Number of internet service providers dip in July 2024

BY MOTOLANI OSENI

The number of active Internet Service Providers (ISPs) in Nigeria declined to 242 in July 2024 from 252 recorded in May this year.

The Nigerian Communications Commission (NCC), in its updated database of ISPs in July, revealed that, despite the addition of two new companies, Sulfman Consulting Limited and NGCOM Lastmile Solution Limited on July 1, the number of ISPs decreased.

Data from NCC revealed that 12 ISPs relinquished their five-year licenses (which cost N500,000) in June this year.

However, the NCC had recently lamented that many of the ISPs were not renewing their licence, leading to a continuous decline in the number of active operators in that telecom market segment.

For instance, the immediate past executive vice chairman of the NCC, Prof Umar Danbatta, noted that a total of 568 licensed ISPs had become inactive as of March 2022, while highlighting the challenges confronting the internet providers as inadequate spectrum, high price of bandwidth, high cost of Right of Way, and lack of good corporate governance practice in the companies.

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Other critical challenges faced by ISPs include; vandalisation, competition, tariffs, taxes and duties, power availability and cost, Ajuzie said this sub-sector needs regulatory support in terms of licensing issues, spectrum availability and price, inter-sector policies framework, Right of Way intervention, human security and safety at the plants, WTES Projects Limited’s chief operating officer, Mr Chidi Ajuzie added.

“The past two years have been very challenging for the ISPs, with lots of damages done to infrastructures, particularly in Lagos state. The federal government needs to put out laws to enforce the protection of critical telecom infrastructure. ISP’s business in Nigeria is viable but we need to watch out and look out for governmental support at the federal, state and local levels for enabling business environment”, he stressed.

Although ISPs play an important role in providing internet connectivity and achieving the National Broadband Plan (NBP 2020- 2025), Ajuzie emphasised that they do not need to be static to ensure their survival. According to him, silos are the bane of ISPs operations in Nigeria consuming both OPEX and CAPEX. “ISPs need to be highly innovative, by going beyond typical connectivity to embracing Value Added Services and providing solutions on fibre infrastructure. ISPs need to understand their market and take informed deliberate steps to increase their revenue turnover.

“Collaboration is key for ISPs to successfully play across all the tiers. ISPs need to find key players to collaborate with for wider broadband reach as well as save costs. They must consolidate and expand serviceable footprints. ISPs also need to monetize and stabilize existing infrastructure; and provide End-to-End solutions and services but focus on end-user wallets.

“In essence, ISPs should look into other areas to sustain their business. They can leverage on open access rollouts and partnership, reduce legacy CAPEX and OPEX, expand serviceable footprint, consolidate multi-vendor maintenance, reduce risk and high cost and maintain integration for end-to-end broadband, among others”, he advised.