Operators appeal to govt on RoW charges as infrastructure nears end of life

•As more states waive, cut deployment charges  
Telecommunications operators have appealed to governments at all levels to consider their stance on right of way (RoW) charges, especially in 2024.

This appeal is coming on the need for major infrastructure upgrade for telecoms infrastructure in the country, especially fibre optics cables that are said to have reached their end of life.

In an interview with The Guardian, the Chairman, the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said there was an urgent need for major upgrades and deployment of new telecoms infrastructure, especially as the digital economy becomes the norm.

Adebayo said most of the telecoms infrastructure in Nigeria, which has been built since the revolution started over two decades ago, especially fibre infrastructure is near its end of life and as such needs to be upgraded or complete deployment of new ones.

He, however, said the major hindrance to fresh deployment has been the exorbitant RoW levies charged by governments and their agents.

“I must also mention that several infrastructures we have, particularly the fibre optic ones that were built in the early days, some of them have near their end of life. There will be a need for rebuilding by the operators. The issue of RoW will feature again.

“We need to ensure that in areas where they have subsisting RoWs, which have been obtained for the base infrastructure, where reviews will be done, operators should not be mandated again to pay for RoW. Otherwise, we will start having issues.

Truly, if you look at the social economic benefits, especially on the part of the government, it is far higher from what they get from these RoW charges,” he stated.

The ALTON boss said RoW should only attract a symbolic administrative charge, not any commercial rate, saying at the end of the day, when the infrastructure is deployed, it becomes transport access for other services.

He disclosed that a number of those locations have base approval that was granted many years ago when RoW was convenient.

“So, we are saying that RoW should attract only administrative charges and not commercial rates for reasons of greater benefits on digital economy and digital penetration because if the highways are available, many more people will do great things digitally. Look at mobile money, today, more people do transactions online, look at the impact. So, we are saying that to have a real digital economy, we must have a super communications highway that drives these infrastructures, which should not be encumbered by any challenges,” he stated.

Already, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, has projected that the construction of fibre optic cables nationwide in the country would require about $2 billion investment.

Tijani, who stated this last December, said his ministry, working alongside the Nigeria Communication Commission (NCC), sees fibre optics as a priority to improve the quality of communication service in the country.

According to the Minister, the federal government has already constructed about 35, 000 kilometres of fibre optics cable nationwide. However, the country needs around 95,000 kilometres to ensure complete coverage.

“In the next four years, we are going to do everything to increase the kilometres of fibre optic cables in Nigeria. We are about 35, 000 kilometres away, and we need to go to 95,000 kilometres, almost halfway there.

“It’s going to cost roughly $1.5 to $2 billion to wire the whole of Nigeria to reach that 95,000.

“We hope we can accelerate in the next six to 12 months, secure that funding that private companies can tap into – it’s not government money – and hopefully work with serious companies that can lay fibre over the next two to three years.

“We’re hoping that before the first four years of this administration, a significant portion of that 95, 000 kilometres will be covered,” he said.

Meanwhile, Nasarawa State RoW Regulation 2023, which came into effect last month, has waived RoW charges for the installation, placing, laying and/or maintenance of telecommunication network facilities in the state.

Checks by The Guardian showed that by the waiver, Nasarawa joined Anambra, Ekiti, Katsina, Imo, Plateau and Kaduna on the zero charges. Kwara dropped it to ₦1 per linear metre as against the N145 per linear meter. In November 2022, the Federal Capital Territory, Abuja RoW charges by 90 per cent.

Reacting to the development from Nasarawa State, the NCC Executive Vice Chairman, Dr Aminu Maida, noted the enactment will further drive the National Broadband Plan to achieve 75 per cent of the country’s fibre optic cable target by the end of 2027.

He added that the commission would continue to engage states on the benefits of creating an enabling environment for telecommunications investments, including increased connectivity, economic growth and improved digital services through waiving the RoW charges.