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How Insecurity Impacts Mobile Phone Subscription in Nigeria

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Latest telecommunications special edition poll results released by NOIPolls Limited have revealed that a higher proportion of Nigerians use 2 phone lines either registered under one network provider or under two different ones.

This trend has been consistent from 2012 to 2014; however, a 5-point reduction in the proportion of Nigerians in this category was seen from 2012 to 2013 and 3-points increase in 2014.

An assessment of the mobile network used by Nigerians placed MTN as the highest used network in the past two years (2012-2013) and even in the present times; although subscription to this provider has consistently declined within this period.

According to the MTN group, this decline has been mainly due to ‘regulatory restrictions’ imposed by the telecoms watchdog and growing spate of unrest by Boko Haram especially in the Northern part of Nigeria.

Other Networks used by Nigerians in the order of higher subscribers include; Airtel (45%), Etisalat (33%), Glo (28%) and Visafone (1%).

In line with this, the proportion of Airtel subscribers which seemed steady from 2012 to 2013 at (39%), picked up by 6-points in 2014 (45%), thus, making it the only network that has seen a considerable growth in the proportion of its users.

This increase may have been driven by the discovery of the cheaper tariffs offered by this network compared with other networks. 

More findings on the usage of phone lines revealed a higher proportion of subscribers (76%) use MTN as their main line; this could have been as a result of a first mover advantage earned by this operator.

In addition, 15% of mobile network subscribers indicated Airtel as their main line, 5% indicated Glo, while 4% of subscribers use Etisalat as their main line.

An assessment of the services provided by network providers revealed that a higher proportion (64%) of mobile phone users across all networks are getting value for money from their main network provider through the ‘quality of network services’ (27%), ‘bonus offers’ (25%) and ‘cheaper tariff’  (23%) among others.

Furthermore, MTN ranks highest for providing best services in Nigeria in 2014, followed by Airtel and Etisalat (68%, 17% and 11% respectively) and to further improve the quality of services of Network providers, subscribers have suggested the ‘reduction of tariff’ (30%) as a measure for improving the quality of telecommunication services while capitalizing on ‘wider network coverage’ (22%) and ‘improved network services’ (22%).

These were some of the key findings from the Telecommunications snap poll conducted in the week of November 17th 2014.

At the dawn of the 21st century, mobile network providers were granted licenses to operate in Nigeria, hence, the introduction of the Global System for Mobile Communication (GSM) which subsequently changed the frontage of telecommunications in Nigeria.

In the present times, figures obtained from Nigerian Communications Commission (NCC), reveals that the teledensity of the country’s telecommunications industry increased to 96.08 per cent in September, from the 90.78 per cent in March 2014 just as active lines in the nation’s telecommunications industry increased to 134,507,329 in September 2014.

Nigeria’s teledensity is currently calculated by NCC on a population of 130 million people.

Given this major breakthrough in the telecommunications industry, and with the competitive nature of the industry due to the advent of different players, ‘Quality of Service’ has been the major criteria for measuring the satisfaction of mobile network subscribers.

In line with Section 89 of the Nigerian Communications Act 2003 which mandates the Commission to monitor all significant matters relating to the performance of all licensed telecoms service providers, the Commission placed a ban on the sales of new SIM cards in March 2014 and on promotions or bonus offers on some mobile networks operators recently, following the failure of these operators to meet the various Quality of Service (QoS) Key Performance Indicators (KPIs).

Against this background, NOIPolls conducted it special edition poll on the telecommunications in Nigeria, to explore the current state of the sector from the perspective of consumers. The poll sought to measure the following:

Key Findings:

Respondents to the poll were asked ten specific questions; only 6 of these questions are discussed in this release. With the aim of assessing the usage of mobile phone lines in Nigeria, respondents were asked: How many phone lines do you currently use?

Findings from the current poll highlights that a higher proportion of Nigerians use 2 phone lines.

These lines could either be registered under one network provider or under two different ones.

The use of 2 or more lines could probably be driven by the need to overcome certain issues associated with mobile network which could range from accessibility to cost. In addition, 33% of Nigerians use one line, 17% use 3 lines, while 7% confirmed they use more than 3 lines.

The use of 2 phone lines seems like the norm across all geo-political zones, except for the North-West zone where the higher proportion of the residents use one phone line.

The North-East zone (33%: 22%+10%) and the South-West zone (31%: 23%+8%) accounted for the highest proportion of respondents who use 3 or more phone lines.

A 3-year trend analysis on the usage of phone lines in Nigeria revealed a consistent trend of 2 phone line usage by Nigerians from 2012 to 2014, however there was a 5-point reduction in the proportion of Nigerians in this category from 2012 to 2013 and 3-points increase in 2014.

More findings revealed that more residents from the North-East zone use more than 3 phone lines in 2014 compared with the past 2 years with a significant increase of 9-points from 2013 (1%) to 2014 (10%).

A view of the trend on phone usage across age-groups revealed that Nigerians within the age-group of 18-21 years have increasingly adapted the use of 2 phone lines over the years;  from 2012 where it was lowest to 2014 (41%) with the highest record.

This increase in this category of Nigerians has stimulated a drop in the use of 1 line by this age-group. On the other hand, respondents aged 61+ have continuously reduced the use of 3 or more lines to settle for the use of 1 to 2 lines from 2012 to 2014.

