Telecom
The Changing Dynamics of the Telecommunications Indust
They say the only constant in life, is change. In no other industry is this statement more relevant than in the telecommunications industry.
Over the last two centuries, mankind has taken gigantic leaps in technology, and these leaps have in turn enabled equally gigantic leaps in telecommunications.
When the telephone was invented in 1876 by Alexander Graham Bell, it was probably difficult to envision a world of mobile phones, video calls and instant messaging.
However, the development of enabling technologies such as the integrated circuit and more recently the internet, have continued to help push the boundaries of possibility in the telecoms industry.
Early telecommunications operators were setup to provide basic voice telephony services to subscribers, by ensuring that physical cables and exchanges were setup to connect various locations across the globe.
For these operators, growth simply meant investing in equipment to connect more and more people so as to provide basic telephony services.
This connectivity served as a catalyst for technological advances which in turn led to advances in the telecoms industry. This cycle of change continues to redefine the dynamics of the industry.
We are now more connected than ever before. In some countries (for example Finland and Japan), there are now more mobile subscriptions than there are people (IDG).
More people across the globe have access to a mobile phone, than have access to a toothbrush or working toilets (UN). It now takes 26 hours for the average person to report a lost wallet, but only 68 minutes for them to report a lost phone (Unisys).
A recent market analysis by Accenture has identified the six key trends which summarize the dynamics shaping the global telecoms industry today. The first of these trends is the commoditisation of core products.
The initial products and services which built up the industry continue to decline and will continue to contribute less to telecoms operators’ profits. In other words, there will be a continued migration from wire-line to wireless telecommunications. Between 2011 and 2016, the projected compounded annual growth rate (CAGR) globally of fixed line revenues is projected to be only 2% (Ovum).
The second trend is the replacement of voice traffic with data. Data usage continues to drive growth in network traffic, and this trend will only continue as technological advances help improve the quality of voice over internet protocol (VoIP) telephony. In the near future, Cisco predicts that voice will make up less than 10% of total mobile traffic.
The third trend is the evolving demands of “always-connected” customers.
Telecoms subscribers now have much higher expectations from their providers, and telecoms operators will have to provide differentiated customer service to address the needs of their subscribers, or risk losing them to rivals especially now that technology has reduced the hurdles of switching between telecoms providers.
The fourth trend shaping the industry is disruptive competition. Telecoms operators are currently facing rapid changes in the competitive landscape due to new, non-traditional players entering the industry with lower entry costs and global reach.
The rise of these over the top (OTT) players such as skype, poses a significant challenge to existing telecoms operators. For example, the total number of mobile VoIP minutes is expected to grow from 15 billion in 2010 to 471 billion in 2015 (Juniper Research). Operators will therefore need to find other revenue streams to survive.
Now that mankind has made great strides in connecting people, the next challenge is connecting “things”. The fifth trend is the creation of new services as a result of the internet of things (IoT).
A thing in IoT, is any object that can be provided with the ability to transfer data over a network. For example, a car can be provided with connectivity to alert the owner about its location and systems status.
The worldwide market for IoT solutions is expected to grow from $1.9 trillion in 2013 to $7.1 trillion in 2020 (IDC). This trend is expected to drive growth in the telecoms industry over the next few years.
By 2027, it is estimated that emerging markets will generate two-thirds of all global telecommunications revenues. The continued explosion of demand for telecoms services in emerging markets is the sixth trend.
These six trends are just as relevant in the Nigerian context as they are globally. Over the last decade, the Nigerian telecoms industry has experienced tremendous growth.
The contribution of this industry to Nigeria’s GDP has risen from 0.3% in 2001 to 8.53% today.
However as the industry has matured, average revenue per user (ARPU) has dropped significantly, subscribers have become more demanding, and Nigerian telecoms operators have started to face the same challenges as other global operators. They must also make changes to ensure that they survive.
The changing dynamics of the telecoms industry will continue to present both challenges and opportunities to telecoms operators.
Thriving in the face of these ever changing dynamics will require operators to take a number of proactive steps.
Firstly operators must transform their businesses to become truly digital organisations, and take advantage of this to create agile and efficient operations. For example they must use real-time, predictive analytics on top of digital processes in sales, operations and decision making.
Secondly, operators must create the required partnerships and collaborations required to take advantage of existing opportunities and create efficiencies (for example active and passive network sharing could help reduce operating expenditure).
Thirdly, operators must also evaluate areas of the business (often hidden), where there exists the potential to generate additional customer value or revenue from information gathered across customer touch points.
Finally, operators must create a truly customer-centric organization – they must ensure that they understand how their customers experience their products and services (qualitatively and quantitatively), and put adequate mechanisms in place to respond accordingly.
Once thing is certain, advances in technology will continue to produce corresponding changes in the telecoms industry and vice versa.
Whilst it may be difficult to know exactly what these changes will be, it is possible for operators to identify key trends and position their businesses to benefit from them.
Airtel Nigeria, telecom service provider, has announced that its AI-powered Spam Alert Service issued over 9.6 million spam alerts between March 13 and May 20, 2025.
As part of its ongoing commitment to protecting customers from unwanted and potentially fraudulent communications, Airtel designed the AI Spam Alert service to analyze traffic patterns and detect anomalies.
In the period since launch the AI pinpointed a total of 9,667,008 SMS as potential spam messages in the two months after its launch.
