NCC Warns Tower Companies: Improve Service or Face Penalties

The Nigerian Communications Commission (NCC) has issued a stern warning to tower companies, demanding urgent improvements in service quality or they will face regulatory penalties. With an August deadline looming, these companies must address critical issues impacting internet performance, such as inconsistent power supply, equipment breakdowns, and insufficient technical support.

This directive was made by Aminu Maida, the NCC's Executive Vice Chairman, during a high-level meeting held in Abuja. The meeting was attended by major tower infrastructure providers like IHS Towers, American Tower Corporation (ATC), Pan-African Towers, and key industry stakeholders, including internet service providers. The session aimed at identifying obstacles in infrastructure delivery and improving the management of shared telecom assets.

Tower companies, often referred to as TowerCos, are fundamental to Nigeria’s telecom ecosystem. They provide the physical infrastructure—cell towers, rooftop sites, and other related facilities—that mobile network operators (MNOs) like MTN, Airtel, and Glo rely on for their radio and data transmission equipment. TowerCos also manage the 24/7 power supply to these sites and ensure they are secure from theft and vandalism. When these facilities fail, the ripple effect is felt across the entire network, leading to disruptions in voice and data services.

"When there's no power, the radios stop working. When power fluctuates, the radios reboot, causing dropped calls and interrupted data sessions, leaving customers frustrated," explained one industry source. The issue is critical because while mobile network operators are held accountable for service quality, tower providers must also meet high operational standards.

IHS Towers, the dominant player in Nigeria’s telecom infrastructure market, operates around 16,000 to 19,000 sites, accounting for nearly 62% of the country’s shared telecom towers. ATC follows with roughly 8,270 towers, and Pan-African Towers, a smaller Nigerian company, manages about 760 to 1,000 sites. Given their significant role in the connectivity chain, the NCC has placed the responsibility on these providers to resolve issues related to downtime, maintenance delays, and power management.

The NCC has been tightening its grip on service quality. Until 2024, the Commission’s Quality of Service (QoS) Regulations mainly targeted mobile network operators. However, in August 2024, the regulatory body revised these rules to include TowerCos as well, marking a shift in how the entire telecom infrastructure chain is monitored. The new regulations, which are already in effect, introduced specific Key Performance Indicators (KPIs) that infrastructure providers must meet.

According to Maida, it’s been almost a year since these regulations came into play, giving companies ample time to align with the expected standards. The NCC is taking a more transparent approach to enforcement. As part of its strategy, the Commission recently launched the Major Incident Reporting Portal, requiring service providers to publicly disclose major network disruptions. Additionally, the NCC is working on creating performance dashboards that will allow consumers to monitor the performance of tower and mobile network operators in real-time.

Despite some tower companies blaming poor service delivery on financial disputes with mobile network operators—claiming that delayed payments hinder their ability to maintain sites or invest in backup power—the NCC is no longer accepting such excuses. During the Abuja meeting, Maida made it clear that financial challenges would not be tolerated as a reason for poor service. "Operators must meet both their technical and financial obligations," he said. “The performance expectations are non-negotiable.”

The clock is ticking for tower companies to address the issues, and with the deadline fast approaching, they must act quickly to avoid regulatory penalties. The NCC’s focus on transparency and accountability signals a new chapter in Nigeria’s efforts to enhance telecom services across the country.