Telecom
Moody Predicts more M&A Activity in Africa’s Telecoms Sector
Africa’s telecoms sector will undergo more mergers and acquisition (M&A) activity as its markets continue to consolidate as they mature, Moody’s Investors Service says in a report published.
Moody’s expects more consolidation within markets as existing operators – particularly smaller third or fourth tier companies – look for ways to cut costs and expand their market share.
The African telecoms market is comprised of a mix of local, regional and international operators, some of whom have developed competitive regional footprints.
Those African countries with four or more operators or with telecom companies that have a market share of less than 15% are likely to see more consolidation. The average number of operators in each African country is three, with some countries, such as Uganda, Côte d’Ivoire and Tanzania, with six operators.
“Not all countries are able to support a large number of operators, and smaller wireless operators are finding it increasingly difficult to compete and increase their market share profitably,” says Dion Bate, Vice President — Senior Analyst and a co-author of the report.
“Companies considering potential mergers or acquisitions will be hoping for cost savings through improved economies of scale and the opportunity to apply uniform and improved branding, service and product offerings.”
Some operators will need funding to pursue M&A opportunities. With many of the larger international operators already facing revenue pressures and capital expenditure demands in their core domestic markets and thus less likely to pursue M&A opportunities in Africa, we may see some revisiting their African footprints as others seek to strengthen their regional positions.
This refocusing on domestic markets may also result in some European operators leaving African markets where they have smaller shares, the report says.
Some smaller regional players may face weaker access to capital as a result of concentrated exposures to mostly sub investment-grade countries in south, east and west Africa where capital markets are less developed.
Cross-market consolidation will be less challenging for the larger regional operators to pursue where greater geographic diversification and sizable market shares can be achieved, the report adds.
From a regulatory standpoint, operators with the third or fourth largest market share are more likely to be subject to M&A activity to which regulators are less likely to object where it results in economies of scale and increased profitability while not being a detriment to the competitive environment. We expect regulators to also favour transactions that support market stability and further capital investment and the expansion of service offerings. In-market M&A consolidation transactions which result in the largest operators further strengthening their market positions are more likely to face regulatory scrutiny.
Africa’s telecoms regulators are expected to increasingly promote market competition and improved network quality, in line with a trend seen in more developed markets.
Operators will also try to contain cost pressures through strategies such as network sharing, tower sales and outsourcing to specialised third parties.
Nigeria has exactly 156,662 active fixed wired internet subscriptions as of mid-2026.
This is a tiny fraction compared to mobile GSM networks, which dominate the market with over 154 million subscribers.
The fixed wired market primarily consists of homes and offices using direct physical cables like fiber optics.
Fixed wired services use physical cables, like glass fiber or copper wire, to bring internet directly into a building.
It is like a dedicated, private water pipe for your home. It provides very fast speeds, unlimited data, and is reliable.
In contrast, mobile GSM uses radio waves transmitted from tall towers to phones, acting more like a sprinkler that sprays a signal across an entire neighborhood.
Because laying physical cables across cities is expensive and hard to do, these subscriptions are very rare.
However, the market has seen recent growth, driven largely by Fiber-to-the-Home (FTTH) services.
The top players are: MTN FibreX with 110,564 subscribers, which is roughly 88.7 per cent of the entire market.
SWIFTNG accounts for about 13,945 connections.
The others are ipNX and 21st Century Technologies which make up the number.
Nigerian Communications Commission (NCC) says it is intensifying efforts to implement Nigeria’s planned 112 national emergency number following its approval by the National Economic Council (NEC).
NCC
The commission disclosed this during a meeting between Vice President Kashim Shettima and an NCC delegation led by the Chairman of its Governing Board, Chief Idris Ibikunle Olorunnimbe, at the Presidential Villa, Abuja.
Briefing the Vice President, Olorunnimbe said the NCC had already established about 35 Emergency Communications Centres (ECCs) across the country to support a unified national emergency response system.
