admin In 2023, Nigerian telecom subscribers spent a huge 44.7 billion naira (over $100 million) on sending text messages (SMS) across mobile networks. This is even though many messages did not get delivered. This important information was revealed in a new report by the Nigerian Communications Commission (NCC), the country’s telecom regulator.
The NCC’s ‘2023 Subscriber/Network Performance Report’ showed that a total of 22.97 billion text messages were sent and received during the year. 11.18 billion messages were sent, and 11.80 billion were received across the major mobile network operators (MNOs) in Nigeria. This represents a 20.66% increase in the number of SMS sent compared to 2022.
With the current price of 4 naira (less than 1 US cent) per SMS, Nigerian subscribers spent an estimated 44.7 billion naira on the 11.2 billion messages they sent in 2023. This huge amount was spent even though telecom operators only charge for outgoing messages, while incoming SMS are free for subscribers.
The report also showed that the total 22.9 billion SMS exchanged in 2023 was 11.38% lower than the 25.9 billion SMS recorded in the previous year. However, the number of SMS sent still increased by over one-fifth, showing that Nigerians continue to rely heavily on this traditional communication method.
MTN Dominates SMS Traffic
The data from the NCC showed that MTN Nigeria, the country’s largest telecom operator, handled the highest volume of SMS traffic in 2023. The network processed 16.9 billion text messages, with 8.2 billion sent and 8.5 billion received.
Airtel Nigeria, the second-largest operator, handled 4.4 billion SMS, with 2 billion sent and 2.3 billion received. Globacom, the third-largest player, processed 1.35 billion messages, including 656.2 million sent and 694 million received.
The smaller operator, 9mobile, recorded 458.1 million messages exchanged, with 299 million sent and 158.2 million received. Smile Communications, a newer player in the market, recorded 1.2 million messages, with 263,458 sent and 962,829 received.
MTN’s dominance in the SMS segment reflects its overall market leadership and the wide reach of its network across Nigeria. As the first GSM operator in the country, MTN has maintained its position as the preferred choice for many subscribers, including those who rely heavily on traditional text messaging services.
The Growing Influence of OTT Communication Apps
The declining total SMS traffic, coupled with the rise in international messaging, points to the growing influence of over-the-top (OTT) communication apps in the Nigerian telecom landscape. Apps like WhatsApp, Telegram, and others have become increasingly popular among Nigerian consumers, particularly for cross-border communication needs.
This shift in user preferences presents both challenges and opportunities for the mobile network operators. On one hand, the reduced reliance on traditional SMS services means that a significant revenue stream for the MNOs is under threat. However, the growing demand for data-driven communication services also opens up new ways for the operators to adapt and offer new services.
To remain competitive in this changing market, the telecom companies will need to find new ways to integrate OTT messaging platforms into their service offerings. This could involve developing their own messaging apps, partnering with popular OTT providers, or offering bundled data packages that meet the growing demand for internet-based communication.
The Proposed Price Increases and Subscriber Frustration
The large amount spent by Nigerian telecom subscribers on SMS services has happened as the NCC and mobile network operators discuss raising prices for data, SMS, and voice services. In recent months, they have been negotiating potential price increases for these core telecom services.
The proposed price increases have faced strong opposition from consumer groups and individual subscribers. They argue that the current economic situation in Nigeria, with high inflation and the rising cost of living, makes any increase in telecom charges unaffordable for many households.
Adding to the frustration of subscribers is the ongoing problem of undelivered SMS, which has been a long-standing issue in the Nigerian telecom sector. Despite the large sums spent on text messaging, many consumers have reported that their messages fail to reach the intended recipients, often due to network problems or other technical issues.
This situation has led to widespread dissatisfaction among Nigerian telecom users, who feel they are not getting full value for their money. The combination of potential price hikes and the continued challenges with SMS delivery has sparked calls for the NCC and MNOs to address these concerns and ensure a more reliable and affordable telecom system for the country’s growing mobile subscriber base.
Addressing the Persistent Issue of Undelivered SMS
The problem of undelivered SMS messages has been a long-standing frustration for Nigerian telecom subscribers. Despite the substantial sums spent on text messaging, many consumers have reported that their messages do not reach the intended recipients, often due to network issues or other technical problems.
This situation has eroded trust in the reliability of SMS services and has contributed to the growing dissatisfaction among Nigerian telecom users. The NCC and the mobile network operators will need to work together to address this challenge and restore confidence in the text messaging ecosystem.
Possible solutions may include investments in network upgrades, setting stricter quality standards, and improving customer complaint resolution. The telecom companies could also explore new features like delivery status notifications to give subscribers more transparency and control over their SMS communications.
Implications for the Telecom Sector
The findings from the NCC report have important implications for the Nigerian telecom industry, both in the short and long term. The high level of SMS usage and spending, despite the prevalence of undelivered messages, shows the continued importance of traditional text messaging services in the country’s communication landscape.
For the mobile network operators, the substantial revenue from SMS services is a crucial part of their business model. As they consider potential price hikes, the MNOs will need to balance the need for sustainable pricing with the affordability concerns of their subscribers.
Additionally, MTN’s dominance in the SMS segment highlights the importance of network quality, coverage, and brand recognition in driving consumer preferences. This may prompt other operators to invest more in their networks and customer experience to compete for a larger share of the text messaging market.
The decline in total SMS traffic, combined with the rise in international messaging, also points to the growing influence of OTT communication apps. As Nigerian consumers increasingly use these digital platforms, the MNOs will need to adapt their strategies to remain relevant and competitive.
