Nigeria commits funds to widen broadband service availability

The economy’s recovery from a recent recession, helped the telecom sector attract foreign investment, particularly from China, while government infrastructure programs also stimulate investment.


Sydney, Sept. 01, 2020 (GLOBE NEWSWIRE) -- Just released, this edition of Paul Budde Communication’s focus report on the Nigeria outlines the major developments and key aspects in the telecoms markets.

Read the full report: https://www.budde.com.au/Research/Nigeria-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses

Nigeria has one of the largest telecom markets in Africa, supported by the second largest economy on the continent after South Africa

The regulator has licensed a number of regional infrastructure companies (InfraCos) to build the national broadband network and offer capacity to all service providers on a non-discriminatory, open-access and price-regulated basis. This is helping to boost the country’s fixed-line broadband sector, which has seen considerable consolidation among players in recent years. The government has updated its broadband ambitions, aiming to increase penetration from 30% by 2020 to 70% by the end of 2021 though most connections will be via mobile networks. The sector is still dominated by GSM technology, though a greater reliance on LTE infrastructure is expected in coming years, supported by improved terrestrial fibre networks to provide backhaul for data services. In early 2020 the regulator called on industry players to contribute towards its policy framework for 5G.

BuddeComm notes that the outbreak of the Coronavirus in 2020 is having a significant impact on production and supply chains globally. During the coming year the telecoms sector to various degrees is likely to experience a downturn in mobile device production, while it may also be difficult for network operators to manage workflows when maintaining and upgrading existing infrastructure. Overall progress towards 5G may be postponed or slowed down in some countries.

On the consumer side, spending on telecoms services and devices is under pressure from the financial effect of large-scale job losses and the consequent restriction on disposable incomes. However, the crucial nature of telecom services, both for general communication as well as a tool for home-working, will offset such pressures. In many markets the net effect should be a steady though reduced increased in subscriber growth.

Although it is challenging to predict and interpret the long-term impacts of the crisis as it develops, these have been acknowledged in the industry forecasts contained in this report.

The report also covers the responses of the telecom operators as well as government agencies and regulators as they react to the crisis to ensure that citizens can continue to make optimum use of telecom services. This can be reflected in subsidy schemes and the promotion of tele-health and tele-education, among other solutions.

Key developments:

  • Government approves $328 million loan to complete national backbone project;
  • Regulator begins developing 5G deployment policy based on the results of 5G trials;
  • Second stage of the NIPTI project is started, focussed on delivering fibre to northern areas of the country;
  • Government pledges to deploy 18,000km of fibre to extend broadband to rural areas;
  • Two additional satellites proposed to provide additional capacity to NigComSat;
  • National Broadband Plan 2020-2025 aiming to deliver 70% broadband penetration;
  • Report update includes the regulator’s market data to June 2020, operator data to Q2 2020, Telecom Maturity Index charts and analyses, assessment of the global impact of COVID-19 on the telecoms sector, recent market developments.


Companies mentioned in this report:
Nigerian Telecommunications (ntel, Nitel, Pentascope, Transcorp, M-Tel), Globacom (Glo Mobile), VGC Communications (MTN Nigeria), Nepskom Communications, MTS First Wireless, Suburban Telecom, Backbone Connectivity Network (BCN), Traffic Network Services, Fibre Tech West Africa, Phase3 Telecom, Alheri Engineering, Mobitel Nigeria, Prestel (O-Mobile), Galaxy Backbone, 21st Century Technologies, Main One (Mainstreet Technologies), Brymedia, NigComSat, O3b Networks, WASACE, Linkserve, Pinet Informatics, Odu’a Telecom, Swift Networks, Startech Connection, Netcom Africa, MWEB Nigeria, Accelon (Internet Solutions), Polestar, Naija Wi-Fi, Suburban Telecom, Zinox, Starcomms, Layer3, Airtel Nigeria (formerly Zain, Celtel), 9Mobile (Etisalat Nigeria, EMTS, Mubadala), Visafone, Starcomms (Capcom), Multi-Links, Reliance, Econet Wireless, Vodacom.


Read the full report:https://www.budde.com.au/Research/Nigeria-Telecoms-Mobile-and-Broadband-Statistics-and-Analyses


 

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