Why There Are 568 Dormant Internet Service Providers In Nigeria - Danbatta

Why There Are 568 Dormant Internet Service Providers In Nigeria - Danbatta

 Internet service providers (ISPs) in Nigeria face a number of difficulties, which has resulted in the inactivity of 568 licensed businesses to yet, according to Prof. Umar Danbatta, Executive Vice Chairman of the Nigerian Communications Commission.

He claims that one of the main problems is the industry's anti-competitive actions. This is despite the fact that, as of March 2022, only 188 of the 756 companies that had received ISP licenses in Nigeria were actually in operation.

The NCC director stated other problems facing internet service providers include insufficient spectrum, expensive bandwidth, expensive Right of Way, and a lack of effective corporate governance practices in the companies while speaking at a Telecoms Sector Sustainability Forum hosted by Business Remarks.

While noting that efforts are being put in place by the regulator to address the issues, Danbatta said: “As a result of these challenges, deliberate policies and regulations are being looked at in the Commission in ensuring that ISPs and other smaller players in the industry thrive. Some of the measures the Commission has embarked upon to continue to promote fair play and orderly development of the Nigerian communications ecosystem as well as boost competitiveness of the industry include providing the required regulatory frameworks and interventions in terms of policies, guidelines, determinations etc., that will encourage fair play in the telecommunications industry.”

We are also maintaining and mandating more openness and transparency in the activities of stakeholders within the industry in order to ensure healthy competition practices amongst competing licensees. We are actively engaging in strategic collaborations with stakeholders who have crucial roles to play in the growth and development of the Nigerian economy with an emphasis on the telecommunications sector”, he added.

Giving her remarks earlier, the convener of the Forum and Managing Editor of Business Remarks, Mrs. Bukola Olanrewaju said: “Over the years, studies have shown that the licence renewal rate of ISPs in Nigeria continues to drop, even as others take up the licence. In view of the critical need for internet connectivity for the digital economy and for mass digitalisation of Nigeria, the role of ISPs is central also for uptake of internet of things (IoT).”

“Internet Service Providers in the Nigerian telecommunications industry have been struggling to stay afloat due to challenges confronting their market to remain in business, expand operations and post profit every financial year. In line with the above, findings also showed that most of the ISPs who served the enterprise market lost revenue during the pandemic because their services were cancelled or suspended, despite procuring wholesale capacity,” she observed.

The event themed: ‘Examining the Nigerian Internet Service Providers (ISPs): Viability in a Digitized Environment’ was backed by the NCC, Skymax Integrated Network Limited, IPNX, eStream Networks, WTES Projects Limited, MangoNet Integrated Technologies, FibreOne Broadband, Dotmac Technologies, ICSL, and the National Information Technology Development Agency (NITDA).

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