Subsequently, with the aim of exploring the mobile network providers used by Nigerians, respondents were asked: Which network provider(s) do you currently use?

Findings revealed that MTN is the highest used line as confirmed by the vast majority of respondents (91%); this is followed by Airtel (45%) and Etisalat (33%).  While 28% of Nigerians use Glo, only 1% of Nigerians use Visafone.

This finding validates the data of the Nigerian Communication Commission (NCC) which revealed the movement of Airtel Nigeria Limited up to the second place in terms of market share on the number of mobile subscribers on its network with MTN maintaining the first position.

Trend analysis on the network providers used by Nigerians from 2012 to 2014 depicts a consistent decline in the proportion of Nigerians who subscribe to MTN from 2012 to 2014 with a total decline of 4-points within this period.

According to the MTN group, this decline has been mainly due to ‘regulatory restrictions’ imposed by the telecoms watchdog and the growing spate of unrest by Boko Haram especially in the Northern part of Nigeria.

While a significant 10-point decline in the proportion of Glo subscribers from 2012 (38%) to 2013 (28%) was seen, there has been no difference in this category of subscribers since then. The same applies to Etisalat with an 8-point decline from 2012 (40%) to 2013 (32%) although a slight 1-point increase was recorded in 2014.

On the other hand, the proportion of Airtel subscribers which seemed steady from 2012 to 2013 at (39%), picked up by 6-points in 2014 (45%), thus, making it the only network that has seen a considerable growth in the proportion of its users, among other findings by NOIPolls.


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Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation

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Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.

Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation

Rewane made this statement on Channels Television’s Business Morning on Thursday.

Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.

On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.

According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.

He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.

Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.

“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.

“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.

“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.

He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.

“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.


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Microsoft to Spend $80Bn on AI Data Centres

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In a bid to build AI-enabled data centres, Brad Smith, vice chair and president, Microsoft has disclosed the company’s plan to spend approximately $80 billion in its current financial year (to end in June), with more than half of that investment designated for the US.

Smith in a blog post, explained the tech giant plans to use the data centres “to train AI models and deploy AI and cloud-based applications around the world.”

Smith welcomed U.S. President Donald Trump to his second term in office, he cautioned against “heavy-handed regulations” that could slow down the private sector.

“The most important US public-policy priority should be to ensure that the US private sector can continue to advance with the wind at its back,” Smith stated.

He further explained that the U.S. “needs a pragmatic export control policy that balances strong security protection for AI components in trusted data centers with the ability for U.S. companies to expand rapidly and provide a reliable source of supply to the many countries that are American allies and friends.”

Stating that the US is well-positioned to flourish in its development of AI due to solid technology development and an innovative private sector.

“If the Trump Administration can develop a strong national AI talent strategy and use AI to make the government more effective and efficient, it will put the country on a promising path.”

He stated the U.S. is in a strong position to “win the essential race with China by advancing international adoption of American AI.”

Smith further claimed U.S. “products are more trusted than their Chinese counterparts, and our private sector is unmatched in its ability to invest in infrastructure around the world.”


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TD Africa Empowers Nigerians with Sustainable Energy Solutions

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TD Africa, a leading technology distribution company in Africa, has unveiled its Green Hero Initiative, a groundbreaking program designed to tackle Nigeria’s persistent energy challenges and promote the adoption of sustainable energy solutions.

This initiative underscores TD Africa’s commitment to advancing cleaner, more affordable energy alternatives for Nigerian households and businesses.

As the cost of fossil fuels continues to rise, the urgency for a shift to renewable energy has never been more apparent. Recognizing this need, TD Africa has partnered with global industry leaders Huawei and EcoFlow to introduce innovative renewable energy solutions tailored to meet the unique needs of Nigerian consumers.

“The Green Hero Initiative is more than just a product launch; it’s a commitment to a sustainable future,” said Chidiebere Nwabuko, Business Manager, Renewable Energy Solutions at TD Africa. “We’re empowering Nigerians to take control of their energy needs, reduce their carbon footprint, and enjoy the benefits of reliable, clean power.

“By partnering with global leaders like Huawei and EcoFlow, we’re bringing cutting-edge technology to the market that is not only affordable but also tailored to the specific needs of our customers and Nigerians across the country.”

Through the Green Hero Initiative, TD Africa is offering a variety of renewable energy solutions that cater to diverse energy needs. These solutions include the powerful Huawei ISite Power M, ideal for powering homes and small businesses, and Huawei ISite Power S, designed for commercial and industrial applications.

Additionally, EcoFlow’s portable power stations are made up of the River series and Delta series that attend to the needs of low and mid-range Nigerians and provide a convenient and clean energy source for residential homes, small and medium businesses and outdoor activities or backup power.

By promoting the adoption of renewable energy, TD Africa is committed to significantly reduce carbon emissions and contribute to a more sustainable and environmentally friendly future for Nigeria. The company’s Green Hero Initiative is a significant step towards achieving this goal.

To ensure accessibility, TD Africa has made these solutions available through various online platforms. Consumers can conveniently shop for these products at justownitapp.com or KongaPlus via konga.com. Authorized partners of TD Africa can also access the range of offerings through the TD SuperApp at superapp.tdafrica.com.

 


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