Telecom
CDMA Operators and Strategies for Survival
The granting of United Access License by Nigeria Communications Commission (NCC) in 2006 after the expiration of exclusivity right given to Global System for Mobile communication (GSM) operators was what Code Division Multiple Access (CDMA) operators needed to stamp their feat in the telecommunications industry.
Before then, they were operating under limited mobile access license which restricted them from operating mobile service in unified manner. They as a result concentrated in offering fixed wireless and mobile service within the states they secured license to operate. More so, if any operator wishes to operate in another state outside its primary state of operation such operator could be required to apply for a license to operate in such location. This made it expensive to operate even as they were not required to offer roaming service like GSM operators.
As a result of these, CDMA operators were mere local operators who concentrated their service in Lagos and Abuja commercially viable cities. They were struggling for subscribers with GSM operators that offered more effective service basically, because a GSM subscriber can take his or her phone outside Lagos and it works in as much as such network has coverage in the location. But mobile service rendered by CDMA could not offer this service, thereby giving them advantage over CDMA service.
Prior to the introduction of the unified licensing regime which allows individual service provider to offer multiple services such as mobile telephony, fixed telephony, internet broadband and long distance services, there were over ten operators in this space. They included Starcomms, Reltel now ZoomMobile, Intercellular, Multi-Links, Independent Telephony Network (ITN), Cellcom, Bourdex, Rainbownet, Prestel MTS First, among others.
Under the current dispensation, CDMA operators that want to play in the big league are required to operate nationally, though there is choice of playing local but most see it as not being economically viable to play local which has led to some of them going for national unified access license is the prerequisite.
Playing at this level means having foot print in almost every town in the country to be able to garner enough subscriber base which is the basis for profitability. To do this, they require strong financial base which most of this operators does not have.
This situation changed the landscape of operation in CDMA space as they had to change their operational module to be part of the moving train in the industry and has ignited a contest for supremacy among operators that have what it takes to play as a national operator. This saw Starcomms selling some of its equity to Actis to raise money to expand its network, since then it has secured foreign loans in this regard making it to claim the biggest in the space.
The company has already invested some US$600 million since it launched its network in 2002.
It has as well set itself a target of reaching 5million subscribers by the end of this year. The company is the only telecom company quoted on the Nigerian stock Exchange (NSE) and has raised around US$60 million.
The stock market float increased funding for the company, while also allowing two investors, Actis and ECP to reduce their holdings. This as well as proactive management approach may have been responsible for the sustainable growth the company has recorded in this period of dwindling average revenue per user (ARPU) and harsh economic situation in the country. Today, Starcomms is the only operator in this space that has recorded steady growth after the period of global economic downturn.
More so, other operators have made effort to be relevant and attract the much needed subscribers for the survival of their network operation. This may have informed Reltel now Zoom Mobile a major player in the CDMA space to embark on restructuring and repositioning. Before it changed its name to reflect the desire of its new investors from within the country, the company was the only privately owned telecommunications company that was playing in the big wings.
Zoom Mobile raised N25.9 million (US$223 million) from investors through private placement. The company said that the rebranding was to reposition the company as a national mobile services provider, taking full advantage of its Universal Access Service license.
The operator currently covers over 72 cities and 450 villages and has a capacity for five million subscribers. Zoom Mobile has scale down its efforts to ensure that it lure more subscribers to its network and is concentrating like most other operators in this space on retaining its existing customers as well venturing massively to the provision data services which their network is better suited for compared to their GSM counter-parts.
Multi-Links Telkom, set aside $ 1 billion (about N127 billion) to fund an aggressive five-year expansion programme. This would enable it cover about 80 percent of the country, thereby raising the bar of competition in the wireless/ fixed line segment of the telecoms sector where seven other operators are also battling for market share and leadership. The story of Multi-Links Telkom is not different from others in the space; recently its parent company Telkom South Africa had expressed its intension to sale Multi-Links based on the fact that its operational losses are dragging it backwards. Although, it has rescinded on this intension and has put in place strategies aimed at reducing its operational losses. Among those strategies is focus on data service where the company wants to leverage on its optic fibre network that spans from Lagos to Abuja. It has rolled out products in this regard. The company has put in place a new management team whose mandate is to seek ways of changing the fortune of the company to profitability.
