Telecom
Ovum Says Communications Industry Capex Favours ICPs

Communications industry capex is shifting rapidly to favor Internet content providers (ICPs) such as Google, Apple, and Facebook as traditional telcos tighten their capex budgets in the face of weak revenues, according to global analyst firm Ovum.
According to a new forecast from Ovum, ICP capex grew from US$23bn in 2008 to US$46bn in 2013, and it will grow well over the US$100bn mark by 2019.
ICPs are starting to spend heavily on their networks, particularly on data centers and cloud infrastructure.
Telcos, aka communications service providers (CSPs), are likely to keep capex largely flat over the next several years, from the (approximate) 2014 level of US$340bn.
That’s partly because revenue growth for the CSPs is hovering at around 2% per year, limiting their network investment options.
Matt Walker, Ovum principal analyst and report author, noted that ICPs are recording much stronger revenue growth, and some, notably Google, spend more of their revenues on capex than typical large CSPs.
“Ubiquitous broadband and user-friendly fixed and mobile access devices have changed the telecom industry dramatically. Enormous new value is being created by the new business models, apps, and service platforms now available to end users, many enabled by ICPs.”
However, Walker noted, this transition is not easy for many industry players, especially large CSPs, forcing them to tightly control network spending. To compete with the adjacent market ICPs, they need to explore partnerships, leverage start-ups and ecosystems for innovation, consider a broader range of suppliers, and look realistically at what M&A could accomplish to improve their strategic positioning.
Even as ICP capex spikes, CSPs will dominate network infrastructure markets for many years to come.
By 2019, fixed and mobile CSPs will still account for 29% and 44%, respectively, of total communications provider capex, while ICPs will likely reach 24% of total capex.
Carrier-neutral providers (CNPs), mainly tower and data center specialist providers such as Crown Castle and Equinix, will chip in another 3%.
While small spenders, CNPs are playing a crucial role in the overall functioning of the world’s networks, Walker said.
CSPs are raising cash by spinning off tower assets to cell tower CNPs, for instance, and relying more on these specialists for incremental tower coverage.
Data center–focused CNPs are also carving out a strong niche, providing multitenant data center space to CSPs, ICPs, and enterprises.
Like companies in other network industries, CSPs have to spend heavily on their networks for both growth and basic maintenance.
Upgrading networks with new technology to support a lower cost base, new features, or better performance will continue to be part of CSPs’ annual planning.
A tight revenue climate puts a ceiling on capex growth, but capex levels will remain high. Walker concluded, “CSPs that fail to maintain their networks, upgrade to meet the competition, and deploy new services will simply fail in the marketplace.”
The report analyzes Ovum’s capex forecast for communications service providers (CSPs), Internet content providers (ICPs), and carrier-neutral providers (CNPs).
Total spending was US$2.1 trillion over the 2008–13 period; for 2014–19 we forecast spending of US$2.6 trillion, with growth driven largely by the ICPs.
With a shift in relative spending will come a shift in industry influence.
Ovum is a leading global technology research and advisory firm.
Through its 180 analysts worldwide it offers expert analysis and strategic insight across the IT, telecoms, and media industries.
Founded in 1985, Ovum has one of the most experienced analyst teams in the industry and is a respected source of guidance for technology business leaders, CIOs, vendors, service providers, and regulators looking for comprehensive, accurate, and insightful market data, research, and consulting.
With 23 offices across six continents, Ovum offers a truly global perspective on technology and media markets and provides thousands of clients with insight including workflow tools, forecasts, surveys, market assessments, technology audits, and opinion.
In 2012, Ovum was jointly named Global Analyst Firm of the Year by the IIAR.
In addition, Ovum operates a large portfolio of technology conferences annually in Europe under the OvumLive events brand, presenting a more interactive opportunity to learn from its analysts. Its flagship event – Ovum Industry Congress – attracts over 300 end-user attendees every year.
Ovum is a division of Informa plc, one of the leading business and academic publishing and event organisers globally, headquartered in London. Informa is quoted on the London Stock Exchange.
Telecom
Reps Approve NCC’s N479.508Bn Budget for 2026

House of Representatives, during Tuesday’s plenary, approved the sum of N479.508 billion budget for the Nigerian Communications Commission (NCC) for the 2026 fiscal year.

