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CDMA Operators Battles for Survival amidst Low Revenue

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The number of active telecommunications subscribers on the various networks operating in the country as released by Nigerian Communications Commission for the second quarter of this year indicated that Global System for Mobile communications (GSM) operators have continued to make impressive additions to subscribers on their networks compared to Code Division Multiple Access (CDMA) operators.
In the report CDMA operators recorded a decrease on the subscribers to their network from 9,115,165 in April to 8,658,318 as at June this year. But, GSM operators within the same period recorded an increase from 58,063,300 to 59,194,972. The implication of this is that in spite of different network expansion plans embarked upon by major operators in this space as well as promotions, Nigerians still prefer talking on GSM platform.
The issue that arises, is how can operators in this space survive in terms of competition with GSM operators bearing in mind the harsh economic downturn facing the country? This situation may have informed the recent promo embarked upon by some operators on the CDMA platform to shore up their subscriber base. Visafone and Starcomms have launched their promo campaign while Multi-Links Nigeria CommunicationsWeek gathered is planning a similar promo. In the Visafone ‘Enjoy the N0.00 advantage’ new subscribers to Visafone network will only need to purchase and activate a Haier FM phone for just N3, 333 or a Huawei C2802 model for N2, 222. The subscriber will in turn get back the full cost of buying the phones in the form of free airtime worth N3, 333 and N2, 222 respectively in three months.
More so, a subscriber is expected to use at least N200 over a 30 day period to get N1,045 worth of free airtime with 15 counts of free On-net SMS on the Haier FM phones while subscribers who purchase, activate and use up to N200 on the Huawei C2802 will get N741 worth of free airtime with 15 counts of free On-net SMS in each 30 day cycle. At the end of a 90 day period, the subscriber participating in this package would have gotten back the full price of his phone.
The free airtime is automatically credited to the phone as soon as the subscriber uses up to a minimum of N200 in a 30 days circle.
In a similar promo, Starcomms is offering two categories of mobile telephone, the ZTE X175 and the popular Haier D920, in a promotion that ultimately gives back the purchase money to the subscriber.
This new 100% money back promo by the company allows any subscriber who purchases the ZTE X175 and Haier D920 to enjoy on-net bonus airtime covering the value of the purchased phone within 30 days of their activation. The ZTE X175 phone is priced at N1,999 and upon minimum first time recharge of at least N100 (one hundred naira), the purchaser will get automatic bonus airtime and the Starcomms customer would  be able to make free on-net calls to the tune of N1,999 within the first month of activation. The same token goes to the subscribers who buy the Haier D920 for the price of N2,299 and will be able to make free calls to any Starcomms line to the value of N2,299.
Starcomms in a statement acknowledged that the promotion is coming at a time when the purchasing power of many is generally dwindling and subscribers are keen to get adequate value for their money.
Speaking on the offer, Maher Qubain chief executive officer, Starcomms, said Starcomms acknowledges the adjustments people have had to make in the last few months of challenging economic situation. “It is therefore apt for us to respond positively, as we always do, to the yearnings of our subscriber, especially students and other people in the lower segment of the economy. We have therefore made it easy for people to join the Starcomms network without having to overstretch themselves financially. This is part of our strong resolve to always bring the best offer to the reach of our teeming subscriber,” he said.
The use of this free airtime can be enjoyed by Starcomms subscriber within only one month starting from the moment of first activation. The new subscribers will enjoy this offer alongside the value-added services like the missed call notification and the call waiting options.
The introduction of Unified Access License by Nigerian Communications Commission (NCC) in 2006 after the expiration of exclusivity right given to Global System for Mobile communication (GSM) operators was what Code Division Multiple Access (CDMA) operators needed to stamp their feat in the telecommunications industry. Before then, they were operating under limited mobile access license which restricted them from operating mobile service in unified manner. They as a result concentrated on offering fixed wireless and mobile service within the state they secured license to operate. More so, if any operator wishes to operate in another state outside its primary state of operation such operator would be required to apply for a license to operate in such location. This made it expensive to operate even as they were not required to offer roaming service like GSM operators. As a result of these, CDMA operators were mere local operators who concentrated their service in Lagos and Abuja commercially viable cities. They were struggling for subscribers with GSM operators that offered broader service, basically, because a GSM subscriber can take his or her phone outside Lagos and it works in as much as such network has coverage in the location, but mobile service rendered by CDMA could not offer this service, thereby giving them advantage over CDMA service. With the introduction of unified  licensing  regime, individual service provider is allowed to offer multiple services such as mobile telephony, fixed telephony, internet services and long distance services, there are over ten operators in this space. They included Starcomms, ZoomMobile, Intercellular, Multi¬-Links Telkom, Visafone, Rainbownet, Prestel, MTS First, among others. Under the current dispensation, CDMA operators that want to play in the big league are required to operate nationally, though there is choice of playing local but most see it as not economically viable to play local which has led to most of them going for national unified access license which is the prerequisite. Playing at this level entitles having foot print in almost every town in the country to be able to garner enough subscriber base which is the basis for profitability. To do this, they require strong financial base which most of these operators does not have. This situation changed the landscape of operation in CDMA space as they had to change their operational module to be part of the moving train in the industry and has ignited a contest for supremacy among them. This saw Starcomms selling some of its equity to Actis to raise money to expand its network, since then it has secured foreign loans in this regard making it to claim the biggest in the space. The company has already invested some US$800 million since it launched its network in 2002. It set for itself a target of reaching 2.5 million subscribers by the end of 2008, 5 million by the end of 2009 and a ten fold jump to 50 million by 2011. The company was listed on the Nigerian Stock Exchange (NSE) and raised around US$60 million. “We have always wanted two sectors of the economy, they are the oil and telecommunications sectors, represented in our market”, said Binus Yaroe, the NSE general manager of listing and quotations and a representative of the director general of the exchange. The stock market floatation raised funding for the company, while also allowing two investors, Actis and ECP to reduce their holdings.
Other operators did not seat to watch their Starcomms claim subscribers in a business they are also part of and equally have opportunities of playing big. Zoom Mobile, another contender had raised N25.9billion from investors through private placement. The company currently covers 62 cities and 350 villages and has a capacity for five million subscribers.
A foremost operator in that space Multi-Links deal with Telkom of South Africa, which saw the later acquiring 75% share of Multi-Links and later the remaining 25%, was what the company needed to re-launch itself into the market. Telkom has injected funds and managerial skills to make the business profitable; this is yet to be achieved as the company is yet to start making profit. Visafone, the youngest by name in the CDMA sector of telecommunications industry emerged from nowhere and is putting up an impressive performance having emerged as the fourth largest telecommunications operator in the country in two successive quarters. The company which is brainchild of Jim Ovia, a banker and industrialist has witnessed him bringing his managerial competence which he has used to make Zenith bank one of the strong banks in the post consolidation era to bear.
It has become worrisome to CDMA operators while some of them are being heavily affected by the economic meltdown, which calls for overhaul of business module and operational strategy. Against the backdrop of NCC’s planned introduction of Number Portability, CDMA operators’ faith of survival is hanging. Ken Aigbinode, executive vice chairman, Zoom Mobile, expressed fear on what will be the faith of CDMA operators when NCC introduces Number Portability. According to him, GSM and CDMA technology are two different technologies and that the GSM technology will play well with number portability than the CDMA because the CDMA technology is customized and fixed.
Possibilities of Survive
In spite of the wide differential in the subscriber base between CDMA and their GSM counterparts there are possibilities of surviving if they apply the right business model that is relevant to the operational environment. More so, the license they are operating with allows them to deliver service with their chosen technology without barriers. They need to adopt a cost effective way of rolling out service, such as sharing of infrastructure among others.
Gbenga Adebayo, chief executive officer, Community Network Support Services Limited, alluded to this when he cited situation in United States of America, where CDMA technology is the dominant while GSM operators are trailing behind. He said that what is happening in USA is possibly to play in Nigeria especially, when the right and quality of service is provided.

