Telecom
Competition is Both Helping, Hurting Telecoms Industry
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.
Nigerian Communications Commission (NCC) has directed telecommunications operators to make dedicated budgetary provisions for cybersecurity as part of efforts to strengthen the resilience of Nigeria’s communications infrastructure against the growing wave of cyber threats.
The directive forms part of the Commission’s Cyber Resilience Framework for the Nigerian Communications Sector (CRF-NCS), which introduces new governance, risk management and operational requirements aimed at safeguarding the country’s critical telecommunications infrastructure from increasingly sophisticated cyberattacks.
Under the framework, all licensed telecom operators are expected to establish formal cybersecurity governance structures, dedicate adequate financial resources to cyber resilience programmes, and integrate cybersecurity into their enterprise-wide risk management processes.
The Commission said operators must ensure cybersecurity investments are no longer treated as optional operational expenses but as strategic business priorities necessary to protect network infrastructure, customer information and the country’s digital economy.
According to the NCC, licensees are expected to allocate sufficient budgets to support cyber risk assessments, security technologies, staff training, incident response capabilities, continuous monitoring and compliance with regulatory requirements.
The framework also requires operators to designate senior executives responsible for cybersecurity oversight.
At the same time, boards of directors are expected to provide strategic direction and ensure adequate funding for cyber resilience initiatives.
Speaking on the need for a stronger cybersecurity regime during the unveiling of the framework, Abraham Oshadami, executive commissioner, Technical Services, NCC, said, “Given the increasing digitalisation of services, the rapid growth of data exchange, and the sophisticated nature of modern cyber threats, the need for a robust, adaptive and inclusive cybersecurity framework has become more urgent.”
He added, “Both state and non-state actors are targeting essential sectors—including ours—through coordinated cyber and physical attacks. These attacks frequently target control systems and data integrity, underscoring the critical risks posed to operational technology (OT), especially in our sector.”
“As cyber threats evolve, they endanger not only system performance but also human safety, amplifying the severity and consequences of disruptions to vital communications infrastructure. Cybersecurity now encompasses human safety and must address the real risk to people’s lives when a system is attacked or compromised.”
The Commission further stated that operators are required to develop comprehensive cybersecurity implementation plans, conduct periodic risk assessments, establish business continuity and disaster recovery procedures, and regularly test their cyber defence capabilities.
In addition, the framework makes cyber incident reporting compulsory. Licensees must inform the NCC’s CSIRT of any major cybersecurity breach within four hours of discovery, and provide a thorough post-incident analysis after mitigation is complete.
Digital solution provider, Globacom has recorded the highest Internet subscriber growth among Nigeria’s major telecom companies for the month of May.
Data from the Nigerian Communications Commission, NCC, Nigeria’s total Internet users increased to 157 million in May, up from 154.3 million in April. That is a growth of 2.67 million users in one month.
Globacom led the market by adding about 1.2 million new Internet subscribers. This means Glo was responsible for almost half of all new Internet users in May.
The company’s subscriber base grew from 15.5 million in April to 16.8 million in May. Airtel came second with 1.07 million new users, moving from 54.8 million to 55.8 million. MTN added 382,894 users to reach 83.5 million.
T2 Mobile, formerly 9mobile, recorded no growth for the second month in a row. Its subscriber base remained at 802,534. This is despite its roaming agreement with MTN, which was approved almost a year ago to help T2 customers use MTN’s network in areas with poor coverage.
Industry experts say Glo’s strong growth is due to its ongoing network upgrade. Since last year, the company has been building new base stations, expanding its fibre network, and adding thousands of new 4G sites across cities and rural areas.
The upgrades have improved voice and data quality for customers, while Globacom remain committed to providing better network experience and affordable Internet services to more Nigerians.
MTN Nigeria’s half-year 2026 performance reflects more than revenue growth, highlighting the wider economic activity generated through tax payments, infrastructure investment and shareholder returns.
Kadri, MTN CFO
Beyond its financial results, the telecommunications operator said it continues to channel substantial resources into expanding network infrastructure, meeting statutory obligations and delivering value across its stakeholder ecosystem.
The company disclosed that it paid more than ₦600 billion in taxes, customs duties, regulatory levies and other statutory obligations over the past year.
It also invested over ₦1.6 trillion in capital expenditure since January 2025 to expand network capacity and improve service quality, while declaring an interim dividend of ₦26 per share for shareholders.
Speaking on Arise News’ Global Business Report, MTN Nigeria’s Chief Financial Officer, Modupe Kadri, explained that the company’s earnings are shared across several stakeholders before returns reach investors. “For every one naira of revenue, about 24 kobo becomes profit.
“The government receives over ₦600 billion through taxes and levies, operating costs account for a significant portion of our revenue, and every participant within the ecosystem benefits from the value we create,” he said.
According to the Nigerian Communications Commission (NCC), telecommunications remains one of the largest contributors to Nigeria’s Gross Domestic Product, supporting digital financial services, education, healthcare, commerce and public services. Continued investment by operators has also been identified as critical to expanding broadband access and improving digital inclusion across the country.
Kadri noted that shareholder returns remain an important part of MTN’s capital allocation strategy, but stressed that they represent only one aspect of the company’s broader economic contribution.
“Even when we declare dividends, the government still receives withholding tax, while we continue investing heavily in our network because sustaining quality service requires ongoing capital commitment,” he said.
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