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Why Network Quality is More Important Than Ever

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By Borje Ekholm

Today, network quality is under the spotlight in every household and enterprise worldwide as more and more work from home. However, as our new research indicates, network performance has always been a mainstay of market demand.

Today, more than ever, we see the value which mobile connectivity brings to our societies. In times of crises, the world’s mobile networks are proving yet again that they can deliver the performance and reliability to support both consumers and enterprises in their hour of need. In fact, quality of the network has been an important driver of market dynamics for a long time.

However, today’s demands for network quality and capacity are not a new development. In fact, they have been driving market demand for a lot longer and to a much greater extent than most would probably expect.

For almost a decade now, we have analyzed why some service providers grow and drive higher revenues than others. We call these leaders Frontrunners. While Frontrunners share common traits, they often deploy a variety of strategies to enable profitable, sustainable growth.  The real key to their success is that they seek differentiation to create better return.

In a new analysis, based on 4G life cycle data from more than thirty countries, we have drilled deeper into how much good network performance benefits Frontrunners. And our research shows that investing in network quality is a powerful way for service providers to drive lower churn and/or higher average revenue per user (ARPU).

In all countries we analyzed, the service provider with the highest network quality has either higher ARPU and/or lower churn compared with the service provider with the lowest network quality.

In the top half of cases, where network quality is highest, we found that the lead service provider enjoys a higher average ARPU (+31 percent) and lower average churn (-27 percent). In the bottom half, where network quality is generally lower, we found that some service providers still enjoy higher ARPU (+61 percent) but with higher churn (+39 percent), whiles others have both lower ARPU (-14 percent) and lower churn (-32 percent).

When we looked across all service providers, not just leaders and quality laggards, network quality correlated with increased ARPU and reduced churn.

After macro-economic factors, network quality is one of the biggest influences on churn according to a multivariate analysis. Put simply, investing in network quality keeps subscribers happy. Or, as one executive at a service provider told me: “It is easy to attract customers. The problem is that when they see our poor network performance they leave.”

In aggregate, ARPU fluctuations seem to be driven primarily by macroeconomic factors. However, our analysis of Frontrunners shows significant revenue upsides for those investing first in high performance. The Frontrunner group achieved a 9.9 percent ARPU compound annual growth rate (CAGR) with 4G, while the rest of the market was at -0.8 percent CAGR. With 5G we already see Frontrunners charging price premiums averaging 15 percent.

It is clear that network quality already matters to consumers. This is hardly surprising as the service providers product is their network. We also see that network performance features more prominently in the marketing initiatives from successful service providers.

One of our most successful customers – who have generated a strong market share gain and growth over many years – allocate more than 50% of advertising spend to network performance.

Important for consumers, but we are convinced that the quality of connectivity will mean even more for enterprise users, as enterprises will depend on connectivity for their business survival.

Case studies on the importance of network quality

Let’s look at three examples:

  1. European market leader defending position

Network quality is a way for a market leader to maintain its leadership over the competition.Between 2010 and 2015, a market leader lost four percentage points market share to a new low price competitor, who surpassed the leader in networking benchmarks from P3, a leading international consulting, engineering and testing services company. The leader then launched a new strategy focusing on increasing capex to offer the best network experience. They regained their lead in P3 benchmarks, and these actions reversed market share losses by gaining 2 percentage points market share. More importantly, they also increased their ARPU lead.

  1. Challenger surpasses closest competitor in emerging market

Improved network quality can also be a way to build market share. For example, in 2016, a challenger was third in market share and experienced an erosion in ARPU. The company shifted capital expenditures from fixed to mobile, including doubling its 4G footprint in cities.

This gave it the best network in the country, resulting in market share gains and a reversal of the ARPU trend; the provider now shows a stronger ARPU increase than its peers. These gains allowed the challenger to overtake the number two player in the market. Its investment also paid off with more post-paid subscriptions and earnings (EBIDTA) up five percent.

  1. Market leader in Middle East invests in network quality to stem losses and regain performance lead

From 2010 to 2014, the second player in the market invested heavily in network performance, and the leader lost 10 percentage points of market share. The leader increased capex for 4G, stemming market share losses. Additionally, the leader was able to significantly improve network performance which resulted in faster ARPU growth, churn reduction and an improved Net Promoter Score compared to the competition.

