Second National Carrier, Globacom has called for the establishment of a common code of conduct that would regulate the demands that the three tiers of governments make from companies in the country.
The request is based on the consistent cry of companies in the telecoms sector that are groaning under the huge burden of double taxation.
Chief Operating Officer (GCOO) of the company, Mr. Mohamed Jameel, who made the request while on a courtesy visit to the Minister of Communication Technology, Mrs. Omobola Johnson said that conscious effort must be made to save the industry from the stress of double taxation noting that government should save the industry from multiple taxation coming from local youths, local government authorities, state governments and federal government authorities
While highlighting Globacom’s leadership role in innovation, he said that government needs to support the industry in the provision of communication infrastructure to be shared by all players in the industry.
According to him, infrastructure sharing would help reduce the heavy cost of installation being borne by the respective players, saying that cost is often transferred to the subscribers.
On the challenges facing the industry, Jameel lamented that if conscious steps are not taken to save the medium and small players in the GSM category, their fate may soon follow the trends in the CDMA category who have been sapped dry due to heavy and unbearable interconnect charges paid to the dominant player.
Jameel who accompanied on the visit by the Head of Glo 1, Mr. Folu Aderibigbe, thanked the Minister and for all the support given to Globacom by the federal government in its drive to providing world class services to its teeming subscribers, noting that the company is the second leading GSM provider in Nigeria in terms of subscriber base.
He promised that Globacom would continue to be a responsible Nigerian company and would not relent in its efforts to improve the services available to the Nigerian people.
The Glo GCOO recalled that the network has rolled out its services into Republic of Benin, and soon will launch in Ghana. The company has also laid its own submarine cable from US to Europe to Africa down to Nigeria
Responding the Minister,Mrs. Omobola Johnson, described Globacom as a very important player to the GSM services industry in Nigeria commending Globacom for being a catalyst in price reduction and for being a leader in value added services.
The Minister criticized some arms of government for over levying successful companies explaining that contrary to existing laws governing all aspects of taxation the level of compliance has been rather low.
She said that some state governments are “under pressure to shore up internally generated revenues which has made them to descend so heavily on the industries they perceive as “successful”, including telecommunications operators”.
She however informed the team that discussions are on-going to get the various arms and layers of government to comply with the laws governing the telecoms industry.
Johnson added that as Nigeria is trying to build a local ICT industry, it cannot allow the any operator in any category to die, because they address dire and specific needs of the populace.
To this end, she said government is working with a team of consultants to see to that interconnect fees are reduced to something fair to all players.
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