Telecom
Reducing Operational Cost through Infrastructure Sharing
Telecommunications service providers in the country have severally be lamenting on high cost of providing service, which they claimed is adversely affecting their ability to deliver quality of service as well as meet up with their social responsibilities.
For instance, compared to other developing economies, operators in the country are faced with multiple taxes by different tiers of government, provision of power as well as transmission infrastructure that are none existence. In most developing countries such as Egypt, South Africa, Ghana among others these challenges are not faced by telecom operators in these countries. But the most common challenge that operators around the world are faced with is duplications of infrastructure, where each operator has to deploy the same infrastructure its older competitor has deployed thereby wasting the resources as against sharing such infrastructure for better performance.
Against this backdrop that the International Telecommunications Union (ITU) published a report detailing a set of regulatory strategies designed to lower the costs of telecoms network rollout. The report notes that 2008 has been marked by unparalleled numbers of voice and Internet consumers in both the developing and developed world, the result of which is network growth and expansion.
Options available
This year the report added, has also witnessed an unparalleled global financial crisis which may make it more difficult for investors to obtain financing for continuing network development. Sharing strategies, examined in the new ITU report, are seen as conducive for infrastructure development in the telecommunications/ICT sector, particularly in light of the deepening global financial crisis.
Sami Al Basheer, director of ITU’s Telecommunication Development Bureau, said that sharing strategies are increasingly necessary to ensure that operators can deploy their networks at low cost while guaranteeing that consumers have access to affordable services. "Now, more than ever, sharing strategies make sense as operators are forced to reduce the costs of network deployment as they compete for scarce investment funds. This is a forward-looking perspective in light of the current financial and economic uncertainty," he said.
Sharing strategies he said include the sharing of civil engineering costs in deploying networks, promoting open access to network support infrastructure (poles, ducts, conduits), essential facilities (submarine cable landing stations and international gateways) as well as access to radio-frequency spectrum and end-user devices.
The "Six Degrees of Sharing" theme was first discussed in Thailand during ITU’s 2008 Global Symposium for Regulators last March. Few observers could then have anticipated the rough ride that would be in store for financial markets a few months down the road.
Yet, the guidelines announced in March seem almost prophetic in today’s circumstances. Taking a broad and innovative view of sharing, the world’s regulators sought to capture the productivity of global networks and use it to expand the scope of opportunities for service and content providers and, ultimately, consumers.
Developing countries embraced sharing to make more affordable the expansion of ICT networks to rural and under-served areas. Many developed countries are looking at sharing to reduce the cost of rolling out ultra high-speed broadband networks that reach customers’ homes and apartment buildings.
"Sound business and regulatory practices will contribute to extracting the greatest possible value from existing levels of investment in the telecommunication and ICT sectors. ITU is committed to working with member States and to assist regulators in marshalling the regulatory expertise they need to navigate these rough seas," said Al Basheer.
The booming volume of digital bits generated by the move to convergence and packet-switching has produced a need for increased network capacity. Regulators have a responsibility to create and maintain an environment in which operators and service providers can maximize network capacity and efficiency by fostering capital investment and market expansion as the sector continues to evolve.
The report highlighted that mobile penetration showed high growth rates through 2008. It noted that by year end, mobile networks and subscribers will rise to an all time high, reaching an estimated 4 billion mobile subscribers worldwide. The world it said also counts over 1.5 billion Internet users, a growing number of which use fixed and mobile broadband services. Dial-up is being replaced by broadband across developed and developing countries alike. ITU noted that in developing countries such as Chile, Senegal and Turkey, broadband subscribers represent over 90 per cent of all Internet subscribers.
A growing array of broadband wireless systems are now available, opening the way for users in developing countries to access the Internet on mobile phones and other handheld devices. At the same time, more developing countries are deploying national fibre backbones and backhaul networks to transport their growing data-rich traffic. In addition, several new international submarine cable networks are set to connect developing countries to the global network of Internet backbones – just as a group of high-tech entrepreneurs are working to revive plans for a constellation of broadband satellites to connect the developing world. The Trends report catalogues efforts by governments, and in particular ICT regulators, operators and service providers to expand the reach of affordable broadband services and meeting universal access goals.
How to grow the sector
What had been foreseen as ideal strategies to extend broadband network access in developing markets may now be viewed as a prescription for the entire world. If the sources of capital for network investment suffer a temporary drought, policy-makers could take steps to make their markets more amenable to the shrinking pool of investment, such as lower investment barriers that inhibit capital flows from one country to another.
Reduce of regulatory barriers (high licence fees or market-entry bans) that represent hostile environments for capital investment and market growth.
Share essential facilities, such as cable landing stations, local switching centres or fibre backbone networks.
Adopt rules to provide for infrastructure sharing, particularly "passive" sharing of towers, ducts, rights-of-way and other support facilities.
Overhaul and streamline cross-agency processes to create a ‘one-stop shop’ for various network-related authorizations, such as land management, port access, environmental and safety permits.
