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MTN Controls 39.73% Nigeria’s 152.46m Subscriber Base, Glo 24.56%

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By Modupe Gbadeyanka

MTN Nigeria has continued to dominate the Global System for Mobile Communications (GSM) sub-sector of the telecommunications industry in Nigeria with the control of 39.73 percent of the market share.

Since its entry into the Nigerian market in 2001, when it was granted licence to operate alongside Econet, which has since metamorphosed to Airtel, MTN has continued to spread like wildfire in the country, becoming the preferred network of GSM users.

According to the National Bureau of Statistics (NBS), the total number of telephone subscribers stood at 154.52 million, equivalent to an increase of 12.27 million subscribers every year since 2005.

However, growth has been declining more recently, possibly as a result of high market penetration leaving less room for large expansion, FSDH Research stated in its Monthly Economic & Financial Market Outlook: June 2017.

As at first quarter of 2017, there were 152.46 million subscribers, compared with 154.52 million in September 2016, representing 1.33 percent decline.

The GSM subscribers contribute 99.69 percent to the total subscribers as at Q1 2017, followed by Code Division Multiple Access (CDMA) with 0.14 percent of the total, while fixed wired and wireless make up 0.08 percent and 0.02 percent respectively.

But MTN remains the largest provider of GSM subscriptions, accounting for 39.73 percent. The second largest provider was Globacom, which accounted for 24.56 percent of subscriptions, Airtel share was 22.80 percent, while Etisalat accounts for the least number of subscriptions at 12.91 percent of the total.

Analysts at FSDH Research said in the report that the total number of internet subscribers with the GSM operators stood at 89.97 million as at March 31, 2017.

The proportion of GSM users with internet subscriptions dropped in 2016 to 59.61 percent, from 65.26 percent recorded in 2015. This drop was caused by MTN and Etisalat.

As at end-March 2017, the internet subscribers of the GSM carriers were: MTN 30.51 million; Globacom 27.02 million; Airtel 19.42 million and; Etisalat 13 million.

In Q1 2017, MTN’s Share of GSM internet connection was 33.92 percent; Globacom’s was 30.03 percent; Airtel’s was 21.59 percent; and Etisalat’s was 14.46 percent.

The report further said there were a total of 41,419 incoming porters in Q1 2017, a decrease from 49,547 in Q4 2016, and a decline of 19.26 percent from 51,301 porters recorded in Q1 2016. Quarter-on-quarter, Airtel and MTN recorded increases, while Etisalat and Globacom recorded decreases.

Although Etisalat remained the largest provider, their share fell from 77.52 percent in the final quarter of 2016 to 65.79 percent in the first quarter of 2017.

By contrast Airtel increased their share by nearly 10 percent points, from 6.95 percent to 16.55 percent, and therefore became the second largest destination for incoming porters.

MTN also increased their share, from 8.83 percent to 11.63 percent, but fell to being the third largest destination due to Airtel’s larger increase.

Globacom remained the smallest destination of incoming porters for the third consecutive quarter, and their share fell from 6.69 percent to 6.03 percent between Q4 2016 and Q1 2017. The resurgence of the Nigerian economy would have a positive impact on the telecommunication sector.

 

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Nigeria to Launch NIGCOMSAT Satellites in 2028, 2029

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NIGCOMSAT Satellites

By Adedapo Adesanya

Nigeria has set 2028 and 2029 as the timeline for the deployment of its new satellites, NIGCOMSAT-2A and 2B, respectively.

The Managing Director of NIGCOMSAT, which is Nigerian Communications Satellite Limited and the premier satellite operator in Nigeria, Mrs Jane Nkechi Egerton-Idehen, disclosed this at the second Nigerian Satellite Week in Abuja on Monday. She noted that the development is expected to boost military intelligence, surveillance, and regional connectivity.

“For 2A and 2B, we have started the process. We have closed the tender and are now back into the financing and implementation stage. 2A is built to come up in 2028, and 2B for 2029.

“When they are up and running, they are expected to provide security within the borders and neighbouring countries. They will support the security agencies because data collection and intelligence in real time is important. Satellites like communication satellites allow that, irrespective of where they are,” she said.

In his remarks, the Minister of Communications and Digital Economy, Mr Bosun Tijani, said the satellites form part of the nation’s strategy to strengthen digital infrastructure.

Mr Tijani explained that the satellites will complement ongoing investments in 90,000 kilometres of fibre-optic cable and nearly 4,000 telecom towers, which are being rolled out nationwide and extended to neighbouring countries, including Cameroon, Niger, Chad, Burkina Faso, and the Republic of Benin.

He stressed that satellite technology is critical for national development, affecting education, agriculture, business, and emergency response.

“The president’s approval of NIGCOMSAT-2A and 2B demonstrates a clear commitment to building the future. These satellites will enhance security, connect remote communities, and extend our fibre-optic network into neighbouring countries,” he said.

