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MTN Nigeria has made significant strides in the telecom industry, especially in the data sector. For the first time in its history, the company has reported that its data revenue has surpassed voice revenue, signaling a shift in how consumers are using mobile networks. However, despite the growth in data earnings, the company is still grappling with network disruptions that have affected the user experience.
In the first quarter of 2025, MTN Nigeria posted a staggering N529.4 billion in data revenue, representing a 51.5% increase from the previous year’s N349.5 billion. This surge marks a pivotal moment in the company’s financial trajectory, as data now contributes more to its service revenue than voice calls. The company’s overall service revenue for the quarter totaled N1.05 trillion, reflecting a 40.5% year-on-year growth. This strong performance comes after MTN implemented price adjustments and made continuous investments in its network to improve service quality. However, network outages on May 6 disrupted services for many users, raising questions about the reliability of the infrastructure that is supposed to support the company’s growing data revenue.
Performance Highlights
Data Revenue Surge:
Voice Revenue: MTN’s voice revenue was N407.4 billion, reflecting a shift towards internet-based services.
Network Improvements: MTN continues to invest in network upgrades, with its 4G network covering 82.7% of the population and its 5G coverage at 12.7%.
Smartphone Growth: The company added nearly four million smartphones to its network, pushing smartphone penetration to 60.7%.
Profits after Losses: MTN has returned to profitability in 2025, after suffering significant losses in previous years, largely due to the naira devaluation and foreign exchange market challenges.
Despite these positive numbers, MTN faced network disruptions on May 6, 2025, affecting users’ access to social media and data applications. The disruptions raise concerns about the robustness of the company’s network infrastructure, even as it continues to grow its data revenue.
What Undercode Say:
MTN Nigeria’s impressive revenue figures, particularly from data, indicate a major shift in the company’s business model. The surge in data earnings is a direct result of changing consumer behaviors, with internet usage now overtaking traditional voice calls. This aligns with global trends, where the demand for data services continues to rise as more people move towards internet-based communication. MTN’s strategic adjustments, including price hikes and network investments, have played a key role in boosting data revenues.
The company’s ability to increase its active user base and average data consumption per subscriber is a testament to the growing reliance on mobile data in Nigeria. With the introduction of 5G and continued expansion of 4G coverage, MTN is positioning itself well for the future, especially as smartphone penetration continues to grow. The increase in data traffic and average usage per subscriber highlights the trend toward higher data consumption, and MTN’s focus on network quality and capacity is likely to drive further growth.
However, the recent network disruptions are a stark reminder that MTN’s efforts to increase data revenue might be undermined by unreliable service quality. Network outages on May 6 disrupted access to critical services for many subscribers, damaging the company’s reputation and calling into question its ability to maintain a high-quality network. While MTN has made strides in enhancing its network infrastructure, issues like these suggest that further investments are necessary to meet the rising demand for seamless mobile data services.
Additionally, the company’s profitability recovery is still fragile. While MTN has bounced back from previous losses, including the significant impact of the naira devaluation, its financial performance is closely tied to the foreign exchange market. MTN’s move to reduce foreign exchange exposure by paying off dollar-denominated loans is a step in the right direction, but the volatile economic environment remains a threat to the company’s bottom line.
Fact Checker Results:
Data Revenue: MTN’s data revenue increase is accurate, reflecting a significant rise in data usage in Nigeria.
Network Issues: Reports of network disruptions on May 6, 2025, are valid, with many users experiencing service outages during this period.
Profitability: MTN’s return to profitability in 2025 is verified, following years of financial challenges tied to currency fluctuations.
Prediction:
Looking ahead, MTN Nigeria’s data revenue growth is likely to continue, driven by increasing smartphone penetration and higher data consumption per user. However, the company must address its network reliability issues to maintain customer satisfaction and secure long-term growth. The expansion of 5G coverage and further investments in network infrastructure will be crucial in supporting the rising demand for data services. If MTN can overcome its network challenges, it is poised to solidify its position as the leading telecom provider in Nigeria and potentially expand its dominance in the broader African market.
References:
Reported By: www.legit.ng
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