Nigeria updates broadband penetration target for 2021
Nigeria has one of the largest telecom markets in Africa, supported by the second largest economy on the continent after South Africa. The economy has recovered from a recent recession, with DGP growth of 1.9% in 2018. This has helped the telecom sector to attract foreign investment, particularly from China, while government infrastructure programs are also stimulating investment.
The regulator has licensed a number of regional infrastructure companies (InfraCos) to build the national broadband network and offer capacity to all service providers on a non-discriminatory, open-access and price-regulated basis. This is helping to boost the country’s fixed-line broadband sector, which has seen considerable consolidation among players in recent years. The government has updated its broadband ambitions, aiming to increase penetration from 30% by 2020 to 70% by 2021 though most connections will be via mobile networks. The sector is still dominated by GSM technology, though a greater reliance on LTE infrastructure is expected in coming years, supported by improved terrestrial fibre networks to provide backhaul for data services.
Key developments:
Globacom commissions the Glo-2 cable system;
Government approves $328 million loan to complete national backbone project;
Regulator licences additional InfraCos;
Government pledges to deploy 18,000km of fibre to extend broadband to rural areas;
Two additional satellites proposed to provide additional capacity to NigComSat;
Swift Networks to add an additional 10,000 hotspots in Lagos, reaching two million people;
Digital broadcasting migration process begins in six states;
MTN and Airtel apply for Payment Service Bank licence;
Government commits to increasing mobile broadband penetration to 70% by 2021;
Disagreements emerge among new shareholders of 9Mobile;
Regulator calls for an additional 80,000 mobile base stations;
Report update includes the regulator’s market data to December 2018, operator data to Q3 2018, recent market developments.Companies mentioned in this report:
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.
Henry LancasterFebruary 2019
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Key statistics Country overview Telecommunications market Historical overview Regulatory environment Regulatory authority National Telecommunications Policy (NTP) Nigerian Communications Act West African common regulatory framework Interconnection Infrastructure sharing Telecom taxes Universal service National Rural Telephony Program (NRTP) National Information Technology Development (NITD) Fund Backbone Transmission Infrastructure Project (BTRAIN) Telecom sector liberalisation Globacom’s SNO licence Regional fixed-wireless access (FWA) licences International gateway licences Unified licensing regime Privatisation of Nitel Fixed network operators Nigerian Telecommunications (Nitel) National backbone network Wireless Local Loop (WLL) Globacom Network infrastructure Fibre optic backbone network International presence Services International expansion VGC Communications National Long-Distance Operators (NLDO) Fixed-wireless network operators MTS First Wireless Mobitel Nigeria Prestel (O-Mobile) Regional FWA operators Telecommunications infrastructure Overview of the national telecom network Backbone networks National Information Infrastructure Backbone (NIIB) NIPTI Suburban Telecom Phase3 Telecom Backbone Connectivity Network (BCN) Private networks International terrestrial infrastructure The Central African Backbone (CAB) Nigeria – Niger link Trans-Saharan Backbone NNPC network International submarine infrastructure SAT-3/WASC Glo-1 Main One WACS ACE WASACE Satellite Rascom NigComSat O3b Networks Data centres Broadband market Introduction and statistical overview Market analysis Internet Exchange Points (IXP) National Broadband