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Telecommunications in Nigeria 2022

Charles Chinya | Nigeria | 09 December 2022

Telecommunications in Nigeria 2016

Louise Mitchell | Nigeria | 28 December 2016

Telecommunications in Nigeria 2014

Amanda van der Westhuizen | Nigeria | 31 July 2014

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Report Coverage

This report focuses on Nigerian mobile and fixed telephony, internet and broadband, and the infrastructure that supports them. It includes information on the state and size of the sector, trends, regulations and government initiatives and developments. There are profiles of 23 companies including the major players, MTN, Globacom, Airtel and 9mobile and other notable players such as 21st Century, IHS Towers, Inq.Digital, ipNX and MainOne Cable Company.

Introduction

• The telecommunications sector in Nigeria has the capacity to drive the transformation agenda of the Nigerian government towards a digital economy by 2025.
• Nigeria had a population of over 200 million people and had over 195 million subscribers in 2021.
• The telecoms sector is growing due to a rising urban population and the increasing adoption of smartphones, services and apps.
• Four big mobile operators, MTN, Airtel, Globacom (GLO) and 9mobile, dominate the sector and continue to post revenue growth, while local internet service providers haven’t recovered from the pandemic.
• High energy costs, rising inflation, local currency depreciation and scarcity of foreign currency remain a challenge for operators.

Strengths

• Competitive frequency spectrum auctioning.
• Excess available bandwidth.
• Improved international connectivity due to increased submarine cable capacity.
• Introduction of key reforms and regulations by government and Nigerian Communications Commission to facilitate the rollout and sharing of infrastructure, and improved access to credit to start a business.
• Large population particularly in cities such as Lagos and others with over 10 million people.

Weaknesses

• Access to electricity by rural population remains a challenge.
• High costs of energy particularly diesel.
• Lack of internet literacy and low awareness of the benefits of telecoms services.
• Lack of masterplans for infrastructure like road networks, water, oil and gas pipelines, affecting deployment of telecom infrastructure.
• Long delays in processing infrastructure permits as multiple government agencies are involved in the process.
• Market dominated by few players is squeezing out others.
• Multiple tax regimes at federal, state and local government adding to operational costs.
• Operators are hesitant to make capex investment in sparsely-populated rural areas citing less economic returns.
• Right of way charges affecting deployment of infrastructure.
• Rising exchange rates affecting prices of imported equipment and devices.
• Scarcity of foreign currency.

Opportunities

• Expansion of 4G and rollout of 5G will drive high demand for mobile base stations and cell towers.
• General increase in demand for data and internet across all segments of the telecoms sector.
• Government targeting high penetration rates in internet and broadband present opportunities for companies to enter the market.
• Granting of extra licences to increase broadband penetration, especially in rural areas.
• Growth of e-services and cloud computing fuelling increased demand for data services.
• Huge telecoms infrastructure gap that has the potential to attract more investments in infrastructural development.
• Increase in demand for mobile phones.
• Increase in mobile financial services usage will drive demand for smartphones, data and increase in mobile money transactions and subscribers.
• Increased interest in fibre to business and fibre to home to result in increased bandwidth capacity.

Threats

• Corruption and fraud threaten economic stability.
• High inflation rates, driving down consumer spending and threating investor confidence.
• Prevalence of cybercrime adding to costs as operators have to install systems to reduce incidents of cybercrime.
• Vandalism of infrastructure increasing costs to operators.

Outlook

• The IMF forecast that the Nigerian economy will grow by 3.2% in 2023.
• Industry analysts note that the government has made progress on removing barriers faced by telecoms operators and created opportunities for the private sector as it implements measures to boost broadband penetration.
• Sustained demand for data services and increased rural connectivity will be key growth drivers.
• Activities in the data centre segment are expected to remain buoyant due to data localisation policy.
• Improving the ecosystem for entrepreneurs, telecom infrastructure development, monetisation of 4G, the rollout of 5G and e-services will further drive growth in the medium to long term.
• Industry sources say increasing regulatory involvement determined by political opportunism rather than market or consumer needs is likely to hamper investment.