Key insights from our analysis

Successful service providers use a variety of strategies to create differentiation that fit their local market and their position in that market.

In the three examples above, we saw operators defending and regaining market leadership by increasing their investments in network performance.

Although network quality isn’t the only way to create differentiation and drive value for customers, it’s clear that it is a cornerstone of successful strategies and improved commercial KPIs. This has been historically true through the deployment of 4G and as our society and daily lives will depend even more on advanced digital services, we expect quality mobile connectivity to be of even greater importance in the 5G era.

Borje Ekholm is President & CEO of Ericsson.


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QNET unveils ‘Energize Everyday’ theme, intensifies consumer protection, media partnership in 2026

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QNET, a global direct-selling company specialising in wellness and lifestyle products, has unveiled its 2026 strategic theme, “Energize Everyday,” built on three core pillars: ethical entrepreneurship, strengthened compliance and consumer protection, and wellness product innovation across Nigeria and Sub-Saharan Africa.

QNET unveils ‘Energize Everyday’ theme, intensifies consumer protection, media partnership in 2026

QNET

The company made this known during its New Year Media Webinar titled “Setting the Narrative for the Year,” where executives outlined plans to rebuild public trust and counter persistent misconceptions surrounding its operations.

Speaking at the webinar, the Nigeria General Manager of QNET, Mr Ayokunmi Solesi, said the direct-selling model was designed to empower individuals, particularly in limited-job markets such as Nigeria, by enabling them to earn commissions through product referrals.

“Direct selling is about referring quality, science-backed products for commissions. It is not a job offer, nor is it a promise of instant wealth or instant cures,” he said.

According to him, QNET currently has over 100,000 Independent Representatives (IRs) in Nigeria and continues to operate within regulatory and tax compliance frameworks.

He noted that the company had also invested in grassroots social impact initiatives, including its FinGreen financial literacy programme, which has trained more than 600 Nigerian youths.

On product innovation, Solesi said QNET’s wellness offerings are backed by research and development conducted in Hong Kong and Malaysia, with regional testing to meet consumer needs in African markets.

Also speaking, the company’s Legal Counsel, Mr Kwasi Danso, reaffirmed QNET’s zero tolerance for fraud, brand misuse, fake job scams and policy violations.

Danso disclosed that the company had secured over 70 prosecutions against brand violators and had terminated distributors found guilty of misconduct.

“We collaborate with the Economic and Financial Crimes Commission (EFCC), the National Agency for the Prohibition of Trafficking in Persons (NAPTIP), and the Police.

“We conduct proactive audits of distributor team offices and, in jurisdictions like Ghana, publish details of errant distributors in national dailies as part of our enforcement transparency,” he said.

He explained that some violations involved transnational offenders operating across multiple jurisdictions, including Nigeria and Ghana, often outside QNET’s official network.

According to him, the company will expand distributor audits in 2026 and increase public disclosure of enforcement actions, subject to data privacy regulations, as part of efforts to rebuild trust in Nigeria’s direct-selling sector.

On public perception and media engagement, QNET’s Public Relations Manager for Sub-Saharan Africa, Mr Francis Kojo Sam, described the media as the company’s “amplifier and launchpad.”

Kojo said that since entering the Nigerian market in 2021, QNET had faced significant misinformation and would deepen long-term partnerships with credible media organisations in 2026.

“Our strategy includes regular briefings, state radio tours, journalist participation in key events such as V-Africa in Ghana, product expos and thought-leadership interviews,” she said.

She also announced the revival of the company’s “Say No” public awareness campaign through billboards, advertisements and educational outreach aimed at dispelling myths linking QNET to rituals or fraudulent schemes.

The executives reiterated that QNET’s business model centres on product sales and commissions rather than recruitment-based income structures associated with Ponzi schemes.

Under the “Energize Everyday” theme, the company said it would continue to promote its corporate philosophy, Raise Yourself to Help Mankind (RYTHM), while prioritising transparency, innovation and sustained regulatory engagement in 2026.


