Telecom
Consumers Spending on ICT Market to Hit $4 Trillion in 2018 – IDC
Worldwide Semiannual IT Spending Guide said that worldwide spending on information and communications technology (ICT) will be nearly $4.0 trillion in 2018, according to new data from the Industry and Company Size from International Data Corporation (IDC).
The explosive growth of smartphones in recent years means that consumer spending will account for the largest proportion of that total, but growth will be driven by enterprise spending on cloud, software and infrastructure related to 3rd Platform solutions.
The consumer market will account for more than $1.5 trillion in ICT spending in 2018 and will deliver more than one third of all worldwide spending throughout the forecast.
Consumer spending will also experience the slowest growth over the forecast period with a CAGR of 1.2%.
Roughly 80% of consumer spending will go to devices and mobile telecom services.
Banking, discrete manufacturing, telecommunications, and professional services will be the four largest industries for ICT spending in 2018 at more than $900 billion combined.
While all four industries will invest heavily in applications, infrastructure, outsourcing, and telecom services, spending levels will vary depending on industry needs.
For example, banking will invest the most in IT outsourcing and project-oriented outsourcing ($115 billion combined) while telecommunications spending will be led by infrastructure purchases ($85 billion).
Professional services and banking will experience the fastest growth in ICT spending with five-year CAGRs or 5.9% and 5.2%, respectively.
The United States will see $1.3 trillion in ICT spending in 2018 making it the largest geographic market this year and throughout the forecast with spending expected to grow at a CAGR of 3.6%.
China will be the second largest market for ICT spending at $499 billion this year with solid growth (5.2% CAGR) forecast through 2021.
Japan, the UK, and Germany will round out the top five countries for ICT spending in 2018.
The countries that will experience the fastest ICT spending growth over the 2016-2021 forecast period are the Philippines (7.5% CAGR), India (7.0% CAGR), and Peru (6.7% CAGR).
Jessica Goepfert, program director, Customer Insights & Analysis, said “The growth of technology spending in the U.S. professional services industry is propelled by the tech-savvy firms that comprise it. Think Facebook, Google, Microsoft, and Uber, to name a few.
“These companies wholeheartedly embrace technology as a key enabler to their business strategies and service offerings, and are often the first to test drive new innovations as they strive to stay ahead of the rapidly evolving technology market.
“Meanwhile, banks and retailers share the common desire to deliver a delightful, cohesive, channel-agnostic customer experience.
“These initiatives are enabled by technology investments to help organizations unite their physical and online worlds.”
In terms of company size, the small office category (businesses with 1-9 employees) will account for 7% all ICT spending throughout the forecast period.
Most of this spending (around $100 billion per year) will go toward fixed and mobile telecom services, while devices will also be a significant spending category.
On the other end of the spectrum, very large businesses (more than 1,000 employees) will account for more than 50% of all ICT spending throughout the forecast.
These businesses will focus the majority of their spending on IT outsourcing, project-oriented outsourcing, applications, and infrastructure as they pursue their digital transformation strategy.
The spending patterns for small businesses (10-99 employees) will closely resemble those of the small office category with slightly more spending going toward applications and outsourcing.
Medium (100-499 employees) and large (500-999 employees) businesses will experience more balanced spending across all technology categories.
Spending on information technology (IT) will reach $2.16 trillion this year, led by business and consumer spending on devices, applications, IT outsourcing, and project-oriented outsourcing, including application development and system and network implementation.
In addition, more than $300 billion will be spent on business process outsourcing and business consulting services this year.
Telecommunications spending is forecast to be $1.5 trillion this year with 95% of the total going to fixed and mobile telecom services.
Mobile phones will be the largest segment of technology spending at nearly $500 billion in 2018, followed by mobile data and mobile voice at more than $400 billion each.
Stephen Minton, research vice president, Customer Insights & Analysis.said “Spending for telecom services is largely dominated by consumers, but some industries have emerged as rapid adopters of fixed and mobile data services over the past few years.
“In Asia, special projects and initiatives have helped to boost fixed broadband adoption in the education sector.
“In the U.S., the healthcare industry is a major source of fixed-line telecom spending, while transportation firms in Canada and Japan have invested aggressively in mobile broadband solutions.
“Meanwhile, consumers in many emerging markets continue to leapfrog fixed broadband and go straight to mobile data services, which is changing the entire landscape for how to connect with end-users in these countries.”
Funke Opeke, founder/CEO, MainOne, Nigerian internet connectivity giant, has stepped down from her role after 14 years – two years after Equinix, digital infrastructure business, bought her company, albeit news reports indicate that the completion of MainOne’s full integration with Equinix, was more recent, taking place this month.
Wole Abu
MainOne will retain its brand as MainOne, Solutions by Equinix, while its data centre division, MDXi, will operate under the Equinix name.
The development comes two weeks after the firm finalised its post-acquisition integration with Equinix Inc., a digital infrastructure company.
Recall that in 2022, Equinix Inc. announced that it had completed a deal to acquire MainOne, a West African data centre and connectivity solutions provider, for $320 million.
Speaking on her resignation in a statement on Tuesday, Equinix said Opeke will be replaced by Wole Abu as the new managing director in West Africa and lead the expansion of digital infrastructure in the region.
According to the organisation, Abu will oversee the Equinix business in Nigeria, Ghana, and Cote d’Ivoire; while Opeke will remain a strategic advisor for the company in the West African region through March 2026.
