Telecom
Why Network Quality is More Important Than Ever
By Borje Ekholm
Today, network quality is under the spotlight in every household and enterprise worldwide as more and more work from home. However, as our new research indicates, network performance has always been a mainstay of market demand.
Today, more than ever, we see the value which mobile connectivity brings to our societies. In times of crises, the world’s mobile networks are proving yet again that they can deliver the performance and reliability to support both consumers and enterprises in their hour of need. In fact, quality of the network has been an important driver of market dynamics for a long time.
However, today’s demands for network quality and capacity are not a new development. In fact, they have been driving market demand for a lot longer and to a much greater extent than most would probably expect.
For almost a decade now, we have analyzed why some service providers grow and drive higher revenues than others. We call these leaders Frontrunners. While Frontrunners share common traits, they often deploy a variety of strategies to enable profitable, sustainable growth. The real key to their success is that they seek differentiation to create better return.
In a new analysis, based on 4G life cycle data from more than thirty countries, we have drilled deeper into how much good network performance benefits Frontrunners. And our research shows that investing in network quality is a powerful way for service providers to drive lower churn and/or higher average revenue per user (ARPU).
In all countries we analyzed, the service provider with the highest network quality has either higher ARPU and/or lower churn compared with the service provider with the lowest network quality.
In the top half of cases, where network quality is highest, we found that the lead service provider enjoys a higher average ARPU (+31 percent) and lower average churn (-27 percent). In the bottom half, where network quality is generally lower, we found that some service providers still enjoy higher ARPU (+61 percent) but with higher churn (+39 percent), whiles others have both lower ARPU (-14 percent) and lower churn (-32 percent).
When we looked across all service providers, not just leaders and quality laggards, network quality correlated with increased ARPU and reduced churn.
After macro-economic factors, network quality is one of the biggest influences on churn according to a multivariate analysis. Put simply, investing in network quality keeps subscribers happy. Or, as one executive at a service provider told me: “It is easy to attract customers. The problem is that when they see our poor network performance they leave.”
In aggregate, ARPU fluctuations seem to be driven primarily by macroeconomic factors. However, our analysis of Frontrunners shows significant revenue upsides for those investing first in high performance. The Frontrunner group achieved a 9.9 percent ARPU compound annual growth rate (CAGR) with 4G, while the rest of the market was at -0.8 percent CAGR. With 5G we already see Frontrunners charging price premiums averaging 15 percent.
It is clear that network quality already matters to consumers. This is hardly surprising as the service providers product is their network. We also see that network performance features more prominently in the marketing initiatives from successful service providers.
One of our most successful customers – who have generated a strong market share gain and growth over many years – allocate more than 50% of advertising spend to network performance.
Important for consumers, but we are convinced that the quality of connectivity will mean even more for enterprise users, as enterprises will depend on connectivity for their business survival.
Case studies on the importance of network quality
Let’s look at three examples:
- European market leader defending position
Network quality is a way for a market leader to maintain its leadership over the competition.Between 2010 and 2015, a market leader lost four percentage points market share to a new low price competitor, who surpassed the leader in networking benchmarks from P3, a leading international consulting, engineering and testing services company. The leader then launched a new strategy focusing on increasing capex to offer the best network experience. They regained their lead in P3 benchmarks, and these actions reversed market share losses by gaining 2 percentage points market share. More importantly, they also increased their ARPU lead.
- Challenger surpasses closest competitor in emerging market
Improved network quality can also be a way to build market share. For example, in 2016, a challenger was third in market share and experienced an erosion in ARPU. The company shifted capital expenditures from fixed to mobile, including doubling its 4G footprint in cities.
This gave it the best network in the country, resulting in market share gains and a reversal of the ARPU trend; the provider now shows a stronger ARPU increase than its peers. These gains allowed the challenger to overtake the number two player in the market. Its investment also paid off with more post-paid subscriptions and earnings (EBIDTA) up five percent.
- Market leader in Middle East invests in network quality to stem losses and regain performance lead
From 2010 to 2014, the second player in the market invested heavily in network performance, and the leader lost 10 percentage points of market share. The leader increased capex for 4G, stemming market share losses. Additionally, the leader was able to significantly improve network performance which resulted in faster ARPU growth, churn reduction and an improved Net Promoter Score compared to the competition.
