The telecoms sector recorded a total number of 187,275,547 active subscribers in the second quarter of 2021, which ended on the 21st of June. This is a reduction by 2.5% from the 192,081,282 subscribers recorded in the first quarter. A breakdown of this figure shows that MTN Communications got 73,571,192 of these lines. This is followed by Airtel and Globacom Nigeria Limited with a total of 50,665,723 and 50,130,540 active lines, respectively. The least number of active lines of 12,908,092 was recorded by 9Mobile Nigeria (See Figure 1).

The figures show that while Airtel and 9Mobile recorded improvements in the active lines by 0.56% and 0.45% respectively, MTN and Globacom lost 3.1% and 5.3% of their active lines between April and June 2021. Further analysis shows that MTN Nigeria controlled about 39% of active lines in the telecoms sector, Airtel and Globacom owned about 27% each, while 9Mobile controlled about 7% only in the second quarter of 2021 (See Figure 2 below).

Internet Subscriber Data

The total number of internet data subscribers for the second quarter of 2021, ending June 30 has been released by the Nigerian Communication Commission (NCC), a total number of 149.8 million subscribers engaged in data subscription for the month of June. This fell short of about 140.2 million subscribers recorded in May by 0.2%. MTN Nigeria, accounts for almost half of the data subscribers of 59.6 million, amounting to about 43% of the total market share. They next in line Globacom with about 37.9 million subscriber or 27% of the market, who are closely followed by Airtel with about 26% of the total marker subscribers, and lastly by 9Mobile which managed to garner about 6.1 million data subscribers or 4% of the total market share (See Figure 1)

Table 1: Number of Internet Data Subscribers by Network for the Month of June, 2021

 Source: Compile with data from https://www.ncc.gov.ng/statistics-reports/industry-overview#gsm-2

Like the active telecoms lines subscribe, the number of active of internet data subscribers also witnessed some changes in the data released for the month of June, 2021. When compared with data for the month of May, Airtel and Globacom recorded marginal gains of 0.3 and 0.8%, respectively in the number of internet data subscriptions, while the reverse was the case for Mobile and MTN which shelved 1.8% and 1.0% of their data subscribers, respectively (See Figure 3 below).

Porting Activities

The porting trend for the month of June recorded that 616 mobile numbers were transferred from one service provider to another, while also keeping the same sim card. This is against the month of May where no subscriber ported to a new network. Airtel recorded 360 inward transfers from other networks, 9Mobile recorded 191, MTN received 65, while Globacom received none

A Mobile Health Insurance via USSD - *987*7#, has been launched by Airtel Nigeria.  This comes as a result of a strategic partnership agreement to deepen access, participation and enrolment in health insurance for more Nigerians, with AXA Mansard. This is an innovative and relevant solution that will empower more Nigerians to conveniently access best-in-class health insurance value offerings. By this, Airtel provides an easy-to-use and interactive platform, that will increase the uptake of the insurance products among retail consumer in the country. The platform also gives the users a convenient way to purchase and manage their AXA Mansard micro-insurance plans.

This partnership will help to solve some of the challenges that has marred the implementation of health insurance schemes, such as low level of awareness, affordability, ineffective distribution systems and inefficient payment models.  This insurance will cover among other services, Malaria Treatment, Inpatient, Outpatient, Specialist medical consultations, Immunizations, Family planning, Ambulance services, Dental care, etc.

GCR Ratings (GCR) has upgraded the national scale long-term Issuer rating of MTN Nigeria Communications Plc to AAA_(NG) and affirmed the national scale short-term Issuer rating of A1+_(NG). GCR based this rating on MTN’s very strong competitive position as the leading provider of telecommunication services in Nigeria, as well as its strong earnings and cash flow which gives it a robust financial profile.

