Economic Confidential, October 21  2008

UPDATE

Etisalat Still Gambling in Nigerian Market

Since January 2007 when its front paid a colossal sum of $400milllion to get the last GSM licence, which includes a mobile license and spectrum in the GSM 1800 and 900 MHz band to operate in Nigeria and with additional investment of over N118 billion, Etisalat Nigeria is yet to issue its lines to subscribers even when it engages in aggressive marketing campaigns.

In an investigation by the Nigeria’s economic journal, the Economic Confidential, many Nigerians who have registered their preferred unique telephone numbers through online and text messages complain over their inability to get the sim cards likewise the numbers they registered which were acknowledged by company were not also recognized when they are dialed.

Thousands of the lines registered by the subscribers including the very unique numbers of 08098000000, 08098555555, 0809866666, 08098777777, 08089888888 and 08098999999 returned a recorded voice saying “The number you are calling is not assigned to a customer, please check the number and dial again.”

Presently the company has embarked on aggressive marketing campaigns and tours in promoting its brand name, but the consumers are not impressed rather they are becoming disenchanted for its failure to announce centres where they could redeem or release the sim cards for the subscribers.

The company may be avoiding a sanction for the delay in rolling out commercial service with its proactive integrated marketing communication as a deliberate ploy to make the brand stays in the minds of the regulators and the public when not many individuals are known with assigned Etisalat’s lines.

One of the claims of the telecommunication company is that they are still testing the network and discussing with other competitors in the market, especially MTN and Globacom on the possibility of sharing facilities.

Another major finding by the Economic Confidential is that the company’s desire in Nigeria is part of its branding strategies of registering its presence in many countries especially in Middle-East, Asia and Africa not necessarily for profitability in the business but as a force to reckon with in the telecommunication industry within the continents.

Etisalat like other flamboyant Arabian companies, especially from Saudi Arabia and United Arab Emirate are adventurous and daring when it comes to extravagance display of opulence and prestige if only to make a name. Apart from their Nigerian partners who are extremely rich too, Mubadala Development Company (MDC) is a strategic investment and development vehicle established and wholly-owned by the government of the Emirate of Abu Dhabi while the operator Etisalat, is Telecommunication Company of the government of the United Arab Emirate, an oil-rich country.

Already the company is also contemplating acquiring a 3G licence from subsidiary of the Dangote Group, Alheri Engineering which has failed to utilize the spectrum since March 2007 when it was added to it at the cost of $150 million.

According to finding of the Economic Confidential, as much as the company does not want to disclose some of its strategies, it could afford to run some free services to win patronage of subscribers from other operators since it has the right to provide fixed-line, voice, and data services. The company as the fifth operator in Nigeria is also afraid of likely counter measures which other operators may adopt, especially Globalcom whose owner Dr. Mike Adenuga is always excited in fierce competitions that can make the service more affordable to Nigerians.

It could be recalled that some of its major promoters in Nigeria like the old whiz kid and former Chairman United Bank of Africa, Hakeem Belo-Osagie and former Minister of Finance, Alhaji Ismail Usman have insisted that Etisalat is committed to providing world-class telecommunication services to its prospective customers nationwide. They remind potential subscribers that Etisalat's success in countries like Egypt, Afghanistan, Sudan and Central African Republic shows that it has the capacity to strive in difficult and challenging terrains. They said that in Nigeria, Etisalat would replicate and even surpass its achievements in those Markets.