Telecom operators seek law abolishing right-of-way charges
AI Executive Briefing
Gemini Flash AI~45s readThe Association of Licensed Telecommunications Operators of Nigeria (ALTON) is pushing for federal legislation to eliminate right-of-way charges for fibre-optic infrastructure. This move is intended to reduce the high costs of network deployment and facilitate broader internet access across the country.
Context & Background
- ✦High right-of-way fees are identified as a significant barrier to infrastructure investment, particularly in rural areas where commercial returns are uncertain.
- ✦The sector faces a mismatch between the rapid growth in data demand from 200 million subscribers and the current pace of infrastructure expansion.
Key Figures & Named Entities
•Gbenga Adebayo, Chairman of ALTON, advocates for zero-rated right-of-way charges to encourage network expansion.•JPMorgan plans to establish a licensed merchant bank in Nigeria to finance large-scale infrastructure projects.•Chevron Nigeria/Mid-Africa reported an average annual spend of $1 billion with local contractors over the last five years.
Outlook & Next Steps
Operators are seeking government policy shifts, including the introduction of intervention funds and incentives, to support the sustainability of telecommunications investments and meet the rising demand for digital services.
Key Takeaways
AI Summary- ALTON is advocating for legislation to make right-of-way charges for fibre-optic infrastructure zero-rated to boost broadband expansion.
- Right-of-way fees currently represent up to 60% of the total cost of deploying fibre-optic infrastructure in some Nigerian states.
- Telecom operators are calling for government intervention funds and incentives to make network expansion into rural and underserved areas economically sustainable.
Key Facts:Tuesday: Gbenga Adebayo made the call for legislative action during the 32nd Nigerian Economic Summit in Abuja.Over the past five years: Chevron Nigeria/Mid-Africa has maintained an average annual expenditure of $1 billion with Nigerian contractors.
Editorial Excerpt
Nigerian telecom operators are calling for legislation to abolish right-of-way charges, which they say account for up to 60% of network deployment costs.
Frequently Asked Questions About This Story
Why do telecom operators want right-of-way charges abolished?
Operators argue that these charges account for up to 60% of deployment costs, acting as a major deterrent to expanding broadband infrastructure into rural and underserved communities.
What other challenges are facing the Nigerian telecommunications sector?
Beyond right-of-way costs, operators face ageing infrastructure, inadequate fibre networks, insufficient towers, and damage to cables during road construction.
