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Competition is Both Helping, Hurting Telecoms Industry

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A colleague of mine recently bought a smartphone. On a limited budget, he was able to find an excellent phone with a sharp 5.5inch display, 32 GB storage, and an 8 MP camera, running the latest version of Android for a little over $100.

I spent a few minutes looking at the device and marvelling at the fantastic value for money, and it hit me – consumers have never had it better, but telecoms companies have never been under more pressure.

Samsung – the world’s largest mobile device manufacturer recently recorded a 37.6% drop in profits, due to competitive pressures.

Even with a global brand and large advertising revenues, it has become extremely difficult for Samsung to compete with over 100 different mobile device manufacturers all struggling for market share (and profitability).

This is only part of the story.
There are 4 main smartphone software platforms – Apple iOS, Android, Windows and Blackberry. Of these platforms, Android owns over 83% market sharewhilst iOS owns about 13% market share (Gartner). 

The Android platform is owned by Google, and is provided free of charge to handset manufacturers to use on their devices. 

This has made it relatively easy for manufacturers to enter the market, as Google manages the platform and has created an attractive and profitable ecosystem for application developers to deliver their content to subscribers.

Google in turn makes money from this platform using an advertising supported model.

Most of the smartphone devices sold by Samsung run on the Android platform,they therefore have to compete for market share with over 100 device manufacturers and can only distinguish themselves on hardware specifications, and to a limited extent on software customisation and services.

Consumers are therefore spoilt for choice, as manufacturers are stuck in a race to the bottom on price.

Even Apple with its unique combination of hardware, software and services, and sky high profitability, recently suffered a share price drop when it announced record-breaking- yet-lower-than-expected sales and revenue figures.

Apparently, investors are concerned about Apple’s growth prospects in light of current market dynamics.

This is in spite of the fact that Apple already makes over 90% of all profits in the entire smartphone industry, leaving all other operators to struggle for just 7% of smartphone profits (Forbes).

Telecoms operators and service providers are also facing similar struggles globally.

Traditional operator revenue streams (voice telephony and SMS) are declining and will continue to do so. In the near future, Cisco predicts that voice will make up less than 10% of total mobile traffic.

Subscribers are increasingly turning to cheaper over-the- top (OTT) alternatives such as WhatsApp and Skype, to make calls and send messages.

These OTT players have typically lower entry costs but global reach, and pose a significant challenge to existing telecoms operators.

For example, the total number of mobile VoIP minutes is expected to grow from 15 billion in 2010 to 471 billion in 2015 (Juniper Research).

Furthermore, Telecoms subscribers now have much higher expectations from their providers, and telecoms operators are scrambling to find waysof providing differentiated customer service to address the needs of their subscribers, to avoid losing them to rivals – especially now that technology has reduced the hurdles of switching between telecoms providers.

Almost all Telecoms operators are therefore looking to data services to drive growth.

However, the competition for provision of data services is fierce – especially since this strategy puts them in direct competition with traditional internet service providers in many cases.

Telecoms operators and service providers therefore now face pressures from both sides as well.

Traditional revenue streams are drying up due to competition from OTT players (amongst other factors), and there is increased competition in new areas of interest.

The scenario is also causing a race to the bottom on price for telecoms services.

Competition is supposed to be a good thing for consumers.

It is meant to create a situation in which they get the best value (and price) for goods and services.

At the moment, consumers have never had it better – they can choose their devices from an increasing list of manufacturers at constantly decreasing prices, choose their connectivity from a bouquet of offers with constantly decreasing prices, and choose their applications from a collection oflow cost or free options. However, at some point this competition could turn out to be a poisoned chalice.

What happens if device manufacturers and telecoms operators start (continue) going out of business? 

Now that consumers’ appetite has been whet, is it sustainable to continue to expect prices to drop? Should regulators be doing more to ensure an even playing field?  Should governments do anything to protect their companies from global competition?Should the principles of free markets be allowed to prevail?

A lot of difficult questions need to be asked and answered in the global telecoms industry – and these questions equally to the local industry.

For example, the Nigerian Communications Commission (NCC) has issued 4G licenses to wireless internet providers to ensure that Nigerian subscribers have access to affordable (and widely available) data services.

However, licenses have not yet been made available for auction to mobile operators.

These operators face increasing pressure as traditional revenue streams are being eroded by OTT players for example, and this erosion is encouraged by the presence of these new wireless internet service providers.

As a result, these mobile operators may not be able to compete effectively as they have to use their limited spectrum to provide the quality of service (QoS) guarantees that traditional voice services demand, whilst trying to compete against providers who do not have this challenge.

OTT players such as WhatsApp do not have a physical presence in most countries in which their services are used, and therefore do not pay taxes or provide jobs in those countries.

