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Telecoms Investment Opportunities in Nigeria
Paul Budde writes:
2005 and 2006 will be the years of opportunity in Africa. The continent's telecommunications markets are the fastest growing in the world and are yet at very low levels of penetration, making it the most attractive investment arena in the world today. In at least 25 countries – almost half of all countries on the continent - either new fixed or mobile operating licenses will be issued during these two years or an existing player will be privatised, opening up a plethora of opportunities for strategic as well as financial investors. Liberalisation and deregulation are finally happening on the continent and corruption and bureaucracy are being addressed, providing an operating environment suitable for international investment.
Nigeria as one of the largest and fastest growing markets offers particularly attractive opportunities, starting with the privatisation of the national carrier Nitel in 2005. A takeover battle is currently going on around V-Mobile, the country's number three mobile network, and funding is being sought for Nigeria's first own telecommunications satellite. Existing players in all market sectors require additional funding for expanding their networks and services at record pace in order to keep up with demand, and a new unified licensing regime to be introduced in 2006 will open up new opportunities to existing and new players alike for the provision of next-generation converged mobile, fixed and Internet services.
The few investors who entered the Nigerian market in 2001 and 2002 when it was still considered very risky have experienced triple-digit growth rates every year and amassed huge profits. In the improved economic and operating environment, the market is now also attracting strong interest from leading global telecoms players and international investors, but new technologies, a decline in infrastructure costs and continuing deregulation will maintain opportunities for smaller players as well. This report provides potential investors with an overview and analysis of the Nigerian telecommunications market and delivers insights into current and future investment opportunities that exist in the various market segments while at the same time pointing out the problems and risks involved.
For further information see -
2005-2006 Africa - Telecoms Investment Opportunities in Nigeria.
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