The long-term outlook of the nation’s telecommunications industry has taken a positive position as service revenues are expected to leap by 18.5 per cent, to $10.9 billion in 2019, as against $9.2 billion in 2013.
The expected growth is buoyed by the increasing demand for mobile data services especially amongst the youth population.
According to Pyramid Research, in a recent industry study, the nation’s booming telecommunications market will leap at a Compound Annual Growth Rate (CAGR) of 2 percent over the next five years, with mobile data increasing at 16 per cent up until 2019.
“Political instability and low oil prices have led to a depreciation of the naira against the US dollar, but the telecoms market will remain an integral part of the nation’s efforts to diversify its sources of growth,” said Severin Luebke, analyst at Pyramid Research.”
To this end, market analysts, however are indeed optimistic that growth of around 6.8 per cent per year for the period between 2014 and 2019 will be mainly supported by an increase in mobile user base.