Key insights from our analysis
Successful service providers use a variety of strategies to create differentiation that fit their local market and their position in that market.
In the three examples above, we saw operators defending and regaining market leadership by increasing their investments in network performance.
Although network quality isn’t the only way to create differentiation and drive value for customers, it’s clear that it is a cornerstone of successful strategies and improved commercial KPIs. This has been historically true through the deployment of 4G and as our society and daily lives will depend even more on advanced digital services, we expect quality mobile connectivity to be of even greater importance in the 5G era.
Borje Ekholm is President & CEO of Ericsson.
MENXTT TECH NG, a Lagos-based technology company, has launched an initiative to make quality Dell laptops more affordable for Nigerians through flexible payment plans and extended warranty support.
The company said the initiative was aimed at helping students, entrepreneurs, professionals and small businesses acquire reliable computing devices despite rising technology costs.
According to the company, customers can now purchase premium pre-owned Dell Latitude, Dell Precision and Dell Inspiron laptops at competitive prices, with selected models available under staggered payment arrangements.
The laptops, it said, are designed to meet the needs of users ranging from students and office workers to architects, engineers, software developers, graphic designers and video editors.
Speaking on the initiative, the Co-Founder of MENXTT TECH NG, Mr Anthony Emeka Nwosu, said access to quality technology should not be limited by financial constraints.
“A laptop is no longer a luxury; it is an essential tool for education, business and career development.
“Unfortunately, many people are forced to settle for unreliable devices because of the high cost of new laptops.
“At MENXTT TECH NG, we want to bridge that gap by providing durable Dell business laptops at affordable prices, backed by a full one-year warranty and flexible payment plans.
“We want every student, entrepreneur, freelancer and business owner to have access to technology that helps them succeed,” he said.
Nwosu explained that every laptop undergoes comprehensive testing before delivery and comes with a one-year warranty, an original charger, a complimentary laptop bag, Windows 11 operating system and Microsoft Office Suite pre-installed.
He added that the company, an authorised Bitdefender Antivirus reseller in Nigeria, also installs genuine Bitdefender security software on every system to protect customers against cyber threats.
According to him, customers requiring additional productivity tools can also have licensed Foxit PDF software installed on their devices.
Nwosu said the flexible payment option was introduced in response to prevailing economic realities, enabling customers to spread payments over an agreed period.
He noted that the arrangement would make it easier for students, startups and growing businesses to acquire quality computers without placing excessive pressure on their finances.
Beyond laptop sales, the company provides information technology consultancy, computer repairs, software licensing, cybersecurity solutions and digital transformation services to organisations across Nigeria.
He reaffirmed the company’s commitment to supporting Nigeria’s digital economy by making dependable computing devices and enterprise technology solutions more accessible to individuals and businesses.
According to him, the initiative reflects MENXTT TECH NG’s vision of combining affordability, quality products and professional after-sales support to help more Nigerians participate in the country’s expanding digital ecosystem. (NAN)
National Information Technology Development Agency (NITDA) has called for stronger collaboration among government, industry, academia and technology professionals to accelerate digital innovation and drive inclusive economic growth in Nigeria.
Dr. Aristotle Onumo, Director, Stakeholder Management and Partnerships, representing the Director General of NITDA, delivers a goodwill message at the 20th International Conference on Technology and Computing (RISE 2026) in Jos, reaffirming the Agency’s commitment to fostering digital innovation, strategic collaboration, and a technology-driven future for Nigeria.
The agency made the call at the 20th Nigeria Computer Society (NCS) International Conference 2026, held in Jos, Plateau State, where stakeholders examined strategies for leveraging emerging technologies to strengthen national development.
Speaking on behalf of the Director-General of NITDA, Mr Kashifu Inuwa, the agency’s Director of Stakeholders Management and Partnerships, Dr Aristotle Onumo, said Nigeria’s digital transformation would depend on sustained investment in innovation, digital skills, research and strategic partnerships.