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Telecommunications in Nigeria 2022

Full Report

R 9 500.00(ZAR) estimated $498.27 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 348.79 (USD)*

Historical Reports

Telecommunications in Nigeria 2016-12-28

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Telecommunications in Nigeria 2014-07-31

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 5
3.2. Geographic Position 8
3.3. Size of the Industry 9
3.4. Key Success Factors and Pain Points 14
4. LOCAL 15
4.1. State of the Industry 15
4.2. Key Trends 22
4.3. Notable Players 23
4.4. Trade 24
4.5. Corporate Actions and Developments 24
4.6. Regulations 26
4.7. Enterprise Development and Social Economic Development 28
5. AFRICA 30
6. INTERNATIONAL 35
7. INFLUENCING FACTORS 38
7.1. COVID-19 38
7.2. Vandalism 38
7.3. Multiple Taxation 38
7.4. Cybercrime and IT Security 39
7.5. Corruption 40
7.6. Economic Environment 40
7.7. Labour 41
7.8. Environmental Issues 42
7.9. Technology, Research and Development (R&D) and Innovation 43
7.10. Government Support 44
7.11. Input Costs 45
8. COMPETITIVE ENVIRONMENT 46
8.1. Competition 46
8.2. Barriers to Entry 46
9. SWOT ANALYSIS 47
10. OUTLOOK 49
11. INDUSTRY ASSOCIATIONS 49
12. REFERENCES 50
12.1. Publications 50
12.2. Websites 50
APPENDIX 1 52
Summary of Notable Indigenous and Foreign Players 52
COMPANY PROFILES 55
21st Century Technologies Ltd 55
3CHUB Brand Management Ltd 57
Airtel Networks Ltd 58
Big Picture Nigeria Ltd 60
Emerging Markets Telecommunications Services Ltd 61
Globacom Ltd 63
Hotspot Network Ltd 65
IHS Towers NG Ltd 67
Inq.Digital Nigeria Ltd 68
Internet Solutions Nigeria Ltd 70
ipNX Nigeria Ltd 72
MAFAB Communications Ltd 74
MainOne Cable Company Nigeria Ltd 75
MTN Nigeria Communications PLC 77
NatCom Development & Investment Ltd 81
Phase 3 Telecoms Ltd 83
Smile Communications Nigeria Ltd 85
Spectranet Ltd 86
Spectrum Phones Ltd 88
Swift Networks Ltd 89
Tingo Mobile PLC 91
Tizeti Network Ltd 93
Zinox Technologies Ltd 94

Report Coverage

The detailed report on Nigeria’s Telecommunications sector describes the current market, examines the latest regulatory and corporate developments and discusses factors influencing the success of the industry. The report includes profiles for 18 companies including the major providers of voice and data services as well as MainOne Cable Company Nigeria Ltd, which installs and maintains undersea cable systems, and Phase3 Telecom Ltd, which provides transmission services to telecom operators and Internet Service Providers.

Introduction

Although telecommunications formally includes a vast array of sub-sectors, like radio and television, this report focuses on Nigerian telephony, internet and broadband, and the infrastructure that supports them. Nigeria has the biggest mobile market in Africa with 153.3 million subscribers in September 2016. Broadband penetration increased from 10% in 2014 to nearly 14% in 2016, and is expected to grow to 30% by 2018 if the country’s National Broadband Plan 2013-2018 is implemented according to schedule. National Bureau of Statistics show that the sector contributed 7.5% at current prices to the Nigerian economy in the third quarter of 2016, compared to 7.6% in the corresponding period in 2015. Increasing cost pressures driven by a combination of rising inflation and local currency depreciation have affected the operating margins of all players in the sector.

Strengths

• Excess available bandwidth.
• Introduction of reforms and regulations by government and NCC to facilitate the roll-out and sharing of infrastructure, cheaper prices, improved access to credit to start a business and spectrum allocation.
• Telephony supports the development of small businesses.

Weaknesses

• A shortage of skilled labour limits the growth of the industry.
• Conflicting standards are imposed between agencies regulating environmental issues, town planning, consumer protection and aviation.
• Government related inefficiencies such as ROW issues affect QoS and broadband roll-out.
• High barriers to entry.
• Increasing QoS problems in the mobile sector.
• Infrastructure roll-out is capital-intensive and players are hesitant to make capex investment for services in sparsely populated rural areas.
• Market dominance by one player is prohibiting new entrants and squeezing out others.
• Multiple approval processes at different tiers of government lead to delays and confusion.
• Poverty, lack of internet literacy and low awareness of the benefits of telecommunications.

