About four years after commercial roll out of the fifth generation (5G) technology in Nigeria, a myriad of factors including device cost constraints, operational costs, consumer hesitation and high cost of expanding infrastructure including delays in approvals by the various approving authorities have continued to blight the adoption of the technology in the country.
Recall that MTN Nigeria and Mafab Communications had won the first two slots in the 3.5gighert (Ghz) spectrum put on offer by the Nigerian Communications Commission (NCC) through a competitive bidding in 2022. While MTN launched in September same year, Airtel Nigeria launched in June of the following year (2023). Mafab was to later launch in select cities too in line with the information memorandum (IM) of the auction. The three companies paid over $273.6 million each for the licence.
While not much has been heard from Mafaba after the ceremonial commercial launches in Abuja and Lagos respectively, data from the NCC showed a sluggish adoption of the technology reputed for its high download speed.
According to telecom industry group, Global System for Mobile Communication (GSMA’s) Nigeria Digital Economy Report 2024, the adoption of 5G technology is projected to significantly transform the digital landscape, adding 15 million new internet users by 2028.
Former President Muhammadu Buhari underscored the economic importance of 5G during the launch of Nigeria’s national 5G policy. He described it as a catalyst for smart cities and job creation that would drive Nigeria’s digital economy.
The International Telecommunications Union (ITU) noted that Africa has the lowest global 5G coverage rate at just six per cent, attributing this to reliance on older technologies such as 2G, 3G and now 4G networks. Despite this, ITU emphasised that 5G offers significant socio-economic benefits, especially for post-pandemic recovery.
National President, Association of Telephone, Cable Tv and Internet Subscribers of Nigeria (ATCIS-Nigeria) Sina Bilesanmi, described the Federal Government’s approval of 5G deployment as a “the way to go as technology keeps evolving and the world will not wait for Nigeria.” He, however, expressed concerns about implementation and adoption considering the fact that 5G complaint devises are very expensive.
CEO of MTN Nigeria, Karl Toriola, highlighted the transformative potential of 5G, saying, “5G will change everything” from education, agric, telemedicine and many others. However, he acknowledged that Nigeria still needs time to fully harness its capabilities due to existing barriers such as device affordability and infrastructure limitations.
Data from the NCC on the current state of 5G in Nigeria showed that 5G connections in the country increased to 4 million in December last yaear.
This, however, represents 2.46per cent of the country’s total active subscriptions for telephone services, which stood at 164.6 million at the end of the year.
According to the NCC, last year saw 4G become the dominant technology in the country as telecom operators expanded the service.
As of December 2023, most telephone connections in Nigeria were still on 2G as the technology accounted for 57.84per cent of all connections in Nigeria.
However, that changed last year with 4G accounting for 47.20 per cent of total connections in the country, while 2G came second at 41.59 per cent.
The telecom industry data further showed that 8.75 per cent of the 164.6 million mobile subscriptions were on 3G, a higher generation of network launched in Nigeria in 2007.
3G ushered in the use of video calls and had significantly higher data transfer, operating at a speed of up to 2mbs, and increased bandwidth compared to the 2G network.
The affordability of 5G-compatible smartphones remains a key barrier. High inflation and currency devaluation have reduced purchasing power for many Nigerians.
Another factor is operational cost. Rising inflation and economic instability have slowed investment in expanding infrastructure.
Concerns about battery life and higher data usage have discouraged some users from activating 5G services. The fear of battery life is real as most mobile phone users now move around with power banks because power supply from the national grid is hardly available. Similarly, the fear of data depletion is palpable especially now that the NCC has approved a 50 per cent adjustment in end user tariff for telecom services in the country, a development that has seen subscribers, especially small business owners, gasping for breath.
Generally, the costs of 5G-ready smartphones are high in Nigeria due to soaring inflation, but the costs of 5G smartphones are higher, thus deterring many who would have loved to upgrade to a 5G connection.
Implementation of 5G projects in South Africa has also faced several challenges. One of the primary issues is the high cost of infrastructure, which includes the need for extensive small-cell technology and fibre networks
According to the immediate past Chief Technical Officer of MTN Nigeria, Mohammed Rufai, the problem of device compatibility is the reason the telecom operators have continued to maintain their 2G and 3G networks while investing in 4G and 5G.
“As you are aware, devices have to be compatible with 5G for them to be used. We have many subscribers in Nigeria who have 2G and 3G devices, and we will continue to cater to the needs of those subscribers,” he had said in an interview.
But the challenge is not peculiar to Nigeria according to a recent report from the International Telecommunications Union (ITU), which showed that 5G coverage in Africa was the lowest in the world at six per cent as of December 2023.
Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said the high cost of deploying 5G, coupled with the limited number of 5G devices in Nigeria, largely affected the adoption rate of the technology. Adebayo however said despite the low adoption rate, 5G technology, remained the fastest technology in terms of connectivity, with lowest time limit in completing tasks, also known as latency period.
Also speaking at MTN Group Headquarters in Johannesburg, South Africa last year, General Manager, Network Sharing Deal Management, MTN Group, Ethisen Makumi, said generally, the adoption rate of technology is usually slow. Represented by Group Chief Strategy and Transformation Office, Chika Ekeji, at a forum with MIP Fellows, he put the adoption rate at between 15 per cent and 20 per cent, adding that a customer must have a compelling reason for 5G. He said for the telco, fixed wireless for home users is the target using modems. He said the technology is however gaining traction. This underscores the ITU figure of six per cent adoption rate on the continent.
Vodacom and MTN, South Africa’s major telecom operators, launched commercial 5G networks in May and June of 2020 respectively, with Vodacom’s launch in Johannesburg, Pretoria, and Cape Town, and MTN’s launch across 100 sites in several cities.
MTN Nigeria launched the first 5G network in Nigeria in September 2022, while Airtel launched the same in June 2023. Mafab Communications, which secured the 5G licence at the same time as MTN could not roll out the service until late 2023 when it began to sell its routers.
MTN initially rolled out its 5G service in seven cities including Lagos Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri and is currently expanding the service.
Airtel at launch in June last year rolled out the service in four states including Lagos, Abuja, Rivers, and Ogun with plans to roll out in six more states within the first year of the launch.
Mafab also launched its 5G service in Abuja with a promise that the first phase of its rollout would be in six cities across the country in fulfillment of the rollout obligations as contained in the licensing document.