Visafone, the youngest by name in this CDMA sector of the telecommunications industry emerged from nowhere and recorded an impressive performance by becoming the fourth biggest operator in the telecommunications industry and number one position among CDMA operators last year.
The company which is brainchild of Jim Ovia, a banker and industrialist has witnessed the investor bringing his managerial competence which he uses in making Zenith bank one of the best in the post-consolidation era to bear in Visafone.
Though, the name is new but the network has been operational in some cities for over a decade. This was as a result of the company’s acquisition of Bourdex Telecom that secured operational license to deliver services to some eastern parts of the country. It also bought over Cellcom and Independent Telephone Network, all which were merger into one network, Visafone.
No sooner the company rolled out service than about 13 banks gave their support with a syndicated facility of $200m in support of the new mobile phone company.
The emergence of Visafone has also brought new zest to the CDMA market space, especially with its introduction of open market selling strategy. This strategy which was first used by Starcomms in 2007 to drive its market penetration has now been deployed effectively by Visafone to the admiration of the purchasing customers.
Visafone has also been hit by the unfavourable operating environment which has forced it to looking for the best way to survive. The company has embarked promotions to retain and increase its subscriber base as well as scale down its expansion projects all as part of effort to survive the harsh economic situation and dwindling ARPU.
Prestel, another unified access license operator, which has its footprint strong in Niger Delta region has not done much to show that it wants to play in the big circle. The company is spare in the sorry situation that CDMA operators are face. It has sort for investors that will bring money to expand and compete in the industry, but it has not been successful in this regard.
Another underdog in this race that was first in the CDMA space is Intercellular. Since the company secured unified license, it looks as if things started working against the company. It has made several attempts at securing technical partner which didn’t work out until few years back when Sudanese operator Sudatel bought into the company but is yet to operate the network raising doubt on the ability of the Arab operator to muster the required financial muscle to play in the big players’ circle.
MTS first wireless, Rainbownet among others are not left out even as these brands are fading out of the market.
Mr. Wakili Shehu a telecommunications consultant said that CDMA technology also provides the capacity for quicker transmission of data and Internet, unlike the GSM which has limited capacity. But he warned that the use of the CDMA technology in the country was also fraught with challenges, such as limited coverage of cities and towns, unlike the GSM. He urged them to explore their advantage in the provision of data service as a survival strategy to getting out of their present predicaments.
Other options available to operators in this space is reduction of operational cost through outsourcing of none core network service as well as complete embracing of co-location or managed services in the base stations.
As operators in the CDMA space are faced with realities of development of telecommunications service delivery in the country where much emphasizes is laid on provision value added services, they should also consider consolidation as an option for survival. Consolidation allows mergers and acquisition in the sector similar to what was witnessed in the banking sector.
Engr. Gbenga Adebayo, chairman of Alton, during the association’s visit to Dr. Eugen Juwah, executive vice chairman, Nigerian Communications Commission (NCC) requested the Commission to develop an incentive-driven bailout plan for some of its members with difficulties in payment of their regulatory dues for the sustenance of the industry growth and protection of ailing networks. This is a clear indication that some operators are finding it difficult to survive which is a sign of distress in the sector. CDMA technology does not have technological challenges as it were, but business model and finance. For instance, in USA and India are some of the countries where CDMA operators are dominant operators.
It has done on some operators that with their business model it is difficult to attract investors especially outside the country, so such operators should consider changing this business model if they don’t want extension of their brand.
Telecom
No Plans for Fresh Tariff Hike – MTN

Dr Karl Toriola, chief executive officer, MTN Nigeria, has assured its subscribers that another telecom tariff increase is not imminent.

Dr Karl Toriola, chief executive officer, MTN Nigeria
He also clarified his recent comments on unlimited mobile data, saying they were taken out of context.
