Telcos: New data rollover rule will affect revenue

The Association of Telecommunication Companies of Nigeria (ATCON) says the new directive on data rollover will negatively impact service providers’ revenues.

Olusola Teniola, ATCON president, told NAN on Tuesday that the directive would ensure full utilisation of data purchased by telecoms consumers.

The Nigeria Communications Commission (NCC) had directed telcos to roll over unused data for seven days.

He said that the consumers’ protection would, however, be to the detriment of network providers.

“Currently, the annual operating levy imposed on our members is 2.5%, and it is based on our net revenues,” he said.

“This directive may have a significant impact on the revenue because within those seven days consumers are not being charged for a data plan, it is a loss of revenue for our members,” he said.

On multiple taxations, Teniola said that the association was in dialogues with the government for harmonisation of the Right of Way (ROW).

Teniola said that ROW was one of the major elements that would enable ATCON members to invest in broadband infrastructure.

“Our association is hopeful that we will have a decision made by the government as to the best way forward in terms of harmonisation of ROW.

“On the remaining 37 taxes, we are really seeking further dialogues with the ministry of finance and the president’s office to ensure that our industry is not being targeted for taxes that are duplicated not only by the federal but state and local governments.

“Taxes should not only be applied fairly but also have to be seen to be able to intensify further investment critical for investments that government and the country require.”

He said major stakeholders are of the opinion that 30% broadband penetration is not achievable in 2018 because licenses for infracos were not issued on time.

“They were only concluded by the first quarter of this year and have just been issued to infracos.

“Secondly, we have a situation where the multiple forex mechanisms in place do not create certainty in the minds of investors.

“That means it is much more expensive to import necessary equipment to actually create the demand needed to achieve 30 per cent broadband penetration.”