TheCable

The Imo state government has reduced the right of way charges for telecommunication companies from N4,500 to N145 per metre.

Hope Uzodinma (pictured), governor of the state, announced on Twitter that he signed an executive order to effect the reduction.

Uzodinma said the executive order is in line with the federal government’s policy to invest in broadband infrastructure.

The RoW charge is the levy paid to state governments for laying of optic fibre on state roads. A single telecoms operator needs RoW covering thousands of kilometres.

With the reduction, 1km of cable will now cost N145,000 rather than the previous N45 million.

“Today, May 20, 2020, I signed an executive order No. 002, 2020, significantly reducing the right of way (ROW) of telecommunication companies in the state from N4500 to N145 per meter in tandem with federal government policy,” the statement read.

“The reduction was a manifestation of our government’s determination to spur the telecommunication companies to further invest in broadband infrastructure and trigger ancillary on-line services, especially in the field of education.

“The government is hopeful that this drastic reduction from N4500 of the broadband ROW to N145 per linear meter of fibre will accelerate the deployment of affordable and reliable modern high-speed connectivity in the state.

“The executive order urged telecommunication companies to note that the state plays host to a vibrant and youthful demography located in many tertiary institutions, who form the bulk of the end-users of their products.”

2/The reduction was a manifestation of our Government’s determination to spur the telecommunication companies to further invest in broadband infrastructure and trigger ancillary on-line services, especially in the field of education.

— Hope Uzodimma (@Hope_Uzodimma1) May 20, 2020

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4/The Executive order urged telecommunication companies to note that the State plays host to a vibrant and youthful demography located in many tertiary institutions, who form the bulk of the end users of their products.#HopeInImo#NewImo#GovernmentOfSharedProsperity

— Hope Uzodimma (@Hope_Uzodimma1) May 20, 2020

In 2013, the national economic council (NEC) agreed on a maximum RoW charge of N145.00 per linear meter of fibre.

The resolution was also acknowledged in the national broadband plan (NBP) launched by President Muhammadu Buhari on March 19.

In January, TheCable had reported that call and internet subscription rates may increase after 14 states hiked their RoW charges.

The states which hiked the levy were Lagos, Kano, Anambra, Ondo, Cross River, Kogi, Osun, Kaduna, Enugu, Adamawa, Ebonyi, Imo, Kebbi and Gombe.

The Ekiti state government was the first to comply with the NEC approved right of way charges.