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Mobile Internet Subscription Hits 93.5m

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Mobile internet in Nigeria
  • Mobile Internet Subscription Hits 93.5 Million

The number of mobile Internet subscription in the country rose by 35.71 million between 2013 and 2016, an analysis of data obtained from the Nigerian Communications Commission has shown.

According to the NCC, the mobile Internet subscription in the country stood at 93,554,076 as of September 2016 while as in October 2013, the total mobile subscription stood at 57,840,229.

This means that within the period of three years, mobile Internet subscription rose by 35,712,777. It also means that within the period of three years, mobile Internet subscription rose by 61.75 per cent.

Although at 32,771,259 subscribers, MTN Nigeria Communications Limited had the largest mobile subscription as of September 2016; Etisalat’s showed the biggest leap over the three year period as its mobile Internet subscription rose from 5,640,789 to 15,062,650, showing a difference of 9,421,861 or 167.03 per cent increase.

On the network of Airtel, the mobile Internet subscription rose from 9,650,631 in October 2013 to 18,832,238 as of September 2016. This shows a difference of 9,181,607 or 95.14 per cent growth rate.

Subscription on Globacom rose from 12,975,809 to 26,887,929 within the period. This means that the subscription grew by 13,912,120. This shows a growth rate of 107.22 per cent.

On the other hand, mobile Internet subscription on MTN rose from 29,477,200 to 32,771,259 within the period. This means that the mobile Internet subscription on the network rose by 3,294,059, showing a growth rate of 11.17 per cent.

Although over a period of three years, mobile Internet subscription in the country increased by 61.75 per cent, the subscription actually declined in the last one year.

Mobile Internet subscription in the country attained its peak in November 2015 when the subscription attained the height of 97,824,017.

As of October 2015, mobile Internet subscription stood at 97,518,398. This means that in the last 12 months, mobile Internet subscription in the country has declined by 3,964,322. This shows that the subscription declined by 4.06 per cent.

In the last three quarters of the year, the Nigerian economy has been in recession. The decline in the mobile Internet subscription could therefore mean that with lesser disposable income, more Nigerians who could not renew their data subscription opted out, leading to 4.06 per cent decline over the one year period within which the nation has witnessed recession.

The increase in mobile Internet subscription in the last three years has increased the revenue stream of digital operators. Even at an Average Revenue Per User of only N500 per month, 93,554,076 subscribers means additional N46.78bn a month in the coffers of mobile operators.

At the inception of digital mobile services in the country, operators had concentrated on only voice services. However, with advancement in technology, demand for higher productivity and mobile office, the rise in social networking and ubiquity of smartphones and other digital devices; there has been an increase in the demand for data services.

This has also reflected in the recent emphasis on mobile broadband services by both the industry regulator and mobile operators. In simple terms, broadband Internet means faster Internet services. Many subscribers are actually frustrated at the slow speed of connection offered by their service providers.

A number of operators have responded by making additional investments and launching 4G services. There is even fear that some that do not actually have 4G capability have only joined the bandwagon to advertise 4G services; just as they offer 2G services in the garb of 3G services.

An online professional, who spoke on condition of anonymity, said he had been disappointed with the 3G offerings of two operators and therefore had not bordered about the new pitch of 4G technology.

“The 4G is limited to specific areas of the some cities. If you are not within those areas, you cannot enjoy 4G,” the subscriber said.

The Executive Vice-Chairman at the NCC, Prof. Umar Danbatta, recently put broadband penetration in the country at 21 per cent although the Alliance for Affordable Internet had also recently put the nation’s broadband Internet penetration at 14 per cent.

Danbatta said to reduce pressure on the existing lower microwave frequency bands and increase broadband access across the country, the NCC planned to license the 38 GHz and 42 GHz bands, adding that both bands were suitable for short hop and point-to-point terrestrial links.

The bands also support 3G/4G/LTE backhaul and a high degree of frequency reuse due to the high directivity of their antennas.

He said, “Currently in Nigeria, more than 10 terabytes of telecommunications capacity exist at the landing point, but the challenge is the deployment of fibre infrastructure across the country that will effectively distribute this capacity to the distribution nodes at the metropolitan areas of all regions in the country that will supply sufficient fibre capacity to the backbone.

“The commission is finalising subsidy agreements with two infrastructure companies, Infraco Nigeria Limited and I-Connect Infrastructure Services Limited for the Lagos and North Central Zones, respectively to facilitate the rollout of broadband services.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigeria’s Broadband Penetration Stalls at 42.53% Amid Connectivity Challenges

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Nigeria’s broadband penetration has stalled at 42.53% as of January, according to the latest report.

Subscriptions currently stand at 92.19 million, indicating a significant gap in connectivity, particularly in rural areas.

The Nigerian National Broadband Plan 2020-2025 aims to increase broadband penetration to 70% by 2025, with the ultimate goal of achieving 96% mobile broadband coverage by 2030.

However, this ambitious target requires substantial investment—approximately $461 million, according to a recent report by the Global System for Mobile Communications Association (GSMA).

While the country’s major telecommunications companies, such as MTN Nigeria and Airtel Africa, have invested heavily in expanding their network infrastructure, much of this development has been concentrated in urban areas. Rural and underserved regions face a significant coverage gap, exacerbating the digital divide.

