Hopes of improved broadband penetration improves

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Friday, October 30, 2015 8:47 AM / FBN Capital Research

The latest data released by the NCC, the industry regulator, show that internet subscriptions grew by 31% y/y to 97.1 million in September 2015.

 

This represents a density of 57% on a population of 170 million, placing Nigeria well above the African average of around 16% as estimated by McKinsey.

 

Subscriptions were primarily on the global system for mobile communications (GSM). MTN Nigeria dominated, with a share of 43% of total subscriptions. Globacom, Airtel and Etisalat accounted for 23%, 18% and 16% respectively.

 
Despite over 10 terabytes bandwidth capacity provided by submarine fibre optic cables, Nigeria’s broadband penetration is still very low at 10%. The FGN’s medium-term goal is a rate of 30%.

According to data from the International Telecommunication Union, Botswana leads Africa in mobile broadband penetration with a rate of 74%, Ghana ranks second with 40% while Zimbabwe, Namibia, and Egypt are above 30%.

The NCC has issued another frequency licensing in the 70/80 GHz Spectrum band, popularly known as the “e-band“. The maximum license processing time is estimated at 90 days. The E-band is expected to be a cost effective alternative for high-speed network backhaul applications.



During a panel discussion at our annual investor conference in Lagos on Tuesday, we learnt that a large supermarket chain in the country has just 60% of its orders met by traditional suppliers. This presents obvious opportunities for e-commerce players.

With the growing utilization of online platforms for e-commerce and other applications, the need to expand this sector cannot be overemphasized


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