs to thrive.
According to views from the forum, reasons for the inactiveness of the ISPs range from anti-competition issues; low internet access in the Northern region of the country due to security challenges; challenges of Right of Way (RoW) and issues of standardization with state governments; multiple taxation; deployment of Customer Premise Equipment (CPE) compatible to all service providers; lack of company Corporate Code of Governance to lack of code of practice for Internet Service provision.
The chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON) Engr. Gbenga Adebayo, in his speech, noted at the event, that the GSM operators now play in the ISP space through their mobile operation.
Adebayo, who was represented by the ALTON Head of Operations, Gbolahan Awonuga, said: “The big operators are doing wholesale and at the same time, doing retailing. This is affecting the smaller operators like the ISPs. If the big operators who are supposed to be doing wholesale, are also doing retailing, what will happen to the smaller operators who are supposed to be doing the retail? This legislation is not working well for the smaller operators and if we are not careful, the smaller operators will be thrown under the table.”
Adebayo however tasked the NCC to enforce strict regulation, adding that, the environment is hostile to the smaller operators. “Out of over 700 ISPs, who were given license to operate, we have about 188 active members. If the big operators are crying that they cannot sustain their business anymore, how much more the smaller operators? Several ISPs are about to close their shops if this issue is not addressed. We need to brainstorm together and find ways to ensure that we all sustain our businesses,” he added.
In the same vein, the chief operating officer, WTES Projects Ltd, Chidi Ajuzie said the tier 1 ISPs have deep pockets, adding that they have the capacity to take over the business of the tier2/3 ISPs. “Technically, this is what has happened and that is why we have less than 200 active ISPs in Nigeria, of which 60 per cent of them are struggling,” Ajuzie added.
Ajuzie, however called on ISPs to look into other areas to sustain their business. He urged ISPs to leverage on open access-rollouts and partnership, reduce legacy CAPEX and OPEX, expand serviceable footprint, consolidate multi-vendor maintenance, reduce risk and high cost and maintain integration for end-to-end broadband, among others.
In response, the Executive Vice Chairman (EVC), NCC, Prof. Umar Garba Danbatta said the NCC is working tirelessly to tackle the challenges that have marred the operation of the ISPs in Nigeria, adding that “Deliberate policies and regulations are being looked at in the Commission in ensuring that ISPs and other smaller players in the industry thrive.”
Danbatta, who was represented by the NCC, Zonal Controller, Lagos, Mr. Yomi Arowosafe, said the Commission has formulated the National Policy on Digitalisation, as well as the National Broadband Plan 2020-2025, which can only be facilitated through Internet Service Provision, adding that its implementation can make Nigeria compete favourably in the world economy.
The EVC said some of the measures the Commission has embarked upon to continue to promote fair play and orderly development of the Nigerian Communications ecosystem as well as boost the competitiveness of the industry includes providing the required regulatory frameworks and interventions in terms of policies, guidelines, determinations, among others, that will encourage fair play in the telecoms industry and encouraging and mandating more openness and transparency in the activities of stakeholders within the industry in order to ensure healthy competition practices amongst competing licensees.
