The Path Ahead

We have identified four main stages for telecoms operators as they work their way out of Nigeria’s economic challenges. At this stage, the industry is in re-emergence mode, awaiting the catalyzing action that will truly drive growth.


While the post-recession re-emergence phase was largely a function of economic conditions, the “Thriving” stage will be primarily a function of the effectiveness of regulation.

2015-16

Withstand

  • Slow capital expenditure
  • Slow operating expenses growth
  • Get lean - fast
  • Minimize impact of abrupt revenue losses
  • Strategize for survival

2016-17

Survive

  • Cut capital expenditure
  • Focus marketing efforts on higher value usages, customers
  • Cut operating expenditure to minimum necessary – especially if FX-denominated
  • Get bridge, working capital financing – if there’s any
  • Rationalize processes, strategize for re-emergence

2018-19

Re-emerge

  • How fast the sector gets back to thriving will be a function of the effectiveness of regulation in a number if key areas:
  • Spectrum allocation (4G)
  • Domestic fibre transmission
  • Consolidation of fibre rights of way Process
  • Competitive balance