FX, arbitrary rules leave telecoms to big four, cripple 568 firms

The fast depletion of the indigenous telecommunications firms is unsettling Nigeria’s telecommunications market with fear that falling foreign capital inflow into the sector, high cost of energy and foreign exchange (FX) market crisis will continue to push small and local operators out of the market.

Already, about 568 local firms have been inactive or moribund in the last five years, experts have disclosed. More could succumb to the harsh operating environment in the next few years unless the authorities take urgent and deliberate actions to salvage the ailing marginal players, The Guardian was informed.

The operators cut across different segments of the country’s telecoms market and their valuation is estimated at $77 billion. These players include internet service providers (ISPs), value-added service (VAS) providers, vendors, tower companies, fixed telephony operators (fixed/ fixed wireless), international data access (IDA) service providers among others. The operators are also referred to as tier-two and three service providers.

By Adeyemi Adepetun.

Full story at The Guardian NG.