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Nigeria: Regulatory Reform Spurs Competition and Keeps Operators Busy
Pyramid Research, Inc., June 2010, Pages: 28
Nigeria will reign as Africa's fastest-growing telecom market over the next five years, fueled by several new entrants, the launch of mobile value-added and broadband services, and most recently by the introduction of mobile number portability and mobile termination rate cuts that will drive even more market competition, according to a new report.
Nigeria: Regulatory Reform Spurs Competition and Keeps Operators Busy delivers a full accounting of Nigeria's telecom sector, including a full breakout of network operator revenues and market share by network service type (fixed services, mobile services, and pay TV). The 28-page report provides a five-year demand forecast for telecom services in Nigeria, broken out by seven different service types, as well as a five-year forecast of mobile service uptake by technology type. It includes a detailed analysis of Nigeria's regulatory and economic environment and offers action points for network operators, vendors, and investors.
'Telecom industry liberalization has pushed market penetration of telecom services in Nigeria from just 1.2% in 2002 to an estimated 48.9% at the end of 2009, thanks to the entry of new operators, the expansion of CDMA operators into mobile services, the provision of low-cost services, and the expansion of coverage to underserved areas,' says Badii Kechiche, Senior Analyst at Pyramid Research and author of this report. '2010 will see the introduction of mobile number portability and mobile termination rate cuts, which we expect to improve competitiveness despite the short-term impact on interconnect revenue and subscription growth', says Kechiche.
Nigeria is one of the most competitive markets in Africa, with more than double the average number of operators than any other African country, Kechiche notes. 'Operators have been investing in and upgrading their networks to meet demand, since they realize that their success will be based on a differentiated service quality, attractive services, and a good value proposition,' he adds.
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