Telecom
Why Network Quality is More Important Than Ever

By Borje Ekholm
Today, network quality is under the spotlight in every household and enterprise worldwide as more and more work from home. However, as our new research indicates, network performance has always been a mainstay of market demand.
Today, more than ever, we see the value which mobile connectivity brings to our societies. In times of crises, the world’s mobile networks are proving yet again that they can deliver the performance and reliability to support both consumers and enterprises in their hour of need. In fact, quality of the network has been an important driver of market dynamics for a long time.
However, today’s demands for network quality and capacity are not a new development. In fact, they have been driving market demand for a lot longer and to a much greater extent than most would probably expect.
For almost a decade now, we have analyzed why some service providers grow and drive higher revenues than others. We call these leaders Frontrunners. While Frontrunners share common traits, they often deploy a variety of strategies to enable profitable, sustainable growth. The real key to their success is that they seek differentiation to create better return.
In a new analysis, based on 4G life cycle data from more than thirty countries, we have drilled deeper into how much good network performance benefits Frontrunners. And our research shows that investing in network quality is a powerful way for service providers to drive lower churn and/or higher average revenue per user (ARPU).
In all countries we analyzed, the service provider with the highest network quality has either higher ARPU and/or lower churn compared with the service provider with the lowest network quality.
In the top half of cases, where network quality is highest, we found that the lead service provider enjoys a higher average ARPU (+31 percent) and lower average churn (-27 percent). In the bottom half, where network quality is generally lower, we found that some service providers still enjoy higher ARPU (+61 percent) but with higher churn (+39 percent), whiles others have both lower ARPU (-14 percent) and lower churn (-32 percent).
When we looked across all service providers, not just leaders and quality laggards, network quality correlated with increased ARPU and reduced churn.
After macro-economic factors, network quality is one of the biggest influences on churn according to a multivariate analysis. Put simply, investing in network quality keeps subscribers happy. Or, as one executive at a service provider told me: “It is easy to attract customers. The problem is that when they see our poor network performance they leave.”
In aggregate, ARPU fluctuations seem to be driven primarily by macroeconomic factors. However, our analysis of Frontrunners shows significant revenue upsides for those investing first in high performance. The Frontrunner group achieved a 9.9 percent ARPU compound annual growth rate (CAGR) with 4G, while the rest of the market was at -0.8 percent CAGR. With 5G we already see Frontrunners charging price premiums averaging 15 percent.
It is clear that network quality already matters to consumers. This is hardly surprising as the service providers product is their network. We also see that network performance features more prominently in the marketing initiatives from successful service providers.
One of our most successful customers – who have generated a strong market share gain and growth over many years – allocate more than 50% of advertising spend to network performance.
Important for consumers, but we are convinced that the quality of connectivity will mean even more for enterprise users, as enterprises will depend on connectivity for their business survival.
Case studies on the importance of network quality
Let’s look at three examples:
- European market leader defending position
Network quality is a way for a market leader to maintain its leadership over the competition.Between 2010 and 2015, a market leader lost four percentage points market share to a new low price competitor, who surpassed the leader in networking benchmarks from P3, a leading international consulting, engineering and testing services company. The leader then launched a new strategy focusing on increasing capex to offer the best network experience. They regained their lead in P3 benchmarks, and these actions reversed market share losses by gaining 2 percentage points market share. More importantly, they also increased their ARPU lead.
- Challenger surpasses closest competitor in emerging market
Improved network quality can also be a way to build market share. For example, in 2016, a challenger was third in market share and experienced an erosion in ARPU. The company shifted capital expenditures from fixed to mobile, including doubling its 4G footprint in cities.
This gave it the best network in the country, resulting in market share gains and a reversal of the ARPU trend; the provider now shows a stronger ARPU increase than its peers. These gains allowed the challenger to overtake the number two player in the market. Its investment also paid off with more post-paid subscriptions and earnings (EBIDTA) up five percent.
- Market leader in Middle East invests in network quality to stem losses and regain performance lead
From 2010 to 2014, the second player in the market invested heavily in network performance, and the leader lost 10 percentage points of market share. The leader increased capex for 4G, stemming market share losses. Additionally, the leader was able to significantly improve network performance which resulted in faster ARPU growth, churn reduction and an improved Net Promoter Score compared to the competition.
Key insights from our analysis
Successful service providers use a variety of strategies to create differentiation that fit their local market and their position in that market.
In the three examples above, we saw operators defending and regaining market leadership by increasing their investments in network performance.
Although network quality isn’t the only way to create differentiation and drive value for customers, it’s clear that it is a cornerstone of successful strategies and improved commercial KPIs. This has been historically true through the deployment of 4G and as our society and daily lives will depend even more on advanced digital services, we expect quality mobile connectivity to be of even greater importance in the 5G era.
Borje Ekholm is President & CEO of Ericsson.
Telecom
Equinix Expands Digital Footprint in Nigeria with Launch of LG2.3 Data Center

