Nigeria’s monthly phone calls to hit N106bn – Investigation

Nigeria's minister of communication, Mrs. Omobola Johnson 

Nigeria’s telecommunications subscribers monthly expenditure on mobile phone calls, according to checks, would soon hit a whopping N106.1 billion by the end of December, 2012. The call expenditure forecast is a conservative calculation based on the current industry Average Revenue Per User (ARPU) and the projection by experts in the industry that stipulated that active telecoms subscribers would have grown higher than what the telecoms companies currently have on their respective networks.
Former Executive Vice Chairman, Nigerian Communications Commission (NCC), Ernest Ndukwe, has predicted during the Nigerian Telecoms Awards, organized by Logica Group recently, that active telephone subscriptions in the country would surpass 105 million in the next three months, including December 2012. However, according to the latest statistics for the month of July 2012, released by the NCC, there are about 103 million telecoms subscribers currently on all the telecoms networks in the country.

While the industry ARPU in Nigeria was estimated at around N1,011, according to the Business Monitor International Limited (BMI), and subscriber base of 103 million in the month of July, the outgoings by Nigerian subscribers in July was conservatively valued at N104 billion monthly. ARPU is the financial benchmark used globally by telecoms companies to measure the average monthly or yearly revenue generated from an average subscriber. The expenditure increased from N100 billion in January 2012 when active industry subscriber base was estimated at 99 million by the NCC, to reach N104 billion in seven months after into the month of July when subscriber base hit 103 million.

With the industry projection by Ndukwe on the industry records,telcos will have 105 million active telecoms subscribers by the end of December, 2012, and with industry ARPU of N1,011, Nigerians subscribers are billed to spend an average of N106 billion monthly. The projected expenditure is also equivalent to the average monthly revenue from phone calls, which will accrue to the telecoms firms, including the Global System for Mobile Communications networks such as MTN, Globacom, Airtel, Etisalat; the Code Division Multiple Access operators of Visafone, Capcom (MultiLinks , Starcoms), dormant Zoom Mobile, as well as the fixed line operators.

Elaborating on the boom in subscriber growth since 2011 telecoms deregulation that was undertaken by the Federal Government, Ndukwe said no one was in a position to predict in those early days of GSM licensing, the full potential of the market and the speed at which the Nigerian telecom network would grow. However, he stressed that, “Today, the figure for active subscribers in the mobile networks is around 100 million lines and is likely to surpass 105 million by end of December 2012.

“Nigeria has transited from what I described as the telecommunications dark ages before 2000 to a telecommunication revolution age that has opened up new possibilities and frontiers across our political social and economic landscape.”

Source: Punch Online

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Written by Adewunmi Akinpelu

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