Infrastructure for telecommunications: The cornerstone of SMEs' success

Infrastructure for telecommunications: The cornerstone of SMEs' success
Recognizing the critical role Small and Medium Enterprises (SMEs) play at all levels of the nation is essential to understanding the story of economic development in that country. 


The rise of SMEs has allowed countries like China, America, and others to flourish, yet the neglect of these vital organizations is a major cause of poverty in many emerging countries. 


Small companies in nations like Nigeria were disadvantaged before to 2000 because to their narrow market penetration, which made it difficult for them to compete with larger companies using conventional advertising techniques like radio, print, and billboards.



The unrealized potential of SMEs, which may greatly enhance a country's economy, remained obscure. 


It is critical to realize that SMEs, which employ 90% of the labor force and comprise 90% of enterprises in Nigeria, are important to the country's economic development. Compared to having no potential at all, the frustration of having potential but no platform is greater. 


It is inconceivable today to imagine the difficulties encountered by SME owners when there was no communications infrastructure to support their enterprises.


The Revolutionary


A new facet of the country's economy was brought about by the rise of the communications infrastructure sector, particularly tower companies (towerCos), which house the equipment of mobile network operators (MNOs). 


The Bureau of Labor Statistics reports that during the first quarter of 2023, the country's Gross Domestic Product (GDP) benefited from the telecom industry's N2.508 trillion contribution, or 14.13% of the GDP overall. 


In May 2023, there were 221.3 million active voice subscribers, or a teledensity of 115%, and 160 million internet subscriptions. 


Globally, the telecoms market was estimated to be worth USD $1,700 billion in 2021 and is expected to increase to USD $3102 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 6.2% expected to occur between 2023 and 2030. 


The breadth of the country's and the world's communications infrastructure forms the basis of this economic revolution. 


Towercos remain the cornerstone of the country's GDP growth even in the face of macroeconomic difficulties, various taxes, landlord activities, and neighborhood troubles.


Companies that manage communications infrastructure, like IHS Towers, which started in Nigeria and is currently one of the biggest independent international towerCos worldwide, have played a significant role in enabling Nigeria's economic growth. 


Every government should place a high priority on maintaining and enhancing communications infrastructure in the fast-paced 21st century in order to promote digital growth, which is the engine of economic progress.


It's difficult to fathom our way of life before the invention of telephones and towers. 


In the 1990s, I recall taking a school trip from Lagos to Ilorin and not having any way to communicate, contact my family at home, or use social media. 


The only telecommunications provider at the time, Nigeria Telecommunications Limited (NITEL), was used for composing letters and sending them by snail mail or making phone calls. 


This required waiting in lengthy lines and still not having a dependable network. 


In addition to having access to telecommunications, we now have ubiquitous towers that enable MNOs to assemble their equipment on towers owned by towercos. 


This expands coverage to areas where SMEs are located and offers a range of value-added services, including voice and data services. 


Towercos have effectively brought together individuals from different backgrounds, strengthening their economies, opening doors to employment opportunities, and generating jobs. 


With the aid of communications infrastructure, it is now simpler to meet individuals online, anywhere in the world.



These towercos have a major positive impact on diversity, gender inclusion, global involvement, social networking, economic growth, and job creation. 


They have significantly expanded the telecom services and other industries' value chain throughout Nigeria. By using IHS Towers' operations in Nigeria as an example, we can discuss the value chain that towercos offer. 


As of September 2023, the company is reported to have over 16,000 towers, 1,200 direct employees, 40,000 indirect employees, and a cumulative electricity generation capacity of over 250MW to power its sites. 


It also moves approximately 1,500 trucks across the nation each month for its logistics operations, occupies approximately 3.6 million square meters of land for its operations nationwide, and uses over 3 million liters of diesel annually to power its sites.  


The nation and its economy are significantly impacted by the jobs generated by these diverse businesses. 


The Federal Ministry of Communications, Innovation, and Digital Economy and the firm recently announced their agreement to train 3 million Nigerians in technological skills. This alone has the potential to have a big influence on the Nigerian economy.



The contribution of communications infrastructure to the expansion of SMEs has become more apparent in recent years. 


In a 2015 interview with CNBC Africa, Lynda Saint-Nwafor, the current Chief Enterprise Business Officer and board member of MTN Nigeria, recalled that towercos, such as IHS Towers, facilitate the attainment of a more rapid and efficient economic roll-out. 


According to her, this is extremely important to MNOs who collaborate with these tower companies to provide connectivity to more remote and inaccessible locations, promoting economic activity in low-income communities while putting more emphasis on social responsibility than profit.


SMEs' Digital Transformation


Infrastructure for communications is the key to SMEs' digital transformation. 


Thanks to dependable networks, mobile connection, and high-speed internet access, SMEs may now take advantage of special chances to expand their operations, enter new markets, and optimize their business procedures. The benefits are enormous:


Market Accessibility: Companies can reach a larger client base and provide services globally thanks to communications infrastructure. 


A significant portion of Nigeria's GDP comes from the entertainment sector, which mostly benefits from the opportunities this infrastructure provides. 


SMEs made possible by this infrastructure have access to social media sites like Facebook, Instagram, and TikTok, as well as e-commerce platforms and online marketplaces that allow them to contact both domestic and foreign consumers.


Collaboration and Communication: Good communication is essential to every company. Emails, instant messaging, and video conferencing are examples of telecommunications solutions that let SMEs communicate easily with partners, suppliers, and customers.


Businesses in Nigeria have collaborated online to reach a wider audience and make decisions more effectively.


iii. Information Access: SMEs can obtain a wealth of information, market data, insights, and trends via the internet. With this information, SMEs can remain competitive, adjust to shifting market conditions, and make well-informed decisions.


Cost-Efficiency: The operating costs of telecommunications have been drastically lowered. Pay-as-you-go access to software and infrastructure is made possible by cloud-based services, which spare SMEs from the expense of expensive on-premises solutions.


Automation and Innovation: SMEs can automate a number of parts of their operations with the use of communications infrastructure. Automation increases productivity while freeing up resources for creative thinking.


Possibilities and Difficulties


Even while SMEs can gain greatly from communications infrastructure, there are several drawbacks to take into account:


Infrastructure Gaps: In order to guarantee that all SMEs may profit, it is imperative to close infrastructure gaps, such as the restricted availability of mobile connectivity and high-speed internet in many parts of Nigeria.


Cybersecurity: SMEs may not have the funds to put strong cybersecurity measures in place, which leaves them open to attacks by hackers and online con artists. It is essential to promote cybersecurity and offer assistance.


Digital Skills: To help their employees acquire digital skills, SMEs must provide them with training and a positive work environment. Programs for education and training can close this gap.


Rules & Guidelines: In order to safeguard the interests of SMEs and promote investments in communications infrastructure, clear and accommodating legislative frameworks that prevent multiple taxation are required.

In summary


For SMEs, communications infrastructure is more than simply a practical tool—it's a revolutionary one. It provides access to a plethora of opportunities, allowing them to innovate, increase efficiency, and compete in both domestic and international markets. 


Along with supportive policies and initiatives, investments in communications infrastructure are critical to ensuring the sustained growth of SMEs in Nigeria. 


The government, business community, and SMEs themselves may work together to create a more favorable economic environment where SMEs can prosper and continue to contribute to the development of the country.

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