Telecom
The Telecoms Sector on the Rise: The Opportunities and the Uncertainties
By Dr. Falade Muritala Adesola
With more investments and higher expectations, the Nigerian telecoms sector has consistently contributed to the growth of the Nigerian economy.
Dr. Falade Muritala Adesola
While the market size and loquacious nature of the country’s population are significant factors in the sector’s viability, the crucial role of the regulatory body, the Nigerian Communications Commission (NCC), currently led by Dr Aminu Maida, cannot be overstated.
Effective regulation is a critical variable in the success of any industry, and the NCC’s leadership has been instrumental in shaping the sector’s progress. However, current realities in the country suggest that a lot remains to be done.
If we take a moment to reflect on the past and consider the incredible technological advancements that have transformed our society, we will undoubtedly find them astonishing. These advancements carry profound implications for our future and compel us to ponder how our world will continue to evolve.
In any human society, whether it’s a simple tribe or a highly developed civilization, communication is essential. Without the ability to share information and ideas, it would be difficult for people to come together, collaborate, and make important decisions that affect everyone. Communication enables cooperation, the creation and exchange of goods, the sharing of knowledge and ideas, and providing help and support to each other when it’s needed. This makes the telecoms sector a very strategic one.
The global spread of mobile phones has further transformed communication, offering new opportunities and challenges. This technology has revolutionized the telecommunications sector, requiring adaptable strategies for both developed and developing countries.
As the popular saying goes, “In a city that has no laws, there is no crime,” governments therefore continue to prioritise the establishment of strong, independent regulators to prevent chaos and ensure that national development goals are achieved.
Beyond concerns around quality of service and enhancing communication experience, the regulation of the telecommunications sector has been motivated by the need to ensure fair competition when market forces alone are insufficient. The goal of universal services, particularly in enabling customers to receive and make calls, has also influenced the regulation of basic telecommunications services. Nowadays, basic telecommunications services are widely regarded as essential, and regulations are in place to ensure it is affordable and widely available. Over the last two decades, many telecommunications markets have attained a certain level of regulatory maturity, establishing separate regulators, and competitive frameworks.
In Africa, the telecommunications industry is experiencing rapid changes, with the market valued at approximately $63.17 billion in 2024. It is projected to surpass $82.34 billion by 2029, growing at an annual rate of 5.44%. This growth is strongly linked to Africa’s youthful population.
Kenya, an East African technological hub, boasted a telecommunications market worth around $3.3 billion in 2023. The total telecom service revenue in Kenya was expected to grow at a compound annual growth rate (CAGR) of more than 2% throughout 2023. South Africa also holds significant influence in the African telecom market, where it is projected to generate approximately US$16.0 billion in revenue from communication services by 2024.
Nigeria is also widely recognised as one of the major telecommunications markets in the world. With a population of over 200 million and blessed with abundant natural resources, Nigeria ranks as the 14th largest oil producer in the world and the telecommunications sector contributes as much as 14% to the GDP. This makes it an attractive prospect for potential investors looking to tap into the largely untapped telecoms market.
The outcome of the telecom sector will have an immense impact on other sectors of the Nigerian economy. At a breakfast session organised by the Lagos Business School (LBS), Bismarck Rewane, the CEO of Financial Derivatives Ltd, said, “Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow.”
Recognizing the pivotal role that telecommunications can play in national development, the Nigerian government is dedicated to rapidly expanding telecommunications facilities and services through adequate efforts of regulatory bodies. Private investment in the sector has surged from $50 million in 1999 to over $70 billion twenty-one years after, leading to a rapid growth in subscriber numbers.
The advancements and progress in these industries are largely driven by the visible efforts of the regulatory bodies overseeing them. Meanwhile, they are not without their challenges. South Africa’s telecoms sector is regulated by the Independent Communications Authority of South Africa (ICASA), Kenya, Communications Authority of Kenya, and Nigeria, the Nigeria Communications Commission; all responsible for ensuring fair play, continued infrastructural development and quality of service. The Nigerian Communications Act of 2003 further empowers the NCC to effectively carry out its responsibilities as the independent regulator of the industry in Nigeria. Additionally, the Act established the office of the head of the NCC, led by an Executive Vice Chairman (EVC), who is responsible for overseeing the regulation of the telecommunications sector in the country.
