As the principal regulator of the communications sector in Nigeria, the Nigerian Communications Commission (NCC), is responsible for the promotion of fair competition in the telecommunication industry, and infrastructure sharing among operators and licensees. Pursuant to the powers conferred by the Nigerian Communications Act (NCA), the NCC have over the years issued Guidelines on Collocation and Infrastructure Sharing. The first Guidelines were issued in 2006 to ensure operators meet their roll-out obligations, and as such, sharing of active elements of network infrastructure was expressly disallowed. However, in view of the need to reduce or eliminate duplicity of network elements that can be shared, the Commission identified the need to review the Guidelines and as a result the Guidelines on Collocation and Infrastructure Sharing, 2021 (“the Guidelines”) were issued.
The 2021 Guidelines establish a framework within which Access providers and Access seekers can mutually negotiate collocation & infrastructure sharing (CIS) and create an environment for better co-operation among operators.
This article considers collocation, and infrastructure sharing, grant and revocation of license and conditions for operation of CIS services in Nigeria.
Collocation
Collocation refers to the practice of locating multiple network service providers within the same facility. It is an element of the interconnection of network therefore it is important that operators mutually agree on terms of its execution to ensure excellent interconnectivity. It is governed by the provisions of Telecommunications Network Interconnection Regulation.
Interconnection agreements are required to be in writing and negotiated freely in good faith between the parties involved. It is important to note that all interconnection agreements entered by a licensed telecommunications operator must be registered with the NCC not later than thirty days from the date of execution of the agreement or such later time as specified in the license issued.
Collocation can either be physical, virtual, or remote depending on its suitability for operation and the agreement between the parties. A request for physical or virtual collocation can be refused on the grounds of insufficient capacity, reliability, or other general engineering considerations. A request for remote collocation cannot be rejected on any ground.
Infrastructure Sharing
Infrastructure sharing is the joint use of network facilities by two or more operators subject to an agreement specifying relevant technical and commercial conditions. Infrastructures or facilities that are not amenable for collocation may be amenable to infrastructure sharing as infrastructure sharing is a more general term.
The Guidelines provide that infrastructures amenable to sharing are those that can be shared without an attendant risk of lessening competition. The NCC encourages the sharing of the following infrastructures:
- Passive Infrastructure: This includes rights of way, masts, poles, antenna masts and power structures, ducts, trenches, space in buildings, electric power (public or private source), and dark fiber.
- Active Infrastructure: This includes complete network structures, switching centers, frequencies, radio network controllers and base stations.
According to the Guidelines, National Roaming considerations do not form part of any infrastructure sharing arrangement but are to be negotiated under the relevant regulatory framework specific to National Roaming.
The NCC reserves the right to review all infrastructure sharing agreements to ensure compliance with the relevant license and reduce the risk of lessening competition. Where an infrastructure sharing agreement is inconsistent with the relevant license or is likely to reduce the risk of lessening competition, the commission may discontinue or revise such agreement.
Specific Conditions for the Provision and Operation of Collocation and Infrastructure Sharing Services
Some of the specific conditions for the provision and operation of collocation and infrastructure sharing services are as follows:
- To facilitate the performance of a licensed undertaking, the Licensee must obtain an authorization to build, erect, construct, or acquire and own telecommunications infrastructure and facilities that are open to sharing by network service providers provided however that such infrastructure and facilities are not core network facilities.
- The Licensee is to ensure that all its equipment and sites are approved by the NCC, or a body accredited by the NCC prior to the commissioning or commercial use (whichever is earlier) of such equipment and must obtain all necessary compliance certificates in accordance with the relevant Rules and Regulations.
- The Licensee must comply with the technical standards specified by the NCC in technical specifications for the installation of telecommunications masts and towers, technical standards for external line plants using copper cables and any other technical specification approved by the NCC.
- The Licensee is required to obtain all necessary licenses and permits including relevant approvals for the construction of facilities such as right of way, ducts/conduits, trenches, building permits and other non-telecommunications permits required to build, implement, modify, and remove installations and buildings in accordance with relevant applicable Laws and regulations.
- The Licensee must provide precautionary measures for protecting its equipment against external interferences such as theft, sabotage, fire, power surges, static electricity, and thunderbolt, and for minimizing damages resulting from these interferences.
- The Licensee is also obligated to ensure that management of installation services are undertaken only by qualified/experienced team of engineers capable of providing comprehensive support for rapid and reliable deployment of equipment.
- The Licensee is required to ensure that its equipment is securely protected from physical accessibility by the public through the use of fencing and signage.
Grant and Renewal of License
The NCC grants Infrastructure Sharing and Collocation Services (CIS) License to operators to provide collocation and infrastructure sharing services in Nigeria. There are general and specific conditions expected to be fulfilled before the grant of a CIS license. Some of these conditions have been outlined above.
The CIS license is usually granted for a period of 10 years in the first instance and is automatically renewable for a further 10 years period except the licensee has, at least 12 months before the expiry date given notice to the commission in writing not to renew the license. For the CIS license to be automatically renewed, the licensee is required to have satisfactorily rolled-out services and is to have paid all the renewal licensing fees and charges due within a period of six months preceding the first expiry date.
Revocation of License
The NCC may at any time revoke a CIS license upon the issuance of a 12 months’ notice in writing to a licensee in breach of any conditions attached to the license where such breach has not been rectified within twenty-one days of being notified of the breach or such further period as the NCC may specify.
The NCC may however revoke the license by three months’ notice in writing given to the licensee at its registered office in any of the following circumstances:
- If the Licensee agrees in writing with the NCC that its license be revoked.
- Where Licensee ceases to carry on the business for which the license is granted.
- If the necessary fees for the grant of license is unpaid 14 days after it became due and remains unpaid for a period of fourteen days after being notified by the NCC that the payment is overdue.
- Where the Licensee has not within six months of the grant of the license commenced full operation to the satisfaction of the NCC.
- If the Licensee fails to ensure that its equipment is type approved by the NCC or a body approved by or accredited to the NCC.
- If the Licensee is unable to pay its debts, enters receivership or liquidation and commences winding up (voluntary or compulsory) or a trustee or liquidator has been appointed.
Conclusion
The importance of collocation and infrastructure sharing in the telecommunication sector cannot be overemphasized. The primary object of the Guidelines is to establish a framework within which Access Providers and Access seekers can negotiate collocation and infrastructure sharing agreements. The NCC recognizes the right of Access Providers and Access Seekers to negotiate and agree on terms and conditions of collocation and infrastructure sharing (CIS). The NCC, however, requires that such negotiation must be fair and within the limits of an existing reference offer developed by each potential Access Provider.
