Monday, September 19, 2005

Nigerian GSM operators: competing through tarrifs, access days, promos etc.

In business, competititon is the mother of efficiency. This is noticeable in Nigerian GSM operations. A lot of services such as the 'Per second Billing; The MMS and GPRS; were said to be available only after a long time. But once such service is launched by a network, others suddenly provide same.

Some few months back, MTN Nigeria, in her effort to attracting a large subscriber base, launched the MTN400 e-pins(vouchers). It was the first of its kind and of course the most affordable in its time. Dealers and subcribers alike had a field day.

It was a windfall for the GSM dealers and a relief to the subscribers most of whom could not afford airtime on their GSM phones prior to the introduction. Although the voucher sold beyond its airtime value(there is low margin from MTN and dealers/wholsalers 'must chop'), the rate of turn-over recorded by MTN Nigeria and the GSM dealers on the MTN400 remains unbeatable. It is available in both Voucher(e-pins) and e-Charge(MTN Virtual Top Up). Other networks were not folding their arms as MTN was having a 'good day'.

Today, the networks have adopted new strategy. It is now 'Access days (validity period)extension. It may not be enough to have affordable airtime but how long the validity is.

It was MTN again. Its Validity period was extended as follows(For prepaid subscribers):

MTN400 =from 4 days, now 10 days
MTN750 =from 5 days, now 15 days
MTN1500 =from 15 days,now 30 days.

Almost immediately, Glo Mobile (the iindigenous network) came up with the a better offer!
She had her validity periods extended thus:

GLO 500 = from 5days, now 20 DAYS

GLO 1000 = from 10 days, now 45 DAYS

GLO 2000 = from 20 days, now 90 days.

The Vmobile Nigeria validity is (N500-15 days; N1000-45 days; N2,000-90 days; N5,000-180 days and N20,000-365 days).

Recently, Vmobile Nigeria came up with a new project aimed at expanding its coverage area. It is called 'ROSE' Rolling Out Service Everywhere. Subscribers are to text(send an SMS) certain codes to a destination number which stands as vote a for the nominated area. Any area with highest number of vote is swithced on within 45 days. This is a Vmobile initiative to invest 2 billion US dollars to build 3000 base stations across Nigeria connecting 10 million subscribers by March 2007 and making Nigeria a bed of roses!

The Promos:

To boost their patronage, series of promos have been the order of the day for the GSM operators. The following promos are available at the moment:

- Vmobile Airtime Offer: for any (new existing)pre-paid customer who recharges with a total of N15, 000 between May 16th and November 30th, 2005(an average of N25,000 monthly), will get N2000 free airtime(to be credited in the first week of December, 2005. The customer also qualifies for the Big Knockout Draw.
- The Vmobile Big Knock out Draw: the company is running a six months promotion closing November 30, 2005, which offers a first prize of $100,000 each of three(3) winners, one Mercedes E-200 car each as second prize for five(5) winners and ten(10) Honda Accord cars as third prize. To qualify for the Big Knockout Draw, subscribers are required to participate in either of the Vmobile SIM Deal Offer or the Vmobile Airtime Promo which commenced monday, May 16, 2005.

For additional information on:

Vmobile - Visit Here

MTN Nigeria - Visit Here

Glo Mobile- Visit Here