Despite Challenges, Telecommunication Sector Maintained Stable Growth in Telephone, Broadband Subscriptions in July

Emma Okonji

In spite of the initial challenges faced by Nigerian telecoms operators in expanding their network infrastructure as a result of the refusal of some state governments in granting them Right of Way (RoW) permit, the sector recorded a stable growth in telephone and broadband subscriptions in July this year, according to the latest statistics released by the Nigerian Communications Commission (NCC).

Initially, Mobile Network Operators (MNOs), under the aegis of the Association of Licensed Telecoms Operators of Nigeria (ALTON), were worried about the hike in diesel, and the multiple taxes imposed on telecoms operations by state governments and federal government agencies.  They were of the view that such actions may retard the growth and development of the telecoms sector, despite its huge investment profile and contributions to the nation’s Gross Domestic Product (GDP) growth.

They were particularly worried that the refusal by some state governments to grant RoW permit to telecoms operators, may retard telecoms’ expansion, and erode its many gains.

In spite of their worries, the sector maintained a stable growth in the number of telephone, broadband and internet subscriptions, including broadband penetration in the month of July 2023.   

According to the latest statistics, which THISDAY obtained from NCC’s website, telephone subscriptions across networks, reached 220,860, 987, with a teledensity of 115.70 per cent in July this year, after reaching 220,086,951, with a teledensity of 115.30 per cent in June same year, a development that showed a stable growth in telephone subscriptions and teledensity across networks.   

Subsequently, broadband subscriptions reached 89,730,341, with a penetration level of 47.01 per cent in July 2023, after reaching the same 89,730,341 subscriptions, with same penetration level of 47.01 per cent in June 2023, which suggested a stable growth in both broadband subscriptions and broadband penetration in July this year.

The NCC statistics also showed a stable growth in the number of active internet subscriptions across networks in July 2023.

According to the statistics, the total number of active internet subscriptions across networks, reached 159,534,913 in July 2023, after reaching 159,498,826 in June 2023, which is an indication of a stable growth in internet subscriptions across networks in July this year.

The statistics however showed a steady growth in the number of active internet subscriptions from January to June 2023, before maintaining a stable growth in July 2023.  

From the statistics, in January this year, the number of active internet subscriptions was 156,244,368, and the figure grew to 156,987,433 in February 2023, and to 157,551,104 in March 2023. The figure further grew to 158,231,544 in April 2023, and increased again to 159,598,451 in May, before dropping to 159,498,826 in June this year, but rose slightly again to 159,534,913 in July this year.

The statistics showed that mobile (GSM) internet subscriptions topped the other internet subscription channels like Fixed Wired and the Wireless internet service offerings from Internet Service Providers (ISPs) and Voice over Internet Protocol (VoIP) providers.

Similarly, telephone subscriptions also grew from January to June 2023, before maintaining a stable growth in July 2023.

From the statistics, the total number of active telephone subscriptions in January this year was 226,226,754, and the figure grew to 227,179,946 in February this year. The figure however dropped to 226,161,713 and to 223,663,521in March and April respectively. It further dropped again to 221,258,372 and to 220,086,951 in May and June this year respectively, before increasing to 220,860,987 in July 2023.

Attributing the stable growth in telephone subscriptions, broadband subscriptions and penetration to the continuous investments by telecoms operators, despite the challenges, the Chairman, Association of Licensed Telecoms Operators of Nigeria, Gbenga Adebayo, told THISDAY that telecoms operators decided to plough back their earnings and revenues into the sector for network expansion and growth.

“Despite the challenge faced in the sector, telecoms operators continued to invest their revenues back into the sector, hence the remarkable stability in growth and expansion in the sector,” Adebayo said.

He however warned that persistent challenges could erode the gains of telecoms, while calling for upward review of telecoms tariff across networks.

“Telecoms sector is the only sector where cost of rendering services continues to drop, even in the midst of hike in the cost of goods and services in other sectors of the Nigerian economy,” Adebayo said. He warned that most telecoms operators may go into extinction, if cost of telecoms service delivery remained the same without upward review. He also warned of possible decline in the contribution of telecoms sector to the Nigerian GDP, if the issues of multiple taxes and Right of Way are not properly addressed.