Telecom
Telecom Subscribers Spend N335.94Bn on Calls, SMS, Data in May
Telecommunications consumers in the country spent some N335.94 billion in May, according to findings by Business A.M.
In arriving at the figures, Business A.M, estimated that each active telephone line averagely spent N1, 747.26 ($4.50) during the month.
Similarly, total active telephone lines in the country increased to 192.27 million in May, rising by additional 1.46 million lines from April’s record of 190.81 million, according to the latest industry statistics obtained from the Nigerian Communications Commission (NCC).
As active subscriptions increased, so also did the Average Revenue per User (ARPU), which is a measure used primarily by consumer communications, digital media, and networking companies, as the total revenue divided by the number of subscribers.
The upward movement has been observed in two consecutive quarters as ARPU went up by 20 per cent to hit $4.25 in Q1, 2020 from $3.87 in Q4 of 2019; and sustained to settle at $4.50 in Q2, 2020.
This is in contrast to the conventional trend whereby rise in the number of active lines often distributes estimated revenue to total subscriptions and thus trigger contraction in ARPU.
Recall that industry observers had earlier projected increase in revenue for telecoms operators as lockdown and social distancing employed as preventive measures for COVID-19 have kept people at home and forced enterprises to divert operations and activities to the virtual space, resulting in more reliance on data and telephony in its entirety.
This has been supported by disclosure by Muahamed Rudman, chief executive officer of the Nigerian Internet Exchange Point (iXPN) who reported more than 10 per cent in internet traffic less than two weeks into lockdown in Nigeria.
As this development seems to ignite insinuations that operators are cashing in big on the development and that active telephone lines are rising, industry experts have been quick to call for a critical digestion of the figures.
Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), has cautioned that the figures must not be celebrated yet, hinting that the observed rise in revenue is claimed by just a few operators, leaving the majority of other telecoms players on the other side of the divide.
He noted that only the Mobile Network Operators (MNOs) consisting of MTN, Glo, Airtel and 9Mobile and just a few others have their operations immune to the pandemic.
He said there are many other ATCON members who provide enterprise solutions for companies that are now under locks, and thus losing money to the lull on a daily basis.
He said: “We have to note that obviously, the industry is not just made up of the MNOs alone, there are other players in the market that have had to demonstrate negative numbers
“Negative numbers in the sense that, during the lockdown, employees of enterprises and businesses have stayed at home naturally. So, there have been no services to these enterprises by our members. So we can say this contributed to the change in consumer behaviour in terms of internet usage.
“However, as these slightly uplifted the numbers, they do not compensate for the losses in voice and they do not compensate for the losses in the enterprise segment of the market,” Teniola explained.
This is further supported by data from the industry regulator, NCC, showing that of the current 192.27 million active lines, the MNOs or GSM operators have 190.48 million subscribers on their networks, representing 99.82 per cent market share.
Other players by technology are Voice over Internet Protocol (VoIP) players controlling 0.12 per cent market share; the fixed wireless and wired operators have 0.06 per cent while code division multiple access (CDMA) have completely lost relevance in the Nigerian telecoms market, with 0.0 per cent market share.
In the GSM segment of the market, MTN Nigeria is leading with 76.06 million active lines on its network, which translates to 39.61 per cent market share, followed by Globacom that has 52.06 million customers on its network to cover 27.12 per cent of the Nigerian market.
Similarly, Airtel Nigeria, which remains the closest competitor to Glo serves 51.5 million subscribers on its network, equivalent to 26.83 per cent share while Emerging Market Telecommunications Service (EMTS), operating as 9Mobile in the country, controls 6.37 per cent market share with its remaining 12.23 million subscriptions.
Meanwhile, Visafone, whose subscribers now run on MTN network but captured separately in the NCC data had 137,086 active subscriptions as at May, and this secured for it 0.07 per cent, the smallest market share.
Analysis of trends in telecoms market also shows a sustained uptick in the number of active lines which grew from 184.7 million in December 2019 to 186.02 million in January, 187.44 million in February and 189.28 million to seal the first quarter in March.
The figure moved up again in April by 0.81 one per cent as 1.53 million new subscriptions were recorded on the networks of operators, extending the growth in May by 0.77 per cent with 1.46 million new subscribers.
Similarly, teledensity which stood at 99.96 per cent in April inched up to surpass 100 marks at 100.72 per cent.
Telephone density or teledensity is the number of telephone connections for every hundred individuals living within an area and is calculated based on a population estimate of 190 million people in Nigeria.
The latest rise in teledensity, according to the ATCON president, Teniola, indicates that something is not right with network distribution patterns in Nigeria, noting that despite the rise in the figures, millions of Nigerians, particularly in rural areas still lack access to telecoms services.
He said: “If you look at the increase in subscriptions, you will see that existing customers are picking up other new lines in addition to the ones they have to ensure that they can enjoy many offers and partake in virtual meetings and so on since the COVID-19 lockdown.
“The teledensity is above 100 per cent and anything above 100 per cent suggests saturation of accounts, network coverage and usage. Basically, concentration of services is in the triangular cities of Lagos, Abuja and Port Harcourt. But we have to think about those who don’t have access to services at all.
“The narrative around the number suggests that there are a lot of people who have access and can afford cost of data but they are concentrated, particularly in those cities of the country where penetration of broadband is, predominantly Lagos which takes about 15 per cent of the country’s current 40 per cent broadband penetration by subscription, and not by individual,” he explained.
As he cited the issue of young Nigerians who cannot access education online because of lack of access and affordability, he said solving the problem will depend primarily on expanding the service to them.
