InfraCo means Infrastructure Company, and it is one of the initiatives of the telecommunications regulator, Nigerian Communications Commission (NCC) to actualize the National Broadband Plan. Under the plan, the NCC is required to license new classes of telecom operators to fill critical infrastructure gaps and enable broadband services on a wholesale basis that is wholesale wireless and metro fiber companies.
Specifically, optic fiber InfraCos licensees for six geopolitical zones of the country and Lagos were meant to enable retail operators’ leverage shared infrastructure to expand their reach and lower the cost of broadband services.
The Nigerian Communications Commission (NCC) on July 26, 2012 held the first industry consultation on Broadband Initiative with the theme “Demand as catalyst for broadband services in Nigeria”.
The purpose of the consultation was to engage the industry stakeholders on the future direction of the Next Generation Broadband Network (NBN) in Nigeria.
Thereafter, the NCC conducted one-on-one sessions with select operators/industry stakeholders between the 15th – 22nd July, 2013 on the strategic objectives for the deployment of nationwide optic fibre infrastructure for broadband, as well as to seek their input on this initiative.
On 19th October 2020, the Nigerian Communications Commission constituted a committee to review the framework for the licensing of Infrastructure Companies (InfraCo) and recommend sustainable funding options for effective implementation of the proposed national fibre project.
The constitution of the committee was sequel to the requirements of the new Nigerian National Broadband Plan (NNBP 2020-2025) and reports of relevant committees set up by the Federal Executive Council (FEC), which include the Inter-Ministerial Review Committee on Multiple Taxation on Telecommunications Operators over Right-of-Way (RoW) and the Technical Sub-Committee on Right-of-Way for Deepening Broadband Penetration in Nigeria.
These requirements and reports relate to the imperative of reviewing the InfraCo framework to cater for the delays in take-off, change in exchange rate, supply chain and other challenges imposed by the COVID-19 pandemic.
So far, the Committee set up by the Commission has met with all the six licensed InfraCos as well as the preferred bidder for the North Central zone. The Committee is also looking at the challenges facing the InfraCo project, the need for accelerated deployment of fibre infrastructure, means of mitigating the exorbitant RoW charges, among others.
The Commission also worked actively with the Broadband Implementation Steering Committee (BISC), as constituted by the Hon. Minister of Communications and Digital Economy based on the recommendations and requirements of the NNBP 2020-2025.
“The InfraCo project is dear to the government because of its ability to enhance robust and pervasive broadband infrastructure to drive service availability, accessibility and affordability, the Executive Vice Chairman of the Commission, Prof. Umar Garba Danbatta said
According to him, “We are keen on ensuring the project delivers maximum benefits for the economy at large and that is why the ongoing review is very critical to the overall success of the project in line with the new realities of the time.”
The EVC clarified that the current status of the InfraCo project, as provided above, is contrary to reports suggesting that the Commission is inching towards executing the counterpart funding in respect of the project.
