N16bn lost as 11.7m subscribers drop off telecom networks in 3 months

The Telecommunications Sector has seen more than 11.7 million subscriptions wiped off since the order to freeze SIM registration until an audit of the industry is concluded was given in December.

The drop means that the sector which in the past has led the most GDP contributions to the Nigerian economy has drained operators of N16 billion in revenue in the space of three months.

Olusola Teniola, former President of the Association of Telecommunication Operators of Nigeria (ATCON) had told Businessday in February that the sector losses N1.8 billion every month in subscriber drop. However, going by the industry’s average revenue per user (ARPU) of N1, 420, the revenue loss hits N16.6 billion

Importantly, operators in the telecommunication industry are now sure to record the biggest subscriber loss in the first quarter of any year with over 8.4 million subscriptions gone in the first two months of 2021. It could have an adverse effect on the performance of the sector in the country’s economy in 2021.

The NCC data showed that the industry dropped 4.1 million subscribers in February to settle at 195.7 million from 199.8 million in January. The subscriber loss was, however, lower than the peak of 4.2 million recorded in January and 3.38 million in December.

The February drop also means the sector has now seen four months of consecutive losses since it began in November. It should also be noted that the last time the industry recorded 195 million subscribers was in June 2020.

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For the second month in a row, Airtel is leading the losers table with 1.99 million lines off the network leaving the telco with 51.4 million subscribers from 53.4 million in January. The telco had lost its second-biggest telco position in January to Globacom as 2,216,980 subscribers left the network leaving the Indian telecom operator with 53,425,229 subscribers from 55,642,209 in December. Like the entire industry, it is the fourth time in a row that the India-based network is losing subscriptions.

The 1.9 million subscriber drop also means that Airtel saw a revenue loss of N2.8 billion in February and N5.9 billion in the first two months of 2021.

MTN continued its losing streak that began in September 2020, losing 1.6 million subscribers in February to reach 77.3 million from 79 million in January 2021. Beyond subscriber losses, MTN continues to bleed market share.

The drop to 39.52 percent in February made it the sixth month in a row. It had recorded 39.54 percent in January a drop from 39.55 percent in December, 40.14 percent in October, 40.34 percent in September, and 40.90 percent in August.

MTN’S loss in February means an N2.3 billion loss in revenue in one month and N4.7 billion in the first two months of 2021.