Telecom
Spectranet Looks to Deepen Fixed Broadband Penetration in Nigeria – Awasthi
Ajay Awasthi is the chief executive officer of Spectranet Nigeria. He spoke on the efforts of the Internet Service Provider in deepening broadband penetration in Nigeria.
As a major player in Nigeria’s Fixed Broadband segment, through your fiber optic based Fixed Broadband service offering, how will you describe the pace of Nigeria’s broadband penetration and its impact on digital infrastructure?
Fixed Broadband penetration in Nigeria is at abysmally low levels currently at about 0.1%. This pales in comparison to overall broadband ( including mobile broadband) penetration which, as per the latest figures by NCC, is at 42.27 %.
Just to put these figures in the right perspective, the worldwide Fixed Broadband penetration in 2021(as per Statista) is 16.7% with Europe leading the table with 34.7% penetration.
Fixed Broadband services have the capability to deliver extremely cost effective, high quality and high-speed access to internet. It can play a significant role in overall development of world class digital infrastructure in the country.
It’s quite clear that there is a lot of ground to be covered to increase Fixed Broadband penetration to even half of the worldwide penetration level. Being the foremost ISP in Nigeria, Spectranet is keen to lead the effort to increase the FBB penetration to the next levels within the next 2-3 years.
Spectranet as a pioneer in launching 4G LTE services in Nigeria. What was the trigger for launching Fiber based Fixed Broadband services?
Culturally, we are an extremely data analytics and insight driven company with a deep sense of commitment towards proactively serving the needs of customers. Be it being the first to recognize the changing trends in data consumption and offering relevant products or anticipating and eliminating the causes of their pain points.
Post COVID, we have been keenly observing the key shifts in usage behaviour of our customers. A post COVID data user wants high speed internet access with low latency, high level of consistency with 99.99% up time.
All this at extremely affordable prices to watch movies on OTT platforms, play games or use video conferencing! We understood that these fast- evolving trends can be effectively addressed with a superior price-value proposition, through Fixed Broadband technologies.
This is what triggered our entry into Fixed Broadband and we are extremely pleased with the response we have been getting in the market in the cities of Lagos and Abuja. We will soon be entering into other markets too.
How is Spectranet going to differentiate its Fixed Broadband services once the 5G services are rolled out in Nigeria.
The telecom regulator NCC has done a commendable job by auctioning 5G Spectrum way ahead of many other countries. As per report the 5G services should get launched in the next 2-3 months times, though in a limited manner.
For a comprehensive 5 G launch, in order to realize the full benefits like high speed data, low latency, IOT, it’s critical to have an omnipresent network interconnected through a robust optic fiber network- connecting various towers and then for backhauling of the data to the network core and further.
All this infrastructure is at a miniscule level at this point of time and would certainly take a couple of years to be fully on-ground.
Having said that, Fixed Broadband and 5G technologies by no means are competing technologies. These will actually complement each other. Advanced technologies in fixed Broadband like XGS-PON are capable of delivering upstream and downstream speeds of10Gbps,way above 5 G speeds and at low latency levels.
Both the technologies will co-exist, serving different needs of the customers while on the move or working inside an office/home.
Fixed Broadband roll out is generally known to be slow paced due to associated challenges on account of securing right-of-way, trenching work and laying of cables. How is Spectranet managing rollout of FBB services? .
At Spectranet, we fully well understand the on-ground challenges and have been addressing these by deploying multiple technologies – HomeFibre ( FTTx) and FibreOnAir ( WTTx).
The latter is used in dense areas and helps in expediting roll outs of FBB. By this dual technology approach, we are able to deliver high quality internet services at a rapid pace.
What are your greatest challenges in offering FTTx services and how best could the challenges be addressed?
Nigeria has made rapid strides in mobile broadband penetration, with the regulator NCC playing a key role in proactively driving this through relevant policy interventions. However, the story is completely different in Fixed Broadband space.
This industry is completely bogged down by the lack of unified and robust policy framework for granting right-of-way (ROW) and charges the operator needs to pay for laying optic fiber cables.
