Nigeria - Fixed-Line Market and Fibre Infrastructure - Overview and Statistics

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Nigeria - Fixed-Line Market and Fibre Infrastructure - Overview and Statistics

Nigeria is the most competitive fixed-line market in Africa, featuring a second national operator (SNO, Globacom) and over 80 other companies licensed to provide fixed-telephony services. The alternative carriers combined now provide over 85% of all fixed connections while the ailing incumbent, Nitel, is in liquidation after a decade of failed privatisation attempts.

The majority of fixed lines has been implemented using wireless technologies, which gives the network operators the opportunity to also enter the lucrative mobile market under a unified licensing regime and has helped them to secure hundreds of millions of US$ in investments from local and foreign investors. However, fixed-wireless connections have declined in the past few years in favour of mobile services. This has prompted mergers and acquisitions in the sector, which is likely to continue in the coming years.

Several microwave and fibre-based national backbone networks are being rolled out by various companies. Nitel's monopoly on international fibre bandwidth via the SAT-3/WASC submarine cable system ended in 2009 when Globacom's Glo-1 cable landed in the country, followed by the Main-One cable in 2010 and WACS in 2012. Additional submarine cables are scheduled to go online in 2013 and 2014, which will deliver a further boost to the country's underdeveloped Internet and broadband sector.

Key developments:

National telco Nitel in liquidation;
Alternative carriers provide 85% of fixed connections;
Mergers and acquisitions (M&A) among smaller operators;
Fixed-wireless connections declining in favour of mobile services;
National fibre backbone rollouts continue;
New international submarine fibre optic cables planned for 2013 and 2014.

Companies covered in this report:

Nigerian Telecommunications Ltd (Nitel, Pentascope, Transcorp); Globacom; VGC Communications (MTN); Nepskom Communications; MTS First Wireless; Suburban Telecom; Backbone Connectivity Network (BCN); Traffic Network Services; Fibre Tech West Africa; Phase3 Telecom; Alheri Engineering; Gateway Telecoms Integrated Services; Mobitel Nigeria; Prestel (O-Mobile); Galaxy Backbone; 21st Century Technologies; Main One (Mainstreet Technologies); Brymedia; NigComSat; O3b Networks, WASACE.

1. Synopsis
2. Fixed-line market and infrastructure overview
2.1 Fixed-line statistics
2.2 Unified licensing regime
3. Fixed network operators in Nigeria
3.1 Nigerian Telecommunications Ltd (Nitel, defunct)
3.1.1 Network infrastructure
3.1.2 National backbone network
3.1.3 Wireless Local Loop (WLL)
3.1.4 Services
3.1.5 Debts
3.1.6 The Pentascope period, 2003-2005
3.1.7 The Transcorp period, 2006-2009
3.1.8 Privatisation attempts 2010-2012
3.1.9 Liquidation
3.2 Globacom Ltd
3.2.1 Network infrastructure
3.2.2 Fibre optic backbone network
3.2.3 International presence
3.2.4 Services
3.2.5 International expansion
3.3 VGC Communications, MTN
3.4 National Long-Distance Operators (NLDO)
3.4.1 Nepskom Communications Ltd (defunct)
3.5 Fixed-wireless network operators
3.5.1 MTS First Wireless
3.5.2 Mobitel Nigeria Ltd
3.5.3 Prestel (O-Mobile)
3.5.4 Regional FWA operators
3.5.5 New fixed-wireless licences 2013
4. National fibre optic infrastructure
4.1 Backbone networks
4.1.1 National Information Infrastructure Backbone (NIIB)
4.1.2 Galaxy Backbone Plc
4.1.3 Suburban Telecom Ltd
4.1.4 Phase3 Telecom
4.1.5 Backbone Connectivity Network (BCN)
4.1.6 Mobile operators' national backbone networks
4.1.7 Private networks
4.2 Fibre to the Home (FttH)
5. International infrastructure
5.1 Submarine fibre
5.1.1 SAT-3/WASC
5.1.2 Glo-1
5.1.3 Main One
5.1.4 WACS
5.1.5 ACE
5.1.6 WASACE
5.2 Terrestrial fibre
5.2.1 The Central African Backbone (CAB)
5.3 Satellite
5.3.1 Rascom
5.3.2 NigComSat
5.3.3 O3b Networks
6. Related reports
Table 1 Fixed lines in service and teledensity in Nigeria 1999 - 2014
Table 2 Fixed and fixed-wireless lines in Nigeria by operator, market share December 2013
Chart 1 Fixed lines in service and teledensity in Nigeria 2002 - 2014
Exhibit 1 Regional FWA licensees in Nigeria

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