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Nigeria - Telecoms, Mobile, Broadband and Forecasts 2012 update

Published By :

BuddeComm

Published Date : May 2012

Category :

Broadband

No. of Pages : 117 Pages

 

 

Nigeria is one of the biggest and fastest growing telecom markets in Africa, attracting huge amounts of foreign investment, and is yet standing at relatively low levels of market penetration. Far reaching liberalisation has led to hundreds of companies providing virtually all kinds of telecom and value-added services in an independently regulated market. Following a fifth unsuccessful attempt to privatise Nitel, the incumbent national telco, the company is currently in liquidation.

 

The West African country has overtaken South Africa to become the continent’s largest mobile market with now close to 100 million subscribers, and yet market penetration stands at only around 60% in early 2012. However, subscriber growth slowed significantly during the global economic crisis, re-accelerated in 2010 but then slowed again in 2011. Much of the remaining addressable market is in the country’s rural areas where network rollouts and operations are expensive. This in combination with declining ARPU levels is forcing the networks to streamline their operations and to develop new revenue streams from services such as third generation (3G) mobile broadband, mobile payments/banking, and others. At the same time the operators are rolling out national fibre backbone networks to support the ever increasing demand for bandwidth. At least two operators are rolling out fourth generation (4G) LTE networks.

 

Nigeria is also the most competitive fixed-line market in Africa, featuring a second national operator (SNO, Globacom) and over 80 other companies licensed to provide fixed telephony services. The alternative carriers combined now provide over 90% of all fixed connections, the majority of which has been implemented using wireless technologies. This gives the network operators the opportunity to also enter the lucrative mobile market under a new unified licensing regime and has helped them to secure hundreds of millions of US$ in investments from local and foreign investors.

 

Nitel’s monopoly on international fibre bandwidth via the SAT-3/WASC submarine cable system ended in 2009 when Globacom’s Glo-1 cable landed in the country, followed by the Main-One cable in 2010. Additional submarine cables are scheduled to go online in 2012, which will deliver a further boost to the country’s underdeveloped Internet and broadband sector. New powerful players from the fixed-wireless and mobile network operator camps have entered this market with 3G mobile and advanced wireless broadband services such as WiMAX. The Internet Protocol (IP)-based next generation networks currently being rolled out are enabling converged voice, data/Internet and video services. VoIP is already carrying the bulk of Nigeria’s international voice traffic. Applications such as e-commerce, online banking and e-payments, e-health, e-learning and e-government are rapidly evolving.

 

This annual report contains a market overview and analysis, key statistics, regulatory issues, profiles of major players, including financial results where available, and two scenario forecasts for the mobile market in 2013 and 2016.

 

Market highlights:

 

  • The largest mobile market and the most competitive fixed-line market in the region;
  • New competition in international fibre bandwidth is set to revolutionise the market;
  • Nitel/M-Tel in liquidation;
  • Profiles of major players, including financial results;
  • Estimates for end-2012 for fixed-line and Internet market;
  • Forecasts for mobile market to 2013 and 2016.

Table of Contents

 

1. Key Statistics

 

2. Telecommunications Market

2.1 Background

2.2 Mobile market

2.3 Fixed-line and fixed-wireless market

2.4 Internet and broadband market

2.5 Telecom investments

 

3. Regulatory Environment

3.1 Nigerian Communications Commission Decree (NCCD) 1992

3.2 National Telecommunications Policy (NTP), 1995-2009

3.3 Nigerian Communications Act of 2003

3.4 West African common regulatory framework 2005

3.5 Class Licence policy extension 2007

3.6 Regulatory authority

3.6.1 Nigerian Communications Commission (NCC)

3.7 Key regulatory issues

3.7.1 Interconnection

3.7.2 Consumer protection, quality of service

3.7.3 Environmental impact of telecom towers

3.7.4 Infrastructure sharing

3.7.5 No regulation on state level

3.7.6 Universal service

3.7.7 National emergency numbers

3.8 Telecom sector liberalisation

3.8.1 Globacom’s SNO licence

3.8.2 Regional fixed-wireless access (FWA) licences

3.8.3 International gateway licences

3.8.4 Unified licensing regime since 2006

3.9 The five attempts to privatise Nitel

3.9.1 IPO

3.10 Spectrum auctions

3.10.1 3.5GHz

3.10.2 800MHz

3.10.3 450MHz

3.10.4 3G mobile spectrum

3.10.5 LTE/WiMAX spectrum

 

4. Fixed Network Market

4.1 Overview

4.2 Fixed-line statistics

 

5. Networks Operators in Nigeria

5.1 Unified licensing regime

5.2 Nigerian Telecommunications Ltd (Nitel)

5.2.1 Network infrastructure

5.2.2 National backbone network

5.2.3 Wireless Local Loop (WLL)

5.2.4 Services

5.2.5 Towering debts

5.2.6 The Pentascope period, 2003-2005

5.2.7 The Transcorp period, 2006-2009

5.2.8 Privatisation attempts 2010-2012

5.3 Globacom Ltd

5.3.1 Network infrastructure

5.3.2 Fibre optic backbone network

5.3.3 International presence

5.3.4 Services

5.3.5 International expansion

5.4 VGC Communications, MTN

5.5 National Long-Distance Operators (LDOs)

5.5.1 Nepskom Communications Ltd (defunct)

5.6 Fixed-wireless network operators

5.6.1 MTS First Wireless

5.6.2 Mobitel Nigeria Ltd

5.6.3 Prestel (O-Mobile)

5.6.4 Regional FWA operators

 

