African GSM operators seek Improved government policies

If the telecommunications industry is to maintain its current growth level and realise it potentials in Africa, some policy trends that are inimical to its success must be reviewed, Vice Chairman of the GSM Association, Africa, Mr. Chioke Ogugua, has noted. According to him, some policies being adopted by countries in the African continent, especially with respect to taxation of mobile phone operators, portend grave danger to the ability of operators to rollout service to meet demands. Speaking at a media briefing in Lagos on Friday, Ogugua stated that a situation whereby the recent growth of the mobile phone industry in the continent had made some governments to regard the sector as a means of income and as such subject operators to every conceivable form of taxations and levies was inimical to the growth of the sector. Ogugua, who is also the Chairman of the GSM Consultative Forum, an umbrella body of the GSM operators in Nigeria, said except the trend was reversed, some places might not be reached quickly with services. Using Nigeria as an example, he noted that the cream of the society had already received phones and except policies favour a situation whereby places not yet reached were easy to be reached, many places would remain without service. “There is still a lot of rollout to be made in Nigeria and we have to be careful not to make it too difficult for operators to provide services to places not yet reached,” he said. Ogugua noted that this problem would come under the focus of the forthcoming GSM Africa Conference being organised by GSM Association, Africa. He said operators across the continent would come together to discuss the problem and seek understanding from African governments. He said though many mobile phone operators had been reporting impressive performance, the challenge of providing service was still enormous and as such, governments must work in partnership with the operators. “Governments should see telecommunications as partner,” he said. He noted that for every one dollar invested in the telecommunications sector, there is a ripple effect of six dollars in the economy. In particular, Ogugua observed that in Nigeria, there was no harmony on the way operators are taxed. He said various governments (federal, state and local governments) seek to collect levies from operators. Besides, he noted that other agencies such as the Nigerian Civil Aviation Authority and Ministry of Environment still sought revenue from operators. He said some of these bodies carry on as if they did not recognise the Nigerian Communications Commission, the government body that regulates the industry.