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The National Communications Commission (NCC) has granted Airtel Nigeria Telesonic Limited three licences to expand its fibre network and…

The National Communications Commission (NCC) has granted Airtel Nigeria Telesonic Limited three licences to expand its fibre network and improve infrastructure to meet growing data services in Nigeria. The approved licences are National Long Distance, Internet Service Provider, and Sales & Installation Major. The National Long Distance licence, valid for 20 years, will allow the operator to establish and manage networks that facilitate long-distance communications within Nigeria, covering voice, data, and video services. On the other hand, the Internet Service Provider and Sales and Installation Major licences will be valid for five years.

While the issuance of these licences to Airtel Nigeria Telesonic Limited by the NCC is a positive step for infrastructure expansion, it is important to acknowledge the current challenges facing the telecommunications sector, particularly the poor network quality and the telecom companies’ ongoing push to increase tariffs for data and calls. The poor network service in Nigeria has been a persistent issue, often linked to inadequate infrastructure, maintenance challenges, and high operating costs, including power supply disruptions and vandalism. The expanded fibre network Airtel plans to deploy through the National Long Distance licence could alleviate some of these infrastructure deficiencies. By increasing network capacity, the fibre network expansion should help reduce congestion, improve service reliability, and enhance data speeds, especially in underserved and rural areas. However, achieving these improvements will depend on how quickly and efficiently Airtel can roll out this infrastructure. At the same time, telecom companies, including Airtel, have been advocating for tariff increases to compensate for rising operational costs, inflation and exchange rate fluctuations. While this is an understandable move from a business standpoint, any tariff hike would likely spark consumer concerns, particularly given the existing dissatisfaction with network quality. The challenge will be balancing the need for improved infrastructure and services with ensuring affordability for consumers. Given this context, Airtel’s new licences present an opportunity for the company to make a compelling case that its infrastructure investments will lead to tangible improvements in service quality, which could justify future price adjustments. However, the telco must ensure transparency in its rollout plans and engage in meaningful dialogue with the NCC and consumers to avoid perceptions of unjustified price hikes. The NCC’s role in regulating tariffs and monitoring service quality will be crucial in ensuring that the benefits of these licences translate into better service delivery rather than just higher costs for users.