Hostile competition in Nigeria

In response to the Whisper we published last issue, which quoted a source in Nigeria talking up the impact that Nigeria’s branding has had in the country since launching at the end of October 2008, another well-placed Nigerian commentator has contacted Comm. with his view of things on the ground.

This latest commentator believes competition in the Nigerian telecoms space is becoming very intense given the presence of five mobile operators and several very active fixed wireless players.

Additionally, there is a solely 3G operator, Alheri, which is in the process of rolling out services. A number of broadband companies are also trying to position themselves to share the market with the many incumbents.

Nigeria’s telecoms market is some way from saturation, though operator revenues are not as high as they once were, the commentator points out, while the cost of operation is significant because of the need for operators to run independent power supply systems and increasing regulator efforts to drive down tariffs and compel operators to share infrastructure.

“The top three largest telecoms operators are fiercely competitive and in light of the above facts, Etisalat is going to find it very difficult in Nigeria soon. It will take a great deal of time for the company to make any meaningful mark in Nigeria,” the source commented.