Financial statements from leading telecom giants MTN Nigeria and Airtel Africa reveal a significant upswing in the amount spent by Nigerian subscribers on airtime and data services. The figures show a robust 32.57% increase, reaching at least N2.59tn during the first nine months of 2023 compared to N1.95tn in the corresponding period of 2022.
Airtel Africa attributes part of this surge to a rise in data subscriptions and the devaluation of the naira. In 2022, Airtel generated $1.41bn from airtime and data, equivalent to N647.71bn at the exchange rate of N461/$. However, in 2023, the company’s income from these sources amounted to $1.29bn, converted at the exchange rate of N777/$, totaling N1.003tn.
MTN’s revenue growth is primarily fueled by an impressive 36.36% year-on-year increase in data revenues, overshadowing the 10.64% growth in voice revenues. The company attributes this growth to increased data usage and conversion in both new and existing user bases. MTN reported a 29.1% growth in data usage on its network, reaching 8.6GB per user.
Airtel, on the other hand, recorded a surge in data usage per customer to 5.9GB per month, with data revenue growing by 29.3% in constant currency. The company attributes this growth to a 17.4% increase in the data customer base and a 12.3% growth in data Average Revenue Per User (ARPU).
Industry analysts predict that data consumption will be the driving force behind telecoms growth, with data revenues expected to surpass voice revenues in the coming years. The World Bank supports this forecast, attributing growth in the ICT sector to increased consumption of data services by households and businesses.
The Ericsson Mobility Report (June 2023) forecasts Sub-Saharan Africa as the region with the highest growth in total mobile data traffic, rising by 37% annually between 2022 and 2028. This growth is attributed to continued investments in 4G networks and the migration of customers from 2G and 3G. The report predicts a fourfold increase in smartphone traffic, with average data per active smartphone expected to reach 19GB per month in 2028.
