Current Market Situation in the Nigerian Telecommunication Market
Hi again,
This is an overview of the telecommunication market situation in Nigeria for the year that has just ended 2010. The information source is mainly from the latest release from NCC. It did not capture the the last quarter of 2011.
Globacom, has emerged the number two operator by subscriber number and grossed over 3.7 million lines more than Airtel Nigeria, in one of the major telecoms market upsets emerging out of the 2010 telephone subscriber information released by the industry regulator, the Nigerian Communications Commission (NCC).
It was earlier thought that the emergence of Bharti Airtel into the Nigerian market will stir up vibrant competition. This has not happened as Airtel has not shown a clear strategy for the Nigerian market having acquired Zain in 2009.
The market information, which usually offers insight into the state of things in the telecoms market as regard market performance of operators using key indicator of subscriber numbers, provides a barometer for measuring the state of the telecoms industry.According to the figure posted on the website of the regulator, GLO ended 2010 with 19,627,415 lines as against Airtel Nigeria’s 15,834,243 representing a difference of 3,793,172 lines between themThe clear market leader remains MTN with 38,683,520 lines out of the nation’s active phone lines that totaled 88,348,026 lines and recorded a year end growth rate of 6.37 over the preceding quarter, during the period.Etisalat, the market’s last entrant had 6,791,986 lines at year end but showed up from this seemingly disadvantaged position with an impressive growth rate of 25.37 per cent in the last quarter of 2010.
Among the family of five GSM operators, who among them account for 92 per cent of Nigeria’s 88.3million active phone lines, Etisalat is clearly the fastest growing operator last quarter with 25.37 per cent followed only by GLO with 11.48 per cent.
On the other hand, MTN Nigeria recorded a growth rate of 5.89 per cent while Airtel’s growth appreciated by only 1.81 per cent within the period.
Another key outcome of the 2010 telecoms market duel among operators is that the Nigerian telecoms industry remains a terrain controlled by the deep pocket GSM players who at year end control 92 per cent market share leaving just 6.91 per cent and 1.19 per cent to mobile CDMA and fixed/fixed wireless operators respectively.
That is not likely to change soon as the CDMA market groans from competition from GSM operators who are equally poised to step up the game in the new year.
MTN Nigeria, realizing the seeming edge offered the SNO by its wholly-owned submarine cable of GLO 1, has teamed up with in-country competitor, Vodacom of South Africa, one of the key investors in WACS, a competing cable due to land in Nigeria by mid-year.
Within the CDMA market, the smaller mobile operator are led by Visafone which accounts for 2,558,867 active lines followed by Multilinks Telkom, owned by South Africa’s Tekom with 1,454,704 lines. Starcoms trails them with 1,149,380 active lines against Reltel’s 939,145 lines during the same period.
Meanwhile, within the sector, Multilinks Telkom, which has indicated its intention to exit the Nigeria CDMA market on account of losses, accounted for the most bullish year end growth of 15.36 per cent followed by Starcomms with 9.82 per cent and Visafone with 1.52 per cent. Visafone has completed its acquisition of Mutilinks Telco as at the end of 2011 Q1 and has therefore become a clear dorminant CDMA operator in Nigeria.
In the fixed/fixed wireless market, Starcomms leads with 575,417 lines followed by Multilinks Telkom with 121,834 lines and Reltel with 104,367.At the threshold of the 10th anniversary of commercial roll out of digital mobile networks on the GSM standard, which comes up this August, operators are shifting from aggressive ramping up of subscribers to the roll out of new data services to quench the market’s thirst for Internet and a host of other services that guarantees they keep churn at bay.In a related development, NCC reports that total active phone lines have grown from 82,618,510 this January to 83,453,999 for February and 83,857,798 March 2011.
For the CDMA operators, the subscriber numbers took a beating and declined with the quarter that has just ended. Take a look at the released data
March 6,128,661
Feb 6,114,669
Jan 6,186,442
February being the worst hit in this decline.
Growth by subscriber number has therefore slowed down considerable giving an average Q1 growth rate for 2011 at 0.75% for the GSM operators and a decline for the CDMA operators. If this trend is anything to go by, it appears that growth will subsequently be defined by quality of service and innovate low cost data and internet services for 2011.
As at January this year, the GSM sector accounting for 82,618,510 lines; mobile CDMA, 6,186,442 and Fixed Wired/Wireless, 1,035,391. During the same period, total connected lines in the telecoms market peaked at 114,628,533 with mobile GSM, 96,547,864; mobile CDMA, 12,338,686 and Fixed Wired/Wireless, 2,741,983.
The nation’s overall installed telecoms network capacity at January, this year stands at 158,256,859 with mobile GSM sector providing 131,720,867 lines; mobile CDMA, 17,187,721 lines and Fixed Wired/Wireless, 9,348,271 lines.
From the data released by NCC as at march ending, the tele density has climbed to 64.98%. In actual reality, we might not see any surge in subscriber numbers in this market again, giving that the economy has considerably slowed down and the official poverty rate as at March ending stood at over 50% of the population. Those who really can afford to own a phone line now have them.
You can always reach me for more information on the mobile handset Market and other related information on the Nigerian Market, including 3G data, BlackBerry and Noka share on the market as at today.
Thanks for reading.
