Airtel, MTN and others record more than N53billion in profit from sms

One might anticipate that in the thriving world of internet-based messaging platforms, the classic Short Message Service (SMS) would take a back seat in the ever-evolving landscape of communication technologies.

However, according to a recent study by the Nigerian Communications Commission (NCC), the nation’s largest telecom companies, including MTN, GlobalCom, Airtel, 9Mobile, and Smile Communications, jointly earned N53.6 billion from SMS in 2022.

In the course of the year, these networks carried an amazing 14.08 billion text messages, according to the NCC’s most recent annual report. This amount, which corresponds to an astounding N56.3 billion at a fixed rate of N4.00 for each message sent, shows the significant revenue stream the operators continue to receive from offering the service.

Side by side, the total number of text messages received saw an 11.06% boost to reach 11.8 billion sms, which added up to a combined figure of 25.9 billion SMS sent and received during the year.

Are Facebook and WhatsApp displacing SMS?

Traditional telecom carriers have felt the sting of declining call and message income in an era dominated by Over The Top (OTT) services like WhatsApp and Facebook Messenger. Due to its simplicity and little or no fees, WhatsApp has since launched and has significantly increased the competition for SMS.

However, as seen in the survey, despite the prevalence of free messaging options like WhatsApp, Facebook Messenger, and Telegram, Nigerians continue to use paid text messages. This fascinating revelation begs intriguing concerns concerning SMS’s continued popularity, particularly for formal or important conversations when its dependability is unparalleled.

Industry observers stress that while short message consumption may have decreased as a result of the emergence of OTTs, its significance cannot be completely overshadowed by free messaging services.

There are still situations in which it is the preferable method of communication, particularly for formal concerns, guaranteeing that text messages remain a solid option.

The number demonstrates SMS’s continued usefulness in a communications environment that is continually changing.

Even though the communication environment may have changed due to the emergence of internet-based messaging services, traditional short messages have managed to carve out a place for themselves. This shows that despite the advent of digital messaging services, traditional text messages are still a vital part of communication.

Details about the SMS report

A closer examination of the NCC data shows fascinating details about how particular operators operate in this area. With 8.3 billion outbound and 8.7 billion incoming messages, MTN became the market leader in SMS, greatly boosting its N33.3 billion SMS income.

With 3.6 billion SMS sent and 777.2 million SMS received, Globacom came in second place. This resulted in a hefty N14.5 billion profit.

According to the total number of subscribers, Airtel, which is the third biggest-largest operator, reported 1.8 billion sent messages at N7.5 billion and 2 billion received messages.

With 235 million messages received and 234.8 million SMS sent (N93.9 million), 9Mobile continued to be active. Despite having a smaller total, Smile Communications processed 173,607 outgoing messages (N694,428) and 766,588 received messages throughout the reviewed year.

Curiously, the operators enabled 518.9 million foreign SMS in total in 2022, demonstrating the enduring importance of SMS on a worldwide scale. This was composed of astonishing 459.3 million emails received and 59.5 million messages sent.

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Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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