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Why Network Quality is More Important Than Ever

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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:

  1. 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.

  1. 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.

  1. 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.


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Banks Settle ₦160Bn USSD Debt to Telcos, Ending Five-Year Dispute

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The protracted Unstructured Supplementary Service Data (USSD) debt misunderstanding between the Deposit Money Banks (DMBs) and telecommunications operators appears to have been resolved.

This was confirmed by the Chief Executive Officer of MTN Nigeria, Karl Toriola, Thursday, March 1, when he appeared on Arise TV to speak on the firm’s first-quarter 2025 result, where the telecommunications company reported over N1 trillion in revenue earnings.

Recall that the USSD debt had been a major issue between the DMBs and telcos and had lasted for about five years.

In the third quarter of 2024, the telcos had threatened to withdraw their service over the lingering debt, which was around N200 billion at the time. This led to the swift intervention of the Central Bank of Nigeria and the Nigerian Communications Commission (NCC), and an agreement was reached on payment.

As of November 2024, the NCC put the debt at N160 billion. However, earlier this year, when it appeared the banks were not forthcoming with payments, the NCC directed the telcos to withdraw the USSD services from debt-owning DMBs, where about 18 banks were listed.

This directive prompted the banks to look inward and start to comply with an earlier circular signed by the CBN and NCC, which articulated the payment patterns for the debt.

Speaking, on Arise TV this morning, May 1, Toriola confirmed that the matter has been fully resolved and that banks have made payments.

“I can confirm that the matter has been fully resolved. We have received payments in full. Special thanks to the CBN, NCC, the banks, and other stakeholders that intervened in the matter,” the MTN CEO stated.


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Oluwaseun Dania Named Among Top 50 Most Influential People of African Descent for Philanthropy & Social Impact

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Visionary entrepreneur, multi-sectoral leader, and tireless advocate for sustainable development, Oluwaseun Dania has been named one of the Top 50 Most Influential People of African Descent (MIPAD) in the Philanthropy & Social Impact category.

This prestigious global recognition, organised in support of the United Nations’ International Decade for People of African Descent, celebrates individuals creating meaningful change through purpose-driven leadership.

Dania, the CEO of Crello, a cross-border B2B fintech platform, and Alpha-Geek Technologies, a digital innovation firm, is a serial entrepreneur whose impact spans finance, technology, agriculture, energy, and philanthropy. His inclusion in the 2025 MIPAD honours list is a resounding acknowledgement of his lifelong dedication to empowering communities, advancing sustainability, and leveraging innovation for good.

From Tech to Soil: A Holistic Vision for Impact

Dania’s work in agriculture, through his venture Westnova Farms, focuses on transforming local farming ecosystems using innovative agricultural practices that support food security, economic growth, and environmental conservation. His dedication to green innovation and regenerative agriculture reflects his belief in building future-proof solutions from the ground up.

In the oil and gas/energy sector, Dania is widely respected for his expertise in Health, Safety & Environment (HSE) and sustainable energy policy. He is a sought-after voice on issues surrounding energy transition, corporate responsibility, and green compliance frameworks, particularly across sub-Saharan Africa.

Tech-Driven Philanthropy That Transforms Lives

As founder of the Oluwaseun Dania International Foundation, he leads bold initiatives that impact lives across Nigeria; most notably, teaching children in remote communities to create NFTs through digital art, producing an award-winning film confronting the drug crisis, and building an eco-friendly school from recycled pet bottles to deliver free education.

“This honour from MIPAD goes beyond personal achievement; it reflects the power of a collective mission to uplift, inspire, and transform,” Dania stated. “Whether through fintech, agriculture, or sustainability, I believe that every innovation must answer a social need.”

Global Recognition, African Roots

Previously recognised by the Friendship Ambassadors Foundation and profiled in Marquis Who’s Who, Dania has become a leading force in Africa’s digital and social renaissance.

He holds over 30 certifications across cybersecurity, engineering, compliance, and enterprise architecture, and is a member of respected global institutions including the Forbes Business Council.

The 2025 MIPAD honorees will be celebrated during United Nations General Assembly (UNGA) Week in New York City in September 2025, spotlighting global changemakers of African descent who are redefining leadership through equity, innovation, and action.


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GBB Reaffirms Commitment to Driving Public Sector Innovation @ the 5th Public Service Innovation Competition Awards

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Mohammed Sani Ibrahim, ED, Finance & Corporate Services, Galaxy Backbone
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Galaxy Backbone (GBB), Nigeria’s digital infrastructure and shared services provider, joined other key government institutions at the 5th Public Service Innovation Competition Award Ceremony, organized by the Office of the Head of the Civil Service of the Federation (OHCSF).

The event, which held in Abuja, celebrated groundbreaking ideas from Ministries, Departments, and Agencies (MDAs) that are reimagining public service delivery through innovation.

The ceremony, which attracted notable dignitaries including the Chief Host herself, The Head of the Civil Service of the Federation, Mrs Didi Esther Walson-Jack, OON mni. Others include, former Heads of Service, Dame Amal Pepple and Mr. Danladi Kifasi, and the Chairman of the House Committee on Public Service, Hon. Sani Bala, showcased the vibrancy and ingenuity of Nigeria’s Civil Servants.

Delivering a goodwill message on behalf of the MD/CEO of Galaxy Backbone, Mr. Sani Ibrahim, Executive Director, Finance & Corporate Services, underscored the importance of inter-agency collaboration, digital literacy, and innovative thinking as pillars for national development.

He emphasized that GBB remains deeply committed to supporting initiatives like the Innovation Competition, which foster a culture of creativity, problem-solving, and transformation across the public sector.

“Innovation is no longer a luxury — it is essential to building a responsive, efficient, and digitally enabled government. At Galaxy Backbone, we are proud to align with this vision through our Integrated Digital Transformation Strategy (IDTS), which drives digital infrastructure, innovation, data security, and capacity building across MDAs,” he stated.

The 2025 edition of the competition saw an outstanding 155 entries, with 132 individuals pitching innovative ideas and 66 thematic teams presenting implementable solutions designed to enhance service delivery and governance.

Themed around streamlining bureaucratic processes, succession planning, employee welfare, and change management, this year’s event reaffirmed the role of innovation in shaping a future-ready public service.

Galaxy Backbone recognizes the critical role of digital transformation in empowering civil servants to create lasting impact. By supporting platforms such as the Public Service Innovation Competition, GBB reinforces its commitment to equipping the public sector with the tools, skills, and digital infrastructure necessary for Nigeria’s progress.

As part of this commitment, GBB will also be providing mentorship for all the winners of the innovation challenge, helping them refine their ideas, scale implementation, and drive sustainable transformation across the public service.

As the country advances on its journey toward e-governance and efficient service delivery, GBB continues to stand as a strategic partner in building a connected, innovative, and digitally skilled public service.


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