Tuesday, April 5, 2011
Sim Card Registration Will Slow Down Growth-A report by BMI
Posted on 7:27 AM by Unknown
Sim Card Registration Will Slow Down Growth
A report by Business Monitor International, BMI, one of the leading industry researchers, has said that the ongoing SIM Card registration in Nigeria will slow down growth in the nation's telecoms sector.
BMI in the report tagged "Nigeria Telecommunications Report Q1" said that although Nigeria's mobile market still offers considerable scope for growth, the introduction of SIM registration, as well as the introduction of number portability in 2011, will result in slower growth.
The nation's subscriber base has been increasing steadily since the commencement of GSM in 2001 in the country and hit 89 million at the end of January 2011.
Active connected lines are now 89,618, 510, with mobile GSM connections hitting 82,618,510, mobile CDMA hitting 6,186,442, while fixed wired/wireless connections is now 1,035,391.
The report said that despite having a mobile penetration rate, which is more than 50 percent, the sector has a high incidence of multiple SIM ownership and a large number of inactive prepaid users. It added that one of the biggest challenges for the sector would be expanding network coverage to underserved areas.
Breaking down the subscriber numbers, BMI said that the latest figures from the Nigerian Communications Commission NCC suggest Nigeria's mobile customer base grew 12 percent in the first nine months of 2010 to reach almost 82mn at the end of September.
This resulted in a mobile penetration rate of 52 percent, up from more than 47 percent at the start of 2010.
BMI estimated that at the end of 2010 Nigeria had more than 84.5m mobile customers, equivalent to a penetration rate of 53.4 percent.
Its newly revised and extended forecast for Nigeria's mobile sector envisaged a market with almost 93m subscribers at the end of 2011, reflecting full-year growth of about 9 percent. By the end of 2015 BMI expects Nigeria to have more than 128m mobile customers; equivalent to a penetration rate of almost 72percent.
The report disclosed that noteworthy developments in Nigeria's telecoms market included the news in December 2010 that Etisalat Nigeria became the most recent Nigerian operator to acquire a licence to provide 3G services. Etisalat acquired its licence through the purchase of start-up Alheri Mobile Services, a wholly owned subsidiary of local conglomerate, Dangote Group. Alheri was awarded a 3G concession from the NCC in April 2007, alongside established operators Airtel Nigeria (then Celtel), Globacom and MTN Nigeria.
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Etisalat plans to spend $50million on 3G equipment out of a total investment of $400million for 2011. The operator would initially deploy its 3G network in Lagos, Port Harcourt and Abuja, with plans to expand coverage to other areas later in 2011. Etisalat recently got a $650million syndicated loan from seven banks that will enable network expansion and capacity building.
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•How to Start a Recharge Card Printing Business with a little Capital and Make Huge Profit
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