“Some of these neighbouring countries pay up to ten times more for internet capacity than Lagos. Extending our fibre network will not only improve connectivity but also enhance border security and regional collaboration.

“Satellite technology affects everything, from how a child in a rural community accesses the internet to how farmers make critical decisions and how businesses operate across distance,” the Minister said.

Also speaking, the Chief of Army Staff (COAS), Lieutenant General Waidi Shaibu, welcomed the development, saying the military will leverage the satellites for operational efficiency.

“The Nigerian Army will continue to use space assets to improve intelligence gathering, surveillance, and operational coordination across all theatres of operation,” he said at the event, represented by Major General Kennedy Osemwegie, Commander of the Nigerian Army Cyber Warfare Command (NACWC).

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Interswitch, KCB Group to Deliver Innovative Financial Solutions in East Africa

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Interswitch KCB group

By Modupe Gbadeyanka

A partnership to advance digital payments and financial inclusion across East Africa has been strengthened between Interswitch and KCB Group.

Both parties have agreed to expand digital payment infrastructure and deliver innovative financial solutions that meet the evolving needs of individuals, businesses, and institutions across the region.

The aim is to accelerate seamless, secure, and inclusive digital payments in East Africa, where the leading Africa-focused integrated payments and digital commerce enabler, Interswitch, recently announced an expansion of Verve card acceptance footprint, leveraging its consolidated partnership with KCB Group, Kenya’s largest financial services group by assets, following a similar move in Uganda through the local KCB Franchise in February 2022.

During a recent executive engagement at KCB Group headquarters in Nairobi, the chief executive of Interswitch, Mr Mitchell Elegbe, held high-level discussions with KCB leadership, including its chief executive, Paul Russo.

At the core of the strengthened collaboration is the integration of Interswitch’s robust payment rails, card scheme, and emerging digital token solutions with KCB Group’s expansive regional footprint and trusted banking franchise.

This integration enables the acceptance of Verve cards and tokenised payment solutions across KCB’s extensive merchant point-of-sale network in Kenya and Uganda, significantly enhancing everyday usability for customers while strengthening KCB’s digitally driven retail payments offering.

The consolidated partnership is expected to drive increased merchant acquisition, improve interoperability across payment ecosystems, and expand access to secure, cashless transactions. It also reinforces both organisations’ shared objective of deepening financial inclusion and accelerating digital commerce across East Africa.

“Our collaboration with KCB Group represents a powerful alignment of vision and capability. By combining our technology-driven payment solutions with KCB’s strong regional presence, we are unlocking new opportunities to scale access, drive innovation, and deliver greater value to customers across East Africa,” Mr Elegbe stated.

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Telcos to Compensate Customers for Service Disruptions—NCC

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NCC

By Adedapo Adesanya

The Nigerian Communications Commission (NCC) has directed Mobile Network Operators (MNOs) to provide compensation to subscribers whose network quality of service experience is below specified targets within specific locations.

In a Sunday statement, the commission noted that its position is that customers should not be made to bear the full burden of service disruptions where operators fail to meet prescribed standards of service delivery.

Under this directive, NCC said erring operators would compensate affected users directly for breaches of Quality of Service (QoS) Key Performance Indicators (KPIs).

Mobile Network Operators (MNOs) will be required to pay these compensations for instances of poor quality of service recorded within specified time frames.

“The compensation will be provided in the form of airtime credits, calculated based on subscribers’ average spending patterns and their presence within Local Government Areas where service failures occur”, according to the statement.

The directive is rooted in the agency’s broader regulatory philosophy that places the consumer at the centre of Nigeria’s telecommunications ecosystem.

“Telecommunications services today underpin economic activity, social interaction, and access to digital opportunities. When service quality is poor, the consequences affect productivity, commercial activities, and even public confidence in our communications system.

“While regulatory fines have traditionally served as a deterrent against poor service delivery, the Commission is adopting a more consumer-focused approach that strengthens accountability within the industry”.

The commission explained that it has designed this measure to complement existing and ongoing efforts to strengthen service quality monitoring and enforce performance standards.

Further to this directive by the commission to MNOs on compensation to consumers, the regulator has mandated Tower Companies that own the critical infrastructure, such as masts, for Quality of Service delivery, to invest in infrastructure with measurable outcomes using sums that it has fined these companies, in addition to other financial fines the Commission will deem appropriate.

“The commission will continue to reinforce the obligation of operators to invest consistently in network resilience, capacity expansion, and infrastructure upgrades to meet the growing demand for telecommunications services.

“At the same time, it will deploy regulatory tools that promote fairness, transparency, and accountability across the sector, ensuring that every subscriber receives the quality of service they deserve while sustaining a telecommunications industry capable of powering Nigeria’s digital future”, the statement added.

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