The body has continued to facilitate private sector participation in communication services delivery and regulate the activities of the operators to ensure consistency in the availability of service delivery and fair pricing. The incumbent Executive Vice-Chairman, Dr. Aminu Maida is making significant strides despite the numerous challenges that plague the industry. The NCC recently obtained right-of-way (RoW) fee waivers in six states. Typically, some States require telecom operators to pay these fees to install fiber optic cables along roadways. High right of way fees have been a significant barrier for telecom companies, hindering the expansion of broadband access and infrastructure. These waivers will allow telecom operators to deploy infrastructure more easily and cost-effectively, facilitating broader internet coverage.
The EVC’s stance is also evident in his advocacy that the telecom infrastructure should be regarded as a national infrastructure, reflecting its critical role in the nation’s development. It should be co-managed in partnership with the telecom industry, which operates and maintains it. This collaborative management approach would address issues like frequent fiber cuts caused by uncoordinated activities of engineers and builders who often do not consult the sector’s regulator before proceeding with their work. Such disruptions are a major cause of vandalism and service interruptions. His advocacy has resulted in government action to make cable damages and vandalization of telecom infrastructure a criminal offense. This proactive approach not only discourages future irresponsible behaviour but also helps in maintaining uninterrupted services for the public.
Consumers today have a growing reliance on staying connected and having fast internet speed. The increasing demand for high-speed applications like video streaming and gaming, along with the expansion of the mobile ecosystem, is driving the need for better broadband connectivity. This demand has put pressure on the industry to improve the availability and quality of broadband services, resulting in connectivity issues.
To address this, the regulatory body has continued to lay emphasis on the need for operators to move from quality of service to quality of experience, which is a holistic approach to improving customer experience in the industry.
Indeed, the telecoms sector is on the rise. However, additional safeguards are necessary to sustain its growth and ensure long-term viability.
Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.
AVEVA, a global leader in industrial software, today launches AVEVA World 2024 in Paris’ Palais des Congrès. The annual flagship software conference brings together leading industrial companies from across the globe to explore how to generate impact with cutting-edge technology. Executives from key industrial verticals including Power, Chemicals, Minerals and Food & Beverage, will be present.
All with the shared aim of better utilising advanced software to drive stronger business and sustainability outcomes.
During the AVEVA World 2024 press conference, AVEVA‘s CEO, Caspar Herzberg, announced new strategic partnerships with Vulcan Energy Resources (VER) and Oxford Quantum Circuits (OQC).
Vulcan Energy Resources (VER) is committed to become the world’s first lithium company with a carbon neutral footprint through a ground-breaking lithium technology. AVEVA’s new partnership with Vulcan will focus on the Vulcan Energy Resources €1.5billion engineering project in Germany’s Upper Rhine Valley – with AVEVA providing the digital backbone for the project.
This collaboration supports both companies’ commitment to driving digital transformation and sustainability throughout the lifecycle of industrial assets.
VER aims at decarbonising lithium production by developing the world’s first dual lithium chemicals and renewable energy business with net zero greenhouse gas emissions. CONNECT, will be used to enhance collaboration and foster digital agility across the different project phases and industrial assets.
VER will gain access to a comprehensive suite of software solutions tailored to Phase One and future phases. Core components, such as AVEVA’s Contract Risk Management (CRM) and AVEVA Asset Information Management (AIM), as well as AVEVA’s cutting-edge digital twin and Assai’s Document Control and Management system, will enable secure data sharing among multiple stakeholders including contractors.
“This collaboration supports our commitment to driving digital transformation and sustainability throughout the lifecycle of industrial assets. By collaborating with AVEVA, Vulcan can harness the full power of CONNECT to ease collaboration and accelerate the software underpinning their ground-breaking lithium technology.” comments Caspar Herzberg, CEO, AVEVA.
