Scope of the Report:
Nigeria is observed to have one of the largest telecom markets in Africa, which is supported by the second-largest economy on the continent after South Africa. This economy is in recovery from recession, witnessing a DGP growth rate of 1.9% in 2018. Such growth has aided Niger’s telecom sector with attracting foreign investment. Foreign investment in Nigeria is flowing in particularly from China, as government initiatives to build better infrastructure have also stimulated investment.
Further, market liberalization measures, undertaken in recent years, have led to hundreds of companies being set up, for the provision of a range of telecom and value-added services. Most of these companies are small and localized.This network is to be built with the objective of providing capacity to all service players on a non-discriminatory basis, including open-access, and price regulation. Such an initiative by the Nigerian government is helping the booming fixed-line broadband sector in the region.
The fixed-line broadband sector in the region has seen considerable consolidation within market players in recent years. The government has also updated its broadband plans and is now aiming at proliferating the broadband penetration from 30% by the end of 2020, to more than 70% by the end of 2021. Such plans are worked upon in full force, even though most of these connections shall be witnessing inception through mobile networks. In late 2016, Nigeria was awarded 43.9 million Euros, from the African Development Bank (ADB), to build the Trans-Saharan Dorsal optical fibre (SDR) network.
The telecom sector in Nigeria is dominated by GSM technology, even though heavier reliance on LTE infrastructure is anticipated to augment in the coming years. Such a dependency on LTE infrastructure is bound to be supported by the improved terrestrial fibre networks to provide backhaul for data services. The mobile sector residing in the nation is also benefitting from the market competition for LTE technologies and widespread development of such technologies. This, in turn, has aided sizeable growth in the revenue of operators and encouraged heavy adoption of mobile broadband among the subscribers.
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The state-owned fixed-line operator, Sonitel, was merged with the wholly-owned mobile unit named SahelCom, after years of financial difficulties faced by Sonitel. In the latter part of 2016, Niger Telecom, a new entity under the name of Niger Telecom was formed through the merger of Sonitel and SahelCom. This merger secured the global telecom license in November 2017 and is now aiming at developing great efficiency through the sharing of resources and infrastructure.
The report has provided information about some significant developments witnessed in Nigeria’s telecom, mobile, and broadband industry. Such events have a significant impact on the overall market landscape. Some of these key developments are noted as follows:
- Airtel Niger secured LTE license and settled tax dispute with Orange Niger.
- The Nigerian government recently adopted three decrees which are aimed at the development of the telecom sector. The government also reinstated tax of telecom traffic.
- Niger has adopted free mobile roaming with other G5 Sahel countries.
Nigerian Telecommunications (ntel, Nitel, Pentascope, Transcorp, M-Tel), Globacom (Glo Mobile), VGC Communications (MTN Nigeria), Nepskom Communications, MTS First Wireless, Suburban Telecom, Backbone Connectivity Network (BCN), Traffic Network Services, Fibre Tech West Africa, Phase3 Telecom, Alheri Engineering, Mobitel Nigeria, Prestel (O-Mobile), Galaxy Backbone, 21st Century Technologies, Main One (Mainstreet Technologies), Brymedia, NigComSat, O3b Networks, WASACE, Linkserve, Pinet Informatics, Odu’a Telecom, Swift Networks, Startech Connection, Netcom Africa, MWEB Nigeria, Accelon (Internet Solutions), Polestar, Naija Wi-Fi, Suburban Telecom, Zinox, Starcomms, Layer3, Airtel Nigeria (formerly Zain, Celtel), 9Mobile (Etisalat Nigeria, EMTS, Mubadala), Visafone, Starcomms (Capcom), Multi-Links, Reliance, Econet Wireless, Vodacom.
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