The Association of Licensed Telecommunication Operators of
Nigeria (ALTON) has revealed that some foreign vendors of telecommunications
equipment have issued “Notice of Disconnection” to its members, over their
inability to meet with the current unfavourable credit terms, reports ITRealms.
Chairman, ALTON, Engr. Gbenga Adebayo, made this disclosure
to ITRealms at the recent breakfast
session with members of the Nigeria Information Technology Reporters
Association (NITRA) in Alausa-Ikeja, Lagos.
He listed some three adverse impacts to telecom sector due
to lack of exemption of the sector from Foreign Exchange (FX) priority list by
the Central Bank of Nigeria (CBN).
These, he said, include an increased operating cost,
unfavourable credit terms and delayed
implementation of network enhancement as well as improvement initiatives.
On increased operating cost, he noted that in the absence of
local substitutes for its plant and machinery, the telecommunications service
providers are constrained to source FX from interbank market at higher rates
compared to other sectors such as manufacturing, aviation and agriculture
accorded priority in FX allocation at reduced rates by the Central Bank of
Nigeria (CBN).
“Owing to the prevailing economic situation in the country,
ALTON members cannot transfer the increased cost burden to the consumers,
thereby contracting profitability and ability to make further investment to
drive growth in the industry,” he said.
The ALTON boss also pointed out that the unfavourable credit
terms has made it very challenging for operators to honour their obligations to
foreign vendors as at when due. This has
occasioned delayed payment to equipment suppliers and other foreign vendors,
who have now resorted to imposing unfavourable payment terms on
telecommunications service providers in Nigeria.
“Some of the Foreign Vendors had issued Notice of
Disconnection of service, which could disrupt service availability with
attendant impact on customers’ experience,” he revealed.
ALTON noted with dismay that delayed implementation of
network enhancement and improvement initiatives, recalling that ALTON members
made commitments intended to ensure the implementation of National Quality of
Service (QoS) Fixing Project.
This, he said, is a coordinated network investment plan
supervised by the Nigerian Communications Commission at designated locations
nationwide over a period of time by the Telecommunications Service Providers to
ensure improved QoS.
“The continuity of this initiative is dependent on obtaining
FX to import equipment required to carry out the intended national QoS Fixing
Project. ALTON is of the view that if
proactive measures are not taken to ensure easy access to FX, the National QoS
Fixing Project is likely to be adversely impacted to the detriment of the
citizenry and economy.
ALTON requested CBN to include Telecommunications Equipment
and Invisibles among the list of items/Sectors to be allocated from the 60 per
cent FX availability by the Banks.
“This is to ensure the continued provision of world-class
telecommunications services to the consumers,” he said.
Sherif
Ayilara/GEE
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