Business News of Friday, 27 October 2017

Source: classfmonline.com

Q2 2017: Fixed network voice subscription up 1.79%

Off-net traffic decreased by 16.78% and 21.21% quarter-on-quarter and year-on-year respectively Off-net traffic decreased by 16.78% and 21.21% quarter-on-quarter and year-on-year respectively

Total fixed network subscriptions increased by 1.79% from 266,587 in the previous quarter to 271,356 at the end of the second quarter of 2016, latest industry figures from the National Communications Authority’s Quarterly Statistical Bulletin on Communications, say.

Three fixed network operators have been licensed by the NCA of which two are in operation (Vodafone and Airtel) and the remaining one (MTN) is yet to begin operation.

Year-on-year fixed subscription also increased by 5.73% from 256,653 in the second quarter of 2016 to 271,356 at the end of the second quarter of 2017. Fixed penetration rate increased to 0.95% during the period under review.

Vodafone subscription increased (1.92%) to 264,606 up from 259,609 quarter-on-quarter and from 248,536 to 264,606 year-on-year (6.47%).

Vodafone had a market share of 97.51% at the end of the second quarter of 2017 (Table 19). Airtel’s subscription decreased by 3.27% from 6,978 in the second quarter of 2017 to 6,750 at the end of the second quarter of 2017.

Year-on-year subscription decreased by 16.84%. Market share for Airtel at the end of the second quarter of 2017 was 2.49%.

Fixed Network Traffic

Total volume of fixed network traffic recorded a negative growth of 2.57% during the quarter under review from 14.45 million minutes to 14.08 million minutes.

Off-net and On-net traffic decreased by 2.56% and 4.64% respectively at the end of the quarter under review. It should be noted that on-net traffic for the last three quarters consist of data from Airtel only.

Distribution of fixed off-net traffic between mobile and fixed networks Fixed to mobile network traffic decreased by 2.49% to 13.97 million minutes during the quarter. Fixed to fixed network traffic also decreased (4.05%) to 82,860 minutes during the quarter under review up from 87,005 minutes recorded during the preceding quarter.

Fixed Networks Volume of Traffic per Operator (minutes)

On-net traffic for Airtel decreased by 4.64%% from 39,017 minutes in the first quarter of 2017 to 37,205 minutes at the end of the second quarter of 2017, whereas year-onyear on-net traffic also (22.04%) from 47,725 minutes to 37,205 minutes.

Off-net traffic decreased by 16.78% and 21.21% quarter-on-quarter and year-on-year respectively.

Vodafone recorded a decreased (0.42%) in off-net traffic from 12.52 million minutes in the first quarter of 2017 to 12.47 million minutes at the end of the second quarter of 2017.

Year-on-year off-net traffic also decreased by 28.69% from 17.49 million minutes in the second quarter of 2016 to 12.47 million minutes at the end of the second quarter of 2017.

Vodafone did not submit information to NCA on on-net traffic for fixed network during the second quarter of 2017.

Fixed Network Minutes of Use

Average fixed network minutes of use per subscription decreased (4.88%) from 18.4 minutes in the first quarter of 2017 to 17.5 minutes at the end of the second quarter of 2017.

Year-on-year minutes of use per subscription decreased (35.86 %) from 24.5 minutes in the second quarter of 2016 to 17.5 minutes at the end of the second quarter of 2017.