 


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Treepz Doubles Down on Corporate Mobility in Africa with Launch of a New Website

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Treepz, Africa’s leading corporate mobility startup, has expanded its corporate mobility and employee transportation services across the continent with a fresh new look for its website.

 

The company’s new website boasts a sleek, user-friendly interface with added features to better showcase Treepz’s range of services for companies looking to efficiently and sustainably move employees and clients in major African cities. From on-demand employee shuttles, and school bus solutions to intra-city group trips for events and conferences, Treepz is positioning itself as an all-in-one corporate transportation provider.

Managing transportation logistics across multiple sites has always been an operational nightmare for companies,” said Onyeka Akumah, Co-Founder and Chief Executive Officer of Treepz. “Our goal is to streamline that experience through Treepz’s powerful technology platform.”

With nearly 6,000 employees of companies daily relying on Treepz’s innovative tech and reliable fleet for employee transportation or staff bus commutes, we understand the complexities of managing corporate transportation firsthand. “Our revamped website simplifies the process, offering businesses a seamless solution to optimize their transportation needs and empower their workforce in Nigeria, Kenya, Uganda and Ghana,” Onyeka added

Key Features of the New Treepz Website

  • Trackable Dashboard for a bird’s eye view of all guests’ trips in real-time when using Treepz.
  • 24/7 customer support to assist with all mobility inquiries.
  • Wide selection of vehicle options, each with professional drivers tailored to specific needs.
  • Friendly interface for easy navigation and booking.
  • Client testimonials and case studies showcasing Treepz’s success stories.

Treepz’s mission extends beyond just transportation – they aim to revolutionize how over 1 million daily commuters experience mobility across Africa. Since its launch in 2019, the company has provided employee transit for top firms like Tekexperts, Wakanow, Somasource, and Brighter Monday across Nigeria, Ghana, Kenya and Uganda. This has resulted in the transportation of about 5 million passengers since then.