Again whilst consumers benefit from better and cheaper services, what happens if mobile operators (who have paid millions of dollars in license fees, and spent millions more on equipment) begin to shed jobs?

What happens if (as) tax revenues from these mobile operators decrease?

Whilst competition can be a very useful tool in providing value to consumers, it can also create scenarios which undermine the benefits it is meant to provide.

Ensuring a vibrant telecoms sector must include maintaining a healthy balance between competitive policies (to provide value for consumers), and policies aimed at ensuring that companies can continue to thrive and provide jobs, benefits to shareholders, as well as tax revenue.


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MTN Foundation Commits N32Bn in Projects across Nigeria

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The MTN Foundation has disclosed that it has committed more than N32 billion to social intervention programmes across Nigeria.

MTN Foundation Commits N32Bn in Projects across Nigeria

It said over 32 million people benefited from the scheme since its establishment in 2004.

The interventions, it noted, have reached thousands of communities nationwide through initiatives focused on education, healthcare, youth development and economic empowerment.

Speaking at the Anti-Substance Abuse Programme (ASAP) stakeholders’ conference in Ilorin, Joseph Akpata, Kwara State Manager, Development Portfolio, said the organisation has sustained its commitment to improving lives through impactful and measurable investments.

According to him, the foundation was created as the corporate social investment vehicle of MTN Nigeria and has continued to implement programmes designed to address critical social and developmental challenges.

“Since we started in 2004, we have invested over N32 billion in impactful projects across the country, and we have been keeping our records,” Akpata said.

He stated that the foundation’s interventions have so far impacted more than 32 million people in over 30,000 communities and scores of local government areas across the federation.

Akpata noted that the fight against substance abuse among young people remains a major priority for the organisation, prompting the launch of the Anti-Substance Abuse Programme in 2019.

He explained that the initiative was designed to reduce the number of first-time drug users through sustained advocacy, awareness campaigns and educational interventions targeted at young Nigerians.

“Our goal for the Anti-Substance Abuse Programme is to contribute to reducing the number of first-time users of drugs and other substances through advocacy, education and empowerment programmes,” he said.

The MTN Foundation official revealed that the programme has already reached more than 50,400 students across Nigeria, while over 1,500 teachers have received specialised training to support the campaign.

Mrs Mosun Belo-Olusoga, chairperson of the MTN Foundation, said the organisation remains committed to safeguarding the future of young Nigerians by equipping them with the knowledge and support needed to make informed choices.

Represented by Valentina Obayemi, she said the foundation’s belief in the potential of Nigeria’s youth inspired the launch of the anti-substance abuse initiative and continues to shape its interventions.

“This year, we are taking our message directly to 50 public secondary schools across 10 states and the Federal Capital Territory, reaching more than 20,000 students at a critical stage in their lives where the right information can shape their future,” she said.

Belo-Olusoga added that the foundation plans to train 250 additional teachers to identify, support and guide students participating in drug education and quiz competition programmes.

She said the intervention is also being extended beyond secondary schools through increased engagement with tertiary institutions and grassroots advocacy platforms.

According to her, the foundation is strengthening its partnership with the National Youth Service Corps to widen awareness campaigns while continuing support for the National Drug Law Enforcement Agency’s 24-hour toll-free psychosocial support helpline.

She noted that the collaboration is aimed at ensuring individuals battling substance abuse can access professional assistance and counselling whenever needed.


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NCC Begins Review Telecom Termination Rates after 8 Years

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Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR) eight years after the current rates were introduced, citing changing economic realities, technological advancements and shifts in telecommunications traffic patterns.

NCC Begins Review Telecom Termination Rates after 8 Years

Mobile Termination Rates are regulated fees paid by one operator to another to complete calls across networks.

They influence competition, investment, and retail pricing.

The exercise, kicked off in Lagos at a mobile termination rate stakeholder forum on Tuesday, brought regulators, operators and industry participants into a structured process to reassess wholesale pricing rules that govern payments between networks for completing voice calls.

Speaking at a stakeholders’ engagement in Lagos, Mrs Omotayo Mohammed, head of Competition and Tariff at the NCC, said the review had become necessary because the existing rates no longer reflect prevailing operational and economic conditions in the telecommunications sector.

According to her, the current MTR stands at N3.90 per minute for generic operators and N4.70 per minute for new entrants, rates that have remained unchanged since 2018.

Mohammed noted that the telecommunications landscape has undergone significant changes over the years, driven by naira depreciation, rising inflation, escalating energy costs and evolving consumer behaviour.

“The foundation of wholesale interconnection affects every stakeholder in this room. Misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment and ultimately burden consumers through inflated retail prices,” she said.

She explained that the deployment of 5G networks, artificial intelligence (AI)-driven services and Internet of Things (IoT) applications has altered network usage patterns beyond what was envisaged in the 2018 cost model.

