Telecommunications operators in Nigeria, including MTN, Airtel, Globacom, 9mobile, and various internet service providers, are gearing up for a surge in revenue during this Christmas season. Despite economic challenges and high inflation affecting budgetary allocations for traditional festive activities like travel and clothing, telecom services, particularly data usage, remain a priority for many Nigerians.
In a scenario where travel becomes cost-prohibitive, video calls serve as a vital means for individuals to connect with loved ones. Historical financial data from leading telcos, MTN and Airtel, consistently reflect increased subscriber spending during December, positively impacting their Q4 revenues over the years.
Beyond the customary rise in calls for seasonal greetings, there is a notable uptick in data consumption. This trend is attributed to people sharing festive messages and videos across various platforms, enhancing the celebratory spirit.
**Data as the Primary Revenue Driver**
As of August 2023, data released by the Nigerian Communications Commission (NCC) indicated a significant surge in data consumption by Nigerians. MTN and Airtel’s Q3 2023 financial results underscored this trend. MTN, the largest telecom operator, recorded N279.5 billion in data revenue between July and September, reflecting a substantial 38.9% increase compared to the same period the previous year. Airtel Nigeria reported N123.7 billion ($157 million) from data subscriptions during the same quarter, marking a robust 29.3% growth in data revenue.
MTN’s CEO, Karl Toriola, attributes the surge in data usage to the revamping of MTN’s data bundle offerings, increased smartphone penetration, and strategic network investments. Toriola notes that their 4G network now covers 80.5% of the population, with data usage per user growing by 29.1% to 8.6GB. Airtel Africa’s CEO, Segun Ogunsanya, echoes this sentiment, emphasizing the growth in data consumption, data customer base, and data Average Revenue Per User (ARPU).
**Anticipated Christmas Period Surge**
With Christmas approaching, data consumption is expected to spike across all networks. Industry experts point out that the holiday season provides subscribers with more leisure time to explore social media and indulge in video content, resulting in increased data usage. The festive period often sees individuals inadvertently spending more on data than during other times of the year.
**Driving Forces Behind Increased Spending**
Adeolu Ogunbanjo, President of the National Association of Telecoms Subscribers, identifies several factors contributing to heightened spending on calls and data during December. Nigerians’ affinity for extensive phone conversations and holiday greetings plays a role, and the shift towards app-based calls, such as WhatsApp calls, further propels data consumption.
Ogunbanjo notes that December is not only a time for socializing over calls but also an extended holiday period, allowing people to spend more time on social media platforms like TikTok. This results in an upsurge in data consumption as individuals share festive moments through videos and pictures. Additionally, telecom operators often introduce promotions during this period, further incentivizing subscribers to increase their spending.
However, Ogunbanjo acknowledges that the surge in calls and messages during Christmas can lead to a decline in service quality. The increased load on networks during this period may result in poor call quality and message delays.
**NCC’s Data Insights**
The latest data from the Nigerian Communications Commission (NCC) reveals a steady increase in internet users’ data consumption. In August, users consumed 655,879.86 terabytes of data, marking a 6.6% rise compared to the previous month. This upward trend emphasizes the growing reliance on data services, especially during festive seasons, contributing to the telecom industry’s robust performance.
As the Christmas season approaches, telecom operators are poised to capitalize on the anticipated surge in calls and data usage, reinforcing the pivotal role of telecommunications services in connecting Nigerians during this festive period.
Support InfoStride News' Credible Journalism: Only credible journalism can guarantee a fair, accountable and transparent society, including democracy and government. It involves a lot of efforts and money. We need your support. Click here to Donate