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How Heavy Taxes, Harassments Hobble Telcos

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Nigeria has championed the telecom industry to business and political audiences around the world as the next big thing paved with ease of doing business and other government cushions.

 

An in-depth look however, paints a different picture: the industry is beset by myriad of challenges most of them occasioned by the same government which is touting an investment haven.

 

No doubt, telecom has become one of the most vibrant industries in Nigeria. According to Statista, a global statistics company, there are approximately 76.2 million Nigerian internet users as of 2017; an increase of nearly 50 percent from the 2013 figure of 51.8 million.

 

But, the multiplicity of taxes across different tiers of government, is today hampering the growth and development of the sector.

 

Some of the taxes and levies include: Aviation Clearance fee, Building Permit fee, Employee Development Levy, Site levy, Operational Permit levy, Business Premises levy, Building Fitness levy, Sanitation fee, Infrastructure Maintenance fee, Tenement Rate, Signage and Advert levy, Fire Service fee, Effluent Discharge fee, Environmental/Ecological fee, Gaseous emission fee, among others.

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These taxes are for the same industry that provides direct and indirect employment to thousands of Nigerians.

 

The industry also contributes N450 billion in form of taxes to Nigeria’s economy and accounts for nearly 10 per cent of the gross domestic product (GDP).

 

Yet, the telecom firms are targets of incessant harassment and fines from many quarters in the country.

 

Tobechukwu Okigbo, Corporate Relations Executive, MTN Nigeria, reacting to the recent disruption of his company’s operations by Nigerian Labour Congress (NLC), said the “the violence and the needless destruction of property is deeply saddening. As always our primary concern is the safety and well-being of our employees, some of whom were attacked by supposed NLC operatives and have sustained injuries”

 

Elsewhere, Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed concerns over the disruption of operations of MTN Nigeria, saying that “Damage to any Telecom Facilities will lead to the disruption of critical national security and economic services which will expose innocent citizens to great danger.

 

“Attempts have been made to disrupt the network operations of some of our members through the shut down and vandalisation of critical network facilities”

 

On taxation, Olusola Teniola, president, Association of Telecommunication Companies of Nigeria (ATCON), urged the ministry of finance to work towards harmonisation of the various taxes to stop overtaxing in the telecom industry and appealed to the governments to use the taxes to improve the lives of the citizens.

 

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

Experts @ WATISE 2024 Exploit how Emerging Trends will Shape Telecoms Infrastructure, Proffers Solutions on Challenges

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Telecommunications experts across West Africa have exposed trending innovations relying on telecoms infrastructure harping on the strategies that are crucial for the sustainability of telecommunications infrastructure to fast-track the regions digital economy.

Speaking at the second edition of the West Africa Telecoms Infrastructure Summit and Exhibtion (WATISE), with the theme: ‘Shaping the future of the telecoms infrastructure industry: Trends and Insights for a Digital Economy’ and organized by TechnologyMirror, an online telecoms news and information platform, held in Lagos, Southwest Nigeria, the experts x-ray critical issues that relates the survival of the telecoms industry using the Nigerian market as a reference point.

Leading the conversation, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida, in his keynote address which was on the theme of WATISE 2.0, noted that the journey towards a digital economy has a future that is paved with immense possibilities and profound challenges noting that “how we navigate this path will determine the role Nigeria plays in the global digital landscape.”

Maida who was represented by the Head of Next Generation Technology and Standard at the NCC, Engr Victor Adoga, described telecommunications infrastructure as the backbone of the digital economy, facilitating seamless connectivity and supporting a range of services from basic voice calls to high-speed internet and cloud computing.

He stated that the rapid growth of the digital economy demands robust, scalable, and secure telecommunications infrastructure disclosing that there are several key trends that are poised to shape the future of telecom infrastructure.

According to Maida, the rollout of 5G networks is a transformative trend in telecoms infrastructure saying that 5G promises significantly higher speeds, lower latency, and greater capacity, facilitating new applications such as IoT (Internet of Things), autonomous vehicles, smart cities and advanced augmented reality.

He listed other emerging trends affecting the deployment of telecoms infrastructure across the region as Internet of Things, Fiber Optic Expansion, Data Localisation and Security, Regulatory Frameworks, Cybersecurity and Energy Efficiency and Sustainability.

He however suggested that the telecoms operators must take consider strategic actions to stay in business saying that collaboration which is partnerships between government, industry, and academia can drive innovation and development.

He added that Innovative Financing Models, Investment in Human Capital, Focus on Sustainability, Integration with AI and Machine Learning and Developing Smart Infrastructure noting also as crucial investing in rural telecom infrastructure and making digital literacy a key component of our educational programs.

Still speaking on the theme of WATISE 2.0. Chief Executive Officer of WTES Projects Limited, Mr Chidi Ajuzie who joined virtually from Ethiopia said there is deluge of connectivity from submarine cable landings linking Nigeria to Europe and rest of the world.