6. Telecommunications Infrastructure

6.1 National fibre optic infrastructure

6.1.1 Backbone networks

6.1.2 Fibre to the Home (FttH)

6.2 International infrastructure

6.2.1 Submarine fibre

6.2.2 Terrestrial fibre

6.2.3 Satellite

 

7. Internet Market

7.1 Overview

7.2 Internet statistics

7.3 Limited availability of PCs

7.3.1 Stimulus programs

7.4 Public Internet access locations

7.4.1 Mobile Internet Units (MIUs)

7.5 Internet Exchange Points (IXP)

7.6 Country code top level domain (ccTLD) administration

7.7 ISP market

7.7.1 Internet Service Providers Association of Nigeria (ISPAN)

7.7.2 Selected ISPs

 

8. Broadband Market

8.1 Overview

8.2 ADSL

8.3 Wireless broadband

8.3.1 Overview

8.3.2 Odu’a Telecom

8.3.3 Swift Networks

8.3.4 Startech Connection

8.3.5 Cyberspace Network

8.3.6 Nitel

8.3.7 Netcom Africa

8.3.8 MWEB Nigeria

8.3.9 Gateway Communications

8.4 WiFi

8.4.1 Accelon, Internet Solutions

8.4.2 Jigawa Broadband Access Network

8.4.3 Polestar/5G WiFi network in Lagos

8.4.4 NaijaWiFi

8.4.5 Abuja WiFi, WiMAX

8.4.6 Enugu

8.5 WiMAX

8.6 Mobile broadband

8.7 Internet via satellite

8.7.1 Direct-on-PC

8.7.2 BroadbandDirect

8.7.3 IP Direct

8.7.4 MWEB Nigeria

8.7.5 Other services

8.8 Broadband over Powerlines (BPL)

 

9. Convergence / Digital Economy / Digital Media

9.1 Convergence

9.1.1 VoIP Internet telephony

9.1.2 Internet TV

9.1.3 Cable TV

9.1.4 Next generation networks (NGN), Triple-play

9.2 Digital Economy

9.2.1 E-commerce, e-payments

9.2.2 E-government

9.2.3 E-health

9.2.4 E-learning

9.2.5 Electronic Crimes Bill

9.3 Digital media

9.3.1 Blogs

9.3.2 Facebook

 

10. Mobile Communications

10.1 Overview of Nigeria’s mobile market

10.1.1 Mobile statistics

10.2 Regulatory issues

10.2.1 GSM licence terms

10.2.2 Interconnection

10.2.3 Mobile tariffs

10.2.4 International gateways

10.2.5 Unified licensing regime brings new competition

10.2.6 Universal service

10.2.7 Mobile number portability

10.2.8 Central equipment identity register

10.2.9 Poor quality of service

10.2.10 Registration of subscriber details

10.2.11 Foreign ownership

10.3 Major mobile operators

10.3.1 MTN Nigeria

10.3.2 Bharti Airtel (formerly Zain/Celtel Nigeria)

10.3.3 Globacom

10.3.4 M-Tel

10.3.5 Unified service licensees

10.4 Mobile data services

10.4.1 SMS

10.4.2 MMS

10.4.3 GPRS, EDGE

10.4.4 WAP

10.4.5 CDMA2000 1x

10.4.6 BlackBerry

10.4.7 Mobile money transfer, m-banking

10.5 Mobile TV

10.6 3G

10.6.1 Licensing

10.6.2 Globacom

10.6.3 Zain

10.6.4 MTN

10.6.5 CDMA EV-DO

10.7 LTE

10.8 Satellite mobile

 

11. Mobile Forecasts

11.1 Mobile subscribers – 2013; 2016

11.2 Notes on scenario forecasts

 

12. Glossary of Abbreviations

List of Table

 

Table 1 – Country statistics – 2012

Table 2 – Fixed-line network statistics – 2012

Table 3 – Internet provider statistics – 2012

Table 4 – Internet user statistics – 2012

Table 5 – Mobile statistics – 2012

Table 6 – National telecommunications authority

Table 7 – Financial bids for Nitel/M-Tel, first and second round – 2010

Table 8 – Fixed lines in service and teledensity – 1999 - 2012

Table 9 – Fixed and fixed-wireless lines by operator and market share – December 2011

Table 10 – Internet users and penetration rate – 2000 - 2012

Table 11 – International internet bandwidth – 2001 - 2010

Table 12 – Mobile subscribers and penetration rate – 1998 - 2012

Table 13 – Mobile subscribers by operator, technology – December 2011

Table 14 – MTN Nigeria ARPU – 2002 - 2011

Table 15 – Zain Nigeria ARPU – 2006 - 2009

Table 16 – Starcomms total and mobility/mobile subscribers – 2005 - 2011

Table 17 – Forecast mobile subscribers – 2013; 2016

List of Chart

 

Chart 1 – Financial bids for Nitel/M-Tel, first and second round – 2010

Chart 2 – Fixed lines in service and teledensity – 2002 - 2012

Chart 3 - Internet users and penetration rate – 2000 - 2012

Chart 4 – Mobile subscribers and penetration rate – 2002 - 2012

 

Exhibit 1 – Number of telecom licences by category – February 2012

Exhibit 2 – Regional FWA licensees

Exhibit 3 – Regional FWA licensees in Nigeria

Exhibit 4 – New international submarine fibre optic cables in West Africa – 2011 - 2012

Exhibit 5 – Ownership battle – from EWN to Vee Networks to V-Mobile to Celtel/Zain to Bharti

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