Achieving a higher broadband penetration in Nigeria


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

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

Related NEWS

1.       E-commerce to drive growth of SMEs – Feb 09, 2016

2.      E-commerce a pillar for the services sector – Nov 30, 2015

3.      E-commerce to drive Nigeria’s diversification efforts– Sep 23, 2015

4.      Towards higher broadband penetration – Jul 24, 2015

5.      Deepening internet penetration – Jun 18, 2015

6.      E-commerce as a tool for economic expansion Jun 08, 2015

7.      Footsteps of Nigeria's e-commerce market – Jan 22, 2015

8.   Global Tech Investor, Techstars, Selects its First Company from Kenya, East Africa

9. MTN selects Gemalto for first commercial rollout of GSMA Mobile Connect Authentication Service

10. Etisalat Takes MTN To Court Over Visafone Acquisition

11. Telecoms Sector Records 7.71% Contribution to GDP in Q3'15 - NBS

12. Stanbic IBTC deploys digital solutions to deliver on SME needs

13. FirstBank supports Nigeria Mobile Economic Summit and Exhibition 2015


Related News