Telecom
GSMA Report Favours Competition over Wholesale Networks
The GSMA has released a new report that predicts a move away from traditional mobile network competition towards single wholesale networks1 which would stifle innovation, restrict investment and take-up of mobile broadband services and ultimately be against consumer interests.
Developed by Frontier Economics, the report, “Assessing the Case for Single Wholesale Networks in Mobile Communications”, examines whether single wholesale networks could meet a government’s objective for improved coverage and explores more effective ways to achieve the same goal.
The report analyses the historic performance of countries with a single network compared to those with multiple competitors to consider how a single wholesale network would likely perform in practice. It finds that in countries with competing networks, 3G covered 36 per cent more population and that overall coverage increased three times faster than in those served by a single network2.
“In 2000, there were as many countries served by a single mobile network as there were those with competing networks. Today only 30 countries, representing less than three per cent of the world’s population, are served by a single network,” said Tom Phillips, chief regulatory officer, GSMA.
“Network competition has produced unprecedented growth and innovation in mobile services, with 3.7 billion unique mobile subscribers globally in 2014, more than US$1.7 trillion of total worldwide investment since 2002 and mobile 3G broadband coverage reaching over half of the world’s citizens3. This indisputable success story should continue in the era of mobile broadband, across the globe and particularly in emerging markets.”
Comparing Single Wholesale Networks with Network Competition
Advocates of single wholesale networks argue they can respond to issues such as inadequate or slow coverage in rural areas, inefficient use of spectrum and a lack of incentives for the private sector to maximise coverage or investment better than the model of network competition. However, the report demonstrates that the existing approach of network competition offers better long-term benefits:
Network Coverage – Some supporters of single wholesale networks claim they will deliver greater network coverage than network competition. The new report finds this often reflects the existence of public subsidies and other forms of support for the monopoly wholesale network model rather than any inherent advantage over competing network operators.
Innovation and New Services – The report finds that, in practice, single networks typically take 12 to 18 months longer to perform upgrades and embrace new technologies such as 3G, limiting the availability of new services for consumers, reducing quality and increasing costs.
Uncertainty for Investors – When initially established, single wholesale networks would have to co-exist for some period with existing networks.
This will likely lead to a distortion of competition in the market, increasing uncertainty both for those investing in the single wholesale networks and for those investing in existing networks, leading to less investment in mobile broadband services.
Impact of Monopolies – In the longer term, single wholesale networks would need to evolve into regulated monopolies to meet their key objectives.
As monopolies, single wholesale networks will always have incentives to keep prices high and limit investment and will have little impetus to innovate.
Although regulation of the network may attempt to overcome some of these problems, experience shows that this will be difficult in practice and will not match the performance of competing networks.
Subsidising Network Competition – Although publicly-funded single wholesale networks could be used to deliver coverage in areas into which privately funded competing networks might not be able to serve, the report suggests that policy makers should consider measures to extend the benefits of network competition to those areas rather than replacing competition with monopoly.
This includes imposing coverage obligations at the time of licence award for new spectrum, particularly in low frequency 700MHz and 800MHz bands, and other forms of subsidy such as the award of contracts to cover particular areas using public funds.
Policy makers in a number of countries have been considering establishing a single wholesale network instead of relying on competing mobile networks to deliver 4G mobile broadband services, but there are currently no nationwide initiatives in action.
“No single wholesale network has been fully implemented in any country in the world yet and designing, financing and implementing these networks will likely prove highly challenging. We believe that a radical departure from the approach of licensing competing mobile operators, favoured by policy makers for the past 30 years, would harm a nation’s consumers, businesses and economy,” added Phillips.
At the recently concluded NextNow Business Forum in Victoria Island, MTN Nigeria electrified the business community with a live demonstration of its forthcoming Communication Platform as a Service (CPaaS), a solution engineered to redefine how Nigerian enterprises connect with their customers.
Unlike traditional communication systems, MTN’s CPaaS is built for the realities of a mobile-first market. The platform unifies SMS, voice, WhatsApp, email, and more into a single, intuitive interface. This approach is especially significant in Nigeria, with over 107 million internet users, 45.4% of the total population, according to Data Report. This figure underscores the necessity for businesses to meet customers where they are.
