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Telecom

The Changing Dynamics of the Telecommunications Indust

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tolu akinluyi, Senior Manager, Accenture Nigeria
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They say the only constant in life, is change. In no other industry is this statement more relevant than in the telecommunications industry.

Over the last two centuries, mankind has taken gigantic leaps in technology, and these leaps have in turn enabled equally gigantic leaps in telecommunications.

When the telephone was invented in 1876 by Alexander Graham Bell, it was probably difficult to envision a world of mobile phones, video calls and instant messaging.

However, the development of enabling technologies such as the integrated circuit and more recently the internet, have continued to help push the boundaries of possibility in the telecoms industry.

Early telecommunications operators were setup to provide basic voice telephony services to subscribers, by ensuring that physical cables and exchanges were setup to connect various locations across the globe.

For these operators, growth simply meant investing in equipment to connect more and more people so as to provide basic telephony services.

This connectivity served as a catalyst for technological advances which in turn led to advances in the telecoms industry. This cycle of change continues to redefine the dynamics of the industry.

We are now more connected than ever before. In some countries (for example Finland and Japan), there are now more mobile subscriptions than there are people (IDG).

More people across the globe have access to a mobile phone, than have access to a toothbrush or working toilets (UN). It now takes 26 hours for the average person to report a lost wallet, but only 68 minutes for them to report a lost phone (Unisys).

A recent market analysis by Accenture has identified the six key trends which summarize the dynamics shaping the global telecoms industry today. The first of these trends is the commoditisation of core products.

The initial products and services which built up the industry continue to decline and will continue to contribute less to telecoms operators’ profits. In other words, there will be a continued migration from wire-line to wireless telecommunications. Between 2011 and 2016, the projected compounded annual growth rate (CAGR) globally of fixed line revenues is projected to be only 2% (Ovum).

The second trend is the replacement of voice traffic with data. Data usage continues to drive growth in network traffic, and this trend will only continue as technological advances help improve the quality of voice over internet protocol (VoIP) telephony. In the near future, Cisco predicts that voice will make up less than 10% of total mobile traffic.

The third trend is the evolving demands of “always-connected” customers.

Telecoms subscribers now have much higher expectations from their providers, and telecoms operators will have to provide differentiated customer service to address the needs of their subscribers, or risk losing them to rivals especially now that technology has reduced the hurdles of switching between telecoms providers.

The fourth trend shaping the industry is disruptive competition. Telecoms operators are currently facing rapid changes in the competitive landscape due to new, non-traditional players entering the industry with lower entry costs and global reach.

The rise of these over the top (OTT) players such as skype, poses a significant challenge to existing telecoms operators. For example, the total number of mobile VoIP minutes is expected to grow from 15 billion in 2010 to 471 billion in 2015 (Juniper Research). Operators will therefore need to find other revenue streams to survive.

Now that mankind has made great strides in connecting people, the next challenge is connecting “things”. The fifth trend is the creation of new services as a result of the internet of things (IoT).

A thing in IoT, is any object that can be provided with the ability to transfer data over a network. For example, a car can be provided with connectivity to alert the owner about its location and systems status.

The worldwide market for IoT solutions is expected to grow from $1.9 trillion in 2013 to $7.1 trillion in 2020 (IDC).  This trend is expected to drive growth in the telecoms industry over the next few years.

By 2027, it is estimated that emerging markets will generate two-thirds of all global telecommunications revenues. The continued explosion of demand for telecoms services in emerging markets is the sixth trend.

These six trends are just as relevant in the Nigerian context as they are globally. Over the last decade, the Nigerian telecoms industry has experienced tremendous growth.

The contribution of this industry to Nigeria’s GDP has risen from 0.3% in 2001 to 8.53% today.

However as the industry has matured, average revenue per user (ARPU) has dropped significantly, subscribers have become more demanding, and Nigerian telecoms operators have started to face the same challenges as other global operators. They must also make changes to ensure that they survive.

The changing dynamics of the telecoms industry will continue to present both challenges and opportunities to telecoms operators.

Thriving in the face of these ever changing dynamics will require operators to take a number of proactive steps.

Firstly operators must transform their businesses to become truly digital organisations, and take advantage of this to create agile and efficient operations. For example they must use real-time, predictive analytics on top of digital processes in sales, operations and decision making.

Secondly, operators must create the required partnerships and collaborations required to take advantage of existing opportunities and create efficiencies (for example active and passive network sharing could help reduce operating expenditure).

Thirdly, operators must also evaluate areas of the business (often hidden), where there exists the potential to generate additional customer value or revenue from information gathered across customer touch points.

Finally, operators must create a truly customer-centric organization – they must ensure that they understand how their customers experience their products and services (qualitatively and quantitatively), and put adequate mechanisms in place to respond accordingly.

