Economy

Despite maintaining lead, MTN contributed to Nigeria’s 0.32% drop in active call lines in Q4 2020

By Dennis Amata

May 04, 2021

Nigeria telecom sector recorded a decrease in its active voice subscription in Q4 2020. The country’s active call lines decreased from a total of 205.2 million to 204.6 million in the fourth quarter of 2020.

This represents a marginal decrease of 0.32% across all networks.

All Networks Active Voice Q3 2020 Mobile GSM Active Voice Q4 2020 Mobile GSM Quarter on Quarter (Q-o-Q) growth Q4-Q3 % Q-o-Q Growth
MTN 82,635,082 80,764,128 (1,870,954.00) (2.26)
GLO 54,254,550 54,840,192 585,642.00 1.08
AIRTEL 55,250,798 55,642,209 391,411.00 0.71
9MOBILE 12,729,222 12,982,149 252,927.00 1.99
Others 382,406 372,635 (9,771.00) (2.56)
Total 205,252,058 204,601,313 (650,745.00) (0.32)

Source: NBS

Data shows that, overall, MTN has more active call lines in each quarter of 2020. The telecoms giant still maintained the lead above the other networks with 80.76 million subscribers in Q4.

2020 Q1 2020 Q2 2020 Q3 2020 Q4
MTN 73,573,788 78,754,855 82,635,082 80,764,128
AIRTEL 51,298,878 52,462,347 55,250,798 55,642,209
GLO 51,856,114 52,573,907 54,254,550 54,840,192
9MOBILE 12,123,185 12,111,674 12,729,222 12,982,149
OTHERS 403,831 339,673 382,406 372,635
TOTAL 189,255,796 196,242,456 205,252,058 204,601,313

Source: NBS

In the first quarter of 2020, total active voice subscription across all networks stood at 189.3 million and then increased to 196.2 million in the next quarter. By the end of the third quarter, there was an increase of 4.59%, bringing the total to a peak of 205.3 million. This figure dropped by 0.32% to an estimated 204.6 million in Q4.

An analysis of all the figures for each network provider showed that MTN’s active voice callers grew gradually from 73.5 million in Q1 to 82.6 million in Q3, dropping to 80.7 million in Q4. GLO on the other hand grew across all four quarters. It was the same for AIRTEL as its active voice subscribers increased in each successive quarter.

Source: NBS

9MOBILE also recorded growth all quarters dropping only slightly in the second quarter. Active voice subscription from other minor network providers also dipped in the last quarter of 2020 from 382, 406 to 372,635.

Across the states, Lagos had the highest number of active voice subscribers in the country in Q4 2020, with 24.4 million, followed by Kano state with 12.6 million voice subscribers.

Further analysis of the telecom data in the fourth quarter showed that 18 states accounted for the 0.32% decline recorded in active voice subscriptions in Q4 2020 across all networks. Kano state recorded the highest decrease (12.14%) followed by Sokoto.

Access to the mobile phone, among other telecommunication devices, shares strong links to the socio-economic development of a country.

The latest data from the National Bureau of Statistics show that mobile phone access and use contributes to increased financial inclusion. The data further reveals that people use simple phone functions such as calls and text messaging for financial transactions than the internet functions on smartphones.

Volume in Year 2020 Value (N’m)in Year 2020
USSD Transfers 482,003,791 5,032,000
Mobile App Transfers 409,715,428 32,392,000

Source: NBS

Financial transactions requiring the simple USSD code for the transfer of money were 482 million while transactions necessitating the use of a smartphone were 409 million. Since low-income earners can hardly afford smartphones, the huge number of USSD payments reveals how access to phone lines has helped the low-income earners achieve financial inclusion.

Emmanuel Baro and Benake Endouware observed that “the introduction of mobile phones has led to reduction of rural-urban migration by many jobless youths.” They confirmed that “mobile phone use enables the rural dwellers to communicate with family members and friends in urban areas; relatives in urban areas send recharge cards for them to sell for money instead of traveling to meet them, and Call Center Operators become self-employed and through that make a living.”

While Nigeria’s 204.6 million active voice subscriptions presumably matched its 206.1 million population, then in 2020, a significant section of its citizenry still lacks access to mobile phone use.