Thursday, October 6Inside Business Africa

Telcos hopeful of economic growth, revenues in states with RoW cut

Telecommunications operators are upbeat about new wave of economic development and revenue growth in states that have slashed Right of Way (RoW) tariffs in the country.

Reacting to the development in Imo State, where Governor, Hope Uzodinma, announced a slash in RoW tariff from N4,500 to N145 per linear meter, to become the second state in a week, after Ekiti, to comply with the agreement reached at the Nigeria Governors’ Forum (NGF) for a possible cut in tariff, the operators commended the state governments.

The telcos, under the aegis of Assoociation of Telecommunications Companies of Nigeria (ATCON), said it commends the recent pragmatic Executive Orders issued by Dr. Kayode Fayemi, Governor, Ekiti State and Chairman, NGF and Senator Hope Odidika Uzodinma, Governor, Imo State and their respective State House of Assemblies for the implementation of the approved RoW price from a very exorbitant price to an industry and investment friendly price of N145 per liner meter approved by the Federal Government.

In a statement signed by the Executive Secretary, ATCON, Ajibola Olude, the operators noted that with this move by the governors, their leadership have attested to the fact that the socio-economic development of their respective state is not mutually exclusive to broadband and ICT infrastructure development which has been one of the basis of service providers advocacy initiatives.

Olude listed some of the benefits that are accruable to states that adopted and implemented the harmonized RoW to include the unlocking of the inherent digital potential of these states.

According to him, these states are set to enjoy and maximize the opportunity that pervasive broadband penetration can offer as the people can now leverage on uninterrupted telecommunications services which they have not been enjoying before now. He said because of this, telecom infrastructure would give the states the opportunity to express their gifts and talents. Olude said that there will be fast paced of development enabled by robust telecom and ICT infrastructure.

According to him, the direct multiplier effect of this executive order is that “these states will experience a noticeable development both in the private and public sector which is expected to push the revenue of these states forward and it will also make companies that do not have presence in these states to consider opening a branch in the state which will lead to employment generation thereby reducing rural-urban migration.

“We use this opportunity to advise those States that have not implemented the approved the harmonized Right-of-Way price of N145 per liner meter to take a clue from these States and together telecom and ICT infrastructure will speed up the needed development in Nigeria.”

The ATCON said the body appreciate the governors and House of Assemblies of these states for making their respective states a strategic partner of the initiative to ensure that Nigeria have pervasive network coverage and seamless access.

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