Some telecoms stakeholders on Thursday said that return on investment in infrastructure could only be achieved in major cities where there was relative stability and a ready market.
Mr Mike Ofili, Chief Executive Officer of Coloplus, a tower infrastructure company, buttressed that remark during the West Africa Telecoms Infrastructure Summit and Exhibition (WATISE) organised by Technology Mirror in Lagos.
The theme of the event was: “The Future of Infrastructure Connectivity and Services: A New Interdependent of Ecosystem of Partners.”
Ofili said that most telecoms infrastructure are concentrated in major cities, because of the possibility of vandalism, insecurity, and high right-of-way charges experienced across the country.
He said that this explained why in several parts of the country outside the three major cities – Lagos, Abuja and Port- Harcourt – many Nigerians are still on 2G networks.
Ofili noted that Right-of-Way charges are also high in the major cities, especially Lagos, but operators are able to sustain infrastructure deployment with higher returns from the state.
Speaking on why operators had to slow down their expansion into rural areas, he said that most telcos had to pay through their noses to lay fibre cables.
“I can tell you that 90 per cent of the data centres in Nigeria are in Lagos and I don’t know how you want to achieve 70 per cent broadband penetration in Nigeria with almost all the data centres in Lagos.
“It is very difficult to lay fibre cables across many communities in Nigeria, you cannot cross any community without paying different people.
“You cannot build towers without going through different communities of people demanding all kinds of things,” Ofili said.
He explained that if one did not meet the demands of the communities, they would either not allow you to deploy or vandalise your equipment.
“There are many states that operators cannot go to lay fibre because they will need heavy security.
“Operators have lost many of their engineers to insecurity in the North while trying to deploy infrastructure.
“To deploy infrastructure in some communities that are considered important, operators have to negotiate with the people and align with them” Ofili said.