According to him, while there is no centrally managed national transmission backbone, licensed Operators have, over the years, built transmission networks to meet their own needs, often duplicated on most routes.

He disclosed that the Universal Service Provision Fund (USPF) has carried out a detailed study to characterize basic telephony and ICT gaps in the country, identifying 97 clusters with varying population densities and a cumulative population of about 27.91 million that suffer from significant connectivity services gaps. Digital broadband gap is even more, estimated at over 100 million population.

Ajuzie stated that to reap the benefits of broadband, there is need to close the clear gaps existing in the metro middle- and last-mile segments of the connectivity value chain. New Connectivity will be required to bridge the gaps and meet the National Broadband targets.

In fireside chat on ‘Enhancing Rural Connectivity: Strategies for Expanding Telecom Infrastructure’, Tinuade Oguntuyi, Head Network and Solutions, at Information and Communications Services Limited (ICSL) said that that rural areas need better network services for proper communication and development.

Oguntuyi, who anchored the fireside chat urged the government to support network service providers to reach more rural places as they are also full of great potentials for the growth of the nation.

Also speaking, Ahmad Tijani, a local content ICT advocate commended Federal Government projects to connect the rural dwellers and harped on the need to carry the local government leaders along.

Tijani who represented Dr. Adebunmi Adeola Akinbo, National Secretary ICTLOCA, cited the challenge of data gathering which can be sorted by the local government, calling on the grassroots to add value to the nation growth.

In his welcome address, the Convener of WATISE, Isaiah Erhiawarien said that the second edition was a step towards ensuring a reliable telecoms infrastructure for the region, and thanked the Nigerian Communications Commission, Open Access Data Nigeria Limited, Digital Realty, ICSL, HyperSpace Limited and OneData Limited for believing in the dream of the organisers.


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US Newspapers Sue OpenAI, Microsoft Over AI Chatbots

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Eight US newspapers sued OpenAI and Microsoft in a New York federal court Tuesday for violating their copyright to train the technology behind the ChatGPT and Copilot chatbots.

The newspapers, which include The New York Daily News and The Chicago Tribune, are owned by Alden Global Capital, a Florida-based hedge fund that created the second-largest US newspaper group behind USA Today owner Gannett when it bought the Tribune publishing chain in 2021.

“This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot,” according to the filing.

“As this lawsuit will demonstrate, defendants must both obtain the publishers’ consent to use their content and pay fair value for such use,” the filing said.

OpenAI and its Microsoft backer were also accused of offering up verbatim excerpts of full articles as well as attributing misleading or inaccurate reporting to the publications in certain requests.

Other newspapers involved in the suit were The Orlando Sentinel, The Sun Sentinel of Florida, The San Jose Mercury News, The Denver Post, The Orange County Register and The St. Paul Pioneer Press.

In a statement, OpenAI did not refer to the accusations specifically but said “we take great care in our products and design process to support news organizations.”

OpenAI pointed to the “constructive partnerships and conversations with many news organizations around the world to explore opportunities, discuss any concerns, and provide solutions.”

This referred to the news outlets that have entered partnerships with the Microsoft-backed startup instead of going to court.

They include The Associated Press, Financial Times, Germany’s Axel Springer, French daily Le Monde and Spanish conglomerate Prisa Media.

The suit on Tuesday closely resembles a case filed by The New York Times in December, in which OpenAI is also accused of stealing content to train its powerful AI.

In that case, OpenAI strongly pushed back, arguing the use of publicly available data including news articles for general training purposes is fair use.

OpenAI also accused the Times of violating ChatGPT’s user guidelines to generate the content that suited its case.

Microsoft declined to comment on the suit.

AFP


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5G Subscriptions Hit 2.7m in Nigeria –NCC

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Nigeria’s mobile network landscape is seeing a gradual shift towards newer technologies, with 5G subscriptions reaching 2.7 million in March 2024, according to the Nigerian Communications Commission (NCC).

5G Subscriptions Hit 2.7m in Nigeria –NCC

This translates to a 1.24 per cent penetration rate.

While this represents steady growth compared to December 2023 (1.04%), 2G remains the dominant network choice, accounting for over half (56.97%) of all connections. 3G holds a 9.04% share, while 4G subscriptions have grown significantly from 25.06% in May 2023 to 32.74% in March 2024.

The high cost of 5G-compatible smartphones is a major barrier to wider adoption. Although all three major operators – MTN, Airtel, and Mafab Communications – offer 5G services in select cities, expanding coverage and affordability remain key challenges.

MTN launched the first 5G network in September 2022, followed by Airtel in June 2023. Mafab entered the market later in 2023. All three companies are aiming to expand their reach, but the high cost of 5G devices is a significant deterrent for many Nigerians.

According to Mohammed Rufai, chief technical officer, MTN, maintaining older networks (2G and 3G) alongside newer ones is necessary due to device compatibility issues.

This highlights the need for a wider range of affordable 5G-compatible phones to truly unlock the potential of this next-generation technology in Nigeria.

 

 

 

 

 

 


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