Friday, Oct 20, 2017 9:45AM/ FBNQuest
The latest data
released by the NCC, the industry regulator, show that internet subscriptions
stood at 92.2 million in August, representing a y/y contraction of -1.4%.
implies density of 50% in a population estimated at 185 million, placing
Nigeria well above the African average of around 16% as estimated by McKinsey.
In August there were 800,000 new internet subscriptions recorded, compared with
a loss of 200,000 recorded in the previous month.
The m/m increase
recorded in internet subscriptions could be loosely linked to increased
patronage of dual-SIM mobile phones. In light of the economic challenges, this
proves more cost effective for consumers. However, to ensure uninterrupted
internet access, sometimes both SIMs are connected to separate data packages.
accounted for the largest share (35%) of total internet subscriptions. Airtel
had the fastest m/m growth at 2.8%. Meanwhile, we noticed a -1.8% m/m reduction
in subscriptions to 9Mobile’s network (formerly Etisalat), likely reflecting
the issues the operator is facing.
The FGN recently
reiterated its commitment to attain broadband penetration of 30% by next year.
It currently stands at 21%.
Although the growth in subscriptions is slowing,
Nigeria is still an attractive market for telcos; comments by the syndicate of
banks that took over 9Mobile confirm this point. A sale is expected by the end
of this year.
on recent remarks from the executive vice chairman of the NCC, Umar Garba
Danbatta, the commission has started the process of licensing the 5.4GHz
spectrum band. Although this is movement towards the broadband penetration
target, we are unclear about the progress on sales of the eight remaining slots
on the 2.6 GHz spectrum.