GSM operators pay N250 billion tax, spend N80 bn on generators

This information was released in Lagos recently by Bayo Ligali, chief executive officer of mobile communications network, Celtel. Ligali was speaking at a graduation ceremony at the Lagos Business School. He further said that the mobile telecommunications sector was Nigeria’s highest user of electricity generators and that operators in the sector had purchased over 9,000 such generators so far this year and that the cost of purchase and maintenance was N80 billion. He said mobile telecom operators have used up over 200 million litres of diesel oil to run their generators so far this year.

He further stated: "The sum of the foregoing is that the cost of generating power for each base station is 35 percent of its’ total construction cost and about 68 percent of its’ operating cost".

He stressed that the power sector reform process needed to be accorded national priority in view of its’ direct impact on telecommunications and national industrial development. "In this regard, it is expected that government incorporate specific and stringent electrification targets as prerequisites for issuance of concessions and licences to the generation, transmission and distribution companies that would emerge from the power sector reform process.

"It will also be necessary to accord priority power consumer status to the GSM operators and for synergy between the NCC (Nigerian Communications Commission) and the National Electricity Regulatory Commission (NERC) for optimal service delivery between the industry".

Ligali further stated that as NITEL’s infrastructure was inadequate to meet the present and future needs of the wider telecommunications industry, they have had to construct separate transmission to support roll out obligations and the provision of efficient services.

He added that as the development of an expansive national telecommunications backbone is imperative for effective and varied service delivery, government should provide adequate incentives to encourage the on going construction of multi-media compatible fibreoptic networks by mobile operators.