Nigeria telcos move to protect critical infrastructure

Nigeria's telecommunications sector is undergoing significant developments as telecom companies in the country have established an Industry Working Group to bolster the protection of critical infrastructure nationwide. The move comes in response to the escalating challenges of fiber cuts, theft, and vandalization of telecom assets. Chairman of the Association of Licensed Telecommunications Operators of Nigeria, Gbenga Adebayo, shed light on the objectives and significance of this newly formed working group, emphasizing the need to operationalize protocols for safeguarding these vital assets. The group, comprised of representatives from the industry and security agencies, aims to address the unique challenges faced in different regions of the country, such as rampant theft of equipment and diesel, as well as vandalism of telecom infrastructure. By establishing a national implementation group, the industry is taking proactive measures to prevent disruptions to network services and ensure a stable national network. Adebayo highlighted the far-reaching impact of infrastructure damage on businesses and everyday life, underscoring the urgency of protection and prevention measures to maintain operational continuity. As the industry works towards fortifying infrastructure security, telecom operators are also contemplating a review of the current national tariff plans. Following a 50% tariff hike earlier this year, operators are considering a shift to a regional tariff regime. Adebayo discussed the industry's progress towards cost-related tariffs and the ongoing cost study being conducted by regulators to determine the actual cost of providing services. While the sector is not yet at a fully cost-reflective tariff, the tariff review has ushered in a period of stability and increased investment in network optimization and infrastructure upgrades. This renewed focus on service quality and user experience sets the stage for future adjustments in tariff structures. Looking ahead, the implementation of regional tariffs poses both challenges and opportunities for the industry. Adebayo acknowledged that regional pricing may lead to disruptions, but emphasized the need to align tariffs with the varying operating environments across different states and regions. Some states impose excessive taxes and levies on operators, prompting the need for tariffs that reflect the real cost of providing services in those areas. By tailoring tariffs to local conditions, operators can better manage operational costs and address issues like infrastructure vandalism and theft. While regional tariffs may introduce complexities, they offer a pragmatic solution to counter the disparate regulatory landscape in Nigeria. Despite the tariff adjustments and infrastructure challenges, Adebayo expressed a cautious outlook on sector profitability. While stability is expected, major profitability gains may take time to materialize as operators continue to invest in network enhancements and service improvements. Adebayo also highlighted the potential for infrastructure sharing agreements, citing the recent collaboration between Airtel and MTN as a model for unlocking value in the industry. Infrastructure sharing not only improves operational efficiency and end-user experience but also fosters collaboration among industry players. By pooling resources and expertise, telecom companies can optimize network deployment and reduce capital expenses, ultimately benefiting both consumers and investors. The cooperative efforts in infrastructure sharing exemplify the industry's commitment to enhancing service delivery and driving innovation in Nigeria's telecom landscape. Amid ongoing challenges and regulatory changes, the telecom sector in Nigeria is poised for growth and transformation, fueled by a collective focus on infrastructure protection, tariff optimization, and strategic collaboration.