Telecom
Addressing Key Dichotomy In Africa’s Telecom Market With Virtualized 2G
By Christoph Fitih
Africa is taking a giant leap of ‘faith’ when it comes to mobile telecom. The region, where over 50% of the population still has no access to mobile phones, has suddenly seen a flurry of activities among telecom players to launch 5G services.
The service providers have started to conduct trials for the 5G technology, which enables many futuristic use cases, including remote surgery, autonomous driving, Artificial Intelligence, Augmented Reality and Virtual Reality.
Recently, Vodacom — the African arm of Vodafone – announced the launch of Africa’s first commercial 5G network in Lesotho, a tiny landlocked country in southern Africa. The 5G rollout, though, is limited with the services being provided initially to only two corporate entities.
Vodacom has a temporary license for 5G testing in Africa, while MTN has tied up with Ericsson and ZTE for the launch of services in Africa. Though they have not made much headway beyond public demonstration, 5G seems to be the new area of competition among telecom operators in the continent.
Gaping Digital Divide
One piece of fact, though, should not get lost in the entire buzz around the launch of a commercial 5G services in Africa. And the point is that Africa continues to remain an under-penetrated telecom market, and the majority of its ‘connected’ population still uses the basic services.
This is true for Nigeria as well. The Nigerian telecom industry contributed 9.8% to the country’s Gross Domestic Product in 2016. At the end of 2017, the country boasted of 136.49 million mobile subscribers. It is also one of the fastest growing telecom markets in Africa. Even so, nearly 30% of the population is still to experience connectivity. The telecom industry has contributed immensely to Nigeria’s economy and has had huge impact on the lives of the country’s citizens. A case in point is the growing usage of mobile banks, which has made it easier for people to access banking services anytime and from anywhere. This is not different from the rest of Africa.
Look at the figures for yourself. Africa continues to be the region with the largest number of unconnected in the world. Globally 3.4 billion people are without internet access, and 830 million out of these live in Africa. Similarly, 660 million people in Africa out of 870 million globally, are without a mobile connection. Nearly 70% of the African population does not have access to mobile broadband.
Nigeria, like Africa, still remains largely a 2G market with over 50% mobile subscribers using 2G network. At the same time, the gradual shift towards better network technology is happening fast. According to GSMA’s recent report on Mobile Economy 2017: Sub-Saharan Africa, 3G will remain the dominant mobile broadband technology for the foreseeable future, but the 4G adoption is rising rapidly following increasing network rollout.
However, 5G making a meaningful contribution still remains a pie in the sky. The latest Ericsson Mobility Report shows that the Middle East and Africa would be one of the regions with the least — less than 5% of the continents entire population — subscriptions for 5G by 2023.
It is, therefore, not hard to see that the telecom companies are unsure whether they should invest in connecting the unconnected or start preparing the networks for 5G. This is not an easy decision considering the low ARPU and low adoption of the smartphone in the region. The market is not yet mature for 4G or 5G, but the service providers would want to secure their investments for future technologies as well.
The Virtualization Push
Virtualization can help the telecom sector tide over the dilemma – whether to concentrate on strengthening the basic infrastructure to address the digital divide or to focus on the roll-out of 5G.
Traditional telecom networks require several high-cost and often bulky equipment to deploy and operate. These types of equipment need large spaces to store, have a short life cycle and consume energy. Besides, hardware-based networks are difficult to upgrade. By shifting networks to virtual systems, telecom operators can overcome all these problems.
Telecom companies in Africa can, therefore, achieve multiple goals by shifting their 2G networks to virtualized networks.
Unlike the legacy 2G, the virtualized 2G is easy to deploy, maintain and upgrade to newer technologies. This means that the telcos will be able to address the current demands of their subscribers and can easily and quickly move to any new technology, be it 3G, 4G or 5G. Essentially it leads of network simplification by virtualizing different technology network functionalities on one platform. Since the platform is software-based, the upgradation itself is easy and doesn’t even require a visit from site engineer.
The installation and maintenance of Virtualized 2G is automated, which makes it easy to deploy and also brings down the capital and operational expenditure for the service providers. It makes the network agile, flexible and easy to scale. The service providers will be able to expand quickly and also launch newer services faster. Virtualized 2G reduced the expenditure at every stage, from deployment, maintenance, and upgradation. With Virtualized 2G the network is future ready even as you cost effectively meet the current requirements of your subscribers.
Lower cost, easy deployment, and easy upgradation allow operators to keep building 2G low-cost capacities in areas untouched by telecom network, while at the same time continuing to allocate resources and time in expanding their 4G LTE and 5G networks.
