1. History
     2009 - 2011  

2. Regional Connectivity

3. Global Partnerships

4. TCN Fibre Optic Concession Contract

5. References
    Further reading 

History

Phase3 and, Alheri Engineering had in 2005 signed a deal with Power Holding Company of Nigeria (PHCN) to access its optic fibre grid to carry traffic for telecommunication operators. The two firms beat 7 companies, including Siemens Nigeria, Suburban Telecom, NTL, Optic Networks Limited and Backbone Company of Nigeria to secure the deal. That access to PHCN telecommunications infrastructure was to make it possible for both companies (with Phase3 planned layout pegged for Nigeria's north and Alheri Engineering's for west) to build out world class, and reliable fiber-optic backbone networks, to ensure faster broadband penetration and nationwide connectivity. Thus, making it possible for mobile operators, internet service providers, businesses, government agencies and international organisations to take advantage of the huge bandwidth that is centrally managed.^[5] And, in March 2006, Phase3 finalized a 15 Years "Concession Agreement for the Design, Build, Finance, Operate of Transmission Company of Nigeria (TCN) Fibre Optic Cable Telecommunications Infrastructure for the Western part of Nigeria" with TCN serving as the concession giving government agency.^[6] This largely positioned Phase3 for expansive growth; the operational viability to run layered range of telecoms, and valued-added services as well as considerable access to foreign investment. More so, the company's capacity to offer non-discriminatory and non-competitive services to mobile operators became its distinctive factor because of its open access network and unique right of way (RoW).^[7]

2009 - 2011

In 2009, Phase3 investments cull in the Nigerian telecommunications space hit US$100 million with fiber optic building projects centering on transmission services. Further expansion saw the commencement of the US$200 million cross-country optic fiber coverage project for carrier-grade international voice services to PSTN, GSM, and Pan-European calling card operators, as well as Tier 1 traffic Carriers to interconnect' riding on their international connectivity through SAT3 in Lagos, where a Gateway provides a link to their POP in London, thus giving it connectivity with over 370 carriers.^[8] In September of that year, the company signed an exclusive right of way Concession Agreement with the Communautéé Electrique du Benin (CEB), the authority responsible for the operation of High Voltage Power lines in both Benin and Togo Republics; a development that gained them the longest regional terrestrial fiber network linking Nigeria to the Republic of Benin and Togo, with potentials for connections to Ghana and Burkina Faso from Togo; making them about the first regional fiber optic cable network provider in West Africa to operate national fiber optic cable backbone interconnecting six (6) West African countries.^[9]

Regional Connectivity

In March 2015, Phase3 Telecom announced that it would be deploying aerial fiber optic infrastructure from Kano in Nigeria to Gazaoua in the Republic of Niger on a project facilitated by the Universal Service Provision Fund (USPF) through the extension of the Backbone Transmission Infrastructure Program (BTRAIN) programme to Niger under the authorization of Ministry of Communication Technology for the Federal Republic of Nigeria to deliver key infrastructure to connect the neighbours to the rest of the world and establish strong and sustainable partnerships across the sub-region. The network will be 228 km long and will give Niger the opportunity to leverage on the bandwidth capacity available at the Nigerian coast, through Phase3 telecom's aerial fiber network^[10] which is critical to the acceleration of sustainable socio-economic inclusion and growth for the Republic of Niger. Niger is a landlocked country that borders seven countries, namely Algeria, Republic of Benin, Burkina Faso, Chad, Libya, Mali, and Nigeria. The lack of backbone infrastructure between the Republic of Niger and its neighbours leaves Niger unable to take full advantage of broadband.^[11] With one of the lowest internet penetration rates in West Africa at 1.7% in 2013,^[12] Niger will have the opportunity to use the large bandwidth capacity which is available at the Nigerian coast in Lagos through the Phase3 telecom aerial fibre network. This will also widen the market for under-sea cable owners in Nigeria thus enhancing the objectives of the Nigeria - Niger Joint Commission (NNJC) and the partnership between the two countries.^[13][14]

Global Partnerships

Connecting these areas means that businesses in these locations get to enjoy increasing network access in view of recent network expansion as well as the global partnership with PCCW Global, the Hong Kong-headquartered international operating division of HKT, Hong Kong's premier telecom service provider^[15]

TCN Fibre Optic Concession Contract

In January 2018, the Transmission Company of Nigeria (TCN) made an allegation of Phase3 Telecom and Alheri Engineering (a subsidiary of Dangote Group) owing it N27.2 billion ($75.5 million) over non payment of agreed royalties since the signing of the fibre optic concession contract in 2006. Statements made by the Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola in a letter to President Muhammadu Buhari said "the concessionaires (Phase3 Telecom and Alheri Engineering) were to pay a concession fee of $40million each for the use of TCN’s asset to service their customers and that the concession fee was not just for the right of way upon which the transmission lines are constructed, but also for the use of the fiber optic network which was built by TCN along with the transmission lines and that the agreement also provided for shelter fees of 2.5 per cent on gross revenue".^[16][17][18] He also accused Phase3 Telecom and Alheri Engineering of paying only $2million and $3.5million concession fees since 2006.^[16][17][18] However, Phase3 Telecom denied the claims by the Transmission Company of Nigeria (TCN) stating that it did not owe the Transmission Company of Nigeria (TCN) N27.2 billion ($75.5 million) as being alleged. Phase3 Telecom also stated that "it had honoured the terms of the concession agreement with TCN in line with kilometre of fibre available as well as market realities and most imperatively the contract review process towards ensuring the success of this project for the overall benefit of the country under the supervision of the Infrastructure Concession Regulatory Commission (ICRC), the regulatory agency saddled with the responsibility of the review process" and "that the cause for unfounded allegations by TCN was due to its resistance of the harmonization of right of way charges for deployment of fibre optic cables as agreed and communicated by the National Economic Council towards affordable broadband services in the country".^[19][20]

References

Further reading

• http://www.balancingact-africa.com/news/en/issue-no-298/internet/nigeria-s-phase3-win/en
• http://www.itnewsafrica.com/2014/03/nigerias-phase3-telecom-inks-deal-with-hong-kong-telecom/
• http://www.biztechafrica.com/article/phase3-telecom-upgrades-adam-smiths-facility/8815/

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