Telecommunications market of NigeriaPhone Cards, Calling Cards |
| Nigeria’s Internet sector has been hindered by the country’s underdeveloped and unreliable fixed-line infrastructure, but this is changing as competition intensifies and new technologies are able to deliver wireless broadband access. More than 400 ISPs have been licensed as well as a number of data carriers, Internet exchange and gateway operators. Voice over Internet Protocol (VoIP) is already carrying the bulk of Nigeria’s international voice traffic. The current deployment of the country’s first Next Generation Networks (NGN) will drive further convergence of voice, data and video/TV, enabling the provision of triple-play services that will ultimately also involve the country’s already competitive broadcasting sector. |
| Nigeria is the most competitive fixed-line market in Africa, featuring a second national operator (SNO) and over 50 other companies licensed to provide fixed telephony services. The alternative carriers combined now provide more than twice the number of fixed lines than the incumbent telco, Nitel, which was finally privatised in July 2006. Strong demand for Internet services and broadband capabilities is aiding the development of the fixed-line sector, which at a market penetration of just over 1% still has enormous growth potential. The majority of new lines is provided by fixed-wireless systems, and a new unified licensing regime introduced in 2006 will intensify the competition between fixed and mobile operators. |
| The transformation of Nigeria’s telecommunications landscape since the licensing of three GSM networks in 2001 and a fourth one in 2002 has been nothing short of astounding. The country continues to be one of the fastest growing markets in Africa with triple-digit growth rates almost every single year since 2001. It passed Egypt and Morocco in 2004 to become the continent’s second largest mobile market after South Africa. And yet it has only reached about one quarter of its estimated ultimate market potential. Declining ARPU levels, however, are weighing heavy on the sector, as is the new unified licensing regime introduced in 2006, designed to increase competition between fixed and mobile network operators. |
| Nigeria is one of the biggest and fastest growing telecom markets in Africa, attracting huge amounts of foreign investment, and is yet standing at very low levels of market penetration. The mobile sector, shared by four operators, has seen triple-digit growth rates every year since competition has been introduced. A second national operator (SNO) and four national long-distance operators have been licensed as well as over 200 other companies providing virtually all kinds of telecom and value-added services. Major events in 2006 include the conclusion of the twice stalled privatisation of Nitel, the incumbent telco, and a new unified licensing regime designed to increase competition between fixed and mobile network operators. |
| Nigeria is one of the biggest and fastest growing telecom markets in Africa with still huge further growth potential in all sectors. It is expected that the recently privatised incumbent, Nitel, will compete more aggressively and effectively in the future, and that a new unified licensing regime introduced in 2006, allowing all operators to provide both fixed and mobile services, will accelerate market growth going forward. Both fixed and mobile service providers will benefit from the increasing demand for Internet access and broadband capabilities. This report contains key statistics and scenario forecasts for the country’s fixed-line, mobile and Internet markets for the years 2010 and 2015. |
| Nigeria Phone Cards |