Despite these challenges, Nigeria has made progress in improving its broadband infrastructure. Since 2012, the mobile broadband coverage gap across Africa has decreased from 56% to 13% in 2022, due to significant investments in network capacity and new technologies.

Nonetheless, millions of Nigerians, particularly those in rural regions, remain without access to essential telecom services.

To address this issue, Nigeria’s government established the Universal Service Provision Fund (USPF) in 2006, aimed at bridging the connectivity gap and expanding broadband access to unserved and underserved areas.

The fund provides resources for deploying telecommunications infrastructure in economically unviable regions.

The success of these initiatives, along with increased investments in broadband infrastructure and policies to incentivize internet expansion in remote areas, will be crucial in closing the connectivity gap and improving digital access for all Nigerians.

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iPhone Shipments Drop Amid Resurgence of Android Rivals

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Apple iPhone 14

Apple Inc. reported a significant drop in iPhone shipments during the March quarter, reflecting a downturn in sales across China amid the resurgence of competition from Android-powered rivals.

According to market tracker IDC, the tech giant shipped 50.1 million iPhones in the first three months of the year, a 9.6% year-on-year decline that fell short of the average analyst estimate of 51.7 million.

The steep decrease in iPhone sales marks Apple’s most significant quarterly dip since 2022, when Covid-19 lockdowns disrupted supply chains.

This time, the Cupertino-based company faces challenges from resurgent competitors such as Huawei Technologies Co. and Xiaomi Corp.

These firms have rebounded strongly in recent quarters, and their innovative product lines have begun to reclaim market share from Apple in China.

Samsung Electronics Co. regained its position as the top smartphone supplier globally, while Apple ranked second. Xiaomi closed the gap on Apple, shipping 40.8 million units, an impressive 33.8% increase year-on-year.

Transsion Holdings, another key player in the budget smartphone segment, nearly doubled its shipments, showcasing the competitive environment Apple faces.

Nabila Popal, research director at IDC, highlighted the broader shift in the smartphone market, which has recovered from the supply chain disruptions and challenges of recent years.

“While Apple has demonstrated resilience and growth in recent years, maintaining its pace and share in the market may prove challenging as Android manufacturers make strides,” Popal commented.

Apple has a strong brand and loyal customer base, yet its market position may be tested further by the aggressive pricing and innovative products offered by Chinese rivals.

The company’s efforts to sustain its premium pricing strategy may also be challenged as more customers consider switching to Android alternatives.

As the tech industry looks ahead to the rest of the year, Apple’s upcoming earnings report and strategic moves to address this competitive pressure will be closely watched by investors and industry observers alike.

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Meta Platforms Inc.’s Astonishing Rally Adds $1 Trillion in Value

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Facebook Meta

Meta Platforms Inc., formerly known as Facebook, has witnessed an extraordinary rally that has propelled its market value by $1 trillion.

The tech giant’s record-breaking surge, fueled by strategic investments in artificial intelligence (AI), underscores its resilience and adaptability in navigating the ever-evolving digital landscape.

Since its darkest days in 2022, Meta’s shares have undergone a remarkable transformation, soaring to new heights and shattering records along the way.

Despite its monumental growth, some perspectives suggest that Meta is still trading at a discount with its shares valued at 24 times estimated earnings early Wednesday, closely aligned with its 10-year average and just below the Nasdaq 100’s multiple of 25 times.

Among its peers in the Magnificent Seven group of big tech companies, only Alphabet Inc. boasts a lower multiple, standing at approximately 21 times.

AI emerges as the primary catalyst behind Meta’s astonishing rally, driving gains and serving as a harbinger of future growth prospects.

Meta’s substantial investments in AI have revolutionized ad targeting and content recommendation algorithms, enhancing user engagement and advertiser relevance.

The strategic bet on AI has paid off handsomely, with profits tripling in Meta’s most recent quarterly report, accompanied by a surge in revenue growth. Such robust earnings prompted Meta to announce a $50 billion buyback program and implement a dividend, further solidifying investor confidence in the company’s trajectory.

Conrad van Tienhoven, a portfolio manager at Riverpark Capital, lauds Meta’s strategic focus on AI, stating, “Outside of chip or hardware companies like Nvidia or Dell, no company has benefited more from AI than Meta, just in terms of the impact on growth.”

Meta’s unparalleled surge, exceeding 450% from its nadir almost 18 months ago, positions it as a standout performer among its peers. This year alone, Meta’s shares have surged by approximately 46%, trailing only chipmaker Nvidia Corp. within the Magnificent Seven cohort.

The recent selloff that preceded Meta’s current rebound underscored investor concerns over its spending on the metaverse initiative. However, Meta’s proactive measures, including a concerted focus on cost efficiency and innovation, have restored market confidence.

Rick Bensignor, chief executive officer of Bensignor Investment Strategies, affirms Meta’s trajectory, stating, “Meta has figured out how to get rid of unnecessary spending, which has been a real balance sheet plus, and it continues to innovate.”

As Meta prepares to unveil its first-quarter earnings results on April 24, investors eagerly anticipate updates on key metrics such as ad revenue growth and the efficacy of AI solutions.

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