Of these, the system identified 528,080 on-net (Airtel-to-Airtel) and 9,138,928 off-net (from other networks) numbers as suspected spam messages, demonstrating the scale of the threat and Airtel’s advanced processing capability.
Airtel Nigeria is a subsidiary of Airtel Africa.
Commenting on this development, Dinesh Balsingh, CEO, Airtel Nigeria, restated Airtel`s commitment to protecting its customers.
“This milestone demonstrates the strength of our AI-driven infrastructure in combating the growing menace of spam and scam calls. At Airtel Nigeria, we are focused on connecting Nigerians and ensuring their safety and confidence while using our network.
“We understand that trust is the cornerstone of digital communication. That’s why we’ve invested heavily in intelligent systems that not only detect potential threats but also learn and evolve with data. As threats become more sophisticated, so will our solutions. As a company, we remain focused on leading the industry in innovation and customer satisfaction, ensuring that every Nigerian can enjoy a safer and smarter digital experience,” Mr. Balsingh said.
The Spam Alert Service is part of Airtel Nigeria’s broader strategy to integrate artificial intelligence into its core offerings to deliver smarter and safer experiences for its customers across the country.
Recall that the Spam Alert Service was launched on March 13, 2025. A groundbreaking and free solution from Airtel, it notifies users in real-time of suspected spam SMS messages by analyzing over 250 parameters.
The Airtel AI Spam Alert Service is available to all Airtel subscribers on smartphones and feature phones.
Vitel Wireless Limited, pioneer mobile virtual network operator (MVNO) in Nigeria has made another history by announcing the successful completion of interconnectivity with all major Mobile Network Operators (MNOs) in Nigeria.
Kenneth Nwabueze, Chairman and CEO of Vitel Wireless
Recall that Vitel Wireless, became the first Mobile Virtual Network Operator to receive a dedicated number series (0712) from the Nigerian Communications Commission (NCC).
This breakthrough enables Vitel Wireless subscribers to make and receive calls with users on MTN Nigeria, Airtel Nigeria, Globacom (Glo), and 9mobile Nigeria.
It also marks the first time an MVNO in the country has successfully interconnected with all the major MNOs, setting a new precedent for Nigeria’s telecom sector.
Following the NCC’s licensing of 46 MVNOs, Vitel Wireless continues to lead the way in establishing a dynamic MVNO sector in Nigeria—Africa’s largest market and most populous nation.
The company has already achieved several historic firsts: the first MVNO issued a numbering plan and national and international routing codes, the first to launch a location awareness network in Africa, and the first to unveil a strategic nationwide rollout plan.
“We are gathering momentum for our big launch,” said Kenneth Emeka Nwabueze, chairman and CEO of Vitel Wireless.
“We are proud to be showing what’s possible for MVNOs, while also creating a path for others to follow. By leveraging our years of experience in Nigeria’s telecom industry, we are opening up new possibilities where there used to be none.”
Interconnectivity was achieved through a combination of direct fiber connections with some MNOs and indirect routing via third-party providers.
This milestone was the result of a collaborative effort involving engineers from Vitel Wireless, Wireless Technology Labs (WTL), and Interconnect Clearinghouse Nigeria (ICN), working closely with engineers from MTN, Airtel, Glo, and 9mobile.
“We wish to thank the regulatory agency, the Nigerian Communications Commission, for their timely interventions and guidance, which were instrumental in achieving this interconnectivity and bringing the formal launch of the Vitel Wireless nationwide network one step closer to reality,” said Nwabueze.
The company entered a nationwide pilot phase in May 2025, with plans for a full rollout in July 2025, aiming to deliver next-generation mobile services to millions across Nigeria.
Layer3 Limited, One of Nigeria’s foremost ICT solutions providers, has once again solidified its place as a trailblazer in Africa’s technology landscape, emerging as the Enterprise Solutions Provider of the Year and Leadership Award in Cloud Services at the prestigious African Beacon of ICT Leadership and Awards held on May 24, 2025, at the Four Points by Sheraton, Lagos.
This year’s event brought together leading tech innovators, policymakers, and thought leaders to recognize organizations making extraordinary contributions to Africa’s digital transformation.
Among the many luminaries in attendance, Layer3 stood out for its 19+ years of consistent innovation, technical excellence, and client-centered service delivery.
Speaking at the event, the organizers praised Layer3’s pioneering work in delivering robust enterprise solutions across sectors, as well as its bold leadership in advancing cloud infrastructure and services across Nigeria and beyond.
“These awards are more than recognitions, they are a reminder of the fulfilment to our mission to deliver peace of mind to our customers,” said David Ita, the Head of Strategy and Business Development of Layer3.
“They speak to the impact we’ve made and the promise we hold for the future of the cloud and enterprise technology business in Africa. We dedicate this honor to our clients, partners, and the hardworking Layer3 team who continue to redefine excellence every day.”
Since its founding, Layer3 has championed a future-forward approach to ICT services offering cutting-edge solutions in enterprise networking, cybersecurity, broadband, cloud computing, managed services, and IT advisory. The company’s Layer3Cloud platform and managed service offerings continue to power the digital ambitions of Nigeria’s leading businesses.
These accolades underscore Layer3’s unwavering commitment to driving transformation and supporting digital economies through smart, secure, and scalable technology.
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