5G, Fintech Innovation to Drive Telecom Sector in 2023
Experts from the tech world have predicted that the full deployment of 5G network across Nigeria in 2023 and the implementation of the Startup Act, would further drive Fintech innovation, technology skills development and data application among others.o
This was made know while counting the gains of telecom sector in 2022, and how it positively impacted on the Nigerian economy in the areas of GDP growth, broadband penetration, and Fintech growth.
According to them, the indices will be the determinant factors that will further deepen the growth of the telecom sector in 2023.
Chairman, Association of Licensed Telecom Operators of Nigeria, ALTON, Mr. Gbenga Adebayo, said 5G deployment, Fintech innovation and data application would be the major drivers of the economy in 2023.
According to him, there will be increased data analytics that will inform major decision making in 2023, driven by increased data application.
He said the Fintech would get more support from telecom operators in 2023 that would enable them develop more solutions that would further support financial transactions across board.
The Chairman explained that Fintech would ride on 5G technology, when it is fully rolled out in 2023 by licensed 5G operators, to provide bespoke solutions that would drive smart cities initiative and the digital transformation agenda.
Broadband Penetration
According to Adebayo, “The full rollout of 5G services across the country in 2023 will further drive development in the telecom sector. We expect that telecom networks will be a lot more stable in 2023, because most sites that were running on radio links are now being commissioned and re-connected to fibre optic backbone infrastructure, which will bring about better resilience and better service quality. Broadband coverage will also further increase in 2023 and provide more connectivity access to people, even though affordability of broadband access may be a challenge to most people in 2023.”
Adebayo further said all these would be driven by 5G technology deployment by the operators that have been licensed to provide 5G services in Nigeria.
Considering the rise in broadband penetration from 44.49 per cent in July 2022, to 45.55 per cent in October 2022, Adebayo said broadband penetration would further rise in 2023, given the expected rollout of 5G network in 2023.
Nigeria recorded broadband subscription growth of 84.9 million with a penetration rate of 44.49 per cent in July 2022.
In August, broadband subscription increased to 85.2 million and penetration also increased to 44.65 per cent. In September, broadband subscription rose again to 86.06 million with an increased penetration of 45.09 per cent. In October, broadband subscription also increased to 86.94 million and penetration also increased to 45.55 per cent.
Giving a projection of 5G deployment in 2023, the Chief Executive Officer of MTN Nigeria, Mr. Karl Toriola, said MTN had already rolled out its 5G network in Lagos and Abuja, with plans to launch in additional five cities in 2023, such as Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri, adding that customers with certain enabled devices will be allowed to connect with and try out the new service where coverage is available.
5G technology, also known as the fifth generation technology, is expected to bring a lot of benefits and opportunities that will engender accelerated growth and smart living in the country, when fully deployed.
The technology is also expected to bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities.
According to a 2020 GSMA Intelligence report, titled: ‘The Mobile Economy,’ 5G is projected to contribute $2.2 trillion to the global economy by 2034.
5G License Operators
In order to harness all the benefits of 5G, the Nigerian Communications Commission, NCC, the telecom industry regulator, in December 2021, successfully auctioned two lots in the 3.5GHz spectrum in a keenly contested bid process among MTN Nigeria Communications Plc, Mafab Communications Limited and Airtel Nigeria Communications.
At the end of the exercise, NCC declared MTN and Mafab winners of the two frequency lots and awarded them 5G licence in 2022.
In December 2022, NCC also awarded Airtel another 5G licence, bringing to three, the number of 5G licensed operators that will roll out 5G networks in Nigeria.
Nigerians are therefore hopeful of full 5G network rollout in 2023 that will further drive technology innovation and development in 2023.
NP/Confidence