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FG Seeks Private Sector Partnership to Bridge Broadband Gap

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The Federal Government yesterday called on private-sector players to partner with it to close Nigeria’s last-mile broadband gap, saying that massive public investment in digital infrastructure must now be matched by device affordability, service innovation, and targeted connectivity for critical institutions.

The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, made the call while speaking with journalists on the sidelines of the Flagship Nigeria: Electrification + Connectivity Convening held in Abuja.

Tijani said Nigeria was currently leading Africa in deep digital infrastructure investments, stressing that improved access to quality internet would become visible over the next year as projects begin to come on stream.

“As a government, we’re very aware of our responsibility and the need to deepen access,” he said. “There is no country in Africa today that is investing in deepening its digital infrastructure as deeply as Nigeria is doing.”

According to him, Nigeria is the only African country investing in a 90,000-kilometre fibre-optic network project led by the World Bank, while also committing resources to two new communications satellites.

He added, “We’re the only country in Africa that is currently doing that, but also investing in two communication satellites. The only country that is also investing in an additional 3,700 towers for rural areas, which means we can now bring online about 20 million Nigerians that are currently unconnected at all.”

The minister recalled that when the present administration assumed office, the telecommunications sector was under strain.

He said the decision to allow a modest tariff increase had restored profitability and unlocked fresh capital inflows.

“When the telecommunication sector was struggling when we came in, we allowed for tariffs to go up a bit, which means they are now profitable. And on their own, we’ve seen that they’ve invested over $1bn into our economy as well,” he stated.

Tijani noted that infrastructure quality directly determines service quality, arguing that years of underinvestment had constrained broadband expansion.

“In the next couple of years or months, you will start to see improved access because the quality of access is dependent on the quality and investment in infrastructure, which, as a country, we’ve not done in many years in digital infrastructure. You’re about to see that change. In about a year, you start to see great changes because these infrastructures will start to come alive,” he said.

Beyond infrastructure, the minister emphasised that connectivity without skills would limit impact.

He said the ministry had separated digital skills for technology professionals from basic digital literacy for everyday users. He referenced the ongoing Three Million Technical Talent programme, which aims to train three million young Nigerians in advanced digital skills.

“This is a project that we started in 2023 that has trained over 150,000 people already. But we’re not stopping there,” he added.

For ordinary Nigerians, including traders and market women, Tijani said the government was preparing to launch a nationwide digital literacy programme delivered via mobile phones and local languages.

He disclosed that the initiative would leverage a government-backed large language model designed to understand and communicate in Nigerian languages.

On questions linking digital infrastructure to electronic transmission of election results, the minister declined to comment directly on electoral matters, insisting that his mandate was infrastructure development.

“Our role as a ministry, I will not speak to the elections, but my role is to deepen digital infrastructure. And we’ve been very clear about the fact that this is what the President has asked us to do,” he said.

He stressed that all ongoing projects had presidential backing and were aligned with the administration’s ambition to grow the economy to $1tn.

Every one of our digital infrastructure projects is a project that the President has approved. The President has a thorough understanding of the role of the digital economy in driving this agenda of the $1tn economy. And without our investment, the President knows that we can’t get there,” Tijani stated.

Speaking on the purpose of the convening, Tijani said that even with expanded fibre and satellite capacity, affordability and institutional connectivity remained major hurdles.

“If the internet is now ubiquitous and affordable, can every Nigerian also afford the right mobile phones, tablets, or laptops that they need to enjoy the internet? It’s not something you enjoy without those things,” he said.

He said bridging the last mile would require collaboration with private-sector players to connect schools, hospitals, security agencies, and other public institutions.

“How do we ensure that when we invest in the infrastructure, it gets into schools, not only universities, but also secondary schools across the country? That’s the last mile work that we need the private sector to do,” he noted.

He added that internet service providers must also design tailored packages for critical sectors.

“How do we ensure that we can support ISPs to make sure they have the right bundles and packages for hospitals, for police stations? These are things that we have to work with the private sector to achieve,” he said.

On the planned satellites, Tijani said Nigeria had been a regional pioneer since it first procured a communications satellite under former President Olusegun Obasanjo, noting that no other West African country currently operates one.

However, he acknowledged that the existing satellite had aged and required replacement.

