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GSMA Study Highlights Changing Economics of the Digital Ecosystem

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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. T

he 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.”


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New Investment Fund Targets Acceleration of Emerging Technology in Nigeria

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The International Rescue Committee (IRC) has announced the formation of Airbel Ventures, a new humanitarian impact investing fund aimed at accelerating the introduction and scaling of breakthrough technologies in crisis-affected communities.

The fund will invest in companies whose ideas have the potential to change humanitarian response, including digital infrastructure for frontline health systems and climate-resilient agriculture.

The launch of Airbel Ventures follows a period of rapid innovation at the IRC, despite the humanitarian sector facing record funding cuts.

In the past year, the IRC’s Airbel Impact Lab has advanced more than twenty Artificial Intelligence (AI) and technology initiatives—from anticipatory action tools powered by climate and vulnerability data, to frontline service delivery using safe, orchestrated AI systems, to breakthrough diagnostic tools for emerging diseases.

Airbel Ventures’ first impact investment is in Signalytic, a company delivering solar-powered computing devices that ensure reliable electricity and connectivity for remote health facilities.

Following the investment, the IRC will pilot Signalytic’s technology with its Nigeria Health team, demonstrating the viability of next-generation digital infrastructure in humanitarian settings.

“We know breakthrough solutions already exist—what’s missing is the path to scale in humanitarian contexts,” said Dr. Jeannie Annan, Senior Vice President for Research & Innovation at the IRC and head of the Airbel Impact Lab.

 


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MTN Nigeria Suffers 9,218 Fibre Cuts in 2025 as Vandalism, Theft Cripple Network

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MTN Nigeria, the country’s largest telecommunications operator, recorded a historic surge in network disruptions in 2025, suffering 9,218 fibre cuts as of December 31, alongside 211 base station sites affected by theft and vandalism, incidents that disrupted mobile and data services relied upon daily by millions of Nigerians.

MTN Nigeria Suffers 9,218 Fibre Cuts in 2025 as Vandalism, Theft Cripple Network

The data was revealed by Dr Karl Toriola, chief executive officer/managing director, MTN Nigeria via a social media post titled ‘MTN Nigeria 2025 Wrapped’.

The scale of the damage highlights the growing vulnerability of Nigeria’s telecommunications infrastructure, which has come under increasing pressure from road construction activities, cable theft and deliberate acts of vandalism.

MTN said 5,478 fibre cuts occurred within just the first seven months of 2025, with 760 incidents recorded in July alone, underscoring the intensity of the challenge.

Some of the incidents had wide-ranging consequences, knocking out connectivity across multiple states simultaneously and affecting voice calls, data services, digital payments and enterprise operations.

The company described the situation as a national infrastructure problem, rather than an isolated corporate issue, given the economy’s deep dependence on mobile networks.

“These gaps were shaped by real operational challenges such as fibre cuts, theft, and vandalism. Their impact is felt directly by customers and reflected in what they tell us,” Toriola,

The disruptions were reflected in customer feedback volumes, as MTN handled an unprecedented number of complaints during the year. The operator said it resolved 1,624,263 customer complaints in 2025, spanning call centres, social media platforms, emails and physical service centres nationwide.

Despite the setbacks, MTN pointed to signs of operational resilience. The company retained its ranking as Nigeria’s best network by Ookla, returned to profitability after a challenging period, declared an interim dividend, and expanded its subscriber base to over 85 million users by September 2025.

The figures show that while Nigeria’s telecom operators continue to invest heavily in network expansion and customer service, infrastructure sabotage remains a major drag on service quality and operating costs.

MTN acknowledged that performance improvements remain a work in progress. “We are not where we want to be yet. We see you. We hear you. We exist because of you. And we will get better,” Toriola said.

As the company enters its 25th year of operations in Nigeria, Toriola said MTN is doubling down on customer-centricity, treating every piece of feedback as a guide for improvement, while also stepping up engagement with government agencies.

The CEO renewed calls for stronger regulatory and legal protections for telecommunications infrastructure, urging policymakers to classify fibre cables, base stations and other critical assets as national infrastructure and criminalise vandalism to deter repeat attacks.


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NCC Licences Six New ISPs to Challenge Telcos, Satellite Giants

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Nigerian Communications Commission (NCC) has granted operating licences to six new Internet Service Providers (ISPs), effective January 1, 2026, raising the total number of authorised ISPs in the country to 231 from 225 recorded in December 2025.

NCC Licences Six New ISPs to Challenge Telcos, Satellite Giants

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The newly licensed firms are Intellvision Technologies Limited, Granet Technologies Limited, Fiber Sonic Limited, Dasol Solution Services Ltd, Boost ISP Limited, and Amazon Kuiper Nigeria Limited.

Five of these companies are headquartered in Lagos, while Granet Technologies Limited operates from Owerri in Imo State, highlighting the persistent concentration of broadband infrastructure in major commercial hubs like Lagos, Abuja, and Port Harcourt.

This development intensifies competition in Nigeria’s broadband market, which faces pressure from dominant mobile network operators such as MTN and Airtel, alongside rapid expansion by satellite providers like Starlink.

Traditional ISPs continue to grapple with shrinking customer bases, aggressive data pricing from telcos, and satellite disruptions, even as NCC data from Q2 2025 showed Spectranet, Starlink, and FibreOne controlling about 65 per cent of the 313,713 active ISP subscribers.

The inclusion of Amazon Kuiper Nigeria Limited marks a significant entry of global satellite broadband competition, building on Nigeria’s recent approvals for other low Earth orbit providers to enhance connectivity in underserved areas.

Industry analysts view the licences as a strategic push to improve internet quality amid rising demand for digital services, though geographic clustering underscores ongoing infrastructure challenges outside urban centres.

NCC’s move aligns with broader efforts to foster a competitive telecoms sector critical to Nigeria’s digital economy ambitions.


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