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Used Smartphones Market to Grow to 222.6m Units by 2020 – IDC

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The market for used smartphones will grow from 81.3 million devices in 2015 to 222.6 million units in 2020, representing a compound annual growth rate of 22.3%.

This is according to the latest data from the International Data Corporation’s (IDC’s) Worldwide Used Smartphone Forecast, 2016–2020 which says the market for used and refurbished smartphones has witnessed rapid growth over the past several years, thanks to a wide variety of trade-in and buyback programmes across multiple channels and platforms.

According to IDC, a refurbished smartphone is a device that has been used and disposed of at a collection point by its owner.

“The demand for refurbished smartphones is already becoming constrained in countries such as the US. Mobile operators are the most constrained given the need for replacement devices for customers who have purchased device insurance plans. In addition, used handsets provide an additional option for customers with subprime credit making them ineligible for equipment instalment plans. With the average selling price for a used device expected to be $136 in 2020, the total market value for used devices in 2020 will be an estimated $30 billion,” says Anthony Scarsella, research manager for IDC’s Mobile Phones programme.

The report reveals in the US, most major carriers, retailers, and many online retailers (e-tailers) have implemented some type of trade-in strategy or platform to purchase used devices at a deep discount. These types of programmes have also appeared in Western Europe and Asia over the past three to five years.

“The used smartphone market will impact OEMs, mobile operators, and component suppliers, thus IDC has committed new resources to help customers understand and plan for this new and potentially disruptive force. Although there is a potential downside to mobile ecosystem suppliers, IDC believes that the used smartphone market also presents new opportunities to grow revenue and increase market share,” said Will Stofega, programme director of Mobile Phones at IDC.

Deloitte Global predicts that by the end of 2016 consumers will sell outright or trade in approximately 120 million used smartphones generating more than $17 billion for their owners, at an average value of $140 per device.

“This is a 50% increase from the 80 million smartphones traded in 2015, with a value of $11 billion, or an average value of $135.

“The value of sold or traded-in smartphones will likely be about twice that of wearables and 25 times the value of the virtual reality (VR) hardware market. And the growth rate of the used smartphone market is forecast to be four to five times higher than the overall smartphone market,” adds the company.

Gartner says the worldwide market for refurbished phones that are sold to end users will grow to 120 million units by 2017, with an equivalent wholesale revenue of around $14 billion. This is up from 56 million units in 2014, with an equivalent wholesale revenue of $7 billion.

“With consumers in mature markets upgrading their smartphones every 18 to 20 months, the inevitable question is what happens to the old device?” says Meike Escherich, principal research analyst at Gartner.

“While only 7% of smartphones end up in official recycling programmes, 64% get a second lease of life with 23% being handed down to other users and 41% being traded in or sold privately.”

This rise in smartphone re-use will impact not only the sales of new units, but also the revenue streams of all those involved in the smartphone supply chain, adds Escherich.

“Stakeholders that are already participating in take-back or trade-in programmes need to have a strategy for turning used devices into a positive asset. Others – particularly high-end phone original equipment manufacturers (OEMs) – need to take a closer look at this market in order to evaluate the impact these second-hand devices will have on their market positions and revenue streams,” she explains.


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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

Reps Approve NCC’s N479.508Bn Budget for 2026

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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.

Reps Approve NCC’s N479.508Bn Budget for 2026

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.


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NCAN Commends NCC for Mandating Telcos to  Compensate Subscribers for Poor Services

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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.

NCAN Commends NCC for Mandating Telcos to  Compensate Subscribers for Poor Services

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.


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Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

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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.

Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

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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