How Etisalat Plans to Compete in Nigeria’s Telecoms Market
Etisalat has launched its GSM operations in Nigeria (with the 0809 digit) in a telecoms war region that could mean the start of another major war with Nigeria’s telecoms operators - Glo Mobile, MTN, Zain and CDMA (Code Division Multiple Access) operators such as Multilinks, Starcomms, etc.
The company hopes to compete for the 52 million subscribers in Nigeria that are using other networks by offering its subscribers free calls. Yeah, Etisalat Nigeria will soon be offering subscribers free network-to-network calls for no less than six months to win over mobile subscribers using other networks.
Etisalat Nigeria is the first mobile operator in Nigeria that introduced mobile number system (0809uchoose) that allows subscribers to choose and reserve their own mobile numbers themselves. The network has announced that subscribers should start retrieving their mobile numbers at designated offices (selected Oceanic Banks, Sweet Sensation, Big Treat, etc) in seven states across Nigeria including Abuja, Lagos, Ibadan, Kaduna, Port Harcourt, Kano and Ogbomoso.
One of the features of Etisalat Nigeria is Homezone for subscribers with the Easy Starter pack. Homezone allows subscribers to make discounted calls from their predefined/set location. What this means is that, you can choose a particular location, whether your home, office, marketplace, school to enjoy subsidized calls. Calls from within the selected homezone to Etisalat and all other networks 0.40 Naira/second.
What could this mean for other GSM operators?
The free network-to-network calling for six months or more could cause mass dumping of other networks’ GSM SIM cards in preference for the new network. If this actually happens, I think that it would force other networks to make similar offers, which might open up the strongest competition ever in the telecoms sector.
Etisalat is taking a cue from Sierra Leone’s second-leading mobile operator, Comium, which offered free network-to-network calling when it entered the market over four years ago. While Etisalat may capture more subscribers, another issue that should be taken into consideration is how reliable the network would be in Nigeria.
I’m not sure if the Nigeria Communications Commission (NCC) would like to see the telecoms market become anti-competitive with this move by Etisalat, although they might have approved this market penetration strategy being introduced for the first time in Nigeria.
Telecoms analysts have said that this marketing approach would not augue well for the telecoms sector, but it seems that Etisalat Nigeria cares less as they hope to build the largest subscriber base and become a telecoms brand in Nigeria by 2010.
What do you think about this?
Another GSM operator in Nigeria is another welcome development, atleast we all have another opportunity to swap to the network that is offering unbeatable services. Did i just read that there’ll be free calls from Etisalat to any other networks and a cheaper call rates? Personally if this happens, i’ll be dumping my five years of MTN use and move to Etisalat For cheaper calls rate. Hopes your browsing rate is cheaper than other GSM operators
Etisalat call rates are cheap but the free on-net call thing wont be the first of its kind in the country. Starcomms has done such albeit on a small scale. I remember when they rolled out in Ibadan in late 2006 they offered free on net calls for bout 2 months or so. I am sure they did same in other cities they rolled out to
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Etisalat went off with a fiery start. If they keep that momentum for another five years, it’ll change the face of telecommunication in Nigeria.