Consolidation, Acquisition or Merger: A Possibility for Telekom in Nigeria

Ironically, the failure of GSM providers to ensure quality service to its teaming Nigeria subscribers have elicited missed feelings in the minds of Telecom watchers on their ability to give world standard added service like voice, broadband internet services, etc.

The introduction of Global System for Mobile Networks in August 2001, gave mobile communication to so many Nigerians; however the quality of services over 10 years now is really not encouraging.

Subscribers Complains

Some of the following are problems facing mobile users in Nigeria:

• Inability to make calls using mobile line
• Paying for calls that just connect but one not being able to communicate
• Outright removal of one’s credit balance even without making calls
• Receiving of unsolicited SMS adverts
• Inability to roam, where your network provider has limited coverage at affordable price 
• And many others

Here’s the Scenario

It is expected that Glo Fibre Optic transmission backbone should greatly improve the quality of telecommunication services in Nigeria for mobile broadband data services and voice and reasonably priced. With MTN which has a wider coverage as compared with other networks. Airtel that has undergone various “developmental” transformations and other upcoming Network providers like Visafone, Multilinks, Etisalat, Starcom, etc.

It is common to see most Nigerians caring Two-Three-Or even Four handsets in other to be able to call or be reached by family, friends and business associates at all times. Why, the answer is obvious. With the different shades and sizes of these Telekom operators, Nigeria should be able to get quality service.

The Solutions

I won’t go as far as to suggest we need government intervention here. I’d rather see carriers simply:
Stand behind their words and allow for true provision of quality service. Conceivably that means

1. Globacom, MTN Nigeria and other GSM providers should start including as part of their GSM package, SIM that support data bundle for over 3.5 Mbps for high-speed mobile broadband networks.
2. There is still a problem of handsets being locked to one network or the other; I feel that each network must allow users the option of using any handset for any SIM.
3. The network potential of the each Telecom provider does not have nationwide coverage, so each provider needs to collaborate and share resources with each other; by doing this Nigeria would enjoy better quality service.
4. What about the interferences of Signals coming from the Communication Mast from one Network provider to another; I think the construction of mast should be properly regulated to avoid indiscriminate construction of Communication mast around the places people live to avoid radiation problem.
5. Network providers should take its subscribers complaints serious and should be proactive in providing adequate support to users, since not everyone is techie

Another twist:

The Prof. Charles Soludo banking Reform; the idea and concept of the reform could also help solving some of the problems being experienced by the network providers. Each network provider has its strength as well as its weakness and with a form of partnership which will see the pulling together of resources each Provider has and harnessing these resources could be a great idea.

Standard Oil of America began as an Ohio partnership formed by John D. Rockefeller, his brother William Rockefeller, Henry Flagler, Jabez Bostwick, chemist Samuel Andrews, and a silent partner, Stephen V. Harkness.

For emphasis it was a partnership, a kind of collaborative effort towards a particular goal. What is the goal of Telecom providers- Quality service to network users in Nigeria?

Consolidation of GSM Business

Consolidation of two or more GSM providers could mean the fusion of investment and the coming together of Telecoms providers to become one single provider. After merger or consolidated none of the corporation survives and each corporation ceases to exist and another one immerges from the merger.

When some of this Telecom Organization forms a synergy this would mean:

• Better service delivery to subscribers in Nigeria
• Harnessing of technology owned by Telekom companies coming together
• Fewer masts and not the situation where we find three or four Mast in the same vicinity
• Rooming would become automatic
• More resources available for running the Telekom business
• And greater customer satisfaction

What The Government Could Do?

Tackle headlong the issue of power and insecurity so that more investors could put in more money in the Telekom business without fear of loss of investment, also reasonable policy or regulation should be put in place to protect subscribers who in most cases really don’t know who to complain to and get redress promptly.