ISPs in stiff battle for $150bn service revenue in new wireless platform

The battle for control of Nigeria’s fledging Long Term Evolution (LTE) market is intensifying, as Internet Service Providers (ISPs) are deploying smart solutions and offerings, designed specifically to keep broadband customers connected to their respective networks all the time, BusinessDay investigations reveal.

With LTE service revenue expected to surpass $150 billion by 2015, riding on the back of rising demand for efficient internet service on the move, according to Renub Research, ISPs are making plans to expand network coverage to unserved areas, in an attempt to build scale and further open up fresh revenue streams. According to technology experts, 4G (Fourth Generation)/ LTE is the most advanced and most flexible global technological standard for wireless data communications.

This communications platfrom, they added, provides telecoms operators and ISPs with the capability to offer innovative services well beyond mundane voice and data service. “There is intense competition amongst operators in that space, but we have not really scratched the surface. Demand for quality broadband services is increasing, the market is huge.

“We need more telecoms operators offering 4G LTE services to Nigerian consumers. Many of these ISPs only provide broadband internet services in Lagos and Abuja”, said Lanre Ajayi, national president, Association of Telecommunications Companies of Nigeria (ATCON).

 Swift Networks, Spectranet, Mobitel, ipNX, and new entrant, Smile Communications, are the ISPs currently operating in the 4G LTE market.

Many of these broadband companies only provide internet services in major cities. According to Ajayi, the GSM operators would change the dynamics of the LTE market when they begin to offer services in the country. According to market observers, ISPs are pushing out innovative service add-ons into Nigeria’s data communications market.

 ‘SmileON’ a new service from Smile Communications, is the first of its kind in Nigeria. It helps customers stay online even when their bundle is at zero level. The service ensures that customers connected to the Smile network will remain connected when their data bundle runs out within that bundle’s validity period.

 “Our vision of becoming the broadband Internet provider of choice in Nigeria has guided us in everything from selecting our people and partners to choosing the best technologies and creative and relevant products,” said Tom Allen, group chief operating officer, Smile Communications.

 Swift Networks, this year, rolled out its portable, nomadic and personal wireless hotspot modem tagged ‘The Nomad’ in continuance of its 4G LTE technology which has tripled its capacity and speed.

 According to Chuma Okoye,  the chief operating officer (COO) of SWIFT Networks Limited,  the new portable, nomadic and personal wireless hotspot modem is designed to offer existing and potential SWIFT 4G LTE customers the convenience to take their high speed SWIFT 4G LTE broadband connectivity on the go, as they move around the city because the nomad fits perfectly in a pocket, briefcase, handbag or in the car. Spectranet, recently announced the launch of a new tariff plan called “Pay Lite Download heavy” for its customers in Lagos and Abuja, which it said is part of its company’s plans to enhance affordability and accessibility of broadband internet in Nigeria.

Speaking to newsmen on the new value added services (VAS) Atul Ojha ,Spectranet chief operating officer (COO) said “Pay Lite Download Heavy” is the first of a series of initiatives the company is rolling out to provide its customers with “huge value for every naira paid”.

 Market observers are of the view that ISPs need to ramp up subscriber numbers quickly because GSM companies in the country also have their eyes  on this new wireless platform, in view of declining revenues from voice services.

BusinessDay gathered that Airtel and Globacom have already concluded LTE testing, with plans to roll out service in 2015, when frequency spectrum on the Digital Dividend band becomes readily available.

 “We are very keen on rolling out 4G/LTE service as the opportunities are enormous. We are developing our people on 4G; we have designs for conducting LTE trials. The biggest hurdle to overcome is spectrum availability, which the regulator is working on”, said Temi Ogunbambi, director, engineering, Etisalat Nigeria, in an interview with BusinessDay.

Ben Uzor