Different states have different approaches to these which effectively thwart quicker rollouts. Further Non-availability of affordable/ reliable metro and national optic fiber networks also poses a key constraint on offering high quality Fixed Broadband services.
Given the criticality of FBB in delivering high quality and affordable services to the homes, SMEs/MSMEs, a unified, nationwide policy can help unleash the potential of this sector.
Over the last 3-4 years after MNOs launched their 4G services, we have witnessed intense Data price wars and a significant reduction in Data prices. How is Spectranet defending itself?
This will need a bit of explaining to set the context right. In Nigeria the regulator has fixed a floor price for Voice calls and the operators cannot charge less than the floor price.
This wise move by the regulator has ensured that no operator indulges in predatory pricing hurting the profitability of the industry which is so critical to the creation of a digital economy.
Strikingly, there is no floor price yet fixed for Data prices and that is leading to an imbalance in the industry, favouring the bigger players. While the MNOs are using their floor price protected voice revenues to cross subsidize and slash data prices, ISPs like us are forced to drop prices to unsustainable levels in order to defend themselves.
Let’s be clear that ISPs are defending the indefensible if the regulator doesn’t intervene immediately and set a floor price for data to curb predatory pricing.
Isn’t a price war good from the customers’ view point?
I have said this earlier also and my views remain consistent.
War of any kind is destructive by nature. A price war is no exception. It is a short- sighted ploy to gain market share. In the near term, it may be touted as a “customer friendly “move but over a period of time a price war results in significant destruction of value for the industry, forcing the players to degrade quality of services.
A price war is not sustainable in the longer term and a lose-lose proposition for both the operators and the customers. The hapless customers finally end up at the receiving end and are made to suffer through poor quality of services.
At Spectranet, we stay committed to provide high-quality, high-speed broadband to our customers. We believe in delivering a superior customer experience through better understanding of their needs and through differentiated tariff plans backed by excellent customer service.
Spectranet is known for its superior customer service. What is your approach to customer service?
At Spectranet, we deeply acknowledge the fact that customer service is not just limited to putting up a call center but goes much beyond and that CS can be a powerful source of differentiation in the market place.
Customer service to us is not a reactive action but an organization wide mindset which gets embedded into all aspects of the business.
Secondly, we constantly remind ourselves that Customer Churn is just one bad experience away. We call such bad experiences “customer pain points” and assiduously work on getting down to the causative factors and addressing these.
Proactive customer service (anticipating customers’ needs and pain points) is like a religion at Spectranet. The focus always is on eliminating these pain points or bad experiences by staying ahead of the causative factors.
Another critical factor is the design of Customer Service Delivery (CSD) organization and the hierarchical distance from the front-end Customer Service Executive to the CEO.
At Spectranet we have managed to keep just two layers between CSE and CEO and that helps significantly in staying tuned to customers’ requirements in a proactive manner.
Telecom operators are itching to increase the cost of voice call, SMS and data services by 40 per cent. Are Internet Service Providers (ISPs) like Spectranet also thinking of a price hike in the cost of internet services?
Across all the industries the cost of doing business has seen a significant increase over the past few quarters. The cost of running the towers being a significant cost, the recent hike in the price of diesel has further exerted pressure on the bottom line.
As an industry, telecom has held the prices virtually constant over the last few years. In order to continue providing high quality services to our customers and continue to create direct and indirect employment to thousands of people, it’s imperative that survival of the industry is ensured through a price hike mitigating the impact of ballooning costs.
Nigeria has witnessed the landing of several submarine broadband cables in Lagos, with more still coming. How will these help Spectranet to offer better internet services to its customers?
It’s an extremely happy development, to say the least. Some of these companies are not only coming with landing station for their under-sea cables but also data centers.
Combination of these will help reduce costs of transiting traffic to the rest of the world but also bring in qualitative improvement by reducing latency.
We are hoping that more such players will also enter to provide intra-national lease line connectivity which still a major point of concern in terms of reliability and high costs. Just to substantiate, the cost of carrying data traffic from Abuja to Lagos is more than 3X the cost of carrying it from Lagos to USA!
what safety measures have Spectranet put in place to ensure security from Cyber attacks?
