Nigeria Telecommunications Report Q3 2013: New research report available at Fast Market Research

After a wave of regulatory penalties, including fines and a ban on promotions, Nigeria's mobile operators have announced plans to expand and upgrade their networks to cope with strong subscriptions growth and increasing data usage. BMI expects this trend to continue over the medium term as the market is forecast to add around 45mn new subscribers in the five years to 2017. Meanwhile, consolidation and, subsequently, transition to LTE technology appears to be a growing trend among tier two telecoms service providers in Nigeria. BMI sees this as a positive development as, through consolidation, tier-two operators are able to gain scale for bigger network deployments while the transition to LTE should enable them compete better with 3G HSPA+ offerings from the GSM operators.

Key Data

* The mobile market grew 3.6% in Q113 and 18.6% in the 12 months to March 2013.
* The number of internet connections via mobile networks rose by 11.7% in Q113.
* Market weighted blended ARPU fell by 10.2% in 2012.
* The fixed-line sector contracted by 5.5% in Q113 and 26.9% in the 12 months to March 2013.

Full Report Details at
- http://www.fastmr.com/prod/648367_nigeria_telecommunications_report_q3_2013.aspx?afid=301

Risk/Reward Ratings

Nigeria is ranked first on BMI's Q313 Risk/Reward ratings (RRR) table for Sub-Saharan Africa. Nigeria scores above the regional average in all four categories of our ratings, although a high rate of unemployment, weak social infrastructure and relatively low GDP per capita contribute to a weak Country Rewards score. Nigeria's population and rapid subscriber growth contribute to a high score in the Industry Rewards category but this is counterbalanced by a weak subscriber mix and declining ARPUs. Meanwhile, a positive private consumption growth outlook, based on strong macroeconomic fundamentals, continue to sustain Nigeria's relatively high Country Risk rating.

Key Trends And Developments

Wireless internet service provider Swift Networks announced the acquisition of rival WiMAX operator Direct on PC (DoPC) on June 12 2013. BMI notes that Nigeria's wireless broadband market is fragmented with scores of licensees, although only a handful operates commercially. This deal, along with Capcom's recent acquisition of three CDMA operators, is indicative of a trend towards consolidation in the tier two telecoms market as operators seek scale to invest in new technologies and challenge the dominance of their bigger tier one rivals.

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