Nigeria's Telecommunications Revolution: How Competition Transformed the Market
The deregulation of Nigeria's telecommunications market over two decades ago unleashed a wave of competition, ultimately benefiting consumers through enhanced value for money and improved service quality. This transformation mirrors similar competitive dynamics seen in other sectors of the Nigerian economy, such as fast-moving consumer goods, food and beverages, and financial services. Since the return to democracy in 1999, market competition has been a significant driver of economic growth in the nation.
The pre-GSM Era: A Landscape of Limited Access
Before the deregulation of the telecommunications industry in 2001, the financial and manufacturing sectors dominated advertising and marketing spending. The introduction of Global System for Mobile (GSM) communications dramatically altered this landscape. Prior to GSM, Nigeria had a mere 450,000 connected phone lines for a population exceeding 120 million. Investment in the sector was a relatively modest $50 million.
The Rise of GSM and Increased Competition
The initial players in the GSM market were MTN and Econet Wireless Nigeria, with Mtel, owned by Nitel, also vying for market share. In 2002, Globacom (Glomobile) entered the market, receiving the fourth Digital Mobile License (DML). Further solidifying competition, the Nigerian Communication Commission (NCC), the regulatory body for the sector, awarded a license to Emerging Market Telecommunication Services Limited (Etisalat) in 2008. This influx of operators spurred intense competition, with each company striving to establish a strong brand identity.
Globacom: A Catalyst for Change
Globacom's entry into the market marked a pivotal moment in the history of GSM mobile business in Nigeria. Launching with an aggressive strategy, Globacom introduced per-second billing, a revolutionary offering that challenged the established operators. This initiative, launched with the "Magic Ball" campaign, resonated with consumers and quickly propelled Globacom into a prominent position.
Over the years, Globacom has employed various advertising themes, including:
- "On your marks"
- "Turning dreams into reality"
- "Glowing continent"
- "We live where you live"
- "Rule your world"
- "We've got people talking"
- "Glo CAF"
- "Football made in Africa"
- "Marathon"
- "The more campaigns"
- "More technology"
- "More people"
- "More friends"
- "More millions"
- "More youth"
Globacom has collaborated with numerous advertising agencies, including Insight Grey, Bates Cosse, LTC, and Verdant Zeal, and has also cultivated an in-house creative team.
Driving the Digital Future: New Products and Services
Globacom has continued to innovate, introducing new products and services designed to enhance the communication experience for its subscribers. Recent offerings include Glo TalkMasta and Welcome Bonus, aimed at providing greater value and encouraging richer conversations.
- Glo TalkMasta: Offers additional free minutes on calls.
- Welcome Bonus: Provides new subscribers with an instant bonus on calls upon activation of their Glo line.
According to Globacom representatives, these products reflect the company's commitment to connecting people and enabling dreams. The company emphasizes its focus on building relationships and fostering a sense of community among its subscribers.
Specifically, the "welcome bonus" provides new customers with ₦2,000 in free credit, increased from the previous ₦1,000, along with 25 minutes of free airtime (previously 10 minutes) and 1GB of data (previously 250MB). The Glo Talkmasta product provides one free minute for every minute of call time, in addition to free data. Six minutes of calls per day earns customers six free minutes plus 50MB of data.
To access these benefits, new customers need a new Glo SIM and must dial *606#, while existing subscribers can simply dial the code. Customers have the flexibility to switch to other tariff plans at any time.
A Look Back: Disrupting the Market
Globacom has been a significant disruptor in the Nigerian telecommunications market. Its reduction of SIM card costs from approximately ₦25,000 to around ₦200 and its pioneering of per-second billing have been instrumental in expanding telephone penetration across the country.
Innovations pioneered by Globacom in Nigeria include:
- Blackberry Services
- Multimedia Messaging Service (MMS)
- Magic Plus
- Glo Direct
- International MMS
- Inflight Roaming
- Prepaid Roaming
- Glo Mobile Internet
- GloFleetmanager
- M-Banking
- Glo Mobile Office
- Glo TV
- Glo Cloud
- Glo Always On
- Glo Berekete
Furthermore, Globacom is the only operator with a wholly owned submarine cable, Glo 1, which directly connects West Africa to the United Kingdom and the rest of the world. It connects 14 nations in the West Africa sub-region, including landlocked countries, ensuring bandwidth availability for Wholesale, Enterprise & SME customers. This undersea cable provides faster and more reliable connectivity for voice, data, and video, with reduced latency between Africa and London. It offers opportunities for global and African carriers, content providers, and government and corporate entities in Nigeria and West Africa.
With its ongoing innovations and commitment to value for money, Globacom continues to play a vital role in the African telecommunications market.
No comments:
Post a Comment