With more and more digitalization happening, the vulnerability to cyber attacks has increased for sure. Cyber Security threats caused by DDoS, Malware, Emotet etc. are quite common these days.
As an operator we take cyber security very seriously and have deployed sophisticated equipment to thwart and neutralize these threats. There are multiple layers of cyber security comprising latest generation of Firewalls and Intrusion Prevention systems which effectively neutralize such threats.
As the revolutionary Airtel Spam AI Alert Service rolls out across Airtel Africa’s 14 operating countries, Airtel Nigeria CEO, Dinesh Balsingh, has elaborated on the unprecedented benefits and operating principles guiding the Spam Alert Service.
Designed to enhance user safety, this pioneering AI-driven product provides real-time defense against spam and fraudulent SMS messages, making it a gamechanger for mobile security across the continent.
The Airtel AI Spam Alert Service, which is engineered to automatically detect and label suspicious SMS messages as “Suspected SPAM” without requiring any user action or additional apps, leverages a robust AI algorithm that analyzes over 250 parameters.
These parameters includee sender behavior, message frequency, message geographical distribution, and unusual activity patterns. Impressively, the service completes this process under just two milliseconds, offering near-instantaneous alerts while maintaining the privacy of user data by not reading message content.
Commenting on the breakthrough service, Dinesh Balsingh, CEO of Airtel Nigeria, stated: “Nigeria is not just a critical market for us—it’s a leader in digital adoption within the continent. Our AI Spam Alert Service reflects our dedication to safeguarding our customers from the growing threat of SMS fraud.
“As the first of its kind in Africa, it addresses a fundamental issue of trust and security, which is paramount to our digital ecosystem. We’re proud to offer this service to Nigerians and extend it across our African footprint.”
Following its successful deployment in Nigeria, the Spam Alert Service has now launched in Tanzania and Kenya and is set to cover Airtel’s entire African operations. The service’s automatic activation for all Airtel customers, across both smartphones and feature phones, ensures maximum reach and accessibility.
Early feedback from subscribers has been overwhelmingly positive, with users praising the AI’s efficiency in flagging potentially harmful messages without interfering with their everyday communication.
By pioneering this AI-based spam detection technology, Airtel Africa demonstrates its commitment to leveraging cutting-edge innovation to resolve critical issues facing its subscribers. The AI Spam Alert Service not only protects users but also sets a new benchmark for mobile security standards in the region.
“Our goal is to build a safer digital environment for our users,” added Balsingh. “This innovation is part of our broader strategy to incorporate advanced technologies that address real challenges while enhancing the overall customer experience.”
As Africa stands at the point of a profound transformation, the imperative for greater intra-continental cooperation has never been clearer. The path to shared prosperity depends not on the progress of individual nations but on the collective strength of our commitments.
Central to this vision is the relationship between South Africa and Nigeria, two of the continent’s largest economies, and the institutions that serve as bridges between them.
It was an honour for MTN Group to host Minister Parks Tau (SA Minister of Trade Industry and Competition) and his delegation at our Headquarters in Johannesburg. At a time when global uncertainties are reshaping trade and technology, Africa must respond not in isolation, but in solidarity.
As MTN, we see it as our duty to serve as an economic diplomatic bridge between Nigeria and South Africa — driving growth, fostering inclusion, and unlocking opportunity for the Africa’s shared prosperity.
MTN’s journey exemplifies what is possible when two great nations collaborate. As Nigeria’s largest South African investor, MTN has long viewed its presence not simply as a commercial venture but as a platform for inclusive development.
Since commencing operations in Nigeria in 2001, we have invested more than US$10 billion in the country’s digital infrastructure.
Today, MTN Nigeria serves over 80 million subscribers, employs thousands directly, and supports hundreds of thousands of livelihoods across its extended value chain.
Yet, while the economic footprint is significant, our greatest source of pride lies in the social and developmental outcomes accompanying this investment, expanded access to connectivity, enhanced financial inclusion, and the empowerment of individuals and enterprises through digital technologies.
Still, the operating environment remains complex. Macroeconomic challenges in Nigeria, including currency depreciation, inflation, and constraints in accessing foreign exchange, have placed pressure on business continuity and investor confidence.