The competitive position of MTN Nigeria is based on its well-established brand, broad spectrum of licences, substantial infrastructural and network coverage, which allows to monetise excess capacity and share infrastructure with other domestic operators. MTN Nigeria also has a record of sustained earnings progression, with a five-year CAGR of 14.1% to FY20. Similarly, Its EBITDA margin remained strong around 50%-53% in the recent period, trending above international peers. GCR expects MTN Nigeria to continue to maintain strong revenue growth given its growing infrastructure, and Nigeria’s favourable demographic.

The GCR ratings confirms that MTN Nigeria will likely have a Stable Outlook. This is because of its leading market position, combined with ongoing capital investments which will allow the Company to maintain its robust earnings and cash flow, supporting strong financial profile.

To further delight its customers, Smile Communications has revamped its eSIM offer. Th eSIM card only functions wherever the mobile network is available. It could be used anywhere in the world. However, an existing Smile customers must activate the free SmileVoice App on their smartphone, connected through Wi-Fi or mobile data. New customers will have to download the free SmileVoice app on a compatible smartphone, running an Android or iOS system, through the respective App stores. It is also important to note that the eSIM does not need to be inserted in the smartphone.

The revamped eSIM offer, comes at a price of N500 and available at all Smile touch points. It is loaded with free unlimited on-net calls and SMS. It also embodies 50 minutes of free local calls to any network on activation. This eSIM is aimed at empowering Smile’s existing and prospective customers with a product extension derived from an existing product with many goodies and freebies.

All is set for the unveiling of the 5G Technology in Nigeria. The Nigerian Communications Commission (NCC) has inaugurated an 18-member Committee in Abuja to develop the Information Memorandum (IM) for the auction of 3.5 gigahertz (GHz) spectrum band which will be used for early deployment of 5G services in the country, following the approval of the Senate investigative hearing on 5G technology in Nigeria.

Among other things, the committee is to develop the Information Memorandum (IM) for auctioning of C-band spectrum for 5G deployment in Nigeria, development of an award process to be used pursuant to which the grant of Spectrum licenses may be made. The committee is to also auction the C-band spectrum for 5G deployment in Nigeria in line with the award process; as well as report regularly/fortnightly to the EVC through the Office of the Executive Commissioner, Technical Services of the Commission on the progress made by the Committee.

In exercise of its powers under Sections 2 and 70 (2) of the NCC Act, the NCC has developed a Commercial Satellite Communications Policies for the telecommunications sector aimed at facilitating provisioning of Space based communications services in Nigeria. The guidelines provide a Licensing Framework which will facilitate investments and entry into the Nigerian market for provision of communications services.

The commission has granted approval for the space landing permits of various classes to different operators to beam their satellites in Nigeria. The recipients of the space landing permits include INTELSAT LLC with 24 C – Bands and Ku-Bands permits; EUTELSAT S.A. with nine Ku-Bands, C-Bands permits; Avanti HYLAS 2 Limited with one Ka-Band permit; and YAHSAT with one C-band and two Ka-Bands permits, etc. The space landing permit empowers the satellite providers to provide commercial satellite broadband services to users in Nigeria. The permit took effect from 2019 to 2021 for all the commercial satellite providers, and covers a period of three to thirteen years depending on the type of permit granted. The NCC plans to update the data every six months to show the status of market access and all the Landing permits issued or modified.

The Nigerian Communications Commission (NCC) has inaugurated an in-house Standing Committee to review the outdated licensing structure in the Nigerian telecommunications industry in line with the global trends and the dynamics in the Information and Communications Technology ecosystem.

The terms of reference to the Committee include to provide a comprehensive review/report on existing licenses; report and recommendations on consultative fora; and report on recommended new license undertakings. The committee is also to provide a report on recommended amendment to license fees and durations; a report on benchmarking of license with similar jurisdictions, a report on the impact of certain licenses on other license holders. The Committee is also expected to recommend solutions as well as the develop updated regulatory framework for new and amended licenses as the case may be; and a final report on the project with all recommendations.

The review is expected to produce a new licensing structure which will reflect international standards and best practices and ultimately birth new licensing fees that will provide opportunities for government to raise additional revenue. The review will also capture the increasing impact of a world-wide range of technological advances, convergence of technologies and services in the global telecoms space over the years on Nigeria.

