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Can the Nigerian Mobile Phone Companies Handle the 46 Million Subscribers?

9 comments

Posted by: Guest Author on January 12, 2008 Under: Business & Technology, Discussion Lounge, Nigeria



mobilephone_nigeria_africanloft.jpgThe burgeoning Nigerian mobile phone industry is heading for the rocks if services providers fail to improve clean up their acts and expand network capacity. Making calls to and within Nigeria was a real agony during the last holiday season: “Network congestion” was the reason/excuse I was told. The rampant and increasing frequencies of dropped calls have been gradually eroding the value of the mobile phones in Nigeria.

Oro, a Nigerian blogger makes this disclosure recently:

On the 3rd of December, 2007, Nigerians woke up to read about the sustained growth of the positive surprise that is now synonymous with the nation’s telecommunication sector – telephone subscribers are now 46.2 million!

Having about 10% of the population as mobile phone subscribers is indeed a landmark for the Nigeria Telecoms sector – an industry that commenced within the last decade. However, it’s ironic that the new subscriber figures were released about the time it was almost impossible to have a five minutes mobile phone conversation without losing signal.

Oro continues:

While completing a recent assignment for a US-based institute with interest in the use of Information and Communication Technology (ICT) tools for advocacy by developing countries’ non-profits, I came across startling discoveries around the use to which non-profits and individuals are putting mobile phones. From the popular missed calls (“flashing”) to high-end mobile databases for advocacy (and in some cases, product/service marketing), mobile phones are increasingly put to innovative uses.

For those innovative uses to be worthwhile and achieve their objectives, the Nigerian mobile phone service providers must be held to higher standards. Churning out big subscriber figures is totally meaningless if the networks are constantly congested and inaccessible. Having 46 million subscribers is merely statistics without meaning!

Written and submitted by Yinka of Lagos. Image credit:Michiel de Lange; http://www.bijt.org

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8 comment(s)

  1. D-Tee | Jan 14, 2008 | Reply

    Isn’t the Telecoms sector among the top three revenue earners in Nigeria? Why is it difficult for the service providers to expand their networks and provide quality service; they are making a huge profit they should be sanctioned!

  2. Misi | Jan 15, 2008 | Reply

    Making calls to Nigerian mobile phones have been real agonies for a very long time and I beg to differ that it is a recent occurrence. There are times the service bars on cell phones just disappear and it is so bad that at times it lasts for half a day. I think one of the biggest problems most communication companies in Nigeria face is that they probably didn’t expect many people would join the networks and so soon…46.2 million—wow that is almost double the population of Ghana. Honestly even with the c**p service I believe the numbers will continue to bigger because communication in Nigeria has provided growth, freedom and awareness.

  3. Roy Ogunleye | Apr 29, 2008 | Reply

    I am of the opinion that the NCC has taken the right steps in sanctioning the MTN and Celltel by instructing both companies to compensate subscribers. This assertiveness of the NCC only goes to prove that Quality of Service (QoS) and subscribers satisfaction should be key in the Telecom sector as it is in any other country.

    Here in the UK subscribers do have their own worries but when the Office of Communications (Ofcom), which is the equivalent of the Nigerian Communications Commission (NCC), have substantial facts that any service provider are cornering their subscribers such a provider is in for trouble.

    In actual fact the competition in the UK is so tough that a subscriber could wake up, call his service provider that i no longer wana require your service and he/she can have her number transferred to another service provider (if on PAY AS YOU GO tariff). That is not to say that subscribers here dont have their worries with this mobile companies who are all out to rake in as much profits as possible while providing crap services sometimes.

    I see the bold step of the NCC in light of the cliche “POWER TO THE PEOPLE”. Sorry to disappoit you, I am no PDP member. This will put all service providers on their toes. Bring on NCC. This is good for Nigeria.

    By the way, as a graduate of Mobile & High Speed Telecom Networks in the UK I’m always interested in the Nigerian Telecom terrain. The entry of Visafone with its CDMA-based network is out to give both rthe GSM-based netowrk (e.g. MTN, Celtell, Globacom, Etisalat) and other CDMA-based companies (e.g. Reltel, Multilink) a run for their money. I see the entrant of Visafone as a “two-edged competition sword” cutting through both the GSm and CDMA terrain. Bring it on guys. This can only amount to one and only “onething”. Hey common guys, I dont mean no “long thing”. This is cutting edge POWER TO SUBSCRIBERS” at play here which, if properly managed and structured, will see the Nigerian telecom market topping the global chart (or at least rank among top five) in the next five years.