During the demo, attendees witnessed how CPaaS enables two-way, real-time conversations between brands and customers. The platform’s support for rich media, instant analytics, and seamless integration with business workflows drew particular attention. These features are designed to empower businesses with data-driven insights and the agility to personalise every interaction, whether it’s a service notification, marketing campaign, or customer support exchange.
Akinbulejo Onabolu, Head of Enterprise Segment at MTN Nigeria, articulated the vision: “CPaaS gives enterprises the flexibility to interact with their customers on their preferred platforms; whether it’s chat, voice, or messaging, in a way that feels personal and immediate. We’re looking forward to the value this will unlock for businesses across industries once it launches.”
The fireside chat added depth to the conversation, with Omowunmi Olatunbosun, Head of SME Segment at MTN Nigeria, and Stephen Agbi of Bayobab, highlighting how digital engagement bridges the gap between businesses and audiences.
They emphasised that today’s consumers demand immediacy, relevance, and ease, qualities that CPaaS is built to deliver.
The stakes for digital transformation in Nigeria are high. In a report by Punch, the country’s enterprise tech market is projected to reach $22 billion by 2027, reflecting a surge in demand for scalable, cloud-based solutions that drive efficiency and customer loyalty.
The CPAAS Acceleration Alliance have estimated that globally, the CPaaS market is expected to grow from $14.7 billion in 2025 to $72.4 billion by 2035, at a compound annual growth rate of 18.4%, a testament to the platform’s transformative potential.
The event’s closing keynote from META’s Korhan Yunak reinforced the strategic value of digital channels like WhatsApp, which are now indispensable for business communication and engagement at scale.
As MTN Nigeria prepares for the Q3 2025 launch, the anticipation is unmistakable. With its promise of flexibility, intelligence, and seamless integration, MTN’s CPaaS platform is set to become the backbone of next-generation business-customer engagement in Nigeria, enabling enterprises to not just communicate but to connect, adapt, and grow in a digital-first era.
MTN Uganda is seeking input from stakeholders on a plan to structurally separate its mobile money service, MoMo, from its core telecoms business.
According to the company, the proposed change will be discussed at the upcoming extraordinary general meeting on July 2.
If approved, the telco’s fintech business will be run by a new company controlled by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders following a merger.
Additionally, the restructuring also aligns with MTN Group’s ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.
The company’s fintech division has over 13 million customers, with an 18.4% revenue increase in the first quarter of 2025, driven by 19.0% growth in mobile money services, 19.8% growth in transaction volumes, and a 31.4% increase in transaction value.
Reports say the decision is part of the telco’s compliance with the National Payment Systems Act 2020, which mandates mobile money businesses to operate as standalone entities, and to align with MTN Group’s regional fintech strategy.
MTN Uganda, which is led by CEO Sylvia Mulinge, highlighted that the implementation of the proposed transaction will be subjected to a number of conditions and regulatory procedures.
“The implementation of the proposed transaction shall be subject to a number of conditions, including the company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” said MTN Uganda in notice.
Netflix has announced plans to invest more than €1 billion in Spanish film and television productions over the next four years, reinforcing its commitment to Spain as a key creative hub in Europe.
The announcement was made by co-chief executive Ted Sarandos at an event held at Netflix’s production studios near Madrid, celebrating the company’s 10-year presence in the country.
Sarandos emphasized that the investment would contribute significantly to Spain’s economy, create jobs, and enable the streaming platform to produce more local content. He was joined by Spanish Prime Minister Pedro Sánchez in unveiling the initiative.
Netflix first established its international production studios in Madrid in 2019, following the success of the Spanish-language hit series Money Heist.
Since then, its 22,000-square-meter facility has become one of Netflix’s major production centers within the European Union.
The company currently supports over 20,000 jobs in Spain, highlighting the nation’s growing influence in global entertainment.
The investment reflects Netflix’s ongoing strategy to expand its presence in European markets through original content and local talent.
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