The Nigerian Communications Commission says the investment in Nigeria’s telecommunications sector could double in the next 10 years.
The Executive Vice Chairman, NCC, Prof. Umar Danbatta, said this on Thursday in Lagos, during the ‘Telecom Executives and Regulator Forum 2019’.
The News Agency of Nigeria reports that TERF was organised by the Association of Telecommunications Companies of Nigeria.
Represented by Mohammed Babajika, the Director, Policy Competition & Economic Analysis, NCC, Danbatta said that investment in the sector as at 2018 was more than $68 billion.
He said that $68 billion investment in Nigeria was huge, but was by no means adequate for one of the fastest growing telecommunications markets in the world.
According to him, the industry is capital intensive, hence, the need for further investment.
He said: “The need for service providers to increase their infrastructure deployment to satisfy the ever-increasing demand creates room for double the size of this investment in the next ten years.
“We have about 40 million Nigerians yet to be reached with basic infrastructure and services.
“The quest for data and social media, as well as the increasing value added services create new frontiers for investments.
“Therefore, the desire for investment in the sector will continue to grow as the size of the network increases.”
The NCC boss said that the roadmap for broadband had created new frontiers for investment in the industry.
He said that telecommunications constituted a significant portion of the world economy, as the global market value of the sector passed the $2.5 trillion mark in 2010.
Danbatta said that undoubtedly, everyone should be interested in the sector that generated such figures.
He said that therefore, robust telecommunications network was important for economic growth, which was achievable through investment.
The EVC said that in year 2000, the sector had 450,000 connected lines with an investment of $60 million; in 2014, it connected over 15 million lines with about $32 billion investment.
Also, in year 2018, 172 million lines were connected with more than $68 billion investment.
He said that what enabled such remarkable achievements were effective regulation, government support, enabling environment, consumer/investor symbiosis, economic stability, among others.
According to him, the telecoms industry is a very dynamic one and the generational change of telecommunications has continued to redefine the dynamism of the industry, from the use of voice dominated technologies (1G and 2G) to data dominated technologies (3G, 4G and 5G).
He said: “These transformative and innovative changes are key to enhancing the development of the industry and its socio-economic multiplier effect in all the other sectors of the economy; be it commerce, education, transportation, health and finance.
“Therefore, the sector has witnessed tremendous growth, which has triggered competition amongst the key players in service delivery to end-users, and brought in new entrants into the ecosystem.”
Danbatta said that the key trends that were shaping the telecommunications industry include high demand, disruptive competition, growth, data dominance, and connecting things.
He said that conceptualising innovative ideas within the telecommunications ecosystem was a central requirement for the industry sustainability and investment drive.