According to him, collaboration across the public and private sectors is essential to translate emerging technologies into practical solutions capable of improving governance, creating jobs and enhancing the country’s global competitiveness.
Onumo said NITDA remained committed to implementing its Strategic Roadmap and Action Plan through initiatives that promote digital literacy, research and development, innovation ecosystems, cyber sovereignty and emerging technologies.
He added that the agency was expanding opportunities for innovators, entrepreneurs and startups through platforms designed to encourage collaboration, investment and technology-driven enterprise.
“We are transforming Digital Nigeria into the nation’s foremost innovation platform where policymakers, investors, startups, researchers and technology companies can collaborate to accelerate economic growth and digital transformation,” he said.
He urged innovators, startup founders and technology professionals to participate actively in the forthcoming Builders Summit by showcasing indigenous solutions capable of addressing Nigeria’s development challenges.
Declaring the conference open, the Governor of Plateau State, Mr Caleb Mutfwang, described digital technology as a critical driver of governance and economic development.
Mutfwang said his administration had adopted digital solutions to improve public service delivery, modernise government operations and enhance internally generated revenue.
He also identified technology as a key enabler for agricultural transformation, increased productivity and improved food security, urging participants to ensure that deliberations at the conference translate into practical outcomes for national development.
Earlier, the President of the Nigeria Computer Society (NCS), Prof. Muhammad Sirajo, said the conference was organised to strengthen collaboration among policymakers, researchers, regulators, technology professionals and industry leaders.
Sirajo said the conference, with the theme “Harnessing Digital Innovation and Emerging Technologies for Inclusive Growth and Economic Renaissance (RISE 2026),” focused on exploring how innovation could accelerate Nigeria’s socio-economic development.
He identified artificial intelligence, blockchain, cloud computing, cybersecurity and robotics as among the technologies shaping the future of economies across the world.
According to him, Nigeria’s youthful population and expanding digital ecosystem provide a strong foundation for building a globally competitive economy through sustained investment in digital infrastructure, innovation and skills development.
The conference attracted government officials, regulators, academics, development partners, technology professionals and private-sector stakeholders to deliberate on policies and innovations aimed at accelerating Nigeria’s digital transformation and inclusive economic renaissance.
Telecom
Hon. Minister Dr. Kingsley T. Udeh and ASUS To Unveil First of a Kind Flagship Store in West Africa
In a landmark moment for Nigeria’s technology retail sector, the Honourable Minister of Innovation, Science and Technology, Dr Kingsley Tochukwu Udeh SAN, will on Monday, August 3rd, commission a landmark ASUS Flagship Store in partnership with Nigeria’s leading e-commerce group Konga. The state-of-the-art facility is widely regarded as the first initiative of its kind in West Africa.
The commissioning will witness the visit of senior executives from the world-renowned technology brand to Nigeria, including EMEA General Manager, Mr. Aaron Tsai, alongside other. One of the purposes of their visit is to reinforce the strategic partnership with Konga and solidify the collaboration between both organisations, further demonstrating ASUS’ commitment to the Nigerian market.
The event is expected to also bring together key stakeholders from government, the technology industry, business community, and the media for what promises to be a defining moment in the evolution of technology retail in the region.
The development comes as Konga continues to accelerate its strategic partnerships with some of the world’s leading technology brands.
For years, Nigerian consumers have demanded more than just access to genuine technology products. They have increasingly sought immersive experiences, expert guidance, after-sales support, and greater confidence when making technology investments. The next chapter in this journey appears to address many of these expectations in a bold and innovative way.
The forthcoming announcement is expected to bring together global innovation in a manner that reflects the changing realities of today’s technology consumer. It also reinforces the growing confidence that leading international technology companies continue to place in Nigeria as one of Africa’s most strategic digital markets.
Industry analysts note that partnerships of this nature are becoming increasingly important as consumers place greater emphasis on authenticity, hands-on product experiences, technical support, and trusted purchase channels. Beyond selling devices, the future of technology retail lies in building complete customer experiences.
As anticipation builds for Monday, one thing is certain: the ASUS-Konga partnership promises to set new standards for tech retail in West Africa, elevating customer experience and reinforcing Nigeria’s digital transformation narrative.
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