More Industry InsightsNigeria, Untapped Market for Fiber Optics Investments – Report

March 30, 2022by myles0
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The findings of a joint study by Boston Consulting Group (BCG) and EDHECinfra, a venture of the renowned international EDHEC Business School, has revealed that large markets such as Nigeria, Ghana, South Africa, Brazil and parts of Asia have huge potential to attract digital infrastructure projects but are untapped markets for fiber optics investments.

This, according to the report, which was published yesterday, can be linked to uncertain economic growth that has made fiber-penetration levels uneven despite a clear demand for fiber infrastructure projects.

In the new report entitled “Infrastructure Strategy 2022: A Pivot to the Digital Frontier,” Boston Consulting Group (BCG) and EDHECinfra provide a new perspective on the investment strategies and risk-adjusted-performance of different groups of infrastructure investors.

“Although demand for fiber optic projects is most pronounced in less-wealthy economies–large and diverse regions with significant potentials, such as Nigeria, Ghana, South Africa, Brazil, and parts of Asia are untapped markets–fiber penetration is also uneven in places where economic growth is less uncertain,” the report states.

The study points out that the increasing desire for higher speeds and reliable online access will inevitably lead to a huge expansion of fiber optic installations in new networks in low- and middle-income nations as well as in existing networks in higher-income countries.

Ultimately, fiber, which has already begun to make inroads in networks everywhere, will replace legacy (primarily copper) infrastructure completely, particularly as 5G rolls out.

Commenting on the findings of the study, Managing Director and Partner, BCG Nigeria, Stefano Niavas, says, “Fibre optic investment is required to expand the capacity of the undersea cable infrastructure on the shores of Nigeria beyond the cities to other regions of the country in order to make connectivity truly ubiquitous.

“With the growing demand for fast and reliable Internet connectivity, investing in digital infrastructure is profitable and it is expected that investment in fibre installations all over the country will accelerate in a few years from now.”

Read the original article on Daily Trust.

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