5G, Fintech Innovation to Drive Telecom Sector in 2023 – Voice of Nigeria

Technology experts have predicted that the full rollout of 5G networks across Nigeria in 2023 and the implementation of the Startup Act will further drive Fintech innovation, development of technological skills and data applications.o

This was made known while counting the gains of the telecom sector in 2022 and how it positively affected the Nigerian economy in the areas of GDP growth, broadband penetration and Fintech growth.

According to them, the indices will be the decisive factors that will further deepen growth in the telecoms sector in 2023.

Chairman, Association of Licensed Telecom Operators of Nigeria, ALTON, Mr. Gbenga Adebayo, said 5G deployment, Fintech innovation and data applications will be the key drivers of the economy in 2023.

According to him, there will be increased data analysis that will inform major decisions in 2023, driven by increased data use.

He said Fintech would get more support from telecom operators in 2023 that would enable them to develop more solutions that would further support financial transactions across the board.

The chairman explained that Fintech will ride on 5G technology, once it is fully rolled out in 2023 by licensed 5G operators, to offer tailored solutions that will drive the smart cities initiative and the digital transformation agenda.

Broadband penetration

According to Adebayo, “Full rollout of 5G services across the country in 2023 will further drive development in the telecoms sector. We expect telecommunications networks to be much more stable by 2023, because most sites that ran on radio links are now being commissioned and connected to fiber optic backbone infrastructure, which will provide better resilience and better quality of service. Broadband coverage will also increase further in 2023 and provide more connectivity access to people, although the affordability of broadband access may be a challenge for most people in 2023.”

Adebayo further said that all these will be driven by 5G technology deployment by the operators that have been licensed to offer 5G services in Nigeria.

Considering the increase in broadband penetration from 44,49 percent in July 2022, to 45.55 percent in October 2022, Adebayo said that broadband penetration will increase further in 2023, given the expected rollout of the 5G network in 2023.

Nigeria recorded broadband subscription growth at 84.9 million with a penetration rate of 44,49 percent in July 2022.

In August, the broadband subscription increased to 85.2 million and the penetration also increased to 44.65 percent. In September, broadband subscriptions rose again to 86.06 million with an increased penetration of 45.09 percent. In October, broadband subscriptions also increased to 86.94 million and penetration also increased to 45.55 percent.

Forecasting 5G rollout in 2023, the CEO of MTN Nigeria, Karl Toriola, said MTN had already rolled out its 5G network in Lagos and Abuja, with plans to launch in five more cities in 2023, such as Port Harcourt , Ibadan, Kano, Owerri and Maiduguri, adding that customers with certain enabled devices will be allowed to connect and trial the new service where coverage is available.

5G technology, also known as fifth generation technology, is expected to bring many benefits and opportunities that will create accelerated growth and smart living in the country, once fully deployed.

The technology is also expected to provide significant network improvements, including higher connection speed, mobility and capacity, as well as low-latency features.

According to a 2020 GSMA Intelligence report, titled: ‘The Mobile Economy’, 5G is projected to contribute $2.2 trillion to the world economy by 2034.

5G license operators

To harness the full benefits of 5G, the Nigerian Communications Commission, NCC, the telecoms industry regulator, in December 2021 auctioned two lots in the 3.5GHz spectrum in a hotly contested bidding process among MTN Nigeria Communications Plc, Mafab Communications Limited and Airtel Nigeria Communications.

At the end of the exercise, the NCC declared MTN and Mafab as the winners of the two frequency lots and awarded them 5G license in 2022.

In December 2022, the NCC also awarded Airtel a new 5G license, bringing to three the number of 5G licensed operators that will roll out 5G networks in Nigeria.

Nigerians are therefore hoping for the full rollout of 5G networks by 2023 which will further drive technology innovation and development in 2023.

NP/Trust