With this digital reinvention, Treepz doubles down on transforming corporate mobility through tech-driven solutions. The company welcomes businesses seeking smarter ways to move their people to explore the new website www.treepz.com.


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Nigerian Business Leaders Partner Google for Strategic Advantage, Seeks Competitive Edge in Privacy-First Era

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Leading companies from Nigeria joined Google West Africa at a roundtable to discuss the shift towards privacy-first marketing as third-party cookies are phased out. The forum brought together leaders from FairMoney, Konga, Mondelez, Stanbic IBTC, and Zenith Bank, highlighting a collective commitment to redefining consumer engagement in the digital age.

Businesses recognize that building consumer trust is essential in a world that increasingly values privacy. In this new era, adapting marketing strategies to be more privacy-focused is not just a necessity but a strategic move towards building sustainable customer relations. This transition challenges businesses to innovate while maintaining transparency and respect for consumer data privacy, turning potential constraints into avenues for deeper consumer engagement.

“Customer trust is the new currency,” noted Felicia Otolorin, Senior Industry Lead, West Africa, Google. “Consumers are demanding more control over their data, and the savviest businesses are seeing this shift as an opportunity. This is about reimagining how we engage with technology and data, ensuring that innovation and privacy go hand-in-hand.”

The discussions emphasised this point, highlighting the competitive advantage of adopting privacy-first strategies. Google showcased innovative solutions like Google Tag and Enhanced Conversions. These tools demonstrate a commitment to both high performance and privacy standards. Success stories illustrated how other businesses have successfully navigated this shift, offering valuable insights.

“We stand at a crucial juncture,” remarked Oluwadamilare Akinwunmi, Chief Data & AI Officer at Interswitch. “The winners of tomorrow will be those enterprises that strike a balance between innovative, data-driven marketing and a profound commitment to data protection and privacy-first practices. The essential dialogues we engage in, and the subsequent actions we take, set us on the path to achieve precisely this”

The roundtable underscores a pivotal shift towards privacy-first strategies in Nigeria’s digital marketing sphere, emphasising the critical role of collaboration and innovation in this transition. It marks a collective stride towards a future where consumer trust and data privacy form the cornerstone of business growth and competitive advantage.

“We are committed to empowering Nigerian brands in building a privacy-forward future. By harnessing AI and privacy-centric technologies, we aim to empower our partners to thrive amidst these changes,” stated Felicia Otolorin, Senior Industry Lead, West Africa, Google.


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MTN Nigeria, PAU Open Applications for 3rd Edition of MTN Media Innovation Programme

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MTN Nigeria Communications Plc and the School of Media & Communications, Pan-Atlantic University have announced call for applications from qualified media practitioners to participate in the 3rd edition of the MTN Media Innovation Programme (MTN MIP-3), which will commence on May 20, 2024, at the Main Campus of the Pan-Atlantic University, Ibeju-Lekki, Lagos. 

MTN Nigeria in collaboration with the School of Media and Communication, Pan-Atlantic University, launched the Media Innovation Programme (MTN MIP) in 2022 to enable media practitioners gain deeper insight into the ever-evolving media landscape.

The six-month, fully-funded certificate fellowship, which includes a study visit to the University of Johannesburg, South Africa, and an innovation hub to incubate ideas, is open to media practitioners across all strata of the media industry including the print, electronic and online platforms. The programme is also open to social media content creators.

Speaking on the impact of the programme, Tobechukwu Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria said: “The media play a crucial role in shaping the society. It is important that they are enabled with tools and opportunities to do their jobs better as this ultimately benefits the society.

“Our commitment is to continue to empower media practitioners, regardless of platforms, to be able to innovate and create technological-driven solutions to our world. This is what the MTN Media Innovation Programme seeks to accomplish.”

On his part, the Dean School of Media and Communication, Pan-Atlantic University, Dr Ikechukwu Obiaya, stated that the programme brings into play the wide experience that the School has in the training of media practitioners.

In our various programmes targeted at journalists, we at the School of Media and Communication have always laid a lot of emphasis on the importance of creativity, ethics and professionalism.

“The Media Innovation Programme is one more opportunity to drive home these values but with a new emphasis on innovation.

“Journalism remains as important as ever to the society, and it is driven by the same values, but journalists require a retooling to meet the technological changes and challenges of today.

“This is the role that the Media Innovation Programme aims to play, and we are quite happy to be able to partner with MTN to achieve this goal.”

At the end of the training, the 20 successful applicants will qualify as Fellows for the 2024 cohort. The Fellows would be coached on Nigeria’s technology sector, the relationship between media and technology, and equipped with the skills to adapt to the changing realities that guarantee career and financial success in their professional practice.

Fellows will also have access to professional resources and mentorship from PAU’s erudite faculty.

Interested journalists, bloggers and content creators can apply for the Fellowship at https://smc.edu.ng/mtnmip

Applications open on Friday March 23 and close Wednesday April 10, 2024.


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