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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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NCC, REA Move to Power Telecoms with Renewable Energy

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Nigerian Communications Commission (NCC) and Rural Electrification Agency (REA) have teamed up to develop an initiative that will reduce the $350 million annual spending on diesel by telecom operators in Nigeria.

NCC, REA Move to Power Telecoms with Renewable Energy

According to a press statement  by Nnenna Ukoha, acting had of Public Affairs, NCC, this collaboration will focus on deploying renewable energy solutions to support telecom infrastructure, particularly in rural and underserved areas.

To that end, the two agencies have inaugurated what they called NCC–REA Collaboration Committee, aimed at deploying renewable energy solutions to power telecom infrastructure across the country.

According to the State of Africa’s Infrastructure Report 2025 by the Africa Finance Corporation, telecom operators in Nigeria consume more than 40 million litres of diesel every month, costing them over $350 million annually.

The statement read, “The Nigerian Communications Commission has formally inaugurated the NCC–REA Collaboration Committee, marking a pivotal step towards advancing Nigeria’s digital and energy inclusion objectives by developing modalities for the deployment of renewable energy to support telecom infrastructure in Nigeria.”

The inauguration ceremony, held on Friday, at the NCC Headquarters in Abuja, was presided over by Dr Aminu Maida, executive vice chairman and chief executive officer, NCC.

Maida was joined by Abba Aliyu, managing director of the REA, along with senior executives and committee members from both organisations.

Speaking at the event, Maida described the collaboration as a timely and strategic alignment of national priorities.

He noted that bridging the connectivity and power gaps in rural areas remains critical for Nigeria’s growth and development.

He highlighted that the demand for digital services and connected communities creates an opportunity for renewable energy to play a crucial role.

Maida further emphasised that the partnership goes beyond infrastructure; it is aimed at driving inclusion, reducing inequalities, and fostering shared prosperity.

“Whether it is powering a base station or enabling a child to access digital learning, this partnership has the potential to transform realities and bring opportunity closer to the people.

“This initiative is about more than infrastructure, it is about driving inclusion, bridging inequalities and creating the conditions for shared prosperity,” he was quoted in the statement.

He also noted that the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda, which aims to ensure no community is left behind in Nigeria’s energy and digital transformation.

Aliyu, representing REA, expressed confidence in the transformative potential of the collaboration.

“This partnership will unlock sustainable development opportunities for millions of Nigerians, especially those in areas lacking traditional infrastructure,” he said.

He further emphasised that the collaboration would address both energy and connectivity gaps, benefiting those who are currently underserved.

The newly established NCC-REA Collaboration Committee will work to co-develop and implement integrated solutions that leverage renewable energy to power telecom sites.

The statement noted that the committee will also focus on sharing geospatial data to improve planning, aligning funding frameworks, and tracking the socio-economic impact of the project through clear performance indicators.

 


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NCC Approves MTN, 9Mobile Roaming Collaboration Deal

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MTN Nigeria Communications Plc has announced the execution of a national roaming agreement with Emerging Markets Telecommunications Services Limited (9Mobile), a move that signals a major milestone in Nigeria’s telecommunications landscape.

NCC Approves MTN, 9Mobile Roaming Collaboration Deal

The Nigerian Communications Commission (NCC), the industry’s regulatory authority, has approved the three-year deal, which allows 9Mobile subscribers to roam seamlessly on MTN Nigeria’s extensive network infrastructure across the country.

The agreement, effective immediately, will significantly enhance connectivity and user experience for 9Mobile customers, particularly in areas where its network coverage is limited.

By leveraging MTN’s expansive infrastructure, 9Mobile can now offer improved service reach and reliability, without duplicating capital-intensive investments in network deployment.

In a notice to the Nigerian Exchange Limited and the investing public, MTN Nigeria described the arrangement as a strategic collaboration that underscores its leadership in fostering innovation, industry cooperation, and operational efficiency.

The company emphasized that the initiative aligns with the NCC’s broader objective of promoting infrastructure sharing to improve telecommunications services nationwide.

“This agreement represents a significant step in our commitment to driving industry collaboration, improving customer experience, and supporting the NCC’s vision of a fully connected Nigeria,” said Karl Toriola, chief executive officer, MTN Nigeria.

“Delivering the scale required for telecommunications services in Nigeria requires strong collaboration between the private sector, public sector, and long-term investors. This agreement demonstrates what we can achieve when we collaborate, and we are delighted to announce it today after months of groundwork.”The national roaming deal enables subscribers from 9Mobile to access voice and data services through MTN’s network in areas where the former lacks adequate coverage.

This marks the first such large-scale, cross-network roaming arrangement between two major operators in Nigeria, setting a precedent for future cooperative efforts in the telecom industry.

MTN Nigeria highlighted that the agreement contributes to more effective use of telecommunications resources, reduces infrastructure duplication, and accelerates the expansion of mobile broadband access across underserved regions.

It also supports both operators’ sustainability objectives by maximizing existing investments and reducing the environmental impact of deploying overlapping network facilities.

“This strategic collaboration is yet another first in the country by MTN Nigeria and marks a significant milestone for the sustainability of the telecommunications industry,” the company stated.

“By enabling national roaming, MTN Nigeria is contributing to a more effective use of telecommunications resources and accelerating efforts to expand connectivity across the country.”

The agreement is expected to benefit not just subscribers and operators but also regulators and investors who have consistently advocated for policies that promote shared infrastructure and efficient capital utilization in Nigeria’s digital economy.

Uto Ukpanah,  company secretary, MTN Nigeria, affirmed the company’s ongoing dedication to initiatives that create shared value.

“MTN remains committed to fostering innovation and partnerships that create sustainable value for all stakeholders while promoting digital and financial inclusion nationwide,” she noted.

With the successful rollout of this agreement, the telecoms industry is expected to see improved service delivery and expanded access to quality mobile services, especially in rural and semi-urban communities. The collaboration sets a benchmark for future inter-operator partnerships and reinforces the importance of regulatory support in advancing national connectivity goals.

 

 

 

 


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Don’t Visit Telecom Centers for Now — ALTON Warns of SIM Service Downtime

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Association of Licensed Telecommunications Operators of Nigeria (ALTON) has announced a temporary disruption in SIM-related services across all mobile networks in the country.

The disruption, according to a statement on Wednesday, follows a directive from the National Identity Management Commission (NIMC), mandating mobile network operators (MNOs) to migrate to a new identity verification platform.

ALTON said the transition had triggered unforeseen technical challenges, affecting services such as SIM registration, replacement, and mobile number portability.

“While the new platform is intended to enhance the integrity and efficiency of identity management in Nigeria, unfortunately, the transition has temporarily impacted service delivery,” the association stated.

It added that MNOs would not be able to support SIM swaps, new activations, and related services until the issues are resolved.

ALTON noted that its members are working closely with the Nigerian Communications Commission (NCC), NIMC, and other stakeholders to restore normalcy.

The association appealed for public understanding and urged subscribers to delay visits to service centers for SIM-related matters.

“We sincerely apologise for the inconvenience and will continue to provide timely updates,” the statement read.

ALTON reaffirmed its commitment to delivering secure and quality telecommunications services to Nigerians.


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