Telecom
GSMA Study Finds Over 600,000 First-Timers Go Online Daily
The GSMA has published a new report examining the structure, economic drivers and financial performance of the global internet economy and its respective segments.
“The Internet Value Chain,” developed by A.T. Kearney for the GSMA, assesses how the internet ecosystem has developed, the impact on mobile network operators and how market positions of major players have shifted. The research provides a factual baseline that operators, policymakers and stakeholders can use to assess the opportunities, competitive dynamics and overall health of the internet ecosystem.
“Each day, more than 600,000 people go online for the first time, supported by a highly interdependent ecosystem of companies including mobile operators,” said John Giusti, Chief Regulatory Officer, GSMA. “This study yields a wealth of insights about the evolving nature of the internet and the companies that, together, drive it.”
Key Findings of the Changing Internet Value Chain for the Mobile Sector
The report presents an insightful view into the development of the internet over the past five years. In particular, the study highlights key implications of these changes for the mobile sector:
The value created by the internet ecosystem is increasingly captured by online service providers.
In 2015, online services captured nearly half of the revenues of the entire internet ecosystem (47 per cent, EUR 1.4 trillion). Amongst these, a few powerful players are expanding their influence across the internet ecosystem by acquiring players in other segments.
Although internet connectivity revenue is growing, the proportion of value captured by connectivity players is declining.
Connectivity revenue grew from EUR 199 billion in 2008 to EUR 508 billion in 2015, but this represents a smaller share of the of the total internet value chain, declining from 18 per cent to 17 per cent, with a continued slide to 14 per cent expected by 2020.
For mobile network operators, connectivity revenues generated by increased internet use are not offsetting the decline in revenues from traditional communication services, and mobile data revenues are also forecast to grow at a lower rate than the growth of other segments.
These trends pose challenges for investment in mobile networks that support the growth of the internet ecosystem.
The internet ecosystem is maturing. Innovation and technical development still proceed at pace, but the largest players in any given segment deliver higher returns and profit margins. They have secured their leadership position and fewer new players are achieving scale. Eleven of the top 15 US websites visited by users in 2009, for example, were still among the top 15 in 2015.
Implications for Policy and Corporate Strategy
Drawing on its findings about the changing dynamics of the internet value chain, the report highlights key implications for corporate actors and policymakers:
Interdependencies between segments of the value chain are powerful and complex. Decisions based on a narrow view could be seriously flawed, either for a company that may miss broader competitive threats, or for a regulator misjudging the true nature of the competitive dynamics.
The changed landscape requires a holistic policy framework. While the internet has transformed sectors and boosted productivity at a global level, its impact can be different at a national or sectorial level.
A holistic policy framework that recognises the changed competitive landscape, broader and multi-sided markets and dynamism of digital ecosystems is required.
More debate on aspects of competition policy across the internet value chain is required. Strong concentration of returns and the inflows of capital to a few internet segments, the increasing influence of few internet entities through their portfolio approach and the changed competition dynamics indicate the need for debate on the future competition policy framework.
“Connectivity is at the heart of the digital ecosystem, but policy and regulatory frameworks have not been modernised to reflect these new market dynamics brought about by the internet,” continued Giusti. “We hope this study will be a useful input at a time when policymakers are thinking about the policy implications of the digital ecosystem, and we encourage them to remove unnecessary regulation to foster innovation and drive consumer benefits.”
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 250 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai and the Mobile 360 Series conferences.
MTN Nigeria has marked 25 years of commercial operations, with Karl Toriola, chief executive officer, saying the company began operating in the country at a time when telecommunications access was severely limited.
Toriola said that a quarter of a century ago, making a phone call was a privilege few Nigerians could afford.
People queued at public telephone booths and centres, travelled long distances to deliver messages, and sometimes waited weeks for letters to arrive, he said, noting that a mobile phone was then beyond the reach of most.
Today, the company connects more than 90 million people across Nigeria, a figure MTN says reflects its role in building the infrastructure behind the country’s shift to a data-driven economy.
MTN entered Nigeria in 2001 following the GSM liberalisation carried out by the Nigerian Communications Commission (NCC), at a time when mobile telephony was still a luxury reserved for a privileged few.
