The Nigerian telecoms industry which was opened up in 2001 following the deregulation of the sector is now entering a matured-market phase 14 years later, according to industry figures released by MTN Nigeria.
MTN’s FY report for 2014 showed that new telecoms subscriptions for 2014 dropped 50 percent, falling to 7.3 million, from the 15.1 million new subscribers recorded in 2013.
Total subscribers industry wide stood at 135.1 million in December 2014, with MTN Nigeria accounting for 59.89 million – 44 percent of the market according to the Nigerian Communications Commission (NCC).
Globalcom is next with about 21 percent market share, while Airtel and Etisalat have 20 percent and 15 percent respectively, according to data from the regulator
Total telecoms penetration is now at 72.6 percent.
MTN Nigeria’s revenue grew at a slight pace, growing by 4 percent in 2014, compared to 5 percent in the preceding year (2013).
While the contribution of voice services and SMS are slowing down on account of the proliferation of smart devices, revenue is being shored up by the rising data revenue.
MTN’s data revenue grew 25 percent in 2014, and contributed 18 percent to the total revenue, increasing its share from 15 percent in 2013.
Data consumption by users grew by 50 percent YoY, with 9.3 million 3G devices connected to data services.
“Voice remains the lion share of revenue, though with minimal growth,” while “data & digital revenues continue to experience a healthy growth”, MTN said.
SMS revenue have also been on the decline since 2012, falling by 5 percent in 2012 and 9 percent in 2013.
“Over-The-Top messaging (like Blackberry Messenger) and Data are now the future’, the firm said. Data related revenue has seen astronomic growth, growing by 1026 percent in 2011, before moderating to 122 percent in 2012, and 12 percent in 2013.
“This shows that SMS revenue is on the decline, and data on the increase.
“Today mobile penetration is so extensive, often well beyond the reach of national energy grids and social security systems”.
“It is not only driving growth, it is one of the most effective platforms for distributing economic opportunity”, the firm said further.
Volume of data consumed by users have grown by 50 percent while data from revenue grew 25 percent. Other growth drivers for the industry include content generation, distribution of locally produced content (like music) and others.
The telecoms sector contributed about 8 percent of economic activity in Nigeria in 2013.
EDOZIE IFEBI
