Mobile Money and Telcos | |
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Thursday, November 19, 2020 / 09:11 AM / by FBNQuest Research /
Header Image Credit: Arivon Tech
The
latest data released by the NCC, the industry regulator, show that internet
subscriptions stood at 151.5 million in September, representing y/y growth of
23%. The figure implies density of 76% in a population estimated at 198
million, placing Nigeria well above the African average of around 16% as
indicated by McKinsey. In August there were c.1.7 million new internet
subscriptions. One core driver of the steady m/m upticks in subscriptions is
the ongoing work-from-home approach triggered by the pandemic, as most
employees require multiple mobile internet devices to stay connected to
work-related matters.
The
NCC data show that in September MTN Nigeria (MTNN) accounted for the largest
share (42%) of total subscriptions. We noticed from the commission's data that
in September the network operator experienced significant outgoing porting
activity, with a loss of over 3,850 subscribers. However, its incoming porting
subscriptions stood at 5,635 thereby resulting in a net gain of 1785
subscriptions.
The latest earnings release by MTNN show that revenue grew by 17% y/y in
Q3, a marked improvement over the 8% y/y growth it delivered in Q2. The solid
sales growth was largely driven by a 56% y/y growth in data revenue, on the
back of sustained data demand for remote working, entertainment and streaming
services.
Among the mobile network operators, MTNN recorded a 0.7% m/m increase in
internet subscriptions in September. Meanwhile, 9mobile, Airtel and Glo
recorded m/m increases of 1.5%, 1.3% and 1.7% respectively in the same month.
Broadband penetration currently stands at 45.4%. The FGN targets 76% by
next year. The mandatory push into the virtual landscape due to the covid-19
pandemic has further exposed the infrastructure gaps within the country's
technology sector. Significant investment in telecommunications infrastructure
to drive broadband penetration and affordability is still required.
Based on the latest national accounts, in Q2 2020 the telecommunications sector grew by 18% y/y and contributed 14% to total GDP in the same quarter.
Internet subscriptions (% chg; m/m)
Source: Nigerian Communications Commission (NCC); FBNQuest Capital Research
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