I remain
Yours Henry
This is an overview of the telecommunication market situation in Nigeria for the year that has just ended 2010. The information source is mainly from the latest release from NCC. It did not capture the the last quarter of 2011.
Globacom, has emerged the number two operator by subscriber number and grossed over 3.7 million lines more than Airtel Nigeria, in one of the major telecoms market upsets emerging out of the 2010 telephone subscriber information released by the industry regulator, the Nigerian Communications Commission (NCC).
It was earlier thought that the emergence of Bharti Airtel into the Nigerian market will stir up vibrant competition. This has not happened as Airtel has not shown a clear strategy for the Nigerian market having acquired Zain in 2009.
The market information, which usually offers insight into the state of things in the telecoms market as regard market performance of operators using key indicator of subscriber numbers, provides a barometer for measuring the state of the telecoms industry.According to the figure posted on the website of the regulator, GLO ended 2010 with 19,627,415 lines as against Airtel Nigeria’s 15,834,243 representing a difference of 3,793,172 lines between themThe clear market leader remains MTN with 38,683,520 lines out of the nation’s active phone lines that totaled 88,348,026 lines and recorded a year end growth rate of 6.37 over the preceding quarter, during the period.Etisalat, the market’s last entrant had 6,791,986 lines at year end but showed up from this seemingly disadvantaged position with an impressive growth rate of 25.37 per cent in the last quarter of 2010.
Among the family of five GSM operators, who among them account for 92 per cent of Nigeria’s 88.3million active phone lines, Etisalat is clearly the fastest growing operator last quarter with 25.37 per cent followed only by GLO with 11.48 per cent.
On the other hand, MTN Nigeria recorded a growth rate of 5.89 per cent while Airtel’s growth appreciated by only 1.81 per cent within the period.
Another key outcome of the 2010 telecoms market duel among operators is that the Nigerian telecoms industry remains a terrain controlled by the deep pocket GSM players who at year end control 92 per cent market share leaving just 6.91 per cent and 1.19 per cent to mobile CDMA and fixed/fixed wireless operators respectively.
That is not likely to change soon as the CDMA market groans from competition from GSM operators who are equally poised to step up the game in the new year.
MTN Nigeria, realizing the seeming edge offered the SNO by its wholly-owned submarine cable of GLO 1, has teamed up with in-country competitor, Vodacom of South Africa, one of the key investors in WACS, a competing cable due to land in Nigeria by mid-year.
Within the CDMA market, the smaller mobile operator are led by Visafone which accounts for 2,558,867 active lines followed by Multilinks Telkom, owned by South Africa’s Tekom with 1,454,704 lines. Starcoms trails them with 1,149,380 active lines against Reltel’s 939,145 lines during the same period.
Meanwhile, within the sector, Multilinks Telkom, which has indicated its intention to exit the Nigeria CDMA market on account of losses, accounted for the most bullish year end growth of 15.36 per cent followed by Starcomms with 9.82 per cent and Visafone with 1.52 per cent. Visafone has completed its acquisition of Mutilinks Telco as at the end of 2011 Q1 and has therefore become a clear dorminant CDMA operator in Nigeria.
In the fixed/fixed wireless market, Starcomms leads with 575,417 lines followed by Multilinks Telkom with 121,834 lines and Reltel with 104,367.At the threshold of the 10th anniversary of commercial roll out of digital mobile networks on the GSM standard, which comes up this August, operators are shifting from aggressive ramping up of subscribers to the roll out of new data services to quench the market’s thirst for Internet and a host of other services that guarantees they keep churn at bay.In a related development, NCC reports that total active phone lines have grown from 82,618,510 this January to 83,453,999 for February and 83,857,798 March 2011.
For the CDMA operators, the subscriber numbers took a beating and declined with the quarter that has just ended. Take a look at the released data
March 6,128,661
Feb 6,114,669
Jan 6,186,442
February being the worst hit in this decline.
Growth by subscriber number has therefore slowed down considerable giving an average Q1 growth rate for 2011 at 0.75% for the GSM operators and a decline for the CDMA operators. If this trend is anything to go by, it appears that growth will subsequently be defined by quality of service and innovate low cost data and internet services for 2011.
As at January this year, the GSM sector accounting for 82,618,510 lines; mobile CDMA, 6,186,442 and Fixed Wired/Wireless, 1,035,391. During the same period, total connected lines in the telecoms market peaked at 114,628,533 with mobile GSM, 96,547,864; mobile CDMA, 12,338,686 and Fixed Wired/Wireless, 2,741,983.
The nation’s overall installed telecoms network capacity at January, this year stands at 158,256,859 with mobile GSM sector providing 131,720,867 lines; mobile CDMA, 17,187,721 lines and Fixed Wired/Wireless, 9,348,271 lines.
From the data released by NCC as at march ending, the tele density has climbed to 64.98%. In actual reality, we might not see any surge in subscriber numbers in this market again, giving that the economy has considerably slowed down and the official poverty rate as at March ending stood at over 50% of the population. Those who really can afford to own a phone line now have them.
You can always reach me for more information on the mobile handset Market and other related information on the Nigerian Market, including 3G data, BlackBerry and Noka share on the market as at today.
Thanks for reading.
I remain
Yours Henry
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