Reliable and affordable broadband is crucial for the growth of the region’s economy. It leads to a more inclusive society, enhanced collaboration and opens up a plethora of global opportunities for the local businesses. Besides it encourages entrepreneurship and leads to generation of more and newer jobs. Nigerian economy stands to gain enormously if the service providers leverage virtualized 2G to push for expansion of connectivity in all regions and segment of the country.
Christoph Fitih is Director Sales – Africa, Parallel Wireless
At the recently concluded NextNow Business Forum in Victoria Island, MTN Nigeria electrified the business community with a live demonstration of its forthcoming Communication Platform as a Service (CPaaS), a solution engineered to redefine how Nigerian enterprises connect with their customers.
L-R: Febisola Oyeniyi, General Manager, Enterprise Sales, MTN Nigeria; Omotayo Ojutalayo, General Manager, Business Development, Enterprise Business, MTN Nigeria; Akinbulejo Onabolu, Head, Enterprise Segment, MTN Nigeria and Omowunmi Olatunbosun, Head, SME Segment, MTN Nigeria, during the MTN NextNow Business Forum.
Unlike traditional communication systems, MTN’s CPaaS is built for the realities of a mobile-first market. The platform unifies SMS, voice, WhatsApp, email, and more into a single, intuitive interface.
This approach is especially significant in Nigeria, with over 107 million internet users, 45.4% of the total population, according to Data Report. This figure underscores the necessity for businesses to meet customers where they are.
During the demo, attendees witnessed how CPaaS enables two-way, real-time conversations between brands and customers. The platform’s support for rich media, instant analytics, and seamless integration with business workflows drew particular attention.
These features are designed to empower businesses with data-driven insights and the agility to personalise every interaction, whether it’s a service notification, marketing campaign, or customer support exchange.
Akinbulejo Onabolu, Head of Enterprise Segment at MTN Nigeria, articulated the vision: “CPaaS gives enterprises the flexibility to interact with their customers on their preferred platforms; whether it’s chat, voice, or messaging, in a way that feels personal and immediate. We’re looking forward to the value this will unlock for businesses across industries once it launches.”
The fireside chat added depth to the conversation, with Omowunmi Olatunbosun, Head of SME Segment at MTN Nigeria, and Stephen Agbi of Bayobab, highlighting how digital engagement bridges the gap between businesses and audiences. They emphasised that today’s consumers demand immediacy, relevance, and ease, qualities that CPaaS is built to deliver.
The stakes for digital transformation in Nigeria are high. In a report by Punch, the country’s enterprise tech market is projected to reach $22 billion by 2027, reflecting a surge in demand for scalable, cloud-based solutions that drive efficiency and customer loyalty.
The CPAAS Acceleration Alliance have estimated that globally, the CPaaS market is expected to grow from $14.7 billion in 2025 to $72.4 billion by 2035, at a compound annual growth rate of 18.4%, a testament to the platform’s transformative potential.
The event’s closing keynote from META’s Korhan Yunak reinforced the strategic value of digital channels like WhatsApp, which are now indispensable for business communication and engagement at scale.
As MTN Nigeria prepares for the Q3 2025 launch, the anticipation is unmistakable. With its promise of flexibility, intelligence, and seamless integration, MTN’s CPaaS platform is set to become the backbone of next-generation business-customer engagement in Nigeria, enabling enterprises to not just communicate but to connect, adapt, and grow in a digital-first era.
Nigerian Communications Commission (NCC) and Rural Electrification Agency (REA) have teamed up to develop an initiative that will reduce the $350 million annual spending on diesel by telecom operators in Nigeria.
According to a press statement by Nnenna Ukoha, acting had of Public Affairs, NCC, this collaboration will focus on deploying renewable energy solutions to support telecom infrastructure, particularly in rural and underserved areas.
To that end, the two agencies have inaugurated what they called NCC–REA Collaboration Committee, aimed at deploying renewable energy solutions to power telecom infrastructure across the country.
According to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation, telecom operators in Nigeria consume more than 40 million litres of diesel every month, costing them over $350 million annually.
The statement read, “The Nigerian Communications Commission has formally inaugurated the NCC–REA Collaboration Committee, marking a pivotal step towards advancing Nigeria’s digital and energy inclusion objectives by developing modalities for the deployment of renewable energy to support telecom infrastructure in Nigeria.”
The inauguration ceremony, held on Friday, at the NCC Headquarters in Abuja, was presided over by Dr Aminu Maida, executive vice chairman and chief executive officer, NCC.
