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Nigeria Retains Largest Mobile Market in Africa – Ovum

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Nigeria has retained the position of the largest mobile market in Africa in terms of subscriptions, with 150.22 million mobile subscriptions at end-2Q 2016, up from 147.94 million a year earlier followed by Egypt, South Africa, Algeria, and Morocco, according to the Ovum Africa Market Outlook.

Though coming down from a peak of 62.81 million at end-2Q15, largely as a result of disconnections made to comply with SIM registration requirements, MTN Nigeria is the largest operator both in Nigeria and on the continent with 58.98 million subscriptions at end-2Q16.

The mobile network operator is followed by Ethiopia’s Ethio Telecom (45.99m), Vodafone Egypt (39.04m) and Vodacom South Africa (37.63m). Others are Globacom Nigeria, Orange Egypt and Airtel Nigeria.

The number of mobile subscriptions in Africa is expected to reach 1.02 billion at the end of 2016, despite slow growth in the continent’s mobile market,

Research put the current number of mobile subscriptions as at end-2Q 2016 at 962.29 million, based on a slow increase of 9.91% over the year to end-2014 and by 7.63% over the year to end-2015.

The slow growth is attributed to macroeconomic difficulties and regulatory issues such as SIM registration drives in a number of countries that held back growth in the market in the first half of 2016.

The research adds that by the end of 2021, mobile subscriptions on the continent would have reached the 1.33 billion mark of which 3G connections will account for 64.9% and LTE for 11.8%.

This will create a total mobile revenue rise from US$55.55bn in 2015 to US$69.67bn in 2021 at a CAGR of 3.8%, though mobile voice revenue on the continent will decline from US$43.26bn in 2015 to US$36.37bn in 2021.

Non-SMS mobile data revenue is expected to grow strongly from US$6.40bn in 2015 to US$27.56bn in 2021, at a CAGR of 27.6% driven by the rollout of 3G and 4G networks, the increasing affordability of smartphones, and changing customer behavior.

Better broadband
In terms of its broadband development, Africa is the second-lowest ranked region in the world despite the big changes that have taken place in its telecoms market in recent years due to a combination of economic, infrastructure, and regulatory obstacles that continues to hold back progress.

African operators could take advantage of their stronger brands and larger scale in local markets to develop digital services for diversification says Ovum.

The company says there is evidence that digital service strategies are beginning to pay off citing that Mobile Financial Services accounted for about 8% of MTN Group’s revenue in the first half of 2016, according to the telco.

To improve broadband, regulators and other authorities could do more to assign spectrum and licenses that would encourage the rollout of mobile broadband and bring Internet access and relevant data services to underserved audiences.


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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