Toriola who spoke during an interview on TVC’s Beyond the Headlines, said his remarks at MTN’s Data on Trial public engagement were intended to explain the technical limitations of mobile networks rather than suggest that consumers could never access unlimited data.
According to him, excerpts of his comments circulated online did not reflect the full context of the discussion.
“People took snippets of the conversation, and the entirety of the conversation is available on YouTube. There’s nothing to be hidden there, and they took it slightly out of context,” he said.
Toriola explained that mobile networks are constrained by finite spectrum resources, making unrestricted data usage technically impossible without affecting the quality of service for other subscribers.
“Mobile wireless technology to offer data is limited by one factor—spectrum—and spectrum is a finite resource. You cannot put an excessive load of data traffic onto a mobile network without having a degradation of the quality of service for other people,” he said.
He added that while many telecom operators market data plans as unlimited, such packages are generally governed by fair usage policies, under which internet speeds are reduced after subscribers exceed specified usage thresholds.
Toriola said MTN is working towards introducing similar products but noted that they would also be subject to fair usage limits to protect network quality.
Addressing concerns over rapid data depletion, the MTN chief executive said operators do not deliberately consume customers’ data, attributing much of the usage to background activities such as automatic cloud backups on applications including WhatsApp, Google Cloud and iCloud.
“A significant amount of data that’s consumed on your handsets is done without your realisation,” he said.
He advised subscribers to review their device settings and configure cloud backups to run only over Wi-Fi or at less frequent intervals.
To illustrate the point, Toriola said an audit of the phone of one of MTN’s chief officers, who had complained about unusually high data usage, revealed that WhatsApp was automatically backing up about 120 gigabytes of data.
On telecom pricing, Toriola said another tariff increase is not expected in the near term, although future reviews would depend on prevailing economic conditions and the cost of sustaining network operations.
“The increment is not imminent. But over time, depending on economic conditions, there might be possible tariff increases,” he said.
He maintained that the tariff adjustment implemented in 2025 was necessary to ensure the sustainability of the telecommunications industry after more than a decade without a price review despite rising operating costs.
Toriola also disclosed that MTN invested ₦390 billion in capital expenditure during the first quarter of the year, exceeding its ₦359 billion profit after tax for the same period.
He identified fibre cuts, vandalism, unreliable electricity supply and restricted access to telecom infrastructure as major factors affecting service quality.
“We have more fibre cuts in a day than the whole Kingdom of Saudi Arabia has in a year,” he said.
Responding to calls for sanctions against MTN over recurring xenophobic incidents in South Africa, Toriola said MTN Nigeria is a Nigerian company in ownership and operations, noting that it is listed on the Nigerian Exchange, has only four expatriates in its workforce and has millions of Nigerian shareholders through direct investments and pension funds.
“We unequivocally condemn any form of xenophobia, any form of violence, any form of attacks against any community in the world,” he said.
Telecom
Airtel Africa Foundation Equips 200 Young Women with Digital Skills to Drive Nigeria’s Tech Economy

Airtel Africa Foundation, through Airtel Nigeria and in partnership with the Ishk Tolaram Foundation, Co-Creation Hub (CcHub), and SAIL Innovation Lab, has commenced the DigiLeap Women in Tech Programme, a transformative initiative designed to equip 200 young women from underserved communities in Ikorodu, Lagos, with industry-relevant digital skills and pathways into Nigeria’s rapidly expanding technology sector.

The programme, hosted by the SAIL Innovation Lab Ikorodu, comprises a 12-week immersive learning experience from June to September 2026, designed to prepare participants for careers in Product Design, Software Development, Digital Marketing, and Data Analytics.
Beyond technical training, beneficiaries will receive leadership development, structured mentorship from Airtel Nigeria professionals, and internship opportunities that provide practical workplace experience and exposure to industry best practices.
Commenting on the programme kick-off, Segun Ogunsanya, Chairman of the Airtel Africa Foundation, said empowering young women with digital skills represents one of the most sustainable investments in Africa’s future.
He also noted that the initiative reflects Airtel Africa Foundation’s continued commitment to expanding access to digital education while creating opportunities for young Africans to participate meaningfully in the continent’s digital transformation.
