‘Tier 2 Telcos’ operating cost up by 80%’

…Paucity of forex killing firms
The Tier Two (broadband) telecom operators have said operating costs have gone up to 80 per cent. They said the development is impacting them negatively,as businesses are groaning.

A Tier Two network, is an Internet service provider, which engages in the practice of peering with other networks, but which also purchases Internet Protocol (IP) transit to reach some portion of the Internet.

Managing Director of Smile Communications, Mr. Godfrey Efeurhobo, stated this when he led the group on a visit to the Minister of Communications, Barrister Adebayo Shittu in Abuja.

He said that the group was still finding it very difficult to access forex; and is not listed among companies having direct access to source for dollars.

Efeurhobo appealed to the government to put in place palliatives that would cushion most of the challenges they faced in their business as well as grant them tax holiday and easy access to foreign exchange.

In his response, Shittu, said government will support and create enabling environment for the telecommunications industry to thrive.

Shittu stated that ICT was critical to the government; and that data is a way of life to all citizens, irrespective of whether in government or in private activities, and assured relevant steps would be taken on the challenges the operators are facing.

He also assured the operators that government would do everything possible to see that Tier Two Telecoms (Broadband) providers do not close shop.

The minister seized the opportunity of the visit to invite the Tier Two Telecoms’ providers to partner with the ministry in the establishment of an ICT Development Bank, to adopt a campus of the ICT university, and join in the establishment of an ICT exhibition park.

Tony Nwakaegho