Wider, faster spectrum

• Published date: 10 January 2023
• Publication title: Nigeria - The Nation

Deployment of telecoms services riding on the fifth generation (5G) technology is expected to take a firm foothold. The information communication technology (ICT) sector will not only play increasing roles in economic growth, but also in the assuredness of the political governance process. Lucas Ajanaku reports.

Over the years, the telecom sector has remained the pillar of the nation's economic growth as her Gross Domestic Product (GDP) grew by 2.25 per cent in the third quarter (Q3) of last year with strong support from the telecom sector.

The National Bureau of Statistics (NBS) said the growth rate, however, declined when compared to the 4.03 per cent growth achieved in corresponding period of last year.

It blamed this on the base effects of the recession and the challenging economic conditions that impeded productive activities.

Statistician-General, National Bureau of Statistics, Prince Semiu Adeniran, had said data for the analysis were obtained from the quarterly establishment survey conducted by the NBS.

He said the third quarter economic growth was driven by the non-oil sector which grew by 4.27 per cent in real terms.

He explained that the rate was lower by 1.18 per cent points compared to the rate recorded same quarter of 2021 and 0.50 per cent points lower than the second quarter of 2022.

'This sector was driven in the third quarter of 2022 mainly by Information and Communication (Telecommunication); Trade; Transportation (Road Transport); Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate, accounting for positive GDP growth,' the report said.

This growth trajectory is expected to be accelerated this year ceteris paribus.

Sustained boost in mobile lines

According to October figures of the Nigerian Communications Commission (NCC), the number of connected lines across the mobile networks of MTN, Globacom, Airtel, and 9mobile continued to grow rising to 319.6 million.

However, only 244.3 million of these lines were in active use. The implication is that a total of 104.9 million lines on the networks have become inactive.

MTN sustained its dominance accounting for 38.85per cent with a total of 83.2 million active subscriptions.

Globacom maintained its second position with a market share of 27.82 per cent, having recorded 59.6 million active lines in the period under review.

Airtel's market share stood at 27.37 per cent with 58.6 million active subscriptions.

9mobile, on the other hand, had only a 5.96per cent share of the mobile market with 12.7 million subscriptions.

5G consolidation

Consolidation is expected this year after the August 24 rollout of services on the 5G spectrum by MTN Nigeria last year. The carrier is one of the two winners of the 5G licences in the country.

The second winner, Mafab Communications Limited was however granted a five-month extension to roll out over delays in obtaining its unified operational licence (USAL) and Numbering Plan from the Commission. It only secured the two vital documents at the end of July. The five month extension however ended last month with no indication of its preparedness to roll out.

The two companies had won the two slots put on offer during the auction that had $197.4million as reserve price. MTN and Mafab had paid the balance of the bid price of $253.86 million before February 24, 2022. While...