Achieving a higher broadband penetration in Nigeria

Proshare

Monday, February 15, 2016 09:20 AM /FBNQuest Research

The latest data released by the NCC, the industry regulator, show that internet subscriptions grew by 27% y/y to 97.0 million in December. This represents a density of 57%, placing Nigeria well above the African average of around 16% as estimated by McKinsey.

The most recent data on broadband penetration available in the public domain is still very low, at 10%. The deployment of broadband technology improves productivity in businesses by maximizing their reach to labour pools, and access to raw materials as well as consumers.

The latest subscriber statistics from the regulator show MTN and Globacom as the top two mobile network operators nationwide. In December MTN accounted for 41% of active internet subscriptions, and Globacom 26%. Although MTN accounted for the highest internet subscriptions, active lines on its network decreased by 1.1 million.

Based on data from the NCC, in December MTN accounted for 60% of the total outgoing porting activities. Etisalat is the main beneficiary of MTN’s previous clients as it accounted for 70% of total incoming porting activities in the same period
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The recent acquisition of Visafone by MTN could drive broadband penetration towards the official 30% target by 2018. However, this depends on the resolution of the dispute between the operator and the regulator, which imposed a fine of US$5.9bn equivalent (since reduced) on MTN
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