Opportunities

• Auction of frequency spectrum by the NCC.
• Increasing demand for data and internet services.
• Infrastructure sharing could drive down operation costs.
• Introduction of mobile payment systems.
• Low penetration rates in internet and broadband present opportunities for companies to enter the market.

Threats

• Damage to the economy should MTN go out of business as result of regulatory issues.
• Electricity supply constraints.
• Increased cost to operators as a result of vandalised infrastructure.
• Misinterpretation of regulations at Federal government level could deter investors.
• Regulatory intervention to reduce tariffs is likely to result in downward trends in revenue.
• Terrorist activity and corruption threaten economic stability.
• The cost to business of cybercrime.
• The implementation of a communication service tax will threaten mobile penetration in lower income groups.
• Worsening economic performance, driving down consumer spend and threatening investor confidence.

Outlook

Fixed line and mobile connectivity have become a vital aspect of the Nigerian economy and demand for telecommunications services is set to grow. Although the sector faces numerous challenges, the local industry has solid fundamentals, with Nigeria subscriber numbers and internet and mobile penetration steadily increasing. Pyramid Research projects the adoption of 3G technologies will increase to 32.6% by the end of 2019, owing to increased focus on 3G by MTN Nigeria, Globacom and Airtel Nigeria. Heavy investment in infrastructure will be required for 4G technologies and LTE subscriptions are expected to reach 8.1 million by the end of 2019, or 4.5% of total mobile subscriptions. Analysts believe that right-of-way issues need to be resolved and that more still needs to be done by the telecommunications regulator to boost investor confidence in the system. The President of the Association of Telecommunication Companies in Nigeria (ATCON) emphasised, “Without adequate investment, there can be no increased telecoms access.”

Read More..
Telecommunications in Nigeria 2016

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

Telecommunications in Nigeria 2022-12-09

R 9 500.00(ZAR) estimated $498.27 (USD)*

View Report Add to Cart

Telecommunications in Nigeria 2014-07-31

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 10
4.1. Local 10
4.1.1. Corporate Actions 15
4.1.2. Enterprise Development and Social Economic Development 16
4.1.3. Regulations 17
4.2. Continental 19
4.3. International 20
5. INFLUENCING FACTORS 22
5.1. Frequency Spectrum Management 22
5.2. Government Initiatives 22
5.3. Vandalism 24
5.4. Cybercrime and IT Security 24
5.5. Economic Environment 25
5.6. Private Sector Initiatives 26
5.7. Technology, Research and Development (R&D) and Innovation 27
5.8. Environmental Concerns 27
5.9. Labour 28
5.10. Corruption and Terrorism 30
5.11. Electricity Supply Constraints 31
6. COMPETITION 32
6.1. Barriers to Entry 34
7. SWOT ANALYSIS 34
8. OUTLOOK 35
9. INDUSTRY ASSOCIATIONS 36
10. REFERENCES 36
10.1. Publications 36
10.2. Websites 38
COMPANY PROFILES 39
21ST CENTURY TECHNOLOGIES LTD 39
AIRTEL NIGERIA LTD 41
EMERGING MARKETS TELECOMMUNICATION SERVICES LTD 43
GILAT SATCOM NIGERIA LTD 45
GLOBACOM LTD 47
HTN TOWERS LTD 49
INTERLINKED TECHNOLOGIES PLC 52
INTERNET SOLUTIONS NIGERIA LTD 54
IPNX NIGERIA LTD 56
MAINONE CABLE COMPANY NIGERIA LTD 58
MTN NIGERIA COMMUNICATIONS LTD 60
NATCOM DEVELOPMENT AND INVESTMENT LTD 63
PHASE3 TELECOM LTD 65
SMILE COMMUNICATIONS NIGERIA LTD 67
SPECTRANET LTD 68
STARCOMMS PLC 70
VISAFONE COMMUNICATIONS LTD 72
VODACOM BUSINESS AFRICA (NIGERIA) LTD 73
0

Introduction

This report covers the Nigerian telecommunications sector which is the biggest mobile market in Africa with more than 127 million subscribers. The industry generated US$44.3bn in 2013, contributing 8.68% to the Nigerian economy. The market has shifted from fixed-line to mobile telephony, resulting in a competitive mobile voice market. Although broadband penetration is low at 10%, government aims to double this figure by 2017.

