Since March 13, 2008 when the first official phone call was made on its network, Etisalat Nigeria, fifth GSM operator, has never hidden its intention to become a dominant player in Nigeria’s telecoms sector despite coming seven years behind competition. Although, the company first indicated its resolve to be on the driving seat of the competition in the telecoms market with the introduction of a three-in-one package, which it termed ‘a welcome offer’, for subscribers to its network, its has recently added a new number range and introduced an innovative eco-friendly SIM card that reduces carbon emission by 50 per cent. In a bid to take on other operators in the competition for market share, the company has also announced plans to invest additional $700 million, N105 billion into its network expansion programme.

Under the three-in-one offer, tagged 0809Uchoose, which it unveiled on launching commercial services, on Wednesday, October 22, 2008, the company empowered Nigerians by giving them the choice to secure personalised number on its network, free subscriber identification module, SIM cards, and free lifetime five minutes worth of monthly airtime. The result of the introduction of the offer was instant as one million subscribers immediately joined the network. By offering its SIM cards free, Etisalat treaded the path of other late entrants into the telecoms sector, particularly Globacom, which saw reduced tariff and free acquisition of its SIM card as viable strategies to break into the market.

Globacom, which started operations in 2003, two years after the commencement of GSM services, pioneered per second billing, which was hitherto

considered unattainable. It also crashed connection cost by reducing the cost of its SIM card, which made it possible for millions of Nigerians to get connected. Per second billion largely contributed to Globacom’s emergence as the fastest growing network in the Middle East and Africa region, with millions of subscribers in Nigeria and a strong foothold in the West African sub-region. Similarly, Etisalat has capitalised on its entry strategy of offering its SIM card free to connect as many subscribers as possible to its network. By the close of 2009, the company had grown its subscriber base to 2.6 million.

Already, a new 0818 number range has just been added in order to give the network the opportunity to hook on more subscribers. Like the old 0809 number range, the new number range offers some quality service and innovation. “The new 0818 number range is also a clear indication of how well Nigerians have accepted the brand. For this high level recognition, there is no better way to reward our subscribers than to pledge that we would remain innovative and continually look out for new ways of making talking better, safer and cheaper,” Wael Ammar, chief marketing officer, Etisalat Nigeria, said. With the new number range, the company anticipates that in 2010 it would add about four million active subscribers more to its subscriber base.

As part of its resolve to play a key role in the sector through the introduction of innovative products and services, the company recently came out with eco-friendly SIM cards, the first of its kind in Nigeria. Manufactured with 50 per cent less plastic, the new eco-friendly SIM cards generates only eight grammes

of carbon dioxide emission thus, reducing its footprint by half compared to a classic SIM card which generates 16 grammes of carbon dioxide emissions per card. By using just half of the normal quantity of plastic in older type SIM cards, the new SIM card from Etisalat reduces waste.

Simply put, the new environmentally-friendly eco-SIM pack is made from recycled paper and pulp that reduces the carbon dioxide generated in production by 50 per cent. The procedure, patented by Oberthur Technologies, allows for the manufacturing of two SIM cards with the same amount of plastic used to manufacture one. Until now, individual SIM cards were produced on sheets of plastic cut out from plastic the size of a regular credit card.

Explaining the details of the new SIM, Ammar said that customers would receive the new SIM card in an environmentally-friendly envelope made of natural, non-treated, non-bleached fibres with a paper window, aqueous ink and glue without solvent. The paper used for the letter accompanying the card is made of 100 per cent recycled fibres and printed with vegetable-based inks. “This eco-SIM package is the first of its kind in Nigeria and it also solidifies our position as an innovative company. We will be the first GSM service company to have ‘greener SIM cards’ in the country,” Steven Evans, chief executive officer, CEO, Etisalat Nigeria, said.

He added that as a responsible corporate organisation, the company recognises the need to create an eco-friendly environment. “The introduction of this new SIM is one of our own ways of demonstrating this commitment in concrete terms. As a global brand, Etisalat cares

cares for the wellness of the people and the environment in which we operate. This new SIM will reduce plastic waste thereby, contributing positively to the protection of our environment. As leaders in innovation, we are pleased to lead the market in this regard and are confident that our consumers appreciate the many innovative contributions we make to improve their lives in all possible ways,” Evans stated.

Etisalat strategy of becoming a dominant player through the introduction of innovative products and services is backed by substantial investments. For instance, the company has concluded plans to invest additional $700 million, N105 billion into it network expansion this year; the company spent about $800 million, N120 billion in 2009. The investments according to Evans, in line with the company’s intension to plough a total of $2 billion, N300 billion into the Nigerian telecoms market. “Etisalat is currently $800  million deep into its intended $2 billion expenditure in the Nigerian market, and in 2010, we are planning to spend up to $700 million, “he said in Lagos recently.

The CEO noted that although 2009 was a slow and soft year for the telecoms industry compared to 2008, the situation gave the company time for some expansion. He, however, pointed out that the company expects the market to return to aggressive growth in 2011, which would coincide with its $2 billion investment mark when it would have garnered enough subscribers to cover its operating cost and eventually start to repay its shareholders’ investments. He disclosed that despite being the newest entrant into the Nigerian GSM market, Etisalat experienced

appreciable growth in subscriber-base in 2009, closing the year with 2.6 million active subscribers and that it hopes to add about four million subscribers to its network in 2010.

To underpin this, Evans pointed out that Etisalat aims at developing a company that is more than a brand. “We have, therefore, focused on our quality of service, which is our core proposition and active network promotion. We want people to experience the brand and have a good experience when they do, which would compel them to stay on the network. These strategies are also essential for us in order to achieve our target of being among the first two operators in Nigeria,” he concluded.

Etisalat’s inroads into the telecoms market and subsequent impact did not come as a surprise to close watchers of the fifth GSM operator. At the unveiling of its network in Nigeria after it was granted a unified access licence by the Nigerian Communications Commission, NCC, Hakeem Bello-Osagie, chairman, Emerging Markets Telecommunications Services, EMTS, expressed optimism that the company would make an appreciable impact on the scene despite coming late into the sector. For instance, he promised that Etisalat would create a world-class communications infrastructure that would enable Nigerian people and businesses compete on the global stage.

EMTS is the Nigerian partners of Mubadala Development Company of the United Arab Emirates, UAE, which paid the $400 million unified access licence in January 2007 to become the fifth GSM operator. EMTS operates the licence through Etisalat, a major service provider in the UAE, Etisalat, which acquired 40 per cent share of the business, Nig

Nigerian investors hold the remaining 30 per cent.

Ernest Ndukwe, the outgoing executive vice-chairman of the NCC, also said that the coming of Etisalat would bring more competitiveness into the nation’s telecoms sector, fill the vacuum left by non-performing licensees and provide customers with more choices. That was at the NCC’s facility inspection tour of the company’s data centre in Lagos, where the historic first call on the Etisalat network was made about two years ago.

 

Ammar: Pledges Etisalat would remain innovative

Evans: Pioneers ‘greener SIM cards’ in Nigeria

Bello-Osagie: Optimistic

Ndukwe: Predicts Etisalat’s entrance would bring competitiveness