Despite these difficulties, MTN remains firmly committed to its business case and its long-term presence in Nigeria, underpinned by a belief in the country’s enduring potential and strategic importance to the continent.
However, for South Africa and Nigeria to truly unlock their bilateral potential, a number of long-standing issues require resolution. The upcoming South Africa–Nigeria Trade and Investment Summit, to be held in Abuja later this year, presents a unique opportunity to address these concerns.
The Summit serves not merely as a diplomatic engagement, but as a catalyst for policy reform, reciprocal market access, and institutional dialogue. Importantly, it should reinforce the private sector’s role in shaping practical, actionable solutions that support cross-border trade and investment.
The African Continental Free Trade Area (AfCFTA) offers a historic platform to actualise these ambitions. Yet its success will depend as much on infrastructure and digital connectivity as it will on tariff liberalisation or regulatory harmonisation.
As a pan-African operator, MTN is investing heavily in the digital foundations of AfCFTA, facilitating seamless mobile communication, enabling digital payments, and building platforms for cross-border entrepreneurship.
We also believe that integration must extend beyond economic frameworks to include cultural exchange and people-to-people engagement. One such initiative is our MTN Media Innovation Programme, which brings emerging Nigerian media professionals to South Africa for immersive learning.
Through programmes like these, we aim to cultivate not only knowledge and skills, but also enduring bonds between our nations’ future leaders.
Nigeria’s telecommunications sector witnessed a notable decline in internet users following a 50 per cent tariff hike on voice, data, and SMS services implemented in January 2025.
The Nigerian Communications Commission (NCC) made this known in industry statistics on its website.
According to the report, the industry lost approximately one million internet users in February, with the user base shrinking from 142.16 million to 141.25 million.
It said although a slight recovery was observed in March, with the figure rising to 142.05 million, the sector’s data consumption patterns were significantly impacted.
The NCC data showed a 12 per cent decline in monthly data consumption in February, dropping to 893.06 petabytes from January’s record high of one exabyte.
It, however, said a marginal rebound was recorded in March, with data usage increasing by 11.5 per cent to 995.88 petabytes.
Despite this modest recovery, the report said consumption levels remained slightly below the January peak, suggesting that subscribers continued to exhibit caution in their usage habits due to the increased tariffs.
Meanwhile, the telecom industry demonstrated resilience in other areas, with operators adding 3.39 million new telephone users between January and March.
This growth propelled the total active lines from 169.32 million to 172.71 million, subsequently boosting Nigeria’s teledensity from 78.10 per cent to 79.67 per cent during the same period.
In terms of market dynamics, Mobile Network Operators (MNOs) maintained their dominance in the internet market.
MTN Nigeria led with 75.62 million users, followed by Airtel Nigeria with 48.8 million, Globacom with 15.37 million, and 9mobile with 1.75 million.
MTN also retained its market lead in active telephone lines with 90.5 million subscribers, representing a 52.48 per cent market share, while Airtel followed with 58.3 million users (33.78 per cent), Globacom with 20.7 million (12 per cent), and 9mobile with 2.9 million (1.72 per cent).
The latest industry figures underscore the complexities facing Nigeria’s telecom sector as operators navigate economic pressures and evolving consumer behaviours.
On porting activities, the NCC report noted that Nigeria’s fourth mobile network operator, 9mobile, had continued to experience a decline in its subscriber base, with a total of 5809 customers porting out of its network both in February and March.
The report showed that other operators recorded insignificant outgoing porting numbers compared to 9mobile.
It showed that MTN lost 647 customers, Airtel recorded 695 outgoing portings, Globacom recorded 771, while 9mobile lost 5808 in both February and March.
In terms of incoming porting, MTN gained the most customers from other operators, with 4855 subscribers joining its network in February and March, the report revealed.
It stated that Airtel recorded 2084 incoming porting, while Globacom gained 1007 customers in both months.
The NCC added that, meanwhile, 9mobile recorded only three incoming porting for both months.
According to the NCC report on incoming and outgoing porting activities of mobile network operators, a total of 7922 subscribers moved from one network to another in February and March.
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