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The Telecommunications Industry in Nigeria 2016

  • December 2016
  • -
  • Who Owns Whom
  • -
  • 77 pages

Summary

Table of Contents

The Telecommunications Industry in Nigeria: Nigeria has the biggest mobile market in Africa with 153.3 million subscribers in September 2016. National Bureau of Statistics show that the sector contributed 7.5% or approximately US$6,547.16m to the Nigerian economy in the third quarter of 2016. Broadband penetration increased from 10% in 2014 to nearly 14% in 2016, and is expected to grow to 30% by 2018 if the country’s National Broadband Plan 2013-2018 is implemented according to schedule.

A Competitive Market: Deregulation in the sector since 1999 has led to hundreds of small and local companies providing varied telecom and value-added services in a regulated market. Nigeria has the most competitive fixed line market in Africa and local company ntel, competes with more than 80 other companies that are licensed to provide fixed telephony services. The mobile arena is dominated by MTN Nigeria which shares the market with three other large operators, Globacom Limited, Airtel Nigeria and Emerging Markets Telecommunication Services Ltd t/a Etisalat.

Investment in Infrastructure: Telecommunications infrastructure is expensive and mobile network operators are reluctant to invest in rural and scarcely populated areas where there are low returns on investment. Multiple taxation, levies and right-of-way (ROW) pricing problems have been cited as some of the main contributors to the slow roll-out of fibre to under-serviced areas. In business districts and upmarket residential neighbourhoods, fibre-based infrastructure has been installed and 4G LTE mobile broadband services are already available.

Report Coverage: The detailed report on Nigeria’s Telecommunications sector describes the current market, examines the latest regulatory and corporate developments and discusses factors influencing the success of the industry. The report includes profiles for 18 companies including the major providers of voice and data services as well as MainOne Cable Company Nigeria Ltd, which installs and maintains undersea cable systems, and Phase3 Telecom Ltd, which provides transmission services to telecom operators and Internet Service Providers.

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