• Wednesday, May 22, 2024
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BusinessDay

9Mobile gains as telecom sector loses 15.4m subscribers in 5 months

9Mobile has become the first telecom industry operator to see growth after five months in which peers have been on a persistent run of losses.

The entire telecom industry lost 3.65 million subscribers in March to take its tally to 192.0 million from 195.7 million in February. The sector has now lost a total of 15.4 million between November 2020 and March 2021.

The March figures released by the Nigerian Communications Commission (NCC) also confirm BusinessDay’s projection that the industry would record its first-quarter 2021 in a loss.

Five months is the longest run period the industry has gone on losses since the NCC started compiling the industry data.

The decision to ban SIM card sales and registration until the National Identification Number (NIN) registration exercise had been completed was a major contributing factor. The NIN database is being built to essentially enable the country to effectively combat insecurity in the country.

Although the NIN exercise continues, the minister of Communications and Digital Economy in late April 2021 announced the resumption of SIM card registration.

While the rest of the operators completed the first quarter in losses, 9Mobile was the exemption. The fourth-largest telco welcomed 77,494 subscribers in March to boost its total numbers to 12.8 million from 12.7 million in February.

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The company may have benefited from its push into tertiary education in the country and other data initiatives. In March, 9Mobile partnered with MyClassConnect to provide free access to lecturers and students on the tertiary educational technology platform. 9mobile’s support will ensure that users can access the platform without incurring mobile data costs.

It also announced a partnership with the Cherie Blair Foundation for Women on empowerment of women entrepreneurs in low and middle-income levels. Through its mobile application HerVenture, the foundation says it has supported over 20,000 women entrepreneurs in Nigeria alone.

While 9Mobile would look forward to consolidating its new gains, Globacom did not have it all bad. The Nigerian-owned telco consolidated its position as the largest mobile operator in Nigeria. While it was the second-largest loser with 1.2 million subscribers dropping from its network leaving it with only 52.9 million in March from 54.1 million in February, its market share is still over 1 percent at 27.68 percent compared to its closest rival, Airtel Nigeria at 26.20 percent market share.

Globacom has been on the losing streak since December and by March has lost a total of 1.9 million.

But Globacom’s losses have been marginal compared to Airtel Nigeria which has led to the most losses in January and February. In March, the Indian-owned telecom operator extended its losses with 1.0 million subscribers exiting to bring its total to 50.3 million subscribers from 51.4 million in February.

Airtel’s losses have been on since December. So far the telco has lost 5.2 million subscribers.

The biggest subscriber loser is MTN, the only telco whose run goes back to November. In March, the largest telco’s losses dipped further as 1.4 million subscribers left the network to leave it with 75.9 million from 77.3 million in February. The market share of the South African-owned telco remains at 39.52 percent in March where it was in February.

However, MTN lost 8.0 million subscribers between November 2020 and March 2021. Apart from the regulatory decisions that affected its operations, MTN also had a spat with commercial banks over the USSD commission which led to disruption of its airtime and data services. Although it suspended the decision to reduce the commission, the measure is seen as temporary pending when a resolution is reached between it and the banks.

In the meantime, the lifting of ban on SIM card sales would come as a relief for the operators as they can begin registering new subscribers and possibly regain most of the losses they have incurred.

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