A report by nPerf, a French firm renowned for measuring global internet performance, has highlighted developments in Nigeria’s mobile internet landscape for 2024.
The analysis, which evaluated key performance indicators (KPIs) like download speed, upload speed, latency, and video streaming, underscores MTN’s continued dominance in the sector. However, the broader performance of the telecom sector remains overshadowed by Nigeria’s challenging economic environment and industry-wide struggles.
According to the nPerf Barometer, MTN excelled across all metrics, particularly in download speed, upload speed, latency, and video streaming quality.
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“MTN leads the 4G focus area, showcasing significant advancements in upload speed and reinforcing its role as a trailblazer in Nigeria’s mobile technology sector,” the report noted.
As of October 2024, MTN held a commanding 51.09% share of Nigeria’s mobile market with 69.5 million internet subscriptions, according to data from the Nigerian Communications Commission (NCC).
Airtel and Globacom: Key Contributors
While not the overall leader, Airtel secured strong performance in browsing and video streaming, reflecting its commitment to enhancing user experience. The operator accounted for 34.61% of the mobile market with 45.7 million internet subscriptions.
Globacom, with a 12.15% market share and 17.1 million internet subscriptions, also showed steady improvement. The report highlighted Glo’s contributions to market competitiveness despite its smaller footprint.
The nPerf report notably excluded 9mobile, which holds a mere 2.15% market share and 2.1 million internet subscriptions. The operator’s limited presence reflects the intensifying competition and economic pressure within the industry.
Methodology of nPerf Analysis
The report’s findings were based on extensive testing conducted during busy hours (6 PM to 11 PM) and idle hours, ensuring a comprehensive understanding of network performance throughout the day. This approach accounts for fluctuations in user experience caused by network congestion.
Despite these individual achievements, the telecom sector’s overall performance is widely considered inadequate, primarily due to Nigeria’s harsh economic environment. Industry experts attribute this to several factors, including high operating costs related to energy, infrastructure maintenance, and importation of essential equipment, compounded by the removal of subsidies and fluctuating exchange rates. Additionally, inflation has driven up the cost of goods and services, significantly weakening consumers’ purchasing power and affecting demand for premium data services.
In response to these challenges, mobile network operators have been advocating for a 100% tariff review to reflect the rising costs of operations. Industry groups have argued that the current pricing model is no longer viable.
Recently, the Nigerian government agreed in principle, to allow about a 40% increase for the telcos.
What Lies Ahead for the Telecom Sector?
While MTN, Airtel, and Glo are making significant strides in network performance, the broader telecom sector faces mounting challenges.
Analysts have noted that without a tariff review or government intervention to alleviate operating costs, the sector’s financial viability remains uncertain. However, any tariff increase could further strain consumers, who are already grappling with high inflation and economic instability. The telecom sector’s struggles could have broader implications for Nigeria’s digital economy, a key pillar of the country’s development agenda.
While MTN’s dominance showcases the resilience of individual operators, stakeholders believe the industry as a whole requires urgent reforms to ensure sustainable growth and improved service delivery. The push for a tariff review, though controversial, may become inevitable if the sector is to weather Nigeria’s economic storm.