Add innovative spectrum management mechanisms that promote increased sharing and efficient use of spectrum.
Amend regulatory frameworks to eliminate discriminatory rules that favour one company or industry over another in a converged services market
Ensure that government policies and rules maximize the ability of incumbents and market entrants to choose between different opportunities for business plans and long-term strategies, including resale, wholesale, and niche markets.
Most of these initiatives are beginning to take root in the country’s telecommunications space, before now, idea of co-location of infrastructure was strongly opposed by operators who were fighting over subscribers, but, when the cost of providing service kept rising as well as intervention by Nigerian Communications Commission that began enlightenment of operators on the need to co-locate that they started adopting the option. Today, there are over 1000 co-located sites in the industry.
This also provided opportunity for investment as some investors have begun to build and operate cellular site for operators to co-locate. Notable among them are Infrastructure Hi-Tech Services (IHS), Hilios Towers, among others.
Mr. Gbenga Onakomaiya, chief commercial officer, IHS, said that the idea of building and managing of sites for mobile operators is to take off the problems being faced by operators in managing sites such as youth restiveness, generator theft and taxes.
He explained that an operator in the country spends average of $6,000 per month to maintain a site, but with co-location option such operator spends $2,000 per month. This according to him is cost effective as well as big relief for them. “Initially, everybody wanted to provide services by themselves but now they are seeing the economic sense as sites are growing, and maintenance is becoming big financial burden. They need to focus their attention to their core business of running the network,” he said.
Although NCC has been advocating for sharing of infrastructure as a faster way of expanding network roll out especially in underserved areas, and has expressed it readiness to monitor the implementation of the option by operator by next year. This ITU report is seen as a desired encouragement to some operators whose parent company may not be favourably disposed to it.
Industry watchers who spoke to Nigeria CommunicationsWeek expressed worry over implementation of sharing of infrastructure. They argued that as operators are encourage by every means to share infrastructure, measures should be put in place to address vandalisation which is likely to have adverse effect on service delivery. They explained that if a shared infrastructure is vandalised, it will affect all the networks sharing that infrastructure.
Nigeria is strengthening its position as a leading digital economy in Africa as it prepares to host the second edition of GITEX Nigeria, against projections that the continent’s artificial intelligence (AI) economy could generate up to $1 trillion in economic value by 2035.
GITEX Nigeria
GITEX Nigeria, described as West Africa’s largest technology, AI and startup event, is scheduled to hold in Abuja and Lagos from Aug. 31 to Sept. 3, under the patronage of President Bola Tinubu.
The event is supported by the Federal Ministry of Communications, Innovation and Digital Economy in collaboration with the National Information Technology Development Agency (NITDA), endorsed by the Lagos State Government and organised by KAOUN International.
With the theme, “Beyond Connectivity: The Bridge to Sovereign Innovation,” the 2026 edition is expected to bring together global technology companies, investors, policymakers, regulators, startups and other stakeholders to advance Nigeria’s digital transformation agenda.
According to the organisers, the event will focus on strengthening digital resilience, scaling AI infrastructure, attracting strategic investments and building partnerships to support digital sovereignty across Nigeria and West Africa.
Nigeria’s progress in digital skills development is expected to feature prominently at the event, with the Federal Government’s 3 Million Technical Talent (3MTT) programme highlighted as a major intervention.
The programme has recorded 1.87 million registrations across all 774 local government areas, while more than 135,000 Nigerians have been trained through three cohorts.
The programme has also extended learning opportunities to more than 300,000 people through community resources and created 15,000 job and opportunity pathways, according to figures released by the organisers.
Another key initiative, Project BRIDGE, is aimed at expanding Nigeria’s national ICT backbone and improving connectivity in underserved communities.
The project is expected to create up to 20,000 direct jobs and more than 150,000 indirect jobs, train 5,000 Nigerian youths, raise internet penetration above 70 per cent and extend high-speed connectivity to millions of households, businesses, schools and hospitality establishments.
Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, said Nigeria’s objective was to build the foundations for digital sovereignty and a globally competitive AI-powered economy.
“Building on the momentum forged through the implementation of Project BRIDGE, our national blueprint for expanding digital infrastructure and connecting communities across Nigeria, our aspiration ahead of this year’s edition is clear: to solidify the foundations Africa needs for digital sovereignty, technological self-determination, and a globally competitive AI-powered economy,” Tijani said.
He said Nigeria was seeking to promote equitable access, accelerate cross-continental progress and position the country as a producer and exporter of digital technologies and AI solutions.
The GITEX Nigeria Government Leadership and AI Summit will open in Abuja on Aug. 31, bringing together ministers, governors and regulators to discuss digital public infrastructure and other issues shaping West Africa’s digital economy.
The GITEX Nigeria Tech Expo and Future Economy Conference, as well as the Startup Festival, will also return for the second consecutive year.
A new component, FDX Nigeria by GITEX, will focus on finance and digital asset exchange, with the organisers describing it as a platform designed to promote financial inclusion and connect emerging technology with global capital.
