Telecommunications ecosystem in Nigeria is dominated
largely by two parallel operating network technologies. They are the Global
system for mobile communications, otherwise known as G.S.M communications and the
Code Division Multiple Access communications, otherwise known as CDMA communications.
In comparison, it is obvious that G.S.M communications is thriving better than
CDMA communications in Nigeria.Take for instance Etisalat that came into the
Nigerian market a bit late had been able to find its feet. It has been able to
find and attract it own loyal customers with its unique promos and offers. Of recent
it launched its easy flex promo whereby subscribers get up to 300% bonus plus a
specified amount of data on all recharges from N300.00 and above. Offers like
this has really helped the network to gain grounds and thrive.
However, the success of the GSM network can be
attributed to their ability to cover vast areas within a short time while CDMA
operators lack the capacity of widespread presence and this affects their
stability and threatens their existence. The longer the distance a telecommunications signal can travel is the
larger the users it can attract and the more the income it can generate. Most
CDMA operators in Nigeria have fewer than a hundred telecommunications mast
installations which is barely enough to circulate round. Consequently, their
subscribers line is so thin and income generated so tiny when compared with
expenses on maintenance, advertisement salaries e.t.c. No company can thrive in
this condition.
Even Visafone communications, a network that stole
the heart of many Nigerians, consistently receiving laudable commendations for
its effort to keep the CDMA flame
burning and competing favorably with its G.S.M counterpart suddenly threw in
the towel to the surprise of everybody. Now Visafone is a property of a
successful G.S.M operator which further confirms that G.S.M operators are
thriving better.
Starcomms on the other hand was so determined to
succeed when it came into Nigeria. But along the line, faced severe business
challenges that led to a reduction of its network coverage areas. Consequently,
this affected their service delivery and they lost a lot of customers in the
process which led their down fall. Today, starcomms is struggling to record up
to a million subscribers line.
Multilinks from inception has never been comfortable
with doing business in Nigeria. They never hestitated to complain how expensive
doing business in Nigeria was and how low their profit margin had been. They
always recall their struggles for survival in this harsh Nigerian business
arena. On several occasions they had threatened to quit the country.
Now, it is obvious that the Nigerian business
terrain is a harsh and thorny one that calls for only survival of the fittest.
Its is based strictly on when the going gets though only the tougher gets
going. With all that has been analyzed,
it is glaring that CDMA technology is dying gradually in Nigeria and in few
years to come would fizzle out completely.
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