Equinix, Inc. the world’s digital infrastructure company™, has officially opened its latest data center expansion in Lagos. Called LG2.3, the facility will support Nigeria’s growing digital transformation efforts, providing state-of-the-art colocation and secure interconnection solutions which will empower businesses across the region.
It also signifies Equinix’s unwavering dedication to advancing Nigeria’s position in the global digital economy, reinforcing the company’s commitment to the region.
As part of the inauguration, Bruce Owen, President of EMEA at Equinix, along with other Equinix executives, led the ribbon-cutting ceremony at the newly expanded site. In addition to an official visit to the Governor of Lagos State, Equinix hosted an exclusive customer engagement event, bringing together key customers and partners from Nigeria’s business and technology sectors.
Attendees discussed shared successes and Equinix’s role in facilitating digital transformation, while also connecting directly with Bruce Owen for insights into how Equinix’s solutions drive innovation and business agility in the region.
Equinix executives also took part in a tree-planting ceremony, symbolising Equinix’s continued investment in sustainable initiatives across the globe and highlighting the company’s broader goal of reducing its carbon footprint while supporting greener practices across its operations worldwide.
Speaking about the expansion, Bruce Owen, President of EMEA at Equinix said “Nigeria is a crucial market for Equinix. Today’s opening is a clear demonstration of our continued commitments to invest and grow digital infrastructure that will benefit the many thousands of businesses in Nigeria and on the continent as a whole.
“I am deeply encouraged by the enthusiastic partnerships and innovations emerging from this dynamic region, which continue to inspire our commitment to Nigeria’s digital and sustainable future.”
Adding to this, Wole Abu, Managing Director of Equinix West Africa, highlighted the critical role of data centers in driving economic growth stating “Data centers continue to play a pivotal role in driving economic development in Nigeria, serving as critical infrastructure that supports digital transformation and economic growth.
“As governments and enterprises increasingly acknowledge their significance, global demand for data center capacity is poised to rise. While Africa’s demand for data solutions is still evolving compared to more mature markets, the continent is demonstrating strong potential for digital adoption and innovation.
“To meet this growing need, Equinix is actively advancing three major data center projects in Nigeria, with future expansion plans for Ghana, Côte d’Ivoire, and South Africa.”
Equinix remains steadfast in its mission to enable secure, scalable, and sustainable digital growth for economies across the world.
Telecom
African Women Hit Hardest as Mobile Internet Gender Gap Persists

African women remain among the most digitally excluded globally, with smartphone affordability and digital literacy among the key barriers. New data from the 2025 GSMA Mobile Gender Gap Report, launched recently, reveals a persistent global gender gap in mobile internet use across low- and middle-income countries (LMICs).
It further notes that literacy, digital skills, safety, and affordability of data also remain critical barriers. The report highlights that 885 million women across these regions still do not use mobile internet, with nearly 60% of them living in Sub-Saharan Africa and South Asia.
While mobile internet is the primary way women in LMICs access the internet, offering critical lifelines to health, education, and financial services, the pace of female adoption has stalled, leaving 235 million fewer women than men connected.
Claire Sibthorpe, head of digital inclusion at GSMA, highlighted that the gender gap had narrowed significantly between 2017 and 2020, but progress flatlined in recent years.
Although 2023 brought a slight improvement, restoring the gap to 15%, 2024 saw minimal change, with the gap settling at 14%.
The disparity is most severe in Sub-Saharan Africa, where women are 29% less likely than men to use mobile internet.
“It’s disheartening that progress in reducing the mobile internet gender gap has stalled. The digital divide is driven by deep-rooted socio-economic and cultural factors that disproportionately impact women,” said Sibthorpe.
GSMA projects that closing the gender gap by 2030 could add $1.3 trillion to GDP across LMICs and deliver $230 billion in revenue to the mobile industry.
The report, funded by the UK FCDO, Sida, and the Gates Foundation, stresses the urgent need for targeted investment and policy action to bridge the digital divide and ensure that no woman is left offline.
“The mobile internet gender gap is not going to close on its own. It is driven by deep-rooted social, economic, and cultural factors that disproportionately impact women,” said Sibthorpe.
Telecom
₦800 Billion Infrastructure Plan Set to Boost MTN’s Network Quality Nationwide

In a recent interview, MTN Nigeria reaffirmed that its ongoing infrastructure investment is a strategic step to improve network quality, speed, and nationwide coverage.
Speaking on Beyond the Headlines with Nifemi Oguntoye, Ugonwa Nwoye, Chief Customer and Experience Officer at MTN Nigeria, explained that although public concern is valid, the company undertook several internal cost-efficiency measures before making structural adjustments.
She emphasised that improved investment is critical to fast-tracking improvements across MTN’s network.
Nwoye explained that MTN undertook extensive internal reforms before embarking on structural changes needed to support this scale of investment.
The company completed its phased roll-out of the increase between February and March, ensuring that every existing data plan was below the 50% increase, and most remained below 25%.
She also noted that customers were proactively informed about all changes, particularly when certain legacy plans were retired and replaced with new ones. “We gave customers six to eight weeks’ notice,” she explained.
“This is why it has taken us some time to complete this process, where we let customers know that at a certain date, this particular tariff is not going to exist.”
Nwoye stressed that MTN had exhausted other internal measures before turning to broader structural updates. Now, with the new pricing structure in place, the company is accelerating its investment in infrastructure, spending over ₦200 billion in the first quarter of 2025 alone, a 159% increase from the same period last year. A total capital expenditure of ₦800 billion is planned for the year.
She noted that this investment is a direct outcome of long-term operational restructuring aimed at improving service quality.
She added, “We are investing over ₦800 billion this year alone in our infrastructure. This will translate into better customer experience, reduced congestion, faster internet speeds, and wider network reach.”
This investment will support the upgrade of over 1,000 cell sites and the expansion of more than 2,000 transmission links nationwide.
Nwoye stressed that these upgrades are designed to deliver faster data speeds, fewer dropped calls, and broader network reach, especially in underserved areas.
She acknowledged the public’s expectations for immediate service improvements but emphasised that large-scale infrastructure takes time to deploy.
Nonetheless, MTN expects customers to begin experiencing visible improvements in network performance by the second half of the year.
In a sector where service quality and customer satisfaction are closely watched, MTN maintains that its ongoing investments are not merely capital commitments but vital enablers of improved digital experiences across Nigeria.
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