Nigeria’s Telecom Sector: Stagnation Requires a Surge of New Competition
Nigeria’s telecommunications sector, once a beacon of progress in Africa, is currently facing a period of sluggishness. The market has essentially solidified into a duopoly dominated by MTN and Airtel, who collectively command close to 90% of the market share. This lack of robust competition has resulted in rising prices, declining service quality, and a noticeable slowdown in innovation within the industry.
The Urgent Need for Fresh Players and Wider Broadband Access
The consequences of this stifled competition are evident. Currently, only 48.8% of Nigeria’s substantial population of 216 million individuals has access to broadband internet. Expanding this crucial access is progressing slowly, largely because the two dominant players lack the strong incentives necessary to aggressively invest in network expansion or actively improve their services. According to Wole Adetuyi, the CEO of Swift Telephone Network (STN), the solution is clear: “We need new players, is the truth.” His assessment holds significant weight, as historical data illustrates the positive impact of fresh entrants. The arrival of Globacom in 2003 dramatically reshaped the market. They launched per-second billing, a pioneering move on the African continent, compelling their rivals to adjust their pricing models. Globacom also significantly reduced SIM card prices, making them available to a much wider audience and kick-starting their 2.5G internet via GPRS offering, which then enabled services like MMS.
The need for fresh investment and the benefits a competitive market brings are clear.
The path to Nigeria’s digital future is blocked by a lack of competition.
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