Low smartphone ownership drags full digital inclusion amid affordability challenges
By Jeph Ajobaju, Chief Copy Editor
Low smartphone penetration and poor infrastructure combine to drag full digital inclusion in Nigeria as telecom operators say they lack the huge investment required to extend coverage to rural areas.
The Nigerian Communications Commission (NCC) has disclosed 2G is the dominant technology in the mobile market with 60.32 per cent of Nigeria’s 220 million mobile subscriptions on 2G network in August 2023.
The NCC breaks down the subscriptions as 4G being at 28.07 per cent, 3G (10.78 per cent), and 5G (0.83 per cent) – showing low smartphone ownership despite investments by network carriers.
Statista says only about 10 to 20 per cent of the Nigerian population owns smartphones, and Alliance for Affordable Internet estimates the number with access to smartphones at 44 per cent.
However, MTN disclosed the number of smartphones on its network increased by 1.8 million, bringing its smartphone penetration to 53 per cent in the first half of 2023 (H1 2023).
It said it grew data revenue 34.9 per cent due to increased usage supported by network expansion and smartphone penetration.
MTN attested its 4G network covers 80 per cent of the population, and competitor Airtel claimed almost 100 per cent of its sites in Nigeria currently deliver 4G.
__________________________________________________________________
Related articles:
Mobile telephone voice subscribers now 222m
Inflation erodes nearly N2tr from telecom gains
Rising costs compelling telcos to seek tariff review
__________________________________________________________________
Explosion of digital tech amid affordability challenges
Digital tech has exploded in the past couple of years, powered by mobile devices that have also been responsible for the exponential growth of financial services in Nigeria, per The PUNCH.
GSMA recently reiterated mobile technology is the primary means of internet access for a lot of people in low/middle-income countries, enabling access to critical information, services, education, healthcare, and income-generating opportunities.
“Affordability of the phone type. Many people, particularly those on the lower ladder of the economy, still use feature phones. And they form the majority,” explained Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers.
“Those on the higher ladder of the economy use smartphones. The poor people can only afford 2G phones. 3G and 4G phones are for middle levels.
“3G phones are for people who can afford a meal somewhat. But poor people will use feature phones. 5G, for now, will be out of reach for many people.
“Poor network will ensure that most people in certain areas will rely on 2G technology. In rural areas, for instance, 2G is probably the most reliable network generation there.”
This view is shared by the Head of Operations, Association of Licensed Telecommunications Operators of Nigeria, Gbolahan Awonuga, who highlighted 2G is the more accessible network for a lot of Nigerians.
“2G goes far and wide. In rural areas, there are a lot of feature phones,” he said. “There is also the issue of digital education; most people do not know the type of phone to buy.
“Network coverage and infrastructure deployment are major issues. When you look at Nigeria, we are deficient in infrastructure. We have fewer base stations than we need.
“Smaller countries have more base stations than we do in this part of the world. Telecom services are all about infrastructure and if it is not there, there won’t really be usage.”