[234next] Infrastructure sharing will be implemented in Nigeria, to improve the quality of telecommunications services in the country.
Network development is a major aspect of telecommunications investment, which requires significant capital expenditure. However, with co-location and infrastructure sharing, two or more telecoms service providers can agree to share infrastructure like towers and base stations located in a common area to reduce capital and operational expenditure.
Speaking in Lagos on Tuesday at a co-location forum organised by the Nigerian Communications Communication and Telecom Answers Associate, an industry service provider, Ernest Ndukwe revealed that “steps have been taken before today to publish what we call co-location guidelines for the industry. That is our state of a very strong support for the concept of co-location in the industry”.
The information and communication technology sector is arguably Nigeria’s most vibrant, and co-location and infrastructure sharing will help improve the quality of service by reducing expenditure.
Infrastructure sharing could be active or passive. Active sharing involves sharing components such as electronics equipment, antennas, and switches, while passive sharing entails sharing things like towers, base station shelters, air conditioning systems, electric power supply systems, and premises.
More so, operators can monetise non-core assets while enjoying a faster time to market for new entrants thus, the ability to focus on customers and core business. As for the Nigerian Communications Communication, the industry regulator, with infrastructure sharing and co-location, it can achieve competitive tariffs for customers, rollout in less attractive areas, and control excessive proliferation of towers and masts in urban areas while encouraging competition.
Mr. Ndukwe said: “We have issued quite a number of sharing and co-location licences. Many of those that have the licences have also taken up the challenge. I’m happy to know that some of the newer companies that have started business in Nigeria have heavily depended on co-location.” At the moment, there are 11 companies with co-location licenses in Nigeria. With a required capital of $250, 000 per tower/ mast, local banks have also offered to support the idea by helping to provide finance.
Ladi Balogun, managing director of First City Monument Bank, described co-location as “the next big thing” in the telecommunications industry. He revealed that the bank “has a deep understanding of telecoms and tower sector, having arranged over ₦20 billion of financing for the towers sector in the last 24 months through syndications and bilateral loans”.
The Nigerian telecoms sector is ranked as one of the fastest growing markets in the world with an annual average new mobile line of eight million per annum since 2002 till date and over $7 billion in infrastructure investment within the same period.
Telecom industry operators opt for infrastructure sharing
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