The resolution was passed after the clause-by-clause consideration of the report at the Committee of Supply.
While giving synopsis of the report, Peter Akpatason, chairman, House Committee on Communications, explained that the total sum of N479,508,260,000 is to be issued from the Statutory Revenue Fund of the Nigerian Communications Commission.
Out of the issued sum, N124,440,652,000 is meant for Recurrent Expenditure; N26,779,045,000 is for Capital Expenditure; N32,011,492,000 is for Special Projects, while the sum of N20 billion is for Transfer to Universal Service Provision Fund (USPF), N276,277,071,000 is for Transfer to Federal Government for the financial year ending 31st December, 2026.
Telecom
NCAN Commends NCC for Mandating Telcos to Compensate Subscribers for Poor Services

National Consumers Advocacy Network (NCAN), a consumer advocacy group focused on protecting the rights of consumers, has commended the Nigerian Communications Commission (NCC),for introducing a policy compelling telecom operators to compensate subscribers for poor network service.

In a statement issued on Tuesday and signed by Dr Tobi Olanrewaju, its president, the group described the directive as a bold and consumer-focused intervention.
The group noted that the move, which has already seen major telecom operators begin compensating subscribers with airtime credits, marks a shift from what it described as regulatory leniency to measurable accountability.
“For years, Nigerian telecom subscribers have endured suboptimal service quality with little or no consequence for operators,” the statement read.
“What we are witnessing under Dr Aminu Maida is a clear assertion that regulatory oversight must translate into tangible benefits for consumers. This is not merely about compensation; it is about restoring trust in the system.”
According to Olanrewaju, the policy’s provision for automatic compensation without requiring subscribers to lodge complaints demonstrates a strong understanding of the challenges faced by many Nigerians.
“This intervention acknowledges a fundamental principle that the burden of service failure should not rest on the consumer,” he said.
He added that linking compensation directly to actual service disruptions at the local level sets a new standard in regulatory practice.
The group also praised the Commission’s decision to monitor service quality at the Local Government Area level, describing it as a step towards capturing real user experiences rather than relying on general national data.
Olanrewaju further commended the Commission’s simultaneous push for telecom operators to invest in network upgrades, noting that the approach addresses both immediate and long-term concerns.
“While consumers receive immediate value for past deficiencies, the root causes of poor service are being systematically addressed,” he said.
The advocacy group urged telecom operators to embrace the directive as an opportunity to rebuild consumer trust and improve service delivery.
It also called on other regulatory agencies to adopt similar people-centred approaches in tackling systemic challenges across sectors.
“Dr Maida has demonstrated that regulation, when properly executed, can serve as a powerful tool for social and economic justice,” Olanrewaju added.
The group reaffirmed its support for the Commission’s ongoing reforms and called for sustained collaboration between regulators, operators, and consumers.
It added that the true success of the policy would be measured by lasting improvements in network performance across the country.
Telecom
Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

Telecommunications operators in Nigeria have reportedly recovered over N2 trillion from subscribers in a sweeping debt recovery campaign that has left millions unable to make calls due to unpaid airtime and data loans.

The aggressive enforcement follows new compliance requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC), which telecom operators reportedly failed to meet, according to The News Chronicle.
This led to the suspension of airtime and data lending services and triggered a nationwide push to recover outstanding debts.
As part of the measures, indebted subscribers have had their lines restricted from making calls until their loans are fully repaid.
The move has disrupted daily life across Nigeria, particularly for small business owners and workers who depend heavily on mobile connectivity.
The lending service, valued at over N400 billion annually, has long served as a financial lifeline for many Nigerians, especially those without access to formal credit systems.
However, its sudden suspension has forced users to seek alternative means to clear their debts or abandon their lines altogether.
Meanwhile, a legal dispute involving Nairtime Nigeria Limited has added another layer of complexity.
A Federal High Court in Abuja recently ordered MTN Nigeria and Airtel Nigeria to maintain access to key telecom infrastructure, including USSD and SMS services linked to the platform.
Despite the court’s interim injunction, lending services tied to the platform remain unavailable, indicating ongoing tensions between telecom providers, regulators, and fintech firms.
Industry stakeholders warn that the disruption highlights deeper challenges within Nigeria’s digital economy, where telecom infrastructure increasingly supports financial services.
Millions of users who rely on airtime and data borrowing remain disconnected, caught between regulatory policies, corporate disputes, and the need for affordable communication.
As pressure mounts, both regulators and telecom operators are expected to seek a resolution that balances consumer protection with uninterrupted access to essential digital services.
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