Strengths

• Introduction of reforms and regulations by government and NCC to facilitate infrastructure roll-out.
• Nigeria is Africa’s largest economy and has the largest population in Africa.

Weaknesses

• A shortage of skilled labour limits the growth of the industry.
• Government related inefficiencies and inadequate regulation such as ROW issues affect QoS and broadband roll-out.
• Infrastructure roll-out is capital extensive and players are hesitant to make capex investment for services in sparsely populated rural areas.
• Poverty, lack of internet literacy and low awareness of the benefits of telecommunications.
• Quality of Service problems.

Opportunities

• The country’s relative low market penetration for mobile and broadband provides opportunities for players to capture the remaining market share.

Threats

• Government’s policy on enforced infrastructure sharing threatens competitiveness in the industry.
• Growing number of targeted attacks, vandalism and theft of telecoms equipment and infrastructure.

Outlook

The Association of Telecommunication Companies in Nigeria believes that, “The future of telecoms in Nigeria is bright.” Nigeria’s young population and strong economic growth makes this the fastest growing telecommunications market in Africa. The sector is expected to grow 16.53% by 2017, with the mobile broadband segment expected to grow at a CAGR of 28.1%. These estimates, however, are dependent on the ability of government and regulatory bodies to produce and enforce policies that facilitate the growth of the industry. At the same time there needs to be continued investment by companies in network roll-out to improve coverage and QoS. Although increasing smartphone penetration in Nigeria has contributed to 4G/LTE uptake, the greater number of lower income consumers using 2G-enabled mobile phones means GSM will remain the dominant technology in the region until 2018. Fixed-line is the only sector in the industry that is expected to contract even more at a Compound Annual Growth Rate (CAGR) of -22.2%.

Telecommunications in Nigeria 2014

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

Telecommunications in Nigeria 2022-12-09

R 9 500.00(ZAR) estimated $498.27 (USD)*

View Report Add to Cart

Telecommunications in Nigeria 2016-12-28

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Supply Chain 1
3. SIZE OF THE INDUSTRY 1
4. STATE OF THE INDUSTRY 3
4.1. Local 3
4.1.1. Fixed Line Telephony 4
4.1.2. Broadband 4
4.1.3. Mobile Voice and Data Services 5
4.1.4. Undersea Cabling 6
4.1.5. Mobile Money Transfer Service 7
4.1.6. Corporate Actions 7
4.1.7. Regulations 7
4.2. Continental 8
4.3. International 9
5. INFLUENCING FACTORS 10
5.1. Economic Environment 10
5.2. Government and Regulatory Action 10
5.3. Unreliable and Inadequate Electricity Supply 11
5.4. Damage of Network Infrastructure 12
5.5. Quality of Service Problems 12
5.6. Technology 12
5.7. Labour Resources 13
5.8. Environmental Concerns 13
6. COMPETITION 13
6.1. Barriers to Entry 14
6.2. Research and Development (R&D) and Innovation 14
7. SWOT ANALYSIS 15
8. OUTLOOK 15
9. INDUSTRY ASSOCIATIONS 16
10. REFERENCES 16
10.1. Publications 16
10.2. Websites 17
COMPANY PROFILES 18
21ST CENTURY TECHNOLOGIES LTD 18
AIRTEL NIGERIA LTD 20
EMERGING MARKETS TELECOMMUNICATION SERVICES LTD 21
GILAT SATCOM NIGERIA LTD 23
GLOBACOM LTD 24
HELIOS TOWERS NIGERIA LTD 25
INTERNET SOLUTIONS NIGERIA LTD 27
MAINONE CABLE COMPANY NIGERIA LTD 28
MTN NIGERIA COMMUNICATIONS LTD 30
PHASE3 TELECOM LTD 32
SMILE COMMUNICATIONS NIGERIA LTD 33
VISAFONE COMMUNICATIONS LTD 34
VODACOM BUSINESS AFRICA (NIGERIA) LTD 35