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GSM operators’ End of Year Promos and Quality of Service Issues

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One of the different ways that businesses woo customers to patronize their products or services is sales promotions. Succinctly put; a sales promotion is an activity designed to boost the sales of a product or service. It may include an advertising campaign, increased public relation activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, among others.
This is not different in telecommunications business where operators render services to subscribers on their network, they often times embark on one form of promo or the other, all in the name of increasing the number of subscribers as well as reward loyal subscribers for retaining the network. Telecommunications business is a business of numbers where the large number of subscribers on the network, the more profitable the business. Against this backdrop, that Global System for Mobile communications GSM) operators in their usual style have rolled out mouth watering end of year promos in order to reward as well as woo more subscribers to their networks.
The four GSM operators in the country have each designed promos in such a way that subscribers are rewarded through bonus airtime, cash gift, household property and free intra network calls.
MTN Y’ello Bounty Promo
MTN in its "Y’ello Bounty Promo" is wooing subscribers this festive season with different prizes. The promo which commenced on 1st December 2009 through January 08, 2010 consists of two simultaneous activations: National draws where prizes shall be won on a weekly basis and daily regional draws where instant prizes will be won on the streets.
In essence, the promo will reward MTN customers for either buying a new SIM and/or loading a minimum of N200 airtime within a week. The following rewards will be on offer during the promo:
Customers who buy new SIM cards will be credited back with the recommended retail price of the SIM (N150) if they load a minimum of N200 airtime within 7 days of activation. The N150 will be credited as N50 airtime bonuses over a 3 month period. They also automatically qualify for the weekly or regional draws where they stand a chance to win exciting prizes. More so, if a subscriber loads a minimum of N400 airtime denomination, he gets 10 per cent instant airtime bonus, which can be used for on-net calls. The customer will continue to receive 10 per cent airtime bonus on each N400 recharge card denomination loaded during the promo duration. They also automatically qualify for the weekly or regional draws where they stand a chance to win exciting prizes.
 Glo Biig Dash Promo
Mobile arm of telecommunications giant, Globacom, GloMobile in line with its desire to reward its subscribers this season launched “Glo Biig Dash Promo.” The promo which has been suspended to enable the network effective take care of its impact on the network as well as re-package it for effective service delivery, allows their subscribers to make free on-net calls for a daily rental of N40.00 only. Basically, Glo subscribers can call other Glo lines as long as they want for just N40 daily. GloMobile claims to be revolutionalising the telecoms sector with this promo.
In order to activate ones Glo line for the Biiig Dash promo, all that the Glo subscriber needs to do is just dial *100*1*1# from his phone. The rental of N40 will be deducted from the subscriber’s airtime daily and he can call all his or her contacts on Glo network for as long as he want without attracting any further charges.
Zain Naira rain promo
The third GSM operator, Zain is not left out as the network has also embarked on its own promo to ensure that it retains its subscribers as well as attract new customers to the network. In the Zain Naira rain promo, a Zain subscriber can become a millionaire this Christmas season with just N50, which is the promise Zain is making to its loyal subscribers this Christmas through its Zain Naira Rain promo. Subscribers qualify for daily draws by using credit worth at least N50 in any given day. N1m will be won each day till the end of the Christmas promo. One lucky Zain subscriber will win N10 million at the end of the promo. The Zain Naira Rain promo ends on 7th January.
The Zain Naira Rain gives one a chance of being rewarded for using his Zain line this Christmas. Whether it is an SMS, voice call, or other data service once they use up to N50. For each N50 a subscriber used in a day he gets an entry. For example if he uses N150 on a particular day, he will have 3 entries in the draw.
Zain in addition to Naira rain is simultaneously running its Loyalty/ Rewardz Scheme.
The scheme, the company said would give its customers an opportunity to earn points, collect prizes and enjoy discount when they would have accumulated enough points, adding that various prizes can be won depending on the number of points earned by the customer.
Shamel Hanafi, chief Commercial Officer, Zain Nigeria, said the programme is open to both pre-paid and post customers. He said the scheme is both a loyalty plan and reward programme and that it is specially packaged by the company to offer its customers special privileges and rewards for their loyalty to the brand.
However, fourth largest telecommunications company, Visafone is also seeking enlarged market share in the CDMA arena with ‘The Zero Advantage’ package.
The company said the N0.00 Handset Advantage was designed to give back to new subscribers the full value of the cost of purchasing any of the two handsets: Haier C5000 FM phone, and Huawei C2802 in 3 months.
Etisalat
Etisalat having concluded ‘Najillion’ promo has began its brand of end of the year promo to ensure that its subscribers are taken away by other operators it tag ‘9ja talk 4 free’ this allows Etisalat subscribers get 1 minute free for every minute call on the Etisalat Network this Christmas season. The ‘9ja talk 4 free’ promo is Etisalat’s offer to you this Christmas. Simply pickup your Etisalat phone, make a call to any Etisalat number and you will be given 1 extra minute free for every minute you spend. This is a Christmas gift from Etisalat. The free minutes can only be used to call Etisalat numbers. This Christmas offer from Etisalat ends on December 31, 2009.
In all of these the bottom line is that all the networks running promos will witness large volume of calls on their network as well as new subscribers. Then the question that arises is how prepared are these operators to absorb the increase in traffic to ensure that quality of service is not affected. Ordinarily, before such promos are unveiled network operators are expected to carry out network audit, which analyses the impact of the expected influx of new subscribers as well increase traffic on the network capacity. Experience has shown that although these audits are carried out but severally it has not been effective resulting in networks experiencing congestions. This is the case in almost all the networks running end of year promo presently, subscribers are now faced with difficulties in either making calls or recharging their phones orchestrated by congestion on the network.
Previous experience
The situation subscribers are currently faced is close to what happened in December 2007 when operators started similar promos which eventually resulted to congestion on the networks. The height of the problem was on the eve of Christmas and New Year when most short message service subscribers sent to their loved ones were not delivered but charged. This prompted Nigerian Communications Commission (NCC) to carry out audit on all the GSM networks and found MTN and Zain most culpable and thereafter directed that they compensate their active subscribers with N175 worth of airtime.
NCC also placed ban on promos by GSM operators, which was subsequently lifted on the grounds that they restrict their promos to the use SMS avoiding promos that will give subscribers opportunity to make free calls or airtime reward which often times result in congestion.
Nigeria CommunicationsWeek investigations reveal that since then, this season is the only period that operators have come out the same time with promo campaign that includes free calls, airtime bonus, cash reward as well as material gift. It was also gathered that quality of service on almost all the networks has been affected. This prompted Glo Mobile to suspend its promo to enable the telecommunications giant repackage the promo in away that it will not congest its network. Industry watchers that spoke to Nigeria CommunicationsWeek hail the move by GloMobile and urged other operators to think in that direction. They advised operators that are running promos which are expected to woo subscribers to the network that such promo may be counter productive if such when it affects capability of the network to process calls and thereby make it difficult for existing subscribers to complete calls. This they said could result in existing subscribers leaving the network for other network; they urged NCC not to relent in its promise to introduce Number portability by next year which they believe will make operators more conscious of quality of service when rolling out promos.

