Telcos threaten to shut down operations in 6 states

Telecoms operators are threatening to shut down operational business in six States of the federation due to harassment by the states’ agents on their officials and facilities.

This warning is coming as a result of alleged arbitrary taxes, incessant closure of Base Transceiver Stations (BTS) sites and other interruptions.

Gbenga Adebayo, the chairman of the Association of Licensed Telecoms Operators (ALTON), told journalists at a press briefing yesterday that continued harassment by state agents in

Ogun, Ondo, Akwa-Ibom, Ebonyi, Osun and Kaduna states is impacting negatively on the quality of service.

According to him, the association has continued to receive complaints and record cases of arbitrary site closure in affected states in an attempt to force service providers to pay multiple taxes and levies aimed only toward telecom operators.

Concerning the issue of multiple taxation, Funso Aina, Public Relations Manager, MTN Nigeria told Businessday that

“Unfortunately, multiple taxation and other challenges continue to have a negative impact on the operations of operators. We constantly engage government at all levels to address the imposition of unstructured fees and charges by the various labels of government and service interruptions arising from collection attempts.

“We have made it clear that illegal taxation alters incentives for production and consumption, and so economic distortions will be prevalent where the burden of taxation is high. The burden is subsequently transferred to end users, which makes costs higher and affordability slows penetration,” he added.

The Association complained that telecommunications operators should in no way be subjected to the payment of taxes including ‘Eco Tax for gaseous emission and gaseous emission’ especially because players do not have moving machinery and production lines; sewage,
sanitation and public convenience levy.

“What has telecoms services got to do with sanitation and refuse effluent tax: when we don’t operate fast food centers. How can a base stations situation in farm land be regarded as business premises and therefore liable to business premises tenement rate payment?; Why is the rate charged per base station in the urban areas different from the rate applied for residential and commercial  buildings when the infrastructure occupies the same land?”, they stated.

Adebayo disclosed that telecommunications operators have resolved that, arbitrary sealing of sites, without following the guidelines clearly provided by the Nigeria Communications Commission (NCC) and in line with best practices will no longer be tolerated.

As such, he said, “any state or local government authority that closes our sites: our members will not reopen such sites: we will serve the necessary warnings and if such practices continue: we are then faced with two options: first is to pay the charges by such state government, and to increase the tariff chargeable for calls originating and terminating from networks in such states:  With all the attendant service delivery issues.
“Where such actions on the part of government continue: we shall then advise all our members, after due consultation with relevant authorities, because of the security and
economic implications, to shut down the entire network in such state for one full day as a final warning to such state or local government area.”

Adebayo said the listed states have continued to make telecommunications services upgrades in their region extremely difficult.
Jumoke Akiyode