Once thing is certain, advances in technology will continue to produce corresponding changes in the telecoms industry and vice versa.

Whilst it may be difficult to know exactly what these changes will be, it is possible for operators to identify key trends and position their businesses to benefit from them.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Telecom

MTN Mulls Establishment of Fintech Firm in Nigeria, Others

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MTN Uganda is seeking input from stakeholders on a plan to structurally separate its mobile money service, MoMo, from its core telecoms business.

According to the company, the proposed change will be discussed at the upcoming extraordinary general meeting on July 2.

If approved, the telco’s fintech business will be run by a new company controlled by MTN Group Fintech Holdings B.V. and a trust benefiting minority shareholders following a merger.

Additionally, the restructuring also aligns with MTN Group’s ambition 2025 strategy which aims to unlock value, attract new investors, and strengthen regulatory compliance by creating standalone fintech entities in Uganda, Ghana, and Nigeria.

The company’s fintech division has over 13 million customers, with an 18.4% revenue increase in the first quarter of 2025, driven by 19.0% growth in mobile money services, 19.8% growth in transaction volumes, and a 31.4% increase in transaction value.

Reports say the decision is part of the telco’s compliance with the National Payment Systems Act 2020, which mandates mobile money businesses to operate as standalone entities, and to align with MTN Group’s regional fintech strategy.

MTN Uganda, which is led by CEO Sylvia Mulinge, highlighted that the implementation of the proposed transaction will be subjected to a number of conditions and regulatory procedures.

“The implementation of the proposed transaction shall be subject to a number of conditions, including the company and MTN MoMo receiving all required regulatory approvals and no-objections and complying with any regulatory conditions,” said MTN Uganda in notice.

 


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Netflix Expands European Presence with €1 Billion Investment in Spain

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Netflix has announced plans to invest more than €1 billion in Spanish film and television productions over the next four years, reinforcing its commitment to Spain as a key creative hub in Europe.

The announcement was made by co-chief executive Ted Sarandos at an event held at Netflix’s production studios near Madrid, celebrating the company’s 10-year presence in the country.

Sarandos emphasized that the investment would contribute significantly to Spain’s economy, create jobs, and enable the streaming platform to produce more local content. He was joined by Spanish Prime Minister Pedro Sánchez in unveiling the initiative.

Netflix first established its international production studios in Madrid in 2019, following the success of the Spanish-language hit series Money Heist.

Since then, its 22,000-square-meter facility has become one of Netflix’s major production centers within the European Union.

The company currently supports over 20,000 jobs in Spain, highlighting the nation’s growing influence in global entertainment.

The investment reflects Netflix’s ongoing strategy to expand its presence in European markets through original content and local talent.


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ngCERT Issues High Alert to Nigerians Using Android Phones

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Nigeria Computer Emergency Response Team (ngCERT) has raised alarms over a new wave of advanced cyberattacks targeting Android mobile phones through a malware campaign dubbed Tria Stealer.

ngCERT Issues High Alert to Nigerians Using Android Phones

The malicious software is designed to infiltrate Android devices, hijack messaging accounts, intercept One-Time Passwords (OTPs), to steal sensitive personal and financial data.

According to ngCERT, Tria Stealer spreads primarily through deceptive tactics, such as fake event invitations distributed via popular messaging platforms like WhatsApp and Telegram.

Unsuspecting users are enticed to download an infected  (APK) file, often disguised as a harmless system application, to evade detection.

Once installed, Tria Stealer requests extensive permissions, including access to SMS, call logs, and app notifications.

It immediately commences data harvesting activities, sending stolen information to a Command and Control (C2) server operated via Telegram bots.

This trojan spreads through fake links, usually disguised as wedding or event invites, and tricks users into downloading malicious APK files

“Account takeover of messaging platforms. Impersonation of victim for fraudulent money transfer requests. Compromise of banking and financial applications. Identity theft and credential harvesting.”

In plain terms, if your phone is compromised, the consequences could be catastrophic.

Your financial apps are vulnerable, your reputation could be ruined by impersonation and even simple personal messages could be twisted into tools for scams.

Here’s what users should be doing now:

Don’t download apps outside the official Play Store.

Be suspicious of random invites or links, even from people you know.

Turn on 2FA for everything—banking, emails, social platforms.

Get a reputable antivirus and keep it updated.

If you run an organisation, you should already be taking this seriously.

ngCERT’s guidance says you should raise awareness, monitor mobile devices, and not let your team click on unverified links.

“Deploy network monitoring for suspicious outbound connections to known C2 domains,” it said, meaning, keep an eye on every digital door in and out.

This isn’t one of those cases where you wait to see if it affects you. By the time you realise it, it may already be too late.

 

 

 


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