Mohammed further observed that over-the-top (OTT) platforms such as WhatsApp and Telegram now account for a significant share of voice and messaging traffic, reducing dependence on traditional interconnection services.

To drive the review process, the NCC has engaged KPMG as consultant for the study and stakeholder engagement exercise, which is expected to last four months.

The exercise will also examine issues relating to Unstructured Supplementary Service Data (USSD) services and application-to-person (A2P) short message service (SMS), both of which have become increasingly critical to Nigeria’s digital economy.

Mohammed stated that the review is being conducted in line with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which empower the commission to promote investment, protect consumers and ensure fair competition.

She said the study would establish a cost-reflective MTR framework across different technology generations, operator categories and clearing house arrangements.

The review will also cover international termination rates (ITR) to tackle grey-route traffic concerns, develop a pricing framework for mobile virtual network operators (MVNOs) and assess the current asymmetric rate structure between established operators and new entrants.

“The consultancy adopts an evidence-based and consultative approach. Stakeholders will have opportunities to submit their views and validate assumptions before any determination is made,” Mohammed assured.

She added that the review is expected to enhance retail affordability, improve access to digital financial services and enable operators to recover costs in line with prevailing capital and operational expenditure realities.

According to her, transparent and cost-reflective rates will encourage infrastructure investment and boost investor confidence in Nigeria’s digital economy.

Mohammed also assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available throughout the process to ensure transparency and accountability.

In her remarks, Mrs Nnenna Ukoha, director of Public Affairs at the NCC,  noted that mobile termination rates remain central to pricing structures, competition, service quality and overall consumer experience.

“We are particularly encouraged by the rapt attention, intellectual rigour and keen interest demonstrated by participants throughout today’s session.

“This active engagement reflects not only the relevance of the issues discussed but also a shared commitment to the sustainable growth and development of Nigeria’s telecommunications sector,” Ukoha said.

She stressed that discussions at the forum highlighted both the challenges and opportunities associated with the MTR determination process and underscored the need for sustained stakeholder engagement.

Ukoha reiterated that the consultation window remains open and encouraged industry stakeholders to submit additional inputs, data and perspectives to support a balanced, forward-looking and sustainable outcome for the sector.

She reaffirmed the NCC’s commitment to collaboration and inclusive regulation aimed at building a resilient, competitive and future-ready telecommunications industry.


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Airtel Africa Foundation Completes Year One Scholarship Disbursement for 100 Tech Scholars in Nigeria

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The Airtel Africa Foundation, through Airtel Nigeria, has completed the disbursement of first year funding to the first cohort of 100 beneficiaries under its flagship Airtel Africa Tech Fellowship Programme.

The initiative, which was launched to support high-performing but financially disadvantaged 100-level students studying technology-related courses in public universities, covers tuition, accommodation, stipends, and other essential materials such as laptop computers.

Each of the beneficiaries received an average of ₦500,000, making a total of ₦50 million disbursed as of May 29, 2026.  Funding will continue, the Foundation has said, through the duration of the students’ four-to-five-year academic programmes.

The 100 recipients, referred to as Airtel fellows, were selected through an independent process from accredited public universities across Nigeria and are enrolled in courses including Computer Science, Information Technology, Data Science, Software Engineering, Cybersecurity, Artificial Intelligence, among others.

Participating institutions in the first batch of the scholarship scheme are the University of Lagos (UNILAG), the University of Nigeria, Nsukka (UNN), Ahmadu Bello University (ABU), the University of Benin (UNIBEN), Obafemi Awolowo University (OAU), the University of Ilorin (UNILORIN) and Tai Solarin University of Education (TASUED).

Commenting on the milestone, Chairman of Airtel Africa Foundation, Dr. Segun Ogunsanya, said, “We are not just funding education; we are building a pipeline of skilled innovators who will contribute meaningfully to Africa’s digital economy. The transparency of this process and the full delivery of our commitment to these 100 scholars are matters of great pride for the Foundation.”

Also speaking on the progress, the Chief Executive Officer of Airtel Nigeria, Dinesh Balsingh, noted that the initiative reflects Airtel’s long-standing commitment to empowering the youth through education and digital inclusion.

“At Airtel Nigeria, we believe that the future of our country lies in the hands of our youth. This ₦50 million disbursement is proof that when we say we are committed to empowering young Nigerians, we mean it fully and transparently. I congratulate every scholar and encourage you to make the most of this opportunity. Your success is our success,” he said.

The Airtel Fellowship Tech Fellowship forms part of the Foundation’s efforts to equip African youth with advanced digital and technical skills, within its broader F.E.E.D agenda which focuses on Financial Inclusion, Education, Environmental protection and Digital Inclusion.

Beyond financial support, the initiative is designed to equip beneficiaries with the skills, mentorship, and exposure required to thrive in an increasingly digital world.


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