Telecom Sector Growth Hinges on AI, B2B Services, and Strategic Innovation Amidst Rising Costs
The Nigerian telecom sector is grappling with steep tariff hikes, leaving consumers like Adebayo, a Lagos-based small business owner, shocked by the surge in mobile data costs. For instance, the price of a 1.5TB mobile data plan has risen from N150,000 to N240,000, putting a strain on small businesses that rely heavily on internet connectivity for marketing and customer interaction. These price increases are attributed to rising diesel costs and foreign exchange challenges, forcing network operators to hike tariffs to maintain profitability.
Despite these challenges, industry experts, including Jide Awe from Jidaw Systems, stress that telecom operators need to embrace innovation and explore new revenue streams to stay afloat. While traditional telecom services like voice and data are essential, there’s a strong call for operators to pivot toward data transformation and work with startups to integrate emerging technologies like AI and IoT. By collaborating with agile innovators, operators can develop value-added services that not only reduce costs but also create sustainable growth.
PwC’s Global Telecom Outlook 2024-2028 report highlights AI and B2B services as key drivers for telecom growth. The report reveals that telecom companies are increasingly prioritizing B2B solutions, such as IoT services and private 5G networks, to offset the erosion of profits from basic connectivity services. In Saudi Arabia, for instance, STC has successfully secured significant B2B contracts, demonstrating the potential of this strategy. Furthermore, AI is playing a pivotal role in reshaping the industry by improving customer experiences, optimizing network management, and reducing operational costs.
The report also outlines that telecom operators must address fundamental challenges, such as high infrastructure costs, foreign exchange constraints, and regulatory bottlenecks, to foster industry growth. While investments in AI, B2B services, and fixed connectivity are crucial, achieving long-term sustainability will require government intervention to create a business-friendly regulatory environment. As emerging markets like Nigeria and India experience rapid telecom growth, these regions will play a vital role in shaping the future of the global telecom industry, driving both expansion and innovation.
source: naira metrics