 

 


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Telecom

Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.


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World Earth Day: Kuda Partners with Wecyclers to Clean up Communities in Lagos

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In a landmark partnership aimed at promoting sustainable waste management practices, Kuda Microfinance Bank and Wecyclers collaborated to commemorate World Earth Day on April 22, 2024. The collaboration featured a series of impactful activities designed to raise awareness and foster environmental stewardship.

The activities on the day included a webinar session facilitated by renowned expert in environmental management and head of ESG at Wecyclers, Omobolanle Olowu, during which she shared startling data on plastic pollution in Nigeria. She also discussed the importance of proper waste management and its significance in preserving the planet for future generations, providing valuable insights and practical tips on reducing, reusing, and recycling waste.

In a published study on plastic pollution in Nigeria, the country ranked ninth globally for plastic pollution with an estimated 2.5 million tons of plastic waste generated annually and less than 12% of those waste materials recycled.

Also on the day, Kuda staff volunteered for an environmental cleanup exercise, during which they took to parts of Apapa Road, Ebute Metta to empty gutters and collect plastics and other recyclable materials for recycling.

In addition, volunteers from Kuda gained firsthand knowledge of innovative waste management solutions during a guided tour of Wecyclers’ facility in Ebute Metta. The tour showcased Wecyclers’ pioneering efforts in recycling and waste upcycling, demonstrating how technology can be leveraged to address environmental challenges effectively.

Speaking about the collaboration, Emmanuel Femi-Adejobi, Senior Brand Manager at Kuda, expressed enthusiasm for the partnership’s potential to drive positive change. “We [Kuda] are committed to promoting sustainability and environmental consciousness. We also believe that our responsibility is not only to our customers and other stakeholders but also the environment that we all share. Partnering with Wecyclers allows us to inspire communities to adopt eco-friendly practices,” he said.

“Our initiatives towards achieving a sustainable environment and achieving a green earth goes beyond just recycling. We aim to inspire a broader commitment to waste minimization, reusing materials and proper sustainable waste management. As we commemorate World Earth Day, we encourage our staff, customers and general public as a whole to embrace actions that promote a green, safe earth for all,” he added.

Likewise, Esther Chibueyin Fagbo, Head, Human Resources and Partnerships at Wecyclers, emphasised the importance of collective action in addressing environmental issues. “It is very important for organisations to collaborate on initiatives that help save the environment. We are excited about this partnership because such partnerships are crucial to creating awareness and educating people about the impact of plastic waste on the planet and how they can contribute to a change that we all deserve.”

Kuda’s collaboration with Wecyclers emphasises its commitment to sustainability and championing proactive efforts through education, engagement and action to create an environmentally conscious population and a sustainable tomorrow.


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Defending the Foundations for Connectivity

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By Engr. Gbenga Adebayo

In 2001, when the first GSM call was made in Nigeria, how many of us would have envisaged the digital world that we live in today?

Defending the Foundations for Connectivity

Gbenga Adebay, chairman, ALTON

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms. From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out. The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it. From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe. Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces is the issue of rising costs.

Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag.

It tells us that business as usual is not sustainable. If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry.

How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must take action now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power.

If providers cannot operate sustainable business models, then they stop investing. When that happens, the existing infrastructure starts to crumble.

For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute.

Imagine a future in which the gains of the last twenty years are reversed. Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

 

Engr. Gbenga Adebayo is chairman, Association of Licensed Telecom Operators of Nigeria (ALTON).


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