NOVEMBER 07, 2017
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Regulator of the telecoms sector, the Nigerian Communications Commission (NCC), has lamented that telcos are facing challenges in accessing foreign exchange (forex) needed to expand capacity and help redefine end users’ experience on the network.
According to the NCC, there are over 50,000 base transceiver stations (BTS) spread across the country. However, the actual number of BTS needed to provide optimal services to the over 170million population is 80,000, translating to an infrastructure gap of 30,000 BTS, estimated by industry experts at over N1.8 trillion.
Its Executive Vice Chairman, Prof Umar Danbatta, in his inaugural lecture, titled: “Getting out of the Woods. Diversifying Nigeria’s Economy through Telecommunications Sector”, delivered at Ahmadu Bello University, Kano (BUK), said the telecoms industry plays a crucial role in providing the requisite tools that support the diversification of the economy through improving the knowledge economy, using Information and Communication Technology (ICT).
However, he said access to forex has become a major challenge to carriers in the country. “Telecoms operators are facing difficulties in accessing foreign exchange (forex) for the deployment of telecommunications services in the country.
“In addressing the forex challenges, the Commission has engaged the management of the CBN (Central Bank of Nigeria) and to that effect, the CBN has agreed to include telecommunications as part of the CBN priority list for accessing forex. This has reduced the forex burden on the telecom operators,”he said.
Speaking on the topic of the lecture, Danbatta said policies have been made over the years by successive governments to develop the non-oil sectors of the economy by initiating various supportive policies and incentives aimed at encouraging economic diversification with different degrees of success.
According to him, these policies include protectionism (1960-1986) import substitution industrialisation aimed at expanding the industrial base, enhancing cash crops exports; trade liberalisation (1986 Structural Adjustment Programme (SAP) era) aimed at deregulation, commercialisation, privatisation and liberalisation of the economy and export promotion aimed at facilitating the diversification of the economy through policy support to Small and Medium-Sized Enterprises (SMEs) to enhance exports.
He said: “The liberalisation of the telecoms sector in 2001 has triggered a realistic opportunity of economic diversification, as the sector is adjudged to be one of the major support services needed to promote growth and modernisation of other sectors of the economy.
“Telecoms breaks barriers, and as such, can act in its own right as an enabler to drive socio-economic transformation, growth, developments and modernisation across all sectors of the economy.”
He said the telecoms sector has globally brought about radical changes in the way people interact, learn, work and transact commercial activities, adding that the sector also acts as the fulcrum and catalyst that propel the socio-economic transformation and growth of economies of nations.
On pricing and competitiveness, Danbatta said: “Despite the huge mobile access and growing smartphone penetration, there are still challenges with reaching an acceptable price point for data services.
“The NCC had to intervene with a temporary retail data price floor-this is however pending and awaiting the conduct of a comprehensive cost-based study.
“There are also issues with stimulating demand for local content and affordability that are being addressed on a national scale. There is, therefore, a huge opportunity for infrastructure providers to offer cost-effective solutions and bridge the competiveness gap,” Danbatta said.
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