Cris Moreno, CEO of Vulcan Energy Resources, said: “This MoU marks the beginning of a promising long-term collaboration between Vulcan and AVEVA.
“We are delighted to have AVEVA as a key partner in delivering world-leading digital solutions for Phase One of our integrated renewable energy and ZERO CARBON LITHIUM™ Project ecosystem and beyond.”
AVEVA’s new partnership with Oxford Quantum Circuits (OQC) seeks to develop an application of quantum computing in the industrial sector. While still in its infancy, quantum computing is expected to help customers save time and money, as well as reducing power consumption. By partnering with OQC, AVEVA is bringing the power and capability of quantum compute to its customers, enabling them to unlock its potential to solve new and previously thought impossible problems.
Quantum compute is anticipated to deliver an exponential speed-up over classical techniques, as well as generate cost and power consumption reductions: including AI large language models and big data.
When announcing the technology partnership with OQC, a global leader in quantum computing-as-a-service, Caspar Herzberg declared:
“We often hear “Time is Money” but today, there’s a new paradigm: Time is sustainability! The climate crisis is urging industries to accelerate their journey to net-zero. The faster we innovate for a better world, the better.
“Quantum Computing is a game changer in terms of speed, efficiency, and precision. I’m convinced that quantum technology will unlock faster and more sustainable innovation in industries.”
“Quantum computing is set to revolutionise every sector with faster and more nuanced information processing. Through OQC’s capabilities, quantum is now a tangible, accessible asset for businesses like AVEVA to utilise for experimentation. We look forward to unlocking its potential for their customers” added Gerald Mullally, CEO, Oxford Quantum Circuits.
MTN Nigeria, leading telecommunications provider has officially launched the first 5G Experience Centre in Abuja, on Wednesday, 16th October, marking a significant milestone in the brand’s commitment towards advancing connectivity in Nigeria.
L-R: ThankGod Otorkpa, General Manager, Regional Operations (North), MTN Nigeria, Shoyinka Shodunke, Chief Information Officer, MTN Nigeria; Engineer Joseph Emeshili, Head, Spectrum Planning, Nigerian Communications Commission (NCC); Ugonwa Nwoye, Chief Customer Relations Officer (CCRO), MTN Nigeria; Tobe Okigbo, Chief Corporate Services and Sustainability Officer (CCSSO) MTN Nigeria; and Osaze Ebueku, Senior Manager, Sponsorships and Promotions, MTN Nigeria during the launch of MTN 5G Experience Center in Abuja.
The state-of-the-art centre is designed to showcase the capabilities of 5G technology, empowering customers, businesses, and innovators to explore its potential.
The launch event, graced by industry stakeholders including representatives from the Nigerian Communications Commission (NCC) and tech enthusiasts such as Fisayo Fosudo and Izzi Boye, highlighted MTN’s commitment to delivering world-class telecommunications services that enhance the lives of its customers.
Offering attendees and visitors the opportunity to interact with cutting-edge technology, the 5G Experience Centre includes virtual reality, augmented reality, and ultra-high-definition streaming applications, as well as a digital customer service point.
Speaking at the launch, the Chief Customer Relations Officer, Ugonwa Nwoye, said “Today, we are proud to unveil the MTN 5G Experience Centre, a hub for innovation and a testament to our dedication to bringing the best of technology as close as possible to our customers.”
“At MTN, technology is not just about selling data but empowering our customers with the right technological resources to reach their highest potential.”
Going further, she said, “At MTN, our ability to bring the best to our customers is our pride from being the first to launch 5G in West Africa, to powering faster internet speeds; our connectivity has the potential to revolutionise various sectors, including healthcare, education, and agriculture.
“We believe this centre will inspire creativity and drive the adoption of digital solutions across the country.”
Engineer Joseph Emeshili, Head, Spectrum Planning, Nigerian Communications Commission, speaking on behalf of the Executive Vice Chairman, Dr. Aminu Maida, commended MTN on the launch.
