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

Synopsis

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 90% of all fixed connections while the ailing incumbent, Nitel, is struggling to attract a new strategic investor and looking for new business models to turn the company around.

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.

Several microwave and fibre-based national backbone infrastructures 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. Additional submarine cables are scheduled to go online in 2012, which will deliver a further boost to the country’s underdeveloped Internet and broadband sector.

Companies covered in this report:

• Nigerian Telecommunications Ltd (Nitel);
• 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;
• Brymedia;
• NigComSat;
• O3b Networks.

Table of Contents

• 1. Synopsis
• 2. Fixed-line market and infrastructure overview
  • 2.1 Fixed-line statistics
• 3. Fixed network operators in Nigeria
  • 3.1 Unified licensing regime
  • 3.2 Nigerian Telecommunications Ltd (Nitel)
    • 3.2.1 Network infrastructure
    • 3.2.2 National backbone network
    • 3.2.3 Wireless Local Loop (WLL)
    • 3.2.4 Services
    • 3.2.5 Towering debts
    • 3.2.6 The Pentascope period, 2003-2005
    • 3.2.7 The Transcorp period, 2006-2009
    • 3.2.8 Privatisation attempts 2010, 2011
  • 3.3 Globacom Ltd
    • 3.3.1 Network infrastructure
    • 3.3.2 Fibre optic backbone network
    • 3.3.3 International presence
    • 3.3.4 Services
    • 3.3.5 International expansion
  • 3.4 VGC Communications, MTN
  • 3.5 National Long-Distance Operators (LDOs)
    • 3.5.1 Nepskom Communications Ltd (defunct)
  • 3.6 Fixed-wireless network operators
    • 3.6.1 MTS First Wireless
    • 3.6.2 Mobitel Nigeria Ltd
    • 3.6.3 Prestel (O-Mobile)
    • 3.6.4 Regional FWA operators
• 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 Other projects
  • 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 – 1999 - 2012
• Table 2 – Fixed and fixed-wireless lines by operator and market share – June 2011

• Chart 1 – Fixed lines in service and teledensity – 2002 - 2012

• Exhibit 1 – Regional FWA licensees in Nigeria
• Exhibit 2 – New international submarine fibre optic cables in West Africa – 2011 - 2012