Maida was joined by Abba Aliyu, managing director of the REA, along with senior executives and committee members from both organisations.
Speaking at the event, Maida described the collaboration as a timely and strategic alignment of national priorities.
He noted that bridging the connectivity and power gaps in rural areas remains critical for Nigeria’s growth and development.
He highlighted that the demand for digital services and connected communities creates an opportunity for renewable energy to play a crucial role.
Maida further emphasised that the partnership goes beyond infrastructure; it is aimed at driving inclusion, reducing inequalities, and fostering shared prosperity.
“Whether it is powering a base station or enabling a child to access digital learning, this partnership has the potential to transform realities and bring opportunity closer to the people.
“This initiative is about more than infrastructure, it is about driving inclusion, bridging inequalities and creating the conditions for shared prosperity,” he was quoted in the statement.
He also noted that the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to ensure no community is left behind in Nigeria’s energy and digital transformation.
Aliyu, representing REA, expressed confidence in the transformative potential of the collaboration.
“This partnership will unlock sustainable development opportunities for millions of Nigerians, especially those in areas lacking traditional infrastructure,” he said.
He further emphasised that the collaboration would address both energy and connectivity gaps, benefiting those who are currently underserved.
The newly established NCC-REA Collaboration Committee will work to co-develop and implement integrated solutions that leverage renewable energy to power telecom sites.
The statement noted that the committee will also focus on sharing geospatial data to improve planning, aligning funding frameworks, and tracking the socio-economic impact of the project through clear performance indicators.
MTN Nigeria Communications Plc has announced the execution of a national roaming agreement with Emerging Markets Telecommunications Services Limited (9Mobile), a move that signals a major milestone in Nigeria’s telecommunications landscape.
The Nigerian Communications Commission (NCC), the industry’s regulatory authority, has approved the three-year deal, which allows 9Mobile subscribers to roam seamlessly on MTN Nigeria’s extensive network infrastructure across the country.
The agreement, effective immediately, will significantly enhance connectivity and user experience for 9Mobile customers, particularly in areas where its network coverage is limited.
By leveraging MTN’s expansive infrastructure, 9Mobile can now offer improved service reach and reliability, without duplicating capital-intensive investments in network deployment.
In a notice to the Nigerian Exchange Limited and the investing public, MTN Nigeria described the arrangement as a strategic collaboration that underscores its leadership in fostering innovation, industry cooperation, and operational efficiency.
The company emphasized that the initiative aligns with the NCC’s broader objective of promoting infrastructure sharing to improve telecommunications services nationwide.
“This agreement represents a significant step in our commitment to driving industry collaboration, improving customer experience, and supporting the NCC’s vision of a fully connected Nigeria,” said Karl Toriola, chief executive officer, MTN Nigeria.
“Delivering the scale required for telecommunications services in Nigeria requires strong collaboration between the private sector, public sector, and long-term investors. This agreement demonstrates what we can achieve when we collaborate, and we are delighted to announce it today after months of groundwork.”The national roaming deal enables subscribers from 9Mobile to access voice and data services through MTN’s network in areas where the former lacks adequate coverage.
This marks the first such large-scale, cross-network roaming arrangement between two major operators in Nigeria, setting a precedent for future cooperative efforts in the telecom industry.
MTN Nigeria highlighted that the agreement contributes to more effective use of telecommunications resources, reduces infrastructure duplication, and accelerates the expansion of mobile broadband access across underserved regions.
It also supports both operators’ sustainability objectives by maximizing existing investments and reducing the environmental impact of deploying overlapping network facilities.
“This strategic collaboration is yet another first in the country by MTN Nigeria and marks a significant milestone for the sustainability of the telecommunications industry,” the company stated.
“By enabling national roaming, MTN Nigeria is contributing to a more effective use of telecommunications resources and accelerating efforts to expand connectivity across the country.”
The agreement is expected to benefit not just subscribers and operators but also regulators and investors who have consistently advocated for policies that promote shared infrastructure and efficient capital utilization in Nigeria’s digital economy.
Uto Ukpanah, company secretary, MTN Nigeria, affirmed the company’s ongoing dedication to initiatives that create shared value.
“MTN remains committed to fostering innovation and partnerships that create sustainable value for all stakeholders while promoting digital and financial inclusion nationwide,” she noted.
With the successful rollout of this agreement, the telecoms industry is expected to see improved service delivery and expanded access to quality mobile services, especially in rural and semi-urban communities. The collaboration sets a benchmark for future inter-operator partnerships and reinforces the importance of regulatory support in advancing national connectivity goals.
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