The desire for the use of local inputs by indigenous firms in Nigeria has gained more momentum with of another department within the NCC inculcate indigenous participation in the telecom sector. The Nigeria Office for Developing the Indigenous Telecoms Sector (NODITS) was established by the NCC to drive the National Policy for the Promotion of Indigenous Content (NPPIC). The policy which was presented recently by the president is designed to guide the implementation and promotion of indigenous content policy in the telecoms sector. It is designed to oversee the implementation of the relevant portions of the Nigerian National Broadband Plan (NNBP) 2020-2025 as well as the National Digital Economy Policy and Strategy (NDEPS).

The NPPIC will work to improve the pace of indigenous digital capacity development and enhance national competitiveness and prosperity for indigenous/local players in Nigeria. The office is responsible for the implementation of the Federal Government’s Executive Order 003 (E03);

“All Ministries, Departments and Agencies (MDAs) of the FGN shall grant preference to local manufacturers of goods and service providers in their procurement of goods and services”,

and

Executive Order 005 (E05);

“All Ministries, Departments and Agencies (MDAs) of government were directed to engage indigenous professionals in the planning, design and execution of national security projects and maximize in-country capacity in all contracts and transactions with science, engineering and technology components”. Signed by the Acting president and the president in 2017 and 2018, respectively.

The NODITS is empowered to issue new Guidelines and Regulations bothering on indigenous content, local manufacturing of telecom equipment, outsourcing of services, construction and lease of telecoms ducts, succession planning in the telecoms sector, corporate governance, corporate social responsibility, etc., and make changes as the need arises. It is therefore important that telecoms sector operators take not of these changes so as to adhere with relevant guidelines to involve indigenous firms and products in the sector’s activities.

NODITS is a wake-up call on indigenous firms to invest in the telecoms sector. They should improve and build enough capacity in this area, one advantage of Foreign Direct Investment (FDI) is its ability to transfer knowledge, including technology from their parent countries to their countries of operation. NODITS offers indigenous firms, platforms to utilize the acquired knowledge in the telecoms sector. It is expected that Nigerians will take advantage of this platform.

On June 5^th, 2021, the federal government of Nigeria banned the use of twitter, a microblogging platform, owing to the suspension of the President, Mr. Buhari’s account. Twitter is mostly operated through the technology powered by the telecoms sector in Nigeria. With the announcement, the NCC ordered telecoms companies to immediately effect the suspension. The outcome was a reduced subscriptions from businesses which hitherto leveraged on the platform to grow, as well as a reduced investments in the sector, which would have helped to grow the economy. A source, NetBlocks, an international internet watchdog, estimated that under sixty-nine days of the twitter ban, the Nigerian government lost about N169 billion to the economy (going by a daily loss of N2.46 billion). Another source, Top10VPN, British firm, estimates that the ban has affected about 104.4 million internet users in the country, that would have contributed about $366.9 million to the economy.

Given the enormous losses form the ban, the federal government is set to reverse itself. According to the Minister of Information and Culture, Alhaji Lai Mohammed, the federal government is set to lift the ban on Twitter, the microblogging agency in Nigeria. The minister stated that the interface with twitter has been very positive.

Among the demands of the federal government for twitter to be unbanned include that twitter should;

• Be incorporated as a legal entity in the country, with an address.
• Have a Country Representative that will serve as a liaison between it and the country.
• Register with relevant regulatory agencies including the NCC.
• Pay necessary taxes to the Federal Inland Revenue Service (FIRS).

Twitter’s acceptance to open an office in Nigeria by 2022 has been commended by the government, although there are still issues around the opening of an office in Nigeria and few other areas that are being addressed.

It is expected that the resolution of this imbroglio with twitter would increase data subscription and improve the revenue base of the telecoms sector in particular and the economy in general, that have lost over N169 billion since the ban. For a country that is seeking for foreign direct investment, unbanning twitter will make a major breakthrough.