Telecom
Africa Sees Double Mobile Data Revenue by 2024
Mobile revenue in Africa will rise from $54.31 billion (R804 billion) in 2019, to $67.12 billion (R994 billion) in 2024.
This is according to the Africa Digital Outlook 2019 report from market research firm Ovum.
The research, which looks at the state of Africa’s telecommunications market, found data revenue on the continent will more than double in the next four years, from $14.91 billion in 2019 to $31.42 billion in 2024, growing at a significantly faster rate than voice calling.
However, due to the overall growth in the mobile market and continued relevance of voice calling for many customers, some major African operators, such as Airtel and MTN, will continue to see growth in mobile voice revenue, notes Ovum.
“Ovum expects mobile voice revenue in Africa to rise modestly through to 2021, but to decline thereafter to the end of the forecast period,” says Matthew Reed, practice leader at Ovum.
“Service providers are reporting strong growth in revenue from data access and digital services such as mobile money in Africa. Mobile broadband and financial services are key growth segments. The availability of affordable data-enabled devices is a key contributing factor to this growth in African markets, where average incomes are typically low.”
Mobile subscriptions in Africa passed the one billion mark in 2017, and reached about 1.07 billion in June 2019, with population penetration of 82.6%, according to Ovum.
Nigeria, the most populous country on the continent, also has Africa’s biggest mobile market by subscriptions, with 170 million mobile subscriptions in 2Q19. The next-biggest markets are SA, with 104.3 million mobile subscriptions, and Egypt, with 93.8 million mobile subscriptions, and Kenya with 50.2 million.
Smart feature phone boost
There will be 1.08 billion mobile broadband connections on the African continent by 2024, representing 79% of the 1.37 billion overall mobile connections on the continent, as service providers expand their mobile broadband networks, and as smart devices and services become more affordable, according to Ovum.
It adds the number of 3G W-CDMA connections in Africa will continue to increase through to 2024, in contrast with global trends, where these are expected to decline in other parts of the globe over the next few years.
“An overwhelming majority (85.3%) of mobile broadband connections on the continent were accounted for by 3G W-CDMA in the second quarter of 2019, while LTE accounted for just 14.2% of connections. 2G GSM still has a substantial market share, accounting for 42.9% of Africa’s mobile connections in 2Q19,” notes the report.
However, it predicts 14.2% of mobile LTE connections on the continent are expected to increase at a more rapid rate, rising from 97.5 million at the end of 2019, to 336 million at the end of 2024.
“Both MTN and Orange have introduced smart feature phones that use the Kai operating system and are priced at about $20 as a means of encouraging wider take-up of data services,” Reed points out.
“Tecno, backed by Chinese company Transsion, has become one of the biggest mobile phone brands in Africa by offering affordable smartphones with features tailored to the African market, such as long-life batteries.”
The report warns instability, poor infrastructure and digital divide factors will continue to hold back digital development in Africa.
“Just one example of the barriers to digital development in Africa is that in 2018, the average cost of a 1GB mobile broadband plan on the continent was equivalent to 8% of average monthly income – far above the affordability benchmark of less than 2% of income, according to the UN Broadband Commission,” it notes.
Fixed broadband household penetration in Africa was about 8.5% at end-2Q19, lower than in any other world region, except Central and Southern Asia.
“MTN and Vodacom say their plans to launch 5G in SA have been held up because they do not have access to the spectrum required in the sub-1GHz bands, as well as in the 2.6GHz and 3.5GHz bands. In 2018, Vodacom launched what it said was Africa’s first commercial 5G service in Lesotho, using spectrum in the 3.5GHz band to which Vodacom has access in Lesotho but not in SA,” notes the report.
WiFi projects on the increase
WiFi networks are increasingly important for broadband connectivity in Africa. Facebook and Google both have WiFi ventures on the continent: Facebook’s Express WiFi operates in Ghana, Kenya, Nigeria, SA, and Tanzania; and the Google Station WiFi service operates in Nigeria.
“There are also efforts to improve connectivity in rural areas, using a range of technologies. MTN Group is working with the Facebook-backed Telecom Infra Project to test and deploy low-cost wireless networks designed for rural areas. Loon, a subsidiary of Google’s parent company Alphabet, is to run a trial with Telkom Kenya of its plan to use giant helium balloons to bring wireless broadband connectivity to remote areas,” according to the report.
Although wireline broadband penetration is low in Africa, Ovum expects the number of FTTx (fibre to the customer) subscriptions on the continent to grow strongly over the coming few years, from 1.28 million at end-2019, to 4.07 million at end-2024.
“At end-2024, SA will have 1.22 million FTTx subscriptions, making it the biggest FTTx market on the continent (by subscriptions), followed by Morocco, Algeria, Egypt, and Kenya, forecasts Ovum.”
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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