He said the next phase of implementation would focus on closer collaboration with state governments and emergency response agencies to ensure the effective rollout of the initiative.
The development follows the recent approval by the NEC, chaired by the Vice President, for the adoption of 112 as Nigeria’s single national emergency number across all tiers of government and emergency response agencies.
The council also approved the establishment of a multi-agency implementation committee to be jointly coordinated by the Office of the Vice President and the NCC.
Olorunnimbe stressed that the success of the initiative would depend on the commitment of state governments to support and maintain emergency communications infrastructure, as well as the readiness of response agencies to promptly attend to distress calls.
“We need commitment at every level of all response agencies—from top to bottom—including the Nigeria Police Force, ambulance services across the states and, at the national level, the National Emergency Management Agency (NEMA),” he said.
Responding, Shettima directed the NCC to develop a comprehensive roadmap for the nationwide implementation of the single emergency number in line with international best practices.
He also urged the commission to work closely with the National Emergency Management Agency (NEMA), citing the agency’s experience in disaster management, relief and rehabilitation.
The Vice President assured the commission of the Federal Government’s commitment to sustaining the initiative, saying funding would be mobilised through the National Economic Council and partnerships with the private sector.
He also called for greater dedication from all emergency response agencies to ensure the success of the programme.
The adoption of 112 is expected to harmonise emergency communications across Nigeria by providing a single number through which citizens can quickly access police, fire, ambulance and other emergency services.
The initiative is also expected to replace multiple emergency contact numbers currently in use and improve coordination and response during emergencies.
Nigerian Communications Commission (NCC) has said that it was strengthening collaboration with state governments and industry players to develop a transparent, cost-based pricing framework for sharing telecom ducts as part of efforts to speed up broadband expansion across Nigeria.
Ayuba Shuaibu, director of Policy, Competition and Economic Analysis, NCC, disclosed this at the Stakeholders’ Forum in Abuja.
Shuaibu said the initiative was designed to build consensus among all parties.
“The primary purpose of this forum is to ensure seamless synergy between the Commission and all stakeholders,” he said.
The director said the consultation was prompted by longstanding complaints over permits, levies and other charges imposed by different levels of government.
He said bringing together state commissioners, telecom operators, tower companies and representatives of the Nigeria Governors’ Forum had helped improve understanding of the issues.
“This engagement is a work in progress. We expect more input from stakeholders before presenting the outcome to the Nigeria Governors’ Forum,” he added.
Dr Helen Adeneye, commissioner for Innovation, Science and Technology, Kogi State. welcomed the consultation, saying Nigeria needs a harmonised policy that clearly defines the responsibilities of both the federal and state governments.
“We need a harmonised policy that allows states to collaborate better with telecom operators and creates a more business-friendly environment,” she said.
Dr Adeneye added that adopting the Dig-Once policy would establish a uniform pricing system and help resolve disputes over charges for telecom infrastructure deployment.
Chidi Ajuzie, chief executive officer, WTES Projects Limited, whose firm is conducting the consultancy study, said the proposed framework would introduce a common cost structure for duct sharing to support broadband investment and economic growth.
“The study is designed to create a uniform pricing model that will drive broadband growth, economic development and wider adoption across the country,” he said.
Ajuzie explained that the consultants had developed preliminary floor and ceiling prices to guide operators while allowing flexibility within the approved range.
He added that the recommendations remain open to industry input before the NCC finalises the framework.
The Dig-Once Policy is designed to reduce the cost and disruption of deploying broadband infrastructure by requiring fibre ducts to be installed whenever roads are constructed or rehabilitated.
The NCC is developing a cost-based pricing framework for sharing these ducts to promote fair pricing, reduce duplication of infrastructure and encourage investment.
The proposed model is expected to support the Federal Government’s broadband expansion targets while improving collaboration between telecom operators and state governments.
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