“We encourage every participant to approach this programme with purpose, discipline, and curiosity. The knowledge, networks, and mentorship you gain over the coming weeks have the potential to transform not only your own future but also the lives of your families, communities, and the next generation of girls who will look up to you. This is how lasting impact is created,” Ogunsanya said.
Also speaking on the initiative, Dinesh Balsingh, Chief Executive Officer of Airtel Nigeria, highlights that the initiative aligns with the company’s commitment to building an inclusive digital economy by ensuring more young Nigerians, particularly women, are equipped for the jobs of the future.
Balsingh said, “Nigeria’s digital economy presents enormous opportunities, but participation must be inclusive if we are to realise its full potential. Through the Airtel Africa Foundation, we are intentionally investing in young women because we recognise the immense value they bring to innovation, technology, and economic growth.
“DigiLeap is designed to equip participants with practical, industry-relevant skills that employers are looking for today while also giving them the confidence, mentorship, and professional exposure needed to build successful careers.”
According to the DigiLeap curriculum, participants will engage in intensive classroom instruction, hands-on projects, mentorship sessions, and internship placements designed to bridge the gap between learning and employment.
Airtel Nigeria professionals will serve as mentors, providing career guidance and sharing real-world industry insights to help participants transition successfully into the technology workforce.
The DigiLeap Women in Tech Programme spotlights the Airtel Africa Foundation’s growing investment in digital inclusion and youth empowerment across Africa. By creating pathways for more women to access technology careers, the Foundation continues to contribute to Nigeria’s digital transformation agenda while helping build a diverse pipeline of talent capable of driving innovation, creating businesses, and shaping the future of the country’s digital economy.
Telecom
Xenophobia: MTN Nigeria Belongs to Nigerians, Not Only South Africans — Toriola

Karl Toriola, chief executive officer, MTN Nigeria, has stated that the telecom company is “a Nigerian company through and through,” emphasising that it belongs as much to Nigerians as to its global investors, with over 11 million Nigerians holding indirect stakes through pension funds.

Toriola also defended the federal government’s approval of telecom tariff adjustments, noting that the move helped prevent a financial crisis in the sector and enabled the company to ramp up capital expenditure to about N1 trillion in 2025 to improve network quality.
Speaking during an interview on Arise News, the MTN boss dismissed claims that the company is solely South African, despite its origins.
According to him, MTN Nigeria is incorporated locally, listed on the Nigerian Exchange, pays taxes in Nigeria, and is largely managed by Nigerians.
“We are labelled as a South African company because MTN Group was founded in South Africa. But the reality is that MTN Group has a very diverse global shareholding. Only about 50 percent of the shareholding is African, while the rest is held by investors from North America, Europe, the United Kingdom, the Middle East and Asia-Pacific,” he said.
Speaking further on MTN Nigeria’s identity, Toriola stressed the company’s deep roots in the Nigerian economy.
“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.
“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people.
“We have over 201,000 retail investors, while about 11 million Nigerians own MTN shares indirectly through pension funds. We are very proud of our Nigerian identity,” he stated.
On the recent telecom tariff adjustment, Toriola said the increase was driven by necessity rather than profit motives, noting that operators were struggling to meet basic financial obligations before the review.
“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.
He added that the improved revenue base has enabled MTN to scale up infrastructure investments to enhance service delivery.
“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” he said.
Addressing concerns over poor network quality, Toriola attributed the challenges to increasing demand, infrastructure gaps, vandalism, insecurity, and unreliable power supply.
“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers. We also face security challenges that prevent our engineers from quickly accessing some sites.
“In addition, we operate about 18,000 sites nationwide, each requiring generators, batteries, rectifiers and constant fuelling because of inadequate public electricity supply. All these affect quality of service,” he explained.
While acknowledging that service quality still needs improvement, he assured customers of continued investment.
“We are not perfect, but we are investing aggressively and continuously striving to do better,” he added.
On allegations that telecom operators deliberately deplete customers’ data, Toriola said findings often point to background data usage by smartphone applications.
“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.
“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.
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