FDI in Telecom Hits $25Bn

Local and foreign direct investment in the Nigerian telecommunications sector stood at over $25 billion by mid-2012, while mobile subscriptions surpassed the 150 million mark, according to a new study by Pyramid Research.

The study titled “Pyramid Perspective 2013: Top Trends in the Global Communications Industry” said that 113.1 million of the mobile subscribers were active at the end of December, 2012, while teledensity has grown to 80.21.

Pyramid Research  study provides information on top trends in telecoms landscape in Africa and Middle East (AME), Asian Pacific, Europe and Americas.

The study showed that economic growth in emerging markets is expected to be nearly four times the economic growth in developed markets.

Telecom service revenue in emerging markets will increase five times faster than in developed markets.

Daniel Amparan, managing director, Pyramid Research, in his summary of the study, said the year 2013 will accelerate the rate at which emerging market-based players take advantage of financially challenged developed market assets to bring much needed capital, but also commercial innovation and expertise. It will also be a year of important milestones.

“By year’s end, mobile subscriptions (globally) will reach seven billion, on par with the global population. Mobile subscribers in the Africa and Middle East region will surpass the One billion mark in the first quarter, making it the second region to reach this milestone after Asia-Pacific,” he said.

Amaran said consolidation has progressed most quickly in recent years in markets where subscriber growth has slowed, competitive pressures are squeezing margins and upcoming capital requirements are high.

The study predicts that this trend will make mobile service revenue in emerging markets in 2015 larger than mobile service revenue in developed markets for the first time ever; noting that nearly 90 per cent of the two billion subscribers to come online in the next five years will reside in emerging markets.