The Executive Vice Chairman, Nigerian communications Commission (NCC), Dr Eugene Juwah has announced that MainOne Cable Company and Africa's leading independent mobile telecoms infrastructure provider, IHS Towers, have won the bid for the first of seven licences for infrastructure providers (InfraCos).
Juwah, who spoke at the 4th Industry Stakeholders Forum organised by the Ministry of Communications Technology at Eko Hotel and Suites, Lagos, said the two firms won the bids for the Lagos and North Central Zone.
While MainOne won to provide broadband infrastructure in Lagos, IHS Towers won to provide services in the North Central Zone.
According to the regulator, it plans to licence seven InfraCos, one each in the six geo-political zones of the country and one for Lagos. The Commission said the process of licensing the remaining five will also be kick-started.
Juwah said the NCC adopted the Open Access Model to promote healthy competition, affordability and global best practices in the regulatory activities.
The Federal Government had promised to grant tax holidays of between five and seven years to the Infracos. The tax holidays, which will come with other incentives is designed to
support them during rollout of broadband services to their various zones.
Principal Partner of KPMG, Mr. Joseph Tegbe, a consultant to the licensing process, was also quoted in Doha, venue of the ITU World 2014 to have told the investors that they would be encouraged to veer into areas which many consider to be less commercially rewarding through calculated subsidy, and that grants may be given out to further boost
their interest in such areas.
"They will also be granted pioneer status as part of the incentives to boost their interest in investing in such areas or zones that may look unattractive. Such InfraCos will get such incentives that could be up to 30 per cent markup on their capital expenditure (Capex) and employee tax holidays as well," he was quoted to have said.
To qualify for the tax holidays and incentives, InfraCos will quantify their capex and what it will take to roll out and how long it will take to break even.