“Our satellite is now old, and we need to procure new ones. President Bola Tinubu has approved that we should procure new ones. Satellite is one of the ways in which you can connect difficult-to-reach locations and rural areas. Also, the security agencies use our communications satellite deeply as well. So if we don’t have modern ones that can support all these efforts, it weakens our digital economy,” Tijani explained.

Providing timelines, the minister said the deployment of the fibre project was targeted for the second or third quarter of the year, while the new satellite was expected to become operational next year.

“We’re always very clear through our strategic blueprints that a fibre project, for instance, will get to the point where we’re deploying either by Q2 to Q3 this year, which is what we’re still working towards. That project is moving forward. We’ve been able to secure the bulk part of the funding,” he said.

“The satellite in itself, we expect, should come alive. We’ve now been able to select the companies that will provide it. We expect that it should be coming alive sometime next year.”

Also speaking, the Chief Executive Officer of the Partnership for Digital Access in Africa, Ibrahima Guimba-Saidou, said the convening aligns with Africa’s broader ambition to connect one billion people to the internet by 2030.

He commended Nigeria for what he described as a clear policy direction and significant investments in connectivity infrastructure, digital devices and skills development.

However, he warned that electricity remains a fundamental gap in the continent’s push for meaningful digital inclusion.

Guimba-Saidou explained that the organisation’s Mission 300 initiative is designed to expand electricity access in underserved and remote communities, enabling schools, health centres, markets and households to take full advantage of digital services.

“This is about making connectivity relevant to the people who need it the most, not just those in major cities,” he said, urging deeper collaboration between government and private sector players to narrow the digital divide in a faster and more sustainable manner.

In his remarks, the World Bank Country Director for Nigeria, Mathew Verghis, noted that while Nigeria faces some of the most significant electricity access and backbone infrastructure shortfalls globally, it also possesses vast growth prospects anchored on its large and youthful population.

He stressed that digital inclusion rests on three interdependent pillars: reliable electricity, broadband infrastructure and affordable devices.

According to him, progress in one area without the others would limit impact.

He called for better coordination in the planning, construction and financing of power and fibre networks, arguing that integrated investment would lower costs and accelerate universal access.

Verghis added that the World Bank remains prepared to work with federal and state governments, alongside private sector stakeholders, to translate the vision of combined power and broadband expansion into tangible benefits for millions of Nigerians.

 


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NIMC Flags Nationwide Ward-Level NIN Enrollment Drive from February 16

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National Identity Management Commission (NIMC) has announced the commencement of a nationwide ward-level enrollment exercise for the National Identification Number (NIN), effective from Monday, February 16, 2026.

NIMC Flags Nationwide Ward-Level NIN Enrollment Drive from February 16

NIMC

The initiative follows a presidential directive mandating NIMC to extend NIN registration to grassroots communities and wards across the country, ensuring every Nigerian citizen and legal resident, including children and adults, is captured in the National Identity Database.

Head, Corporate Communications, NIMC, Dr. Kayode Adegoke, in a statement Wednesday, said the exercise is free of charge and aligns with President Bola Ahmed Tinubu’s Renewed Hope agenda, promoting inclusive governance, national development, and broader access to identity-linked services.

He described the ward-level rollout as a strategic decentralization effort to enhance identity inclusion, minimize travel challenges, and boost participation at the community level.

“NIMC encourages all yet-to-enroll Nigerians and legal residents to seize this opportunity for registration,” Adegoke stated, stressing its role in fostering nationwide identity coverage.

To guarantee hitch-free implementation, NIMC has launched sensitization campaigns engaging stakeholders at national, state, and local government levels.

These include state governments, local government heads, traditional rulers, community leaders, market associations, and faith-based organizations, all pivotal to mobilizing residents for the exercise.

Adegoke noted that rotational schedules for licensed front-end partners and NIMC personnel would guide operations across wards, with details accessible on the NIMC website: www.nimc.gov.ng.

Members of the public can dial the toll-free line, 08000616462, for enquiries, assistance, or complaints.

The commission urged massive turnout to register children, parents, and family members within local communities, positioning the drive as a pivotal step toward a fully identified populace.


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