Nigeria Africa’s largest Telecom Market

Nigeria is the largest mobile market on the African continent with about 61 million users as at December 2009, however, this penetration is below 50% suggesting that there is ample room for market expansion, this was revealed by a recent study conducted by Canadian research firm Technology Strategies International, in partnership with BroadGroup TMT Ventures.

The report, titled “Investment Opportunities in the ICT Sector in Nigeria: 2010”, also suggests that there is massive opportunity to improve fixed line and internet penetration in the country. “One of the things fuelling the growth in the Nigerian ICT sector is the imminent illumination of two undersea cables, which will increase international bandwidth dramatically. The improvement in international connectivity will have a major impact on business in Nigeria”, said Christie Christelis, President of Technology Strategies International.

The study revealed that demand for mobile services is still on the increase, with Nigerian operators experiencing declining ARPUs levels, as the subscriber base broadens to include poorer segments. Companies such as MTN Nigeria have shown that, even at ARPU levels of $12 and declining, the business is still capable of making superior margins, added Christelis.