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Nigeria’s telecoms industry generates $9.8b in 2014




Contributes 1.7% to Gross Domestic Product
MTN, Airtel account for 68 per cent of overall revenue in the year

NIGERIA’s burgeoning telecommunications sector generated $9.8 billion revenue in 2014.

This figure was contained in a research material undertaken by Pyramid Research, where it further disclosed that the sector earned 6.8 per cent more revenue in 2014 than what it had in 2013.

Pyramid Research, which is based in London, United Kingdom, informed that in 2014, the mobile voice segment was the largest revenue contributor with $7.3 billion ($219 million more revenue in 2014 than in 2013).

It projected that mobile data and Pay-TV will grow at CAGRs of 16.0 per cent and 5.2 per cent, respectively, over the 2014-19 period to reach $3.8 billion and $647 million.

According to the study, the top two operators, MTN Nigeria and Airtel Nigeria, which provided fixed-line, mobile and Internet services, accounted for 68.0 per cent of overall service revenue in 2014.

It disclosed that both operators are investing in 3G and fiber networks to cater to the increasing demand for data and Pay-TV services.

The research firm pointed out that adoption of 3G technologies was at 15.9 per cent of the mobile subscription base in 2014; “we project this will increase to 32.6 per cent by year- end 2019, owing to increased focus on 3G by MTN Nigeria, Globacom and Airtel Nigeria.

LTE subscriptions will reach 8.1 million by year-end 2019, or 4.5 per cent of total mobile subscriptions in Nigeria, as the NCC plans to auction spectrum in 2015 and a number of operators have expressed interest in the opportunity.”

The report noted that the nullification of 14 licenses by the regulator hits the fixed sector, while mobile data kept overall market growing strong.

Pyramid Research also identified sound regulatory regime engendered by the Nigerian Communications Commission (NCC), as a key factor bringing about and sustaining the growth potential.

According to the study, regulatory architecture is creating more level playing ground with the regulator placing emphasis on quality of service by fining operators that fail to meet Key Performance Indicators.

Already, the statistics from the NCC have shown that the country has surpassed the 100 per cent teledensity mark, staying firm at 100.59 per cent, while the total connected lines stood at 192 million, the active lines are 140 million.

Within the same period, the number of Internet users on the GSM networks increased from 76,322, 802 in 2014 to 81,892,840 by January 2015.

The figures showed an increase of 5,570,038 Internet users on the networks in January.

It showed that from the 81,892,840 Internet users recorded in January, MTN Nigeria was on top of the table with 39,173,123 customers browsing the Internet on its network. It stated that MTN had an increase of 556,386 Internet subscribers in January, after it recorded 38,616,737 users in the month of December 2014.

The data also showed that Globacom came second on the Internet usage table, recording 17,671,405 subscribers surfing the net with its network in January.

The data revealed that Globacom gained a total of 532,085 additional Internet users on its network, up from 17,139,320 users in December 2014. Airtel Nigeria came third on the table with 14,969,924 Internet users in January, as against 14,371,987 customers recorded in December.

The data showed that Internet users on the Airtel Nigeria network also increased by 597,937 in January.

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