Telcos see nearly 5% growth, dominated by MTN and Airtel
By Jeph Ajobaju, Chief Copy Editor
Active telephone lines reached 222 million in 2022, boosted by 25 million new subscribers, with the four major carries – MTN, Globacom, Airtel, and 9mobile – seeing an average 4.90 per cent growth in the fourth quarter (Q4 2022).
The latest Nigerian Communications Commission (NCC) data shows MTN had the highest growth from 2.73 per cent in Q3 2022 to 9.61 per cent in Q4 2022. Globacom 5.64 per cent to 1.51 per cent, and Airtel 0.45 per cent to 2.85 per cent.
9mobile witnessed 1.45 per cent growth in Q3 but ended with 0.08 per cent in Q4.
MTN remains the largest operator by penetration and subscribers, according to the NCC. It finished 2022 with 89 million customers and 40 per cent market penetration.
Globacom came second with 27.13 per cent market share and serviced 60.3 million, followed by Airtel with 60.1 million (users) and 27 per cent (market), and 9mobile with 12.8 million (customers) and 5.78 per cent (market), per The Guardian.
NCC data also shows the challenge facing Internet Service Providers (ISP) mounts as there are only 204,810 active users among 415,099 subscribers.
Nigeria has about 103 licensed ISPs, among them
- Odua Telecoms
- Orange Business Communications Service
- MainOne
- VDT Communications
- Layer 3
- IDS Africa
- Cyberspace Network
- Cobranet
- CobWeb Communications
- BrianShare
- Cleveland Technologies
- Astramix
- Zeta Web
- Spectranet
- Tizeti Networks
- ipNX Nigeria
ISPs have invested heavily in point of presence (PoP) with 2,146 points spread across the country.
NCC data shows some ISPs have one PoP. Others like Spectranet have 648 PoP with 287,075 connected customers, out of which 115,103 are active. Spectranet is the largest ISP by subscription.
Tizeti has 131 PoP and 18243 active users from 39,410 connected customers. ipNX has 53 PoP with 19,068 subscribers, out of which 13,104 are active.
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MNOs squeezing ISPs
Industry analysts says the incursion of mobile network operators (MNOs) such as MTN, Globacom, Airtel, 9mobile, and nTel is a major challenge to ISPs, according to The Guardian.
The networks possess Universal Access Service Licence (UASL) and offer mobile internet service which hitherto was the traditional service offering of ISPs.
Some ISPs also blame the harsh business environment exacerbated by the sharp practices of mobile operators which compete with ISPs in retail service offering, instead of sticking to wholesale service offering.
National Association of Telecoms Subscribers of Nigeria (NATCOMS) President Deolu Ogunbanjo told The Guardian the major problem is the ability of MNOs to operate on ISPs terrain.
MNOs have changed their strategies from just voice offering to data services, he said, and the economy should not be blamed because “ISPs must evolve to stay afloat. They should offer reduced but attractive tariffs.”
Ogunbanjo urged the NCC to devise policies to keep ISPs in business
Telecoms expert Kehinde Aluko warned the current economic hardship may force more ISPs to go under.
He explained ISPs buy broadband data wholesale from companies like nTel, MainOne, Glo1, and MTN which have submarine cables with huge bandwidth capacities.
“They retail the broadband data bundle to individuals and organisations, but the same broadband companies that sell to them are now in competition with them, selling directly to same customers even at reduced price, thus making competition and survival extremely difficult for ISPs,” Aluko said.