Afrigather Airtel Nigeria, the nation’s second-largest cellular community operator, has secured three telecom licences from the Nigerian Communications Fee (NCC) because it seems to be to unlock new income streams.
The licences embrace an Web Service Supplier (ISP) license, a Nationwide Lengthy Distance license, and a Gross sales and Set up Main license. All three licences have been awarded to Airtel Nigeria Telesonic Restricted, a subsidiary of Airtel.
Whereas Airtel Nigeria might have operated within the ISP market utilizing its Unified Entry Service Licence (UASL), securing a standalone ISP license seems to be a strategic transfer to bolster its dwindling income within the Nigerian market–Airtel Nigeria reported a $13 million loss in H1 2024.
The Nationwide Lengthy Distance license, legitimate for 20 years, will enable Airtel Africa to supply telecommunication service over an extended distance community – MTN already obtained into the enterprise via its subsidiary Bayobab. The Gross sales and Set up license, legitimate for 5 years, permits the subsidiary to promote, set up, and preserve telecommunications infrastructure.
Though Airtel Nigeria Telesonic Restricted was included on August 26, 2026, and launched on February 13, 2024, it has not formally begun operations. One particular person aware of the matter mentioned inner processes, together with mapping the scale of the funding and the logistics wanted, have to be accomplished earlier than operations start.
“Getting the licences is sort of a financial institution launching a fintech subsidiary,” mentioned a telecom govt who requested to not be named.
“By retaining it separate, Airtel Nigeria can act as a wholesale provider to Telesonic, which holds the ISP license. This association permits Airtel to report income as a wholesale provider, whereas Telesonic stories the bandwidth prices, successfully lowering their tax liabilities by reducing gross earnings.”
Airtel Nigeria didn’t reply to a request for feedback.
Airtel Nigeria is the most recent entrant into the aggressive ISP market. Rivals like MTN Nigeria and Globacom have made vital inroads since launching their ISPs in 2022 and 2024, respectively. The market is dominated by gamers like Spectranet, FiberOne, and Starlink. Airtel’s transfer might invigorate a market that has seen quite a few exits because of the harsh working surroundings pushed by inflation and FX volatility.
Nonetheless, this enlargement could also be constrained by its cost-reduction measures. The corporate is reportedly renegotiating contracts with tower corporations to cut back its overseas change publicity, suggesting that it might not have substantial funds to spend money on its new subsidiary.
“All cellular community operators are more and more specializing in last-mile companies as a result of they provide increased profitability,” a CEO of an ISP firm who requested to stay nameless to talk freely instructed TechCabal.
“Take voice companies, for instance—the interconnect price remains to be ₦7 per minute, a price set round 20 years in the past. Think about what the greenback and diesel costs have been again then, that are important for powering their base stations. That is the speed MTN Nigeria pays them per minute for calls that MTN routes via their community.”
Airtel Nigeria’s transfer to enter the ISP market, although belated, might doubtlessly shake up the sector which has shrunk over the previous 12 months with many operators shutting down because of excessive inflation and overseas change disaster within the nation. Nonetheless, to make a dent out there it must develop the present dimension of the ISP market which stands at 262,207 energetic subscribers with a mean income per consumer (ARPU) of ₦10,000 to ₦15,000.
