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Economic woes lower Nigeria data subscriptions

12 January 2017, 19:43

Lagos - Ongoing financial challenges consumers face have been blamed for the drop in internet subscriptions as announced by the Nigeria Communications Commission on Wednesday.

According to the regulator, subscriptions stood at 92,4 million in November, representing a year-on-year contraction of 5 percent.

The figure implies density of 50 percent in a population estimated at 185 million, nonetheless placing Nigeria well above the African average of around 16 percent as estimated by McKinsey.

“The drop in internet subscriptions can be directly linked to the current squeeze on consumers’ pockets,” First Bank of Nigeria (FBN concluded.

“Internet subscribers with multiple subscriptions would likely renew only one agreement with a provider in a bid to manage costs.”

Also read: Association faults NCC over increase in cost of data 

Meanwhile, it has been gathered in an attempt to improve its data services, we gather that MTN intends to invest at least US$500 million (N157,5 billion) to push its 3G coverage to 90 percent this year.

Additionally, the company plans to rollout fibre-network in six cities.

In 2017 the NCC expects to sell the remaining 40MHz in the 2.6GHz spectrum.

Eight slots remain, with the reserve price for one slot set at US$16 million.

Last year MTN acquired six slots of this spectrum.

“We expect better data speed and network access on the back of these sales,” 

- CAJ News


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