GSM Companies Drive Rural Connectivity

Government’s effort to extend telecommunication services to the rural areas is being complemented by deep pocket spending by three telecom companies, Globacom, MTN Nigeria and Zain Nigeria.
Nigeria CommunicationsWeek investigations revealed that though government has spent some $721 million on development of information communication and technology in the country in the past five years, little has been done extend telephone services to rural communities except for the bold steps of the three private companies.
MTN Nigeria in the forefront of the campaign, had in April, 2002 under the MTN Foundation launched its Rural Telephone Project setting N150.5 million for the campaign.
Under strategic partnership with Growing Business Foundation (GBF), International Finance Corporation (IFC), and Community Based Organizations (CBOs), MTN has been able to transform lives in the rural communities in Nigeria. A feat the GSM Association commended in 2006 by awarding the network the Best Mobile in community initiative.
Also, Zain Nigeria has through its Rural Acquisition Initiative (RAI) launched in April 2008 touched so many lives in the rural Nigeria. The idea of the initiative is to engage rural entrepreneurs as Zain’s trade partners thereby making them exclusive representatives of the company in their various communities.
Elsewhere, Globacom, second national operator which has established itself as the preferred telecommunications company has provided world class telecom services and affordable product packages to Nigerians irrespective of their locations.
The World Bank estimates that about 57 percent of the sub-Saharan African population lives in an area covered by a mobile signal but other restraining factors such as high costs for mobile handsets or airtime culminate that only 7 per cent households subscribe to mobile services.  Therefore the rural areas continue to be untapped markets with many potential users that have both the desire and ability to pay for services living in unconnected rural areas.
Telephone has become the most important tool of communication in the modern world, an instrument that business and non business people cannot afford to neglect whether in rural or urban areas.
Enhanced communication in the rural area will lead to increased efficiency of the economy; enable better delivery of public services, such as health and education and creating new sources of income, employment and training for poor population