ALTON requests CBN to allocate 60% forex for telecom equipment, others
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has requested the Nigerian Communications Commission (NCC) to engage the Central Bank of Nigeria (CBN) to speedily include Telecommunications Equipment and Invisibles among the list of items billed to benefit from the 60 percent foreign exchange (FOREX) by banks in the country.
Mr. Gbenga Adebayo, Chairman, ALTON, the umbrella body of licensed telecommunications operators in the country, stated this in reaction to the threat by some three bank consortium to take-over Etisalat Nigeria over inability to service loan facility worth secured in 2015.
Adebayo noted that the inclusion of telecommunications equipment and invisible in the sector in the allocation guidelines would assist in the continued provision of world class telecommunications services to the consumers.
ALTON, he said commended NCC and CBN recent steps, while lamenting that lack of exemption of telecommunications equipment and services from items to be accorded priority in the allocation of forex by the banks has adversely impacted the industry.
ALTON cited in a four-page plea to the regulatory agencies, noted that current forex regime will have devastating impact on telecommunications sector, specifically will increase operating cost, prevail an unfavourable credit terms, delay implementation of network enhancement and improvement initiatives, and affect the national broadband plan to name a few.
He stated that “Telecommunications equipment is plant and machinery” adding that telecommunications service providers are similar to manufacturing firms and deserve to be treated in the same manner.
“The core network equipment and other auxiliary equipment procured for providing Voice and Data Services are equivalent to plant and machinery acquired by the manufacturing firms for the production of goods and services in the country,” he added.
He listed some of the plants and machinery often procured and imported into the country by telecom operators to include Radio Frequency (RF) Coverage Equipment (BTS, BSC, Node B, RNC); Core Equipment (MSC, Media Gateway, RMC, CCN, EMM, Packet Core, MPLS Nodes, etc); Transmission Equipment (Microwave, Optical Fibre, RF Planning Tools); Customer Contact Equipment (SIM Cards); and Network Tools (Planning tools, Monitoring tools) among others.
ALTON, therefore, affirmed that subsequently the aforementioned equipment are integrated to form a network to provide services of voice, data, Short messaging service, Value Added Service (VAS), enterprise solutions and leased lines, which are finished goods in the telecommunications sector.
