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Ovum Foresees CSP Capex Over 5-Year Period will Surpass $2tn

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Ovum in a report expects revenue growth rates for communications service providers (CSPs) will remain modest, but CSPs will continue to invest heavily in their networks.

With global CSP capital expenditures (capex) forecasted to total more than US$2tn from 2014–19, the global analyst firm warns CSPs must continue to do less with more, leveraging new technologies, network designs, vendors, and operating models.

In a new report: Communications Service Provider (CSP) Revenue & Capex Forecast: 2014‒19,  Ovum reveals 2014 capex will likely be US$346bn, with fixed CSPs accounting for 41% of the total and mobile the remainder.

Ovum also expects flat capex in 2015 due to mobile growing roughly the same amount as fixed capex declines.

The years 2016 and 2017 are likely to be weak capex-wise, for both the fixed and mobile segments. We expect a modest recovery in 2018–19 as a new wave of fixed broadband, fixed cloud/data center, and mobile broadband upgrades start rolling out in a number of large markets.

Matt Walker, the report author and principal network infrastructure analyst, said: “CSPs have invested fairly heavily in 2013–14 across both fixed and mobile networks to support broadband rollouts. But this capacity will be absorbed, and technology and feature upgrades will drive capex back up to about $354bn by 2019. Over the entire 2014–19 forecast period, CSP capex will total over $2tn.”

As CSPs have navigated the tight revenue climate, they have been faced with one constant pressure: the need to continue investing in their networks.

The CSP business is a capital-intensive one. Technology doesn’t stay stagnant. Users continue to put more pressure on the networks.

New players from adjacent markets threaten to steal customers and revenue streams if CSPs can’t keep up. Hence CSPs have continued to spend heavily on networks in the last five years, plowing an average of nearly 18% of revenues per year into capex.

Going forward, we expect CSPs’ capital intensity (capex/revenue ratio) to fall slightly, to roughly 17.4% on average from 2014–19.

Walker noted that CSPs have faced a tough revenue climate for several years now, and learned to keep a lid on capex through a number of tactics.

Network sharing is one. “We’ve seen rapid growth in network-sharing agreements over the last year or two, as discussed in the November 2014 report, ‘Network and tower sharing projects reach 100 by end 3Q14, up 32% from last year.’ Even China has joined the party; mobile revenue growth has slowed rapidly there over the last few quarters, and the new tower-sharing venture is meant to help operators lower their cost base and increase efficiency.”

CSPs are also adding software intelligence into their networks, in many ways. Mobile operators have been deploying software-defined radios for many years, which may lower the initial capex requirements of radio upgrades.

Software-enabled features also appear in most other parts of the network, even in optical transmission and fixed broadband equipment.

Vendors typically spend 50–70% or more of product R&D on software, in fact, revealing its importance to future network operations.

And then there are software-defined networks (SDN) and network functions virtualization (NFV).

While not necessarily offering immediate capex savings, one clear aim of CSP proponents of SDN/NFV is to lower both operations and capital costs, along with new service/feature deployment.

Walker concluded thus, “While CSP capex is tightly constrained, adjacent markets are starting to invest heavily in networks. Internet content provider (ICP) capex will reach nearly $57bn in 2014, up from $18.3bn five years ago. We expect network capex from the ICPs – which include Google, Apple, Facebook, Alibaba, and many others – to continue growing over the next few years. These providers represent an attractive growth market opportunity for vendors selling technology.”

Ovum is a leading global technology research and advisory firm.

Through its 180 analysts worldwide, it offers expert analysis and strategic insight across the IT, telecoms, and media industries.

Founded in 1985, Ovum has one of the most experienced analyst teams in the industry and is a respected source of guidance for technology business leaders, CIOs, vendors, service providers, and regulators looking for comprehensive, accurate, and insightful market data, research, and consulting.

In addition, Ovum operates a large portfolio of technology conferences annually in Europe under the OvumLive events brand, presenting a more interactive opportunity to learn from its analysts. Its flagship event – Ovum Industry Congress – attracts over 300 end-user attendees every year.

 


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MTN Suspends Data, Airtime Borrowing Service over New FCCPC Lending Rules

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MTN Nigeria has announced the temporary suspension of its airtime and data advance service, Xtratime, following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

MTN Suspends Data, Airtime Borrowing Service over New FCCPC Lending Rules

The telecom giant disclosed the development in a filing to the Nigerian Exchange Limited (NGX) on Thursday, stating that the move is necessary to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

Xtratime, widely used by prepaid subscribers, allows customers to borrow airtime or data and repay on their next recharge.

In the disclosure signed by Uto Ukpanah, company secretary, the firm confirmed the halt, noting, “MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service (‘Xtratime’).”

The company explained that the service now falls within the scope of the FCCPC’s expanded regulatory framework, which mandates fresh licensing and stricter compliance procedures for digital credit providers.

“The suspension relates to the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services,” the statement added.

