Telecom operators in Nigeria recorded a sharp decline of over six million subscribers in six months, according to the Nigerian Communications Commission’s (NCC) latest industry statistics.
According to the telecom industry statistics, the figure showed that 6,113,849 of mobile subscribers were lost between January and June 2023.
According to the NCC’s figures, the telcos had a subscriber base of 225,880,193 in January 2023. In the month of February, there was a slight increase of 226,835,732. But in the month of March, the number of subscribers dropped to 225,821,293, indicating a decline of 1,015,439 subscribers at the period.
In April, the four service providers recorded a subscriber base of 223,338,215 after losing 2,483,078 subscribers.
There was a repeat of the negative record in the month of May which had a total subscription of 220,931,688 after 2,406,527 subscribers dropped off the base. In the month of June, a further decline of 1,165,344. This brought the number of the month of June to 219,766,344.
According to the NCC’s figures, MTN, the largest operator by subscriber count, was a major factor in the drop seen during the six months (January – June), as it suffered a massive loss of 7,286,654 subscribers.
The reduction in MTN’s active subscriptions is attributable to the disconnection of SIMs that have not been linked with the National Identification Number (NIN) as mandated by the government.
The development resulted in the decline of subscriptions for mobile services in the country from 225,880,193 recorded in January, 2023 to 219,766,344 subscribers in the month of June.
Despite MTN’s huge loss, other telcos – Glo, Airtel and 9mobile – recorded marginal increase in their respective subscriptions base in the months under review.
Between January and June, Glo added 998,994 customers on its network. In the same vein, Airtel lost 373,035 subscribers, while 9mobile gained 446,846 which is the highest number of subscribers in the period under review.
There are palpable fears that the service providers may lose more subscribers if the Federal Government, through the industry regulator, relevant agencies and institutions like banks come up with policies that will demand Subscriber Identification Module (SIM) updates and verifications.
Recently, the industry regulator, NCC, issued new guidelines to telecommunication companies, directing them to deactivate phone lines unused for six consecutive months for Revenue Generating Event (RGE).
This new rule will definitely take a toll on the telecom operators, as many subscribers who are using more than one phone line may not be able to retain the others due to the harsh economic environment of the country.
According to the regulator, “A subscriber line may be deactivated if it has not been used, within six months, for a Revenue Generating Event (RGE), and if the situation persists for another six months, the subscribers may lose their numbers, except for a network-related fault inhibiting an RGE.
“RGE regards deduction of line rental charge. The commission said subscribers must provide proof of a good reason for the absence and are at liberty to request line parking.”
The document read: “A subscriber line may be deactivated if it has not been used, within six months, for a Revenue Generating Event (RGE), and if the situation persists for another six months the subscriber may lose their number, except for a network-related fault inhibiting an RGE.”
It is common knowledge that some Nigerians are migrating to other countries of the world, and most of them may likely not continue to use their Nigerian networks’ SIM either voluntarily or perhaps any policy that needs revalidation comes up.
There is a standing order for those who may have issue(s) with their SIM cards, as the National Identity Number (NIN) in the registration of Subscriber Identity Module (SIM) cards by all mobile telecommunication network operators is mandatory. The development will further interrupt the growth trend of telecom subscribers.
TelcosRecordN785bnAsCapitalExpenditure In 2022
Meanwhile, telecommunications operators in Nigeria recorded N785.7 billion in revenue in 2022, according to Subscriber/ Network Data Annual Report 2022, released by Nigerian Communications Commission (NCC).
The report revealed that the Capital Expenditures (CAPEX) of operators declined, while operating cost increased.
According to the industry data, all the operators spent the sum of N785.7 billion on CAPEX in 2022. This represents a 30 percent decrease in CAPEX when compared with the N1.1 trillion spent in 2021.
Meanwhile, operating cost for the companies increased by 17.6 percent in the year. The report disclosed that operators spent N2 trillion on their operations in 2022 compared with N1.7 trillion spent in 2021.
According to a report, all the activities, including investments as regards the telecoms sector in 2022, domestic investment (CAPEX) was N785.7 billion as of December 2022; operating cost, N2 trillion, and revenue was N3.88 trillion.
Further analysis of the report showed that GSM players including MTN, Globacom, Airtel and 9mobile spent N718.3 billion on capital expenditure (CAPEX), with an operating cost of N1.99 trillion and earned revenue of N3.329 trillion.
Recently, the Executive Vice Chairman (EVC) of NCC, Prof. Umar Garba Danbatta, disclosed that the investment profile in Nigeria’s telecommunications sector, comprising foreign direct investment (FDI) and local investment, reached about $75.6 billion as of 2021.
According to Danbatta, in 2018, investment profile in the sector stood at $68 billion. This increased to $70.5 billion in 2019 and $72 billion in 2020. At the end of 2021, the figure rose to $75.6 billion. The latest figure is the current official investment profile computed in the industry up from the initial $70 billion investment in the last few years.
The data also revealed that telecommunications subscribers in Nigeria consumed a total of 518,381.89 terabytes of data in 2022, an increase of 47 percent when compared with the 353,118.89 terabytes consumed in 2021.
According to the report, the number of Internet subscriptions across the networks also increased from 141.9 million as of December 2021 to 154.8 million as of December 2022 representing an increase of 9.06 percent.
In a related development the telecom operators recorded some N3.8 trillion in revenue in 2022.
This represents an increase of 18.7 percent when compared to N3.2 trillion recorded in 2021.
According to the report, mobile network operators, MTN, Globacom, Airtel, and 9mobile, contributed 86 percent of the industry’s revenue, demonstrating their dominance.
The four mobile operators’ combined revenue for the year was N3.3 trillion, while the combined revenue of other participants, such as Internet service providers (ISPs), value-added service (VAS) providers, and fixed wired operators, was N500 billion.