He said, “The NCC commends MTN Nigeria for its efforts to promote the development of emerging technologies and to enable its customers to tap into this great experience and full potential of 5G.
“This move is encouraging and needs all hands-on deck to ensure the effectiveness of emerging technologies and the Nigerian tech ecosystem.”
Expressing his excitement for the launch, the Chief Information Officer, MTN Nigeria, Shoyinka Shodunke, said, “For us at MTN, the unveiling of the 5G Experience Centre is beyond the launch we have today.
“It is an experience we’re inviting everybody to be a part of to see the possibilities of 5G.
“What you see here today are dreams of our customers we’ve turned into realities and possibilities.
“We take these dreams, co-create and turn them into fantastic experiences for our customers businesses and pleasure.”
“We don’t develop viable products using the old methodology but encourage our target audience to share their ideas, sit together and create their ideas into tangible versions we can touch and feel.
“To this end, I encourage everyone to be a part of this journey and enjoy it to the fullest,” he added.
In addition to the experience centre, MTN is committed to expanding its 5G network across Nigeria, ensuring more communities have access to this game-changing technology.
The company plans to roll out additional centres in key cities, further promoting digital literacy and innovation.
“As we embark on this new era of connectivity, we invite all Nigerians to explore the endless possibilities that 5G offers,” added Ugonwa Nwoye. “Together, we can create a more connected, informed, and prosperous nation.”
The MTN 5G Experience Centre is now open to the public, and visitors are encouraged to book appointments for personalised tours and demonstrations.
Telecom
Breakdown of Telecoms Sector will have a Ripple Effect on Other Industries – MTN Nigeria’s CFO Warns
Modupe Kadri, Chief Financial Officer of MTN Nigeria, has raised alarm over the stifling business environment created by unfavourable regulatory policies in the telecommunications industry, warning that such crippling limitations will ultimately harm other sectors in the Nigerian economy.
Modupe Kadri
Speaking during one of the CEO roundtable discussions at the 30th National Economic Summit in Abuja, Kadri highlighted the urgent need for reform in the regulatory environment to sustain the sector and also encourage growth.
“The telecoms sector is critical for digital transformation in industries like finance, FMCG, logistics and creative sectors. If the government does not create an environment where the industry can grow and thrive, it will have a ripple effect on these sectors,” he said.
Despite contributing 16% to Nigeria’s Gross Domestic Product (GDP), Kadri reiterated that telecommunication operators face rising operational costs and heavy reliance on foreign exchange without permission to adjust service tariffs.
He stressed that urgent regulatory changes are necessary for the sector’s survival.
“For ten years, telecommunication operators have not been permitted by regulators to increase their tariffs, despite the economic downturn.
“This limitation is making operations increasingly difficult and the sector is fighting for survival. If we want to attain sustainability, these regulatory policies must be reviewed and telecom operators need to be allowed to adjust their prices, given present economic conditions,” he said.
Echoing Kadri’s sentiments, Courage Obadagbonyi, CFO of APM Terminals, emphasized the consequences of excessive regulatory burdens. “If you impose excessive regulations and operators cannot reinvest, the industry is bound to revert to the dark ages of dysfunctionality, ” he said.
Obadagbonyi criticized the lack of coordination among various government ministries and agencies that serve as regulatory bodies, noting that overlapping regulations and multiple taxation systems complicate operations and deter potential investors.
“Multinationals make objective decisions about deploying investment capital based on market volatility and their ability to adjust prices.
“Unfortunately, Nigerian projects are already at a disadvantage compared to those in Europe,” he added.
Both executives called for comprehensive policy reforms to create a more favorable business climate that encourages investment and supports economic development.
Other industry leaders, including Oyeyimika Adeboye, Managing Director of Cadbury West Africa, and Nkechi Obi, Group Managing Director of Techno Oil, joined them on the panel.
The discussions at the National Economic Summit underscored a critical moment for Nigeria’s economy.
Stakeholders urged government action to address regulatory challenges and foster an environment conducive to growth and investment.
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