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Business News of Tuesday, 7 January 2020

Source: www.mynigeria.com

Nigerians to pay more for data and calls soon, Telcos threaten

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Nigerians will pay more for data and voice calls over the latest decision of 14 state Governments to increase the cost of right of way (RoW) for telecommunication infrastructure.

The 14 states are: Lagos, Kano, Anambra, Ondo, Cross River, Kogi, Osun, Kaduna, Enugu, Adamawa, Ebonyi, Imo, Kebbi and Gombe.

Telcos under the aegis of Association of Licensed Telecoms Operators of Nigeria have promised to make good on their threat of increasing call and data rates just 3 days after Minister of Communications and Digital Economy, Isa Pantami ordered state governors to comply with the national economic council’s (NEC) resolution on the Right of Way.

The RoW charge is the levy paid to state governments for laying of optic fibre on state roads.

At present, the cost of RoW on federal roads is N142 per linear metre.

The 14 states, however, increased RoW fees from between N300-N500 per linear metre to between N3,000-N6,000 per linear metre.

The new management of the Lagos State Infrastructure Maintenance and Regulatory Agency increased RoW fee from N500 per linear meter to N5,000 per linear metre.

A single telecoms operator needs RoW covering thousands of kilometres.

Reacting to the latest development, Gbenga Adebayo ALTON's chairman expressed his displeasure with the way some states hamper the telecoms sector's progress with spurious taxes, charges and levies.

They blamed the poor network service on the refusal of federal and state agencies to grant RoW licence to lay more fibre optic cables in cities. Thus, culminating in less than service experienced during peak periods.