Toriola said the milestone was about more than subscriber numbers.
Businesses have been built, families have stayed connected across distances, students have gained access to knowledge, and creators have found audiences beyond Nigeria’s borders, he said, crediting the wider telecommunications ecosystem for enabling entire new industries to emerge.
The company also pointed to its role beyond direct connectivity.
MTN has helped build a wider value chain of SIM registration agents, tower contractors, retail distributors, fintech partners and digital developers that now supports millions of livelihoods in Nigeria.
Toriola thanked MTN Nigeria’s customers, saying their trust had allowed the company to expand its community investments through the MTN Foundation, which has supported health, education, youth development and economic empowerment programmes.
Looking ahead, the CEO acknowledged that significant connectivity gaps remain, with millions of Nigerians still needing access to reliable, affordable and inclusive digital services.
He said greater digital inclusion would be a central priority for the company’s next chapter, adding that the anniversary marks both a celebration of the past 25 years and a renewed push to expand digital access for the country’s young and growing population.
“We’ve come a long way. And we are only getting started,” Toriola said.
The anniversary comes as MTN Nigeria continues to navigate rising operating costs tied to Nigeria’s unreliable power supply.
Where the national grid is unreliable, the company and its infrastructure partners have had to rely on diesel generators, batteries, solar systems and other backup power solutions, making network operating costs highly sensitive to fluctuations in diesel prices.
Telecommunications subscribers under the umbrella of the National Association of Telecoms Subscribers (NATCOMS), has handed telecommunications operators in the country September deadline to improve network quality or face legal action.
Deolu Ogunbanjo, president, NATCOMS, said that subscribers have endured deteriorating network services despite repeated interventions, warnings, and sanctions by the Nigerian Communications Commission (NCC).
As reported by BusinessDay, Ogunbanjo, noted that if the situation fails to improve through regulatory intervention, NATCOMS will seek justice through the courts by the end of the third quarter.
The ultimatum comes as rising data consumption, subscriber migration, and growing demand for mobile services place severe pressure on network infrastructure across parts of the country.
The NCC stated that mobile operators have offered compensation to more than 75 million subscribers for poor network quality following a regulatory directive requiring restitution in locations where performance fell below required standards.
The regulator is conducting an independent review to determine whether all eligible subscribers received proper compensation.
The compensation scheme, provided through automatic airtime credits for verified service failures dating back to November 2025, requires no individual claims from consumers.
For many subscribers, however, airtime credits do little to offset the broader economic and personal toll of unreliable connectivity.
Emeka Douglas, a subscriber, recounted how poor network quality nearly turned a medical emergency into a tragedy when he was unable to transfer funds to a hospital during his wife’s surgery.
Douglas noted that his brother in the United States eventually sent funds directly to the hospital’s account after local banking channels failed.
Janet Okoye, a small business owner, said unreliable connectivity severely affected her business after service disruptions on her Airtel and Globacom lines led clients to cancel orders.
Teniola Adeyemi, a university student, highlighted dropped calls as a major concern, stressing that recent tariff increases ought to reflect in better service quality.
Grace Eze, an Abuja-based media professional, explained that fluctuating network connectivity once delayed a lead news story intended for her editor in Lagos, resulting in an official query over late submission.
Pressure on national networks is driven by both expanding subscriber numbers and rising usage intensity.
Active telephony subscriptions in Nigeria rose from 182.2 million in January 2026 to over 187 million by April, according to NCC data. MTN leads the market with 96.4 million subscriptions, followed by Airtel with 64.7 million and Globacom with 23.2 million.
Telecom
ipNX Collaborates with ICT Stakeholders on the Future of Fibre-to-the-Home in Nigeria @ ATCON Forum
ipNX Nigeria joined other stakeholders across the telecommunications ecosystem as they convened at the Association of Telecommunications Companies of Nigeria (ATCON) Critical Conversation Forum on Fibre-to-the-Home (FTTH) to deliberate on practical solutions to the challenges affecting broadband infrastructure deployment and the future of fibre connectivity in the country.