Despite the suspension, MTN reassured subscribers that alternative channels for purchasing airtime and data remain fully operational. It also downplayed the financial impact of the move.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that it is closely monitoring customer behaviour and will provide further updates in its first-quarter 2026 results.

The FCCPC’s 2025 regulations significantly broaden oversight of Nigeria’s digital lending ecosystem, bringing telecom operators and other providers of short-term credit services under stricter scrutiny. Companies offering such services are now required to register and obtain regulatory approval to continue operations.

The Commission had initially introduced a framework for digital lending in 2022, but expanded it in 2025 amid rising concerns over consumer debt, data privacy and lending practices.

 

 

 


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Nokia, Orange Partner on AI-native 6G Networks

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Nokia and Orange are co-developing new strategies to maximise spectral efficiency across existing and future mobile bands, including the upper 6 GHz range, as networks transition toward 6G.

This follows an announcement of a partnership with NVIDIA to develop and evaluate Artificial Intelligence Radio Access Network (AI-RAN) technologies.

The initiative will combine the anyRAN 5G software of Nokia with the AI infrastructure of NVIDIA to improve network performance and energy efficiency.

The collaboration aims to transform service delivery for Orange across Europe, the Middle East, and Africa, says Nokia.

Under a new structured co-innovation framework, the partners will explore how GPU-based radio processors can boost performance via advanced receivers.

The goal is to integrate artificial intelligence (AI) directly into the RAN to automate environments, support sensing services and drive resource utilisation.

“By collaborating with Nokia and NVIDIA, we can better understand how the AI-native architecture enabled by AI-RAN can improve the efficiency of key radio algorithms such as scheduling, beamforming, and power optimisation — enhancing both spectral efficiency and energy performance, while also enabling advanced capabilities like predictive optimisation and radio sensing. This collaboration is an important step in our long-term network strategy,” says Laurent Leboucher, group chief technology officer at Orange.

Pallavi Mahajan, chief technology and AI officer at Nokia, comments: “AI is reshaping how networks are designed, introducing new levels of intelligence and flexibility across the radio layer.

“Through this collaboration with Orange, we are exploring how Nokia and NVIDIA’s AI-RAN solution brings advanced AI and RAN functions together in a unified architecture. This will be instrumental in enabling the industry’s transition toward cognitive, AI native networks.”

Orange is currently the fourth-largest telecoms operator in Africa with 18 markets on the continent. The partnership marks a significant attempt to leverage AI to accelerate digital transformation as the first wave of 6G approaches.


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Zoho Nigeria champions women’s digital empowerment at the Guardian Women Festival

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Zoho Nigeria partnered with Guardian Newspapers for the Guardian Woman Festival, a month-long initiative celebrating women’s contributions to business, governance, and social development while promoting digital empowerment for female entrepreneurs.

Zoho Nigeria champions women’s digital empowerment at the Guardian Women Festival

Kehinde Ogundare

Held at the Federal Palace Hotel in Victoria Island, Lagos, the festival focused on the theme “Reciprocity,” encouraging the exchange of value, networks, and digital innovation to strengthen women-led businesses and foster collaboration.

During the event, Kehinde Ogundare, Country Head of Zoho Nigeria, delivered a keynote address titled “Give Value, Gain Growth: Women Driving Reciprocal Innovation in the Digital Economy”. In his remarks, he highlighted the urgent need to bridge the digital gap for female entrepreneurs.

While Nigeria has the highest concentration of women-owned businesses in Africa, fewer than 30% currently use digital tools to manage or grow their operations. Ogundare noted that technology does not replace the strengths women already bring to business, such as relationship building and community engagement. Instead, it amplifies them, enabling entrepreneurs to reach wider audiences and scale more efficiently.

“The difference is not talent. Not capital. Not ambition. It is digital adoption,” said Ogundare during his keynote. “Smart tools create smart businesses. Smart businesses create strong economies. When women entrepreneurs and leaders have access to the right tools, the possibilities for growth are limitless.”

Zubaida Aliyu, Sales Manager at Zoho Nigeria, also brought her expertise to the festival’s panel session on ‘Women in the Business of Digital Innovation’. She highlighted how women are uniquely positioned to create shared value in digital spaces by building platforms that encourage knowledge sharing, mentorship, and collaboration.

Aliyu also challenged organisations that continue to view women’s digital inclusion primarily as corporate social responsibility rather than a strategic business priority.

“Tech creates a level playing field,” she said, noting that digital platforms remove limitations related to location and infrastructure size. Addressing organisations that overlook the economic value of inclusive digital strategies, she added, “They are leaving money on the table — they need to think of it as a strategy not charity”.

Through its participation in the Guardian Woman Festival, Zoho reaffirmed its commitment to providing affordable and accessible enterprise-grade technology to businesses of all sizes. By helping women transition from manual effort to digital efficiency, Zoho aims to support entrepreneurs build scalable enterprises and ensure their sustained success in Africa’s digital economy.


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