Nigeria: the telecom unsettled with terror attack



Nigerians have continued to react to recent attacks on telecoms facilities in some northern states of the country, insisting that the action will lead to economic setback.
Last week, telecommunications operators were shocked to the bone marrow by gunmen who deliberately attacked telecoms facilities in some parts of northern Nigeria, destroying over 26 installed mobile masts belonging to telecoms operators and telecoms infrastructure service providers.
The two days spontaneous attacks on several Base Transceiver Stations (BTS) have continued to elicit reactions from Nigerians who unequivocally condemned the action.
Companies affected include MTN, Glo, Airtel, Etisalat, Multilinks, and telecoms infrastructure provider, Helios Towers. Although no group has publicly claimed responsibility for the attacks, Boko Haram, had earlier in the year issued a warning that it would attack telecommunications installations, alleging that operators were assisting security operatives to track its members by releasing information on their call logs to the operatives.
The gunmen in two separate attacks in two days used guns and bombs for the attacks in some northern Nigerian cities, which include Kano, Maiduguri, Yobe, Gombe, Bauchi and Potiskum.
Effect of Attacks
Counting their losses, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, said the exact amount of money lost to the attacks would not be immediately ascertained until inventories were taken by individual operators, but explained that the losses were in billions of naira, when compared to the cost of building a single mast, which cost between N20 million to N30 million, depending on the height of the mast. The amount excludes the cost of antennae and other facilities required of a mast to enable it transmit voice and data effectively.
Speaking on the economic effect of the damages caused by the attacks, President of National Association of Telecoms Subscribers (NATCOMS), Mr. Deolu Ogunbanjo, said the attacks would not only affect service quality, but would also lead to loss of jobs and economic loss to the country.
In spite of the loss, telecoms operators said the attacks would not deter them from providing services to subscribers in the affected areas.
According to Adebayo, the decision to continue to provide services was the outcome of the meeting of all telecoms operators that was held in Lagos shortly after the attacks. They agreed to provide services, contrary to speculations that operators might shutdown their operations in North Central and some parts of the North where telecoms facilities were attacked.
They however said that operations would not be immediately restored in the affected areas, until operators get full assurance from security agents that are currently guarding telecoms facilities in some Northern cities.
Adebayo, who spoke to THISDAY shortly after the meeting, said "We are not deterred by the attacks on our facilities. We will still offer services to our esteemed customers, but we also value lives and will not want to endanger the lives of our site engineers by deploying them to restore services immediately. We will rather wait to receive safety report from the police that is currently protecting telecoms facilities in the Northern part of the country as directed by the Inspector-General of Police, Mohammed Abubakar." Adebayo, who frowned at the attacks, said those involved were also attacking government by their actions.
Telcos' Reaction
Reacting to the attacks, Corporate Services Executive of MTN, Mr. Akinwale Goodluck, in a statement, said the attacks by unknown persons had caused service challenges in parts of the North as sensitive hub sites had also been affected.
"We confirm that like all the other major telecommunications operators, some of MTN's installations in Northern Nigeria have been damaged by unknown persons. As far as we are aware, there were no fatalities as a result of these attacks and we are receiving full co-operation from the relevant government security agencies" he said.
"The attacks are unfortunate as the facilities built by MTN Nigeria and indeed other telecommunications companies are key to the ICT revolution in Nigeria and the accelerated socio-economic development of our nation" Goodluck said the company was already working to restore services as quickly as possible to minimize the impact to subscribers.
He called for the understanding of customers in the affected areas in Northern Nigeria, who may have experienced congestion or outright network failure. "We are intensifying efforts to restore normal services as soon as possible," he said.
A systems engineer with one of the operators said the attacks were the biggest tragedy of telecoms operators in recent times, as the attacks compounded their challenges.
"Already, operators are operating under unbelievably challenging environment," he lamented, adding "many people do not really appreciate the kind of problems operators contend with on a consistent basis in order to ensure that service is provided to telecom users 24 hours. We were actually hoping for some relief, and now, the attacks have added to our challenges".
Pre-existing challenges that the operators have variously complained about before now include inadequate power from the national grid, which has forced them to make alternative arrangements at all their base stations, theft and vandalism of equipment, sabotage, multiple regulation and multiple taxation.
In a public advertorial published in some national newspapers in April this year, MTN complained that it recorded more than 70 cuts on its fibre network nationwide on a monthly basis. The operator attributed about 42 per cent of the cuts to poor road construction practices, 25 per cent to wilful damage perpetrated by robbers and other criminal elements, and the remaining 33 per cent to other causes, including sabotage.
Stakeholders' Reaction
Stakeholders are alarmed by the attacks, especially at a time that telecoms operators are making frantic efforts to improve service quality across networks. An economist and social commentator, Mr. Bassey Umoren, said all stakeholders must rise in unison against anything that threatens the only performing sector of the economy.
"Telecom has become the cash cow of everybody, from the local government to the Federal Government. In fact, the Nigeria telecommunications fact sheet released by the United States Embassy in Nigeria in October 2011, noted that the ICT sector is the fastest-growing and most robust sector of the Nigerian economy, contributing more than the manufacturing, banking and solid minerals sectors combined," Umoren said.
A subscriber to Globacom, Mr. Dele Akintunde, who also condemned the act, said the telecoms sector is one sector that Nigerians must not allow anyone to toy with. Government and other stakeholders, he said needed to move decisively to make telecom infrastructure critical national assets.
Ogunbanjo equally called on the Minister of Communications Technology, Mrs. Omobola Johnson, to prevail on law makers to come up urgently with legislation that would protect telecoms facilities and declare such facilities as national assets that must not be tampered with.
Sectorial Growth
The telecoms sector has in the last eleven years become the darling of investors, attracting more than $18 billion by the end of 2009, from a total private sector investment of about $50 million in 1999, according to the Executive Vice Chairman, (EVC) of the Nigerian Communications Commission (NCC), Dr Eugene Juwah.
He said more than N300 billion was contributed from the sector to the coffers of the federal government within that time frame, through frequency spectrum sales, enabling government to plough back revenues earned from the sector for provision of development infrastructure at the various levels of government.
The percentage share of Gross Domestic Products (GDP) from the sector rose from 0.06 per cent in 1999 to 2.39 per cent in 2007 and moved up to 2.90 per cent in 2008, and 3.66 per cent in 2009. By 2010, ICT had contributed 8.2 per cent to the nation's GDP. The industry's FDI currently stands at $25 billion.
The sector has proven to be the live wire of the economy, facilitating cross-industry linkages, efficiency and productivity across the economy and providing the platform for the country's banking sector.
Electronic banking facilities such as Automated Teller Machine (ATM) services, online financial transactions, international credit and debit card facilities, airline ticketing and reservations, are some of the numerous ways that the industry has aided the growth, sophistication, security and quick transactions in the Nigerian financial sector.
The telecoms sector has generated employment for several hundreds of thousands of Nigerians directly and indirectly since 2001. MTN for instance employs over 5,000 individuals and operates an extensive distribution chain with over hundreds of trade partners, 15 service centers, 38 connect stores, 6,140 registered sub-trade partners, with an informal chain of at least 70,000 sales outlets across the country.
Comparing the MTN figures to that of other GSM operators like Airtel, Etisalat and Globacom, it will be glaring that the telecoms operators worth so much to Nigerians and the Nigerian economy.

Emma Okonji THISDAY Nigeria