The forum, themed “Fibre to the Home in Nigeria: Addressing Challenges, Strengthening Standards and Ensuring Sustainable Deployment,” was held at the Radisson Blu Hotel, Lagos, and brought together representatives from government agencies, telecommunications operators, regulators, infrastructure providers, industry associations, and the media to foster dialogue around policies and collaborative actions needed to accelerate Nigeria’s broadband ambition.
Delivering the keynote address virtually, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, described Fibre-to-the-Home as a critical enabler of Nigeria’s digital future.
“FTTH is uniquely positioned to meet Nigerians’ next phase of data demand. The quality of our broadband will increasingly shape the competitiveness of our businesses, the growth of our digital industry and the opportunities available to our citizens,” he said.
Dr. Maida also stressed the importance of protecting telecommunications infrastructure, noting that damage to fibre networks carries significant economic consequences.
“We must uphold deployment standards. Nigeria needs fibre that is properly installed, properly documented, and properly protected.”
Speaking during the opening session, ATCON President, Mr. Tony Emoekpere, underscored the strategic importance of FTTH in achieving Nigeria’s broadband penetration targets while calling for greater public awareness around protecting communications infrastructure.
“This forum is critical because Fibre-to-the-Home is the technology that will enable the country to achieve full broadband penetration. We all depend on communication infrastructure, and it must be protected.”
Drawing a comparison with power infrastructure in the country, he added:
“If somebody comes to your neighbourhood to tamper with your transformer or power cables, everybody will come out. The same thing needs to apply for communications infrastructure. When we see people damaging fibre cables, we should raise an alarm.”
The forum also highlighted successful collaborative initiatives at the state level. Speaking on infrastructure management, Director-General of the Oyo State Infrastructure Management and Control Agency (OYSIMCA), Mr. Adebayo Akande, shared how the agency is addressing fibre theft, vandalism, and promoting shared infrastructure among operators.
He explained that encouraging operators to utilise common pole infrastructure along shared routes would reduce unnecessary duplication, minimise infrastructure damage, improve urban aesthetics, and optimise investment across the sector.
Similarly, Managing Director of the Edo State Information and Communication Technology Agency (ICTA), Mr. Eghosa Urhoghide, advocated stronger collaboration among operators, regulators, government institutions, road maintenance agencies, and host communities.
He emphasised that strict adherence to NCC deployment standards remains essential to ensuring the long-term sustainability and resilience of Nigeria’s telecommunications infrastructure.
Representing ipNX on the panel discussion titled “Policy, Governance and Regulatory Alignment,” Mr. Segun Okuneye, Deputy Director, Strategic Business Initiatives, highlighted the need for stronger collaboration across the telecommunications ecosystem to unlock the full potential of fibre broadband in Nigeria.
According to him, sustainable fibre deployment extends beyond technology and investment to include policy consistency, stakeholder alignment, infrastructure protection, and shared responsibility.
“Achieving universal fibre connectivity requires more than deploying infrastructure, it requires sustained collaboration between operators, regulators, government agencies and host communities.
“When policies are aligned, deployment standards are consistently enforced, and critical infrastructure is protected, we create an environment where investment thrives and more Nigerians can enjoy reliable, high-speed broadband.
“At ipNX, we remain committed to working with all stakeholders to build resilient digital infrastructure that will support Nigeria’s economic growth for generations to come.”
Throughout the discussions, participants agreed that while Nigeria has made considerable progress in broadband expansion, addressing recurring issues such as fibre vandalism, right-of-way challenges, inconsistent deployment practices, infrastructure duplication, and limited public awareness will require stronger partnerships and coordinated industry action.
The forum concluded with a shared commitment among stakeholders to strengthen industry standards, encourage infrastructure sharing, improve policy implementation, and promote greater public appreciation of telecommunications infrastructure as critical national assets deserving of protection.
For ipNX, participation in the ATCON Critical Conversation Forum reinforces our company’s ongoing commitment to supporting industry-wide initiatives that advance broadband penetration, strengthen digital infrastructure, and accelerate Nigeria’s journey towards a more connected and digitally inclusive future.
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