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Internet Service providers lose 104,748 customers

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About 104,748 corporate customers who are Internet subscribers on some Internet Service Providers (ISPs) licensed by the Nigerian Communications Commission (NCC) have ceased to obtain services from the Internet companies. This figure was revealed in the latest industry data for 2017 released by the telecoms regulator.

In the data obtained by New Telegraph, the NCC reported a significant difference between the numbers of active and inactive or dormant clients of the licensed ISPs. According to the data, while the total number of ISPs so far connected stood at 390,794 by end of December 2017, those inactive seated at 104,748.

This represents 27 per cent loss of customers to the ISPs majority of which are also facing serious competition threats from the bigger players with Universal Access Service Licences (UASL) that allow them to also offer Internet services to individuals and corporates.

Analysis of the NCC data showed that there are ISPs with very high inactive subscribers including ipNX, Juniper Solutions and Broadbased, among others. As at last December, ipNX had a total number of 28,153 connected subscribers. While the number of active subscribers was 6,372, the total number of inactive clients seated at 22,781.

For Juniper Solutions, with an abysmal total number of three active lines, it had 167 inactive subscribers and 170 total connected lines. While Broadbased had a  total number of 317 inactive subscribers the number of its active subscribers was 393 and 710 total connected subscribers.

Also, Backbone Connectivity had a total of 143 inactive lines, 57 active subscribers and a total number of 200 connected subscribers. Sense Tech’s total connected subscribers were 52, while the total number of active subscribers was 22 subscribers. In the category also was Smartcity Broadband, which had a total of 110 inactive subscribers, while active subscribers were 130. There were also 240 total connected subscribers.

However, the NCC report noted that despite having over 37 ISPs in the nation’s $70 billion telecommunication market, only two of the players, namely Spectranet and Smiles Communications control 90 per cent of the enterprise internet market.

While mobile network operators (MNOs) such as MTN, Globacom, Airtel, 9Mobile have conquered Internet provision through mobile devices, the provision of Internet services in terms of bandwidth to corporate organisations has been the focus of licensed ISPs. However, there are some ISPs that hit the one thousand mark active subscribers.

One of them is Vodacom, which had 1,687 total connected subscribers and 1,687 total active subscribers; Smile Communication had a total number of 156,243 connected subscribers and retained the same number for those that were active 156,243; Some ISPs that crossed the one thousand mark were while Hyperia with a total number of 2,512 connected subscribers and 2,512 total number of active subscribers.

Steam Broadcasting had 2,309 active subscribers and 2,309 connected subscribers. While Cobranet had 3,668 active subscribers, Spectranet became the only ISP that hit the hundred thousand mark with a total number of 108,629 active subscribers and 193,892 connected subscribers.

In all, Spectranet and Smile Communications stand tall as two major players in the ISP space controlling 193, 892 total connected customers and 156, 243 respectively with the report showing that Spectranet is leading Smile with a margin of about 19 per cent.

The study also beams a searchlight on the level of infrastructure, mainly the Point of Presence (PoPs) possession of the ISPs. Overall, the PoPs already achieved by the Internet service providers currently stand at 927. Also, the points of presence

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