Nigeria's Anticipated 5G Penetration Set to Reach 10% by December
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Loading... - Amelia Poulin
- 24 May 2023
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MTN, a telecommunications operator, aims to achieve a 10% coverage of fifth-generation (5G) networks in Nigeria by the end of this year. Revealed in their Integrated Report for the period ending December 31, 2022, MTN disclosed that they have already deployed over 2,500 5G sites across 19 markets in two continents. In Nigeria alone, MTN has successfully rolled out more than 588 5G sites in major cities.
MTN took the lead in Nigeria's 5G rollout last August by initiating the service in Lagos, covering approximately 81 towns. They have planned a gradual expansion of the network to six other cities, including Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri.
Although Mafab Communications, the second licensee, announced their readiness to roll out after receiving a five-month extension from the Nigerian Communications Commission (NCC) in January, Nigerians are still awaiting the service from Mafab, nearly four months after the announcement in Lagos.
On the other hand, Airtel, the sole bidder in the planned second phase of the 5G auction held in December 2022, has not yet disclosed their rollout plans since obtaining the license from the NCC.
Ralph Mupita, the Chief Executive Officer of MTN Group, stated in the Integrated Report that they have deployed 3,498 3G and 7,993 4G sites, resulting in an increase of 9 million and 45 million people covered by 3G and 4G, respectively.
"In 2022, we deployed 1,570 5G sites primarily in South Africa and Nigeria, bringing our total number of 5G sites to 2,527," he added.
The report mentioned that MTN is currently rolling out 5G in South Africa after winning the spectrum in an auction conducted by the Independent Communications Authority of South Africa. Additional spectrum is expected to be released in the near future.
MTN also stated that they became the first operator to launch 5G in Nigeria in 2022 after winning 100MHz spectrum for 5G in the auction. They have set a target of achieving 10% population coverage with 5G by the end of 2023, while the other spectrum winner is yet to launch their network.
According to a report by the Global System for Mobile Telecommunications Association (GSMA), the shipment of 5G-enabled devices to Nigeria and other Sub-Saharan African countries increased by 26.9% in 2022.
In their report titled "The mobile economy: Sub-Saharan Africa 2022," GSMA emphasized the importance of affordable 5G devices for the adoption of 5G in the region. The slow uptake of 4G in the region has been attributed to the high cost of devices relative to average income levels. However, the data on smartphone shipments in the region indicates a growing demand for 5G-enabled devices.
For instance, in the second quarter of 2022, the shipment of 5G-enabled devices increased by 26.9%, surpassing the overall growth of smartphone shipments in the region. The growth is driven by factors such as a young and tech-savvy population with a preference for the latest technology and increasing competition among handset manufacturers to offer advanced yet affordable models.
GSMA reported that cheaper 5G devices are predominantly produced by Chinese vendors, with Transsion brands leading the market in terms of sales volume. As of September 2022, 214 mobile operators in 81 markets worldwide had launched commercial 5G services.
According to GSMA, 5G is becoming mainstream in pioneer markets, with nearly half of mobile connections in South Korea and over a third in the US utilizing 5G. The growth of 5G has been fueled by factors such as economic recovery from the pandemic, increased sales of 5G handsets, and comprehensive marketing efforts.
