“Telecom industry liberalization has pushed market penetration of telecom services in Nigeria from just 1.2% in 2002 to an estimated 48.9% at the end of 2009, thanks to the entry of new operators, the expansion of CDMA operators into mobile services, the provision of low-cost services, and the expansion of coverage to underserved areas,” said Badii Kechiche, Senior Analyst at Pyramid Research and author of this report.

“2010 will see the introduction of mobile number portability and mobile termination rate cuts, which we expect to improve competitiveness despite the short-term impact on interconnect revenue and subscription growth,” says Kechiche.

Nigeria is one of the most competitive markets in Africa, with more than double the average number of operators than any other African country, Kechiche notes. “Operators have been investing in and upgrading their networks to meet demand, since they realize that their success will be based on a differentiated service quality, attractive services, and a good value proposition,” he adds.