“Wole is a seasoned professional with over 20 years’ experience in the Nigerian Telecoms Industry,” the statement reads.
“He joins Equinix from Liquid Intelligent Technologies where he held the position of CEO for Nigeria and Africa Data Centre (ADC).
“As well as driving business success, Wole is passionate about driving societal and social change through technology and is focused on driving a successful strategy for connectivity and digital access in West Africa.
“Wole will also lead Equinix’s key local engagements to make a meaningful impact to society through the support of initiatives focused on education, sustainability, and the betterment of society as well as driving the vital environmental and community initiatives so crucial to the sustainable goals and vision of Equinix.”
Speaking on the appointment, Judith Gardiner, vice-president for growth and emerging markets at Equinix, said Abu’s expertise will help the company expand its reach.
“We are delighted to have Wole join Equinix as the leader driving our operations in West Africa,” Gardiner said.
“With his expertise, we will support local businesses and multinational companies in expanding into Africa and beyond through Equinix.
“This marks a significant milestone for Equinix as we continue to develop our presence in Africa, establishing crucial strategic data hubs, accelerating digital technology development, supporting our customers, and contributing to the continent’s immense growth potential through robust digital infrastructure.”
On his part, Abu expressed eagerness to contribute to Equinix’s transformative work and help create a more connected, accessible digital landscape throughout Africa.
“I’m excited to be joining Equinix, as we share a common vision for expanding digital infrastructure across Africa,” he said.
“This mission is crucial for bringing life-enhancing services to the region and bridging the digital divide. By empowering both enterprises and individuals, we’re enabling broader participation in the global digital economy.”
Equinix also said Wole’s appointment as managing director for West African business follows shortly after the opening of its newest data center in Johannesburg.
MTN Nigeria Communications Plc has reported a loss after tax of N514.9 billion for the nine months ending September 30, 2024, driven largely by the naira’s devaluation.
Despite recording a Q3 profit after tax of N4.1 billion, MTN’s Profit After Tax (PAT), adjusted for net forex loss, was down 59.2% to N118.5 billion, reflecting the ongoing currency challenges.
The telecom giant’s half-year results previously reported a loss of N519.1 billion, with the recent figure reflecting a slight decrease.
Additionally, MTN’s total subscriber base fell by 0.9% to 77.0 million as the regulatory-driven National Identification Number-SIM linkage led to the deregistration of certain Subscriber Identity Modules (SIMs).
In contrast, active data users rose by 5.1% to 45.3 million, while active mobile money (MoMo PSB) wallets declined by 21.8% to 2.8 million.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped by 5.3% to N860.2 billion, with the EBITDA margin shrinking by 14.9 percentage points to 36.3%.
Karl Toriola, CEO, MTN Nigeria described the results as “resilient,” attributing the performance to the company’s adaptability despite high inflation, naira depreciation, and regulatory constraints.
He noted that inflation averaged 32.8% during the period, up from 24.5% in 2023, prompting the Central Bank of Nigeria (CBN) to increase the Monetary Policy Rate by 8.5 percentage points to 27.25%, impacting funding costs.
As part of efforts to shore up working capital, MTN Nigeria has launched a new commercial paper issuance, aiming to raise N50 billion under its N250 billion Commercial Paper Issuance Programme.
The Series 11 and 12 issuances are part of MTN’s ongoing debt-market strategy to address short-term financial needs.
The telecom company, which recorded a net forex loss of N740.4 billion in 2023—a sharp rise from N81.8 billion in 2022—has been significantly impacted by the naira’s depreciation.
Following the Central Bank’s decision to float the currency in June 2023, the exchange rate rose from N461.1 per dollar in December 2022 to N907.1 by December 2023, impacting earnings and dividend declarations for shareholders.
The Glo Jolly Win promo by Globacom has again made new millionaires who were presented their prizes at an event recently held in Lagos.
The presentation was conducted in conjunction with NCC-licensed Nitroswitch, an aggregator company, and Tetragrammaton, as the value-added service provider for these services. The five winners received their cheques and were instantly credited with their winnings at the ceremony.
Last September, Mr.Olieh Somtochukwu, a member of staff of a real estate company in Anambra State, became the first winner of the sum of N1 million naira in the promo.
Mrs. Adebayo Idowu, a recently retired school teacher, found it hard to believe her good fortune in September when she should have received her money despite several voice and video calls to her. She was full of appreciation to Globacom when she eventually came for the presentation of her prize at the ceremony last week.
Glo Jolly Win also produced other millionaires including Ganiu Bayo, a Lagos-based printing and publishing specialist, Abdul Mumuni Oseni, a corporate driver, Abiodun Oluwasanmi Temitayo, a mechanical engineer and Ashimiu Aminat Idowu, a teacher.
Mr. Mojeed Aluko of the Value Added Services Department of Globacom, noted at the ceremony that “the Glo Jolly Win is a lottery service in which subscribers can answer trivia questions or spin a wheel to win loads of airtime, data and cash prizes for as low as N100/day, with no need for downloads or any storage usage on their phones.
Subscribers can select their preferred services from the options of Jolly Trivia, Wheel, Win & Life to join in the fun and excitement of the lottery with the potential to become millionaires”.
Subsribers who desire to be part of the promo are enjoined to dial *20152# or send JWD to 20152 on their Glo lines.
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