“I think that what we need to do is to look at the Nigeria National Broadband Plan (2020-2025) and see those areas that we really need to plug in to get a diminutive unique subscriber number that reflects the GDP increase that we are expecting in the country,” Teniola concluded.
Nigerian Communications Commission (NCC) has blamed the actions of the National Oil and Gas Suppliers Association (NOGASA), for the recent telecom blackout experienced in the Abuja area.
NCC
A statement issued on Friday by the Head, Public Relations, NCC, Mrs. Nnenna Ukoha, while acknowledging the challenges and impact of the degraded Quality of Service (QoS) in the area on subscriber experience, stated: “The challenges are a result of the activities of the National Oil and Gas Suppliers Association (NOGASA), which disrupted diesel supplies to sites with the attendant telecommunications services outages in Abuja.”
She however disclosed that the telecommunications sector regulator is committed to ensuring restoration of seamless communication services to the affected area, and all Nigerians at large, and recognizes the importance of reliable power supply for the provision of optimal telecommunication services.
“The Commission is collaborating with major stakeholders and licensees to address these challenges, largely caused by disruption to diesel supply affecting IHS Nigeria Limited, the colocation provider responsible for powering Airtel and MTN base stations in the affected areas.
“The NCC is actively engaging with relevant stakeholders to address the diesel supply issues and explore sustainable solutions.
“The Commission urges all parties to work together to collaboratively resolve these challenges swiftly by removing the diesel supply bottlenecks affecting critical telecommunications infrastructure, arising from NOGASA’s actions.
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“In the face of these challenges, we reiterate our commitment to fostering a conducive environment for the growth and sustainability of telecommunications services in Nigeria.
“We are taking proactive steps to facilitate dialogues between the impacted service providers and other stakeholders to promptly resolve the diesel supply concerns that have negatively impacted service quality.”
While assuring that the Commission remains dedicated to effectively managing the situation and will keep the public updated on progress towards restoring full telecommunication services in Abuja, Mrs. Ukoha appreciated subscribers for their patience.
“We thank telecommunications subscribers for their understanding and patience during this period and reaffirm our commitment to delivering high-quality telecommunications services nationwide,” she said.
Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.
Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA)
This is contained in a press statement e-authored by the Director of Corporate Communications & External Relations at NITDA, Hajia Hadiza Umar.
Speaking at the Kano Startup Weekend, Mallam Abdullahi acknowledged Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provided a solid foundation for future growth.
Abdullahi emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offered even greater opportunities through innovation and technology.
He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas were effectively deployed, they created value, solved societal challenges and generated sustainable economic growth.
He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture placed it in a strong position to take advantage of innovation-driven opportunities.
According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”
He noted that the state hosted numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development.
However, the NITDA DG expressed concern that these institutions often operated in isolation from industry, with research outputs rarely translating into commercial or industrial applications.
He explained that innovation did not happen in silos and stressed the need for a strong, interconnected ecosystem that brought together academia, industry, startups, entrepreneurs and government.
According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converted ideas into market-ready solutions.
The NITDA boss further encouraged entrepreneurs to leverage technology to build businesses that could grow beyond local markets, explaining that innovation-driven enterprises had the power to scale rapidly, create jobs and position Kano competitively at both national and global levels.
According to him, digital platforms and emerging technologies now made it easier for startups to reach wider markets and develop solutions that were previously unimaginable.
“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.
Highlighting NITDA’s ongoing interventions, its Director-General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes.
He cited the Digital Literacy for All (DL4ALL) initiative, which aimed to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.
He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”
Abdullahi explained that these programmes were key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritised skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity.
According to him, empowering Nigerians with digital and technical skills was essential for building a resilient economy capable of competing in the global digital landscape.
“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth.
“At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.
The NITDA boss urged all stakeholders in Kano to work together to build a functional innovation ecosystem that could unlock the state’s vast potential and expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano could reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.
Bosun Tijani, minister of Communications, Innovation and Digital Economy, yesterday claimed that bandits and terrorists are able to communicate and coordinate their activities with ease because they exploit gaps in the country’s telecommunications network.
Bosun Tijani, minister of Communications, Innovation and Digital Economy,
Tijani, who spoke Politics Today, a Channels Television’s programme, on Friday, Tijani said the criminals exploit gaps in the country’s telecommunications network.
He also claimed the bandits use advanced technology to bounce calls across multiple towers in areas with poor connectivity.
“They weren’t using the normal towers; they bounced calls off multiple towers, which is why they favor areas that are largely unconnected,” he said.
When asked about reports that unregistered or fraudulently registered SIM cards are still in use despite the Bank Verification Number (BVN) and the National Identification Number (NIN)–Subscriber Identity Module linkage policies, Tijani said the issue is technically complex and the reports are not fully verified.
“Whether it’s fact or not, I do not know where you’re getting that from, and I do not know who has evidence that there are people with unregistered SIMs,” he added.
The minister stated that the federal government is investing in telecom towers in underserved regions, upgrading the country’s communication satellites to improve coverage, and expanding fiber-optic networks to strengthen the country’s digital infrastructure.
“If our towers are not working, our satellites will work. Nigeria is the only country in West Africa with communication satellites, and we are bringing new satellites to upgrade their capabilities,” Tijani said.
He added that these initiatives aim to ensure better connectivity for Nigerians while closing loopholes that criminals exploit, thereby enhancing national security.
The minister’s comments come amid rising concerns over insecurity in several parts of the North, where banditry, kidnapping, and terrorism have escalated in recent years.
There are also reports of bandits flaunting ransom payments on social media platforms such as TikTok, raising alarm among authorities and the public
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