Plan Broadband statistics Forecasts – broadband subscribers – 2019; 2021; 2023 Digital Subscriber Line (DSL) networks Providers Fibre-to-the-Premises (FttP) networks Other fixed broadband services Broadband over Powerlines (BPL) Fixed wireless Mobile communications Market analysis Mobile statistics General statistics Mobile voice Mobile data Mobile broadband Forecasts – mobile subscribers – 2019; 2021; 2023 Regulatory issues GSM licence terms Spectrum Mobile Termnation Rate (MTR) Mobile tariffs Unified licensing regime Universal service Mobile Number Portability (MNP) Quality of Service SIM card registration Mobile infrastructure International gateways National mobile infrastructure plan Tower infrastructure Analogue networks Digital networks Other infrastructure developments Major GSM mobile operators MTN Nigeria Bharti Airtel (formerly Zain/Celtel Nigeria) Globacom 9Mobile (Etisalat Nigeria, EMTS, Mubadala) M-Tel Major CDMA mobile operators Multi-Links Telkom Reliance Telecommunications (Reltel, Zoom) Starcomms (Capcom) InterC Network (Intercellular Nigeria) Visafone Mobile content and applications Mobile money transfer, m-banking M-healthList of Tables
Table 2 – Telecom sector contribution to GDP – 2010 – 2018
Table 3 – Financial bids for Nitel/M-Tel, first and second round – 2010
Table 4 – Historic - Fixed lines in service and teledensity – 1999 – 2009
Table 5 – Fixed lines in service and teledensity – 2010 – 2018
Table 6 – VoIP lines by operator – 2016 – 2018
Table 7 – Fixed-wireless lines by operator – 2014 - 2018
Table 8 – International internet bandwidth in Nigeria – 2001 – 2016
Table 9 – Historic - Internet users and penetration rate in Nigeria – 2000 – 2009
Table 10 – Internet users and penetration rate in Nigeria – 2010 – 2022
Table 11 – Fixed-line broadband subscribers – 2007 – 2018
Table 12 – Fixed-line (wired) broadband subscribers by operator – 2014 – 2018
Table 13 – Fixed-wired broadband subscribers by operator – 2017 – 2018
Table 14 – Fixed-line broadband subscribers – 2019; 2021; 2023
Table 15 – Fixed and-fixed wireless broadband lines – 2007 – 2018
Table 16 – Historic - Mobile subscribers and penetration rate – 1998 – 2009
Table 17 – Mobile subscribers (active) and penetration rate – 2010 – 2018
Table 18 – Mobile market share of subscribers by operator (GSM) – 2011 – 2018
Table 19 – Prepaid mobile subscribers – 2010 – 2018
Table 20 – SMS traffic – 2006 – 2018
Table 21 – Mobile internet subscribers in Nigeria by operator (GSM) – 2012 – 2018
Table 22 – Active mobile broadband subscribers – 2010 – 2018
Table 23 – Forecast mobile subscribers in Nigeria – 2019; 2021; 2023
Table 24 – Annual outgoing mobile number portings – 2013 – 2018
Table 25 – GSM subscribers in Nigeria – 2014 - 2018
Table 26 – MTN mobile subscribers – 2011 – 2018
Table 27 – MTN Nigeria financial data – 2010 – 2018
Table 28 – MTN Nigeria revenue by type – 2015 – 2018
Table 29 – MTN Nigeria ARPU – 2002 – 2018
Table 30 – Airtel mobile subscribers – 2011 – 2018
Table 31 – Globacom mobile subscribers – 2011 – 2018
Table 32 – Etisalat mobile subscribers – 2011 – 2018
Table 33 – 9Mobile mobile revenue and capex – 2013 – 2017
Table 34 – CDMA subscribers by operator – 2011 – 2017
Table 35 – Historic - Starcomms mobile subscribers – 2005 – 2014
Table 36 – Visafone mobile subscribers – 2009; 2013 – 2017List of Charts
Chart 1 – Fixed lines in service and teledensity – 2005 – 2018
Chart 2 - Internet users and penetration rate in Nigeria – 2000 – 2022
Chart 3 – Fixed-line broadband subscribers by operator – 2014 – 2018
Chart 4 – Mobile subscribers and penetration – 2005 – 2018
Chart 6 – Mobile internet subscribers in Nigeria by operator (GSM) – 2012 – 2018
Chart 7 – GSM subscribers in Nigeria – 2014 – 2018
Chart 8 – MTN Nigeria financial data – 2010 – 2018List of Exhibits
Exhibit 1 – Regional FWA licensees
Exhibit 2 – Regional FWA licensees in Nigeria
