Wednesday, 14 August 2013

Nigeria’s teledensity rises by 13.3% in one year

BETWEEN July 2012 and June 2013, Nigeria’s teledensity grew by 13.3 per cent.
  Specifically, the teledensity, which was 73.8 per cent in July 2012, grew to 75.2 per cent in August 2012. By the end of 2012, the Nigerian Communications Commission (NCC) statistics showed that the country’s teledensity was 80.85 per cent.
  Nigeria started the year 2013 with a teledensity of 81.7 per cent. By April, the country’s teledensity moved up the ladder, hitting 85.2 per cent.
  Teledensity, which is define as the number of telephone connections for every hundred individuals living within an area, could also vary widely across nations and also between urban and rural areas within a country.
  Research has shown that telephone density has significant correlation with the per capita GDP of the area. It is also used as an indicator of economic development of the country or specific region.
  Furthermore, the telephone density in Nigeria moved slightly by one per cent from April’s 85.25 per cent to 86.25 per cent in May 2013 and slide again to 85.25 per cent by June 2013.
  Therefore, the percentage growth in the country’s teledensity grew by 13.3 per cent within the last 12 months, according to latest subscriber statistics from the NCC.
  Besides, the statistics, which also put telecom operators installed capacity at 237 million lines, revealed that the Nigerian telecommunications sector has 120 million active telephone lines.
  Indeed and as usual, the statistics put the quartet of GSM operators – MTN Nigeria, Airtel, Globacom and Etisalat ahead of other sub-sectors including the Code Division Multiple Operators (CDMA) and the Fixed Wired/Wireless.
  The GSM operators have combined active lines of about 117 million. The CDMA operators including Visafone; Starcomms; Multilinks control 2.56 million active lines; while the fixed wired/wireless operators have 382,678 lines.
  According to analysts, the various investments by operators must have accounted for the growth in their subscriber base, especially the GSM operators. For instance the operators, which had 99.5 million subscribers as at June 2012, now battle for 117 million users a year after.
  Furthermore, the statistics showed that MTN Nigeria as at June 2013 has 55.2 million subscribers; Globacom has 25 million subscribers; Airtel has 21.5 million subscribers, while the emerging market telecommunications company trading as Etisalat currently controls 15.3 million subscribers. 
  In the CDMA sub-sector, Visafone Limited led others with over two million subscribers; followed by Starcomms with 209, 627 million subscribers, while Multilinks battle to sustain 151,688 lines.
  In the area of installed capacity, the report showed that by July 2012, the operators combined had 210 million lines, but as at June 2013, the capacity stands at 237 million lines.
  Meanwhile, the profile of Nigeria’s telecommunications sector has continued to be on the ascendancy with total investments attracted by the telecommunications service providers since the inception of the liberalisation of the sector 12 years ago has reached about $32 billion as at the end of June 2013.
  The quartet of MTN Nigeria, Globacom, Airtel Nigeria and Etisalat Nigeria, have largely driven the investments inflows, which have brought in nearly $7 billion in the past three years. As at the end of 2011, total investments in Nigeria’s telecom sector was $25 billion.
  Globacom earlier this year signed a $500 million deal with Chinese equipment vendor, ZTE, to upgrade its infrastructure nationwide for efficient service delivery. It also signed another $750 million (N116.25 billion) agreement with Huawei Technologies, a leading global ICT solutions provider, to expand the capacity of the Glo network. This brings the total value of the facilities upgrade contract penned by Glo to $1.25 billion.
  Nigeria’s largest mobile operator, MTN Nigeria with 55 million subscribers as well as Globacom and Etisalat Nigeria have attracted about $5.450 billion investments that is seeing them expand and build next generation telecommunications networks while Airtel Nigeria has also invested $1.5 billion since it entered the Nigerian market in November 2010.
  MTN Nigeria and Etisalat Nigeria got $3 billion and $1.2 billion respectively from consortium of local and foreign banks while Glo signed $1.25 billion network financing agreements with Chinese equipment vendors. These investments are expected to take number of base transceiver stations in operation to over 25,000 while at the same time expanding fibre optic backbone round the country to beyond 12,000 kilometres.
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