    Skeptics may see this as impossible. If you think it’s impossible, then I am going to add to your woes by letting you know that we’re still increasing GSM technology capacity when other technologies such as Femtocell (as add-on to 3g technology) are now being researched and tested in UK and US. You may be wondering what Femtocells are!! These are low-powered wireless base stations. Well, I actually carried out my MSc research on this technology and can’t go into details as this is bleeding tiring.

    Phew!! I’m tired. Got to do some work. Check out more info on femtocells http://www.abiresearch.com/products/service/Femtocells_Research_Service

    Roy.
    aderoy01@yahoo.co.uk

  4. Nwarie | Aug 25, 2008 | Reply

    I like what you said it help in Nigeria where we do not know what is going on keep it up.

  5. tty | Dec 11, 2008 | Reply

    nigeria can't even handle 10,000,000 let alone 46 million. who out of those 46 million, who does not have 2 or 3 handsets. that is due to the useless network quality we have here. nowhere in the world do you find anyone carrying more than 1 phone. all networks are trash.

  6. Roy Ogunleye | Aug 7, 2009 | Reply

    Hi tty,

    I do agree with you that a lot of subscribers do have rely on 2 network providers (one as an alternative to the other) to stay connected. But hey lets face it, weren’t prepared for this explosive, moon-aiming subscriber base within few years of GSM era. Who would have thought the GSM market will skyrocket from virtually zero to over 46 million in 5 years, not even the operators ever thought the market will be that lucrative. The 46 million statistical figure is now more or less a fluke compared to recent 2009 figures. According to PRLog (source: http://www.prlog.org/10237773-nigerias-gsm-prepaid-subscribers-sim-cards-registration-necessity.html) the Nigerian mobile subscribers’ base hit 67 million in February 2009 as revealed by the new official market information. Now does anyone in their wildest dream ever thought this staggering figure would could be achieved in barely 8yrs with zero infrastructure, zero subscriber base, epileptic power supply and administrative brouhaha.

    Now let’s pop back to reality and facts. The operators have had it too good and have (in my view) hit a gold mine in the way Nigerians accepted the technology and ditched landlines for mobiles. Well, that tells another story of the comatose, hydra-headed dragon called NITEL, doesn’t it? Analysis of this monster called NITEL is not for this premise so I’ll endeavour to bottle the rushing anger and venom inside of me. Calm down, Roy!!!

    The major telecom operators (don’t even think I was referring to NITEL…in your wildest dream) have been running the market, its structure and somewhat dictate (in my own myopic view) the policy that regulates their own operation. It’s been a case of ‘being a judge in ones own case’, isn’t it? You might as what is the function of the NCC then? A good and valid argument, I’d say. To be fair (well, not really but it’s a case of not sounding like a spoilt brat who can’t even wipe his own backside), the NCC has been working tirelessly to cope with the explosive subscriber base while ensuring the infrastructure is provided to match this astronomical figures on the one hand, and to police the operations of the service providers on the other hand.

    Grrrrh!!!!! Did I just mention the Police? No, no, that is an unforgivable and costly error. Pfffghh, The ‘NPF’? Now I feel like bashing someone’s head in. Those guys in ‘bereaved’ colour do my head in. I’m no violent person, so wouldn’t allow the thoughts of these guys spoil my day. Right, get back on track Roy. Now the NCC is getting off its backside a lot more and wielding the big stick against all service operators who, in my opinion, have been running the market in a way they’d never do in South Africa let alone in the UK or US. According to Engr. Ernest C. Ndukwe, the ’stoolman’ (did I just refer to him as the ’stoolman’? em, em, I meant the Chairman or is he now the vice? I am not current with the politicking I must admit) is looking into registering all SIM-only (PAYG) users in order to police (not that word again) subscribers usage pattern and stem the crime wave resulting form the use of GSM services.

    As the Chinese proverb goes ‘a journey of a thousand miles doesn’t start with a leap but with one step’. In my dogged opinion, the NCC is doing a good job and should be encouraged to do more in returning sanctity to the mobile service market which is currently spiralling out of control.

    Roy Ogunleye
    +4470530930027

  7. Nigeria Music Movement | May 6, 2010 | Reply

    With the new plans in place, I believe Nigeria Telco can handle her subscribers… get more info on Nigeria Telcom here. http://www.nigeriamusicmovement.com/index.php/nigeria-phone-cards-companies-internet

  8. Roger | Jun 27, 2010 | Reply

    TV Mobile phones from China factory for Distributing,please contact:konda_roger@konda-group.com
    http://www.konda-group.com

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  1. From Nigerians can Sue Mobile Phone Operators for Poor Service - AfricanLoft | Jan 17, 2008

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