The Lagos State unified fibre project is underway and holds the potential of deepening cable infrastructure and protecting the assets of operators in the state. Nevertheless, telecoms players are wary of the project as the state is yet to disclose most aspects regarding the operation of the scheme and the cost implications.
The multi-million-dollar unified fibre project involves the deployment of unified fibre duct infrastructure for carrying telecommunications cables and other wired infrastructure to support operators of telecommunications and other relevant utilities, as well as provide infrastructure and connectivity requirements for Lagos State.
The state’s agreement with the company it appointed to execute the project, Western Telecommunication and Engineering Metro Limited, will see it run the project for an initial term of 25 years, which could be extended by the parties, in writing, prior to its expiration or by effluxion of time, on mutually agreed terms and conditions. Western Telecommunications and Engineering Services Metro would also pay to the state coffers a fee of 10 percent of the revenues generated from the lease of the ducts to operators.
The Lagos State House of Assembly gave its stamp of approval to the project on Thursday, May 14, 2020.
At a meeting operators say took place earlier in July with the contractors of the project, the state attempted to bring some clarity to the purpose of the project and the benefits for telecoms operators.
MainOne confirmed to BusinessDay that there was contact with the Lagos State government under the auspices of the Association of Telecommunication Companies of Nigeria (ATCON) and contact with the office of Lagos State Infrastructure Maintenance and Regulatory Authority (LASIMRA), but details regarding the operationalisation and commercialisation of the project were yet to be communicated.
Also, operators are still waiting for formal engagement with the PPP, which the state authorities said would be clarified very soon.
Adejoke Owoso of FiberOne Broadband told BusinessDay that from the explanation the contractors gave during one of the meetings, the existing fibre infrastructure already laid would remain. Hence, there would be no need for relocation.
“The only thing is that we might not be able to build new ones,” she said, as “We have already paid for the Right of Way for some projects. They just increased the Right of Way (RoW) per metre, this year.” Unlike other providers who lay fibre underground, FibreOne passes its cables above ground.
The no-relocation order is, according to MainOne, essential to avoid disruption of services to consumers and businesses in Lagos since deploying new infrastructure takes time. The state however suspended the building of new infrastructure that requires RoW.
MainOne has invested over $100 million in fibre and supporting electronics infrastructure in Lagos State. In addition, the company’s submarine cable lands in Lagos as the gateway to Nigeria, hence onward connectivity to distribute the capacity it brings into Nigeria from Lagos around the state and to the hinterland is critical for the survival of its business.
“With regard to how things will work when the PPP infrastructure is ready, no clear plan has been communicated yet. We are certain that in due time all the details will be communicated,” MainOne said.
Lagos currently has a minimum RoW fee of N1,050 per linear metre. While seven states have so far reduced the charges, Lagos appears to be holding off making the decision perhaps until its unified fibre project is completed.
The unified fibre policy aligns with the dig once policy recommended in the National Broadband Plan 2020-2025 to avoid continuous destruction of infrastructure during the laying of fibre, water, electricity, or gas or any pipeline. The policy effectively eliminates the need to dig up recently-paved roads to expand broadband infrastructure, significantly reducing the cost of building out internet access to underserved communities across the country.
MainOne it hoped that the plan would be for co-existence while operators continue to expand respective networks with the new infrastructure being deployed by the PPP.
“I am indifferent about the project because the commercials are not out yet. We haven’t approached them for any of the commercials. We also spoke to some people and they told us that they are yet to give the commercials. When the commercials are out we will weigh it and decide if it is good for us to meet up with the service that we provide,” Owoso said.