Gov. Babajide Sanwo-Olu of Lagos State said the state remained central to Africa’s digital transformation, noting its role in attracting talent, capital and innovation.
He said hosting GITEX Nigeria would further support Lagos’ ambition of becoming a smarter, more connected and globally competitive economy.
Kashifu Inuwa Abdullahi, Director-General of NITDA, said Nigeria’s digital future would depend not only on technology adoption but also on resilience, trust and effective governance frameworks.
“GITEX NIGERIA seamlessly complements this mandate, creating a unique environment for the dialogue needed to accelerate responsible AI adoption, develop a secure digital economy, and unlock new opportunities for innovation and economic growth,” Abdullahi said.
He said the expertise, investment and partnerships generated through the event would contribute to building an AI ecosystem that was secure, inclusive and capable of supporting Nigeria and West Africa’s long-term competitiveness.
The organisers said Nigeria’s National AI Strategy, 3MTT programme and Project BRIDGE were among initiatives strengthening the country’s capacity in talent development, digital infrastructure, investment attraction and responsible AI adoption.
They said GITEX Nigeria would provide an avenue for global stakeholders to establish partnerships and develop solutions capable of accelerating the region’s digital transformation.
Trixie LohMirmand, CEO of GITEX, said the event was intended to demonstrate that West Africa was ready to convert technological ambition into economic growth, resilience and global competitiveness.
She said GITEX Nigeria would facilitate strategic conversations and partnerships aimed at strengthening regional competitiveness and unlocking scalable growth across Nigeria and West Africa.
Nigerian Communications Commission (NCC) and the Enugu State Government have signed an agreement for the operational lease of the NCC Digital Industrial Park and NCC Learning Centre in Enugu.
The agreement was witnessed by Dr Aminu Maida, Executive Vice Chairman and Chief Executive Officer of the NCC, alongside members of the Commission’s Board and Management.
The development is expected to strengthen digital innovation, skills development and technology-driven opportunities in the state.
As part of the engagement, the NCC delegation also visited the Enugu Smart School Initiative, where technology is being integrated into teaching and learning.
The initiative is aimed at equipping young Nigerians with relevant digital skills and preparing them for future opportunities in an increasingly technology-driven economy.
The NCC said it remained committed to supporting initiatives that expand digital inclusion, strengthen innovation and develop the talent required to drive Nigeria’s digital transformation.
The Commission said partnerships with state governments and other stakeholders were critical to creating an enabling environment for digital skills development and technology adoption across the country.
Nigerian Communications Commission (NCC) has directed telecommunications operators to make dedicated budgetary provisions for cybersecurity as part of efforts to strengthen the resilience of Nigeria’s communications infrastructure against the growing wave of cyber threats.
The directive forms part of the Commission’s Cyber Resilience Framework for the Nigerian Communications Sector (CRF-NCS), which introduces new governance, risk management and operational requirements aimed at safeguarding the country’s critical telecommunications infrastructure from increasingly sophisticated cyberattacks.
Under the framework, all licensed telecom operators are expected to establish formal cybersecurity governance structures, dedicate adequate financial resources to cyber resilience programmes, and integrate cybersecurity into their enterprise-wide risk management processes.
The Commission said operators must ensure cybersecurity investments are no longer treated as optional operational expenses but as strategic business priorities necessary to protect network infrastructure, customer information and the country’s digital economy.
According to the NCC, licensees are expected to allocate sufficient budgets to support cyber risk assessments, security technologies, staff training, incident response capabilities, continuous monitoring and compliance with regulatory requirements.
The framework also requires operators to designate senior executives responsible for cybersecurity oversight.
At the same time, boards of directors are expected to provide strategic direction and ensure adequate funding for cyber resilience initiatives.
Speaking on the need for a stronger cybersecurity regime during the unveiling of the framework, Abraham Oshadami, executive commissioner, Technical Services, NCC, said, “Given the increasing digitalisation of services, the rapid growth of data exchange, and the sophisticated nature of modern cyber threats, the need for a robust, adaptive and inclusive cybersecurity framework has become more urgent.”
He added, “Both state and non-state actors are targeting essential sectors—including ours—through coordinated cyber and physical attacks. These attacks frequently target control systems and data integrity, underscoring the critical risks posed to operational technology (OT), especially in our sector.”
“As cyber threats evolve, they endanger not only system performance but also human safety, amplifying the severity and consequences of disruptions to vital communications infrastructure. Cybersecurity now encompasses human safety and must address the real risk to people’s lives when a system is attacked or compromised.”
The Commission further stated that operators are required to develop comprehensive cybersecurity implementation plans, conduct periodic risk assessments, establish business continuity and disaster recovery procedures, and regularly test their cyber defence capabilities.
In addition, the framework makes cyber incident reporting compulsory. Licensees must inform the NCC’s CSIRT of any major cybersecurity breach within four hours of discovery, and provide a thorough post-incident analysis after mitigation is complete.
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