Tell Me More

Which services and innovations will you bring to the Nigerian market?

In terms of our subscriber base, Airtel is the fourth largest telecoms company in the world and has a major presence in India. In March 2014, Transparency International (TI) voted this the fourth most transparent emerging market in the world. In Nigeria, we are the second largest operator with over 26 million subscribers. Naturally, our ambition is to reclaim market leadership in the highly competitive Nigerian telecoms market and, already, we are renowned for our revolutionary approach. In December 2010, we took the market by storm when we launched the innovative 2good value offering, a mobile proposition designed to empower customers toward realizing the full potential of our network. It is also on record that we have the widest 3.75G coverage in Nigeria, and we were the first to complete a 4G LTE trial in the country. We also rolled out the high-definition voice service to deepen customer experiences on our network. It is very clear that the next main frontier in the Nigerian telecoms sector will be the data revolution, and we are taking steady steps to ensure we lead the market when it happens. In short, whenever someone thinks about internet or data, we want to be the first name that comes to mind.

What are you doing to ensure transparency and best practices?

We have been able to achieve that by ensuring there is no agenda that cannot be discussed. We offer equal opportunities for people to express their ideas as to whether things are working the way they should be. And on my side, I operate an open-door policy that allows me free interaction with staff, customers, consumers, regulators, and other key stakeholders. Everyone is able to engage with different levels of management to make sure that things are going the way they should be. Transparency is indeed key to everything we do.

Are you the market leaders in Nigeria?

According to figures published by our regulators, our performance over the last few months show we have registered the highest growth in terms of data customers, which indicates customers desire to use our network for their data connectivity needs. Currently, we are the second largest operator in Nigeria and it is our ambition to reclaim market leadership in the highly competitive telecoms landscape.

How has consumer demand changed, and how will it evolve in the future?

Years ago, the customer demanded SMS and voice, but now you see that the demand is strongly moving toward data. When you have a country where over half the population is under the age of 25, this doesn’t come as a surprise. They use WhatsApp, Viber, and other messaging applications to communicate, which in effect has also changed the way we view customer behavior.

How challenging is the competition, and what advantages has Airtel got over its competitors?

Nigeria has four main GSM operators and, naturally, the market is characterized by pricing and competitive pressures. That aside, the major pressure on the industry comes from infrastructure, with the main challenge being insufficient power generation from the grid. Therefore, we end up paying heavy amounts for diesel to power generators to keep our network running. We are, however, looking at diversifying into solar energy now to ensure that we optimize our costs. We are also looking to the government to open up the environment for private sector power generation. I must say that the government is on the right track. It is going a little slowly, but I know there are efforts being made to privatize and make sure the power generating companies are up to the task.

What improvements to the telecoms environment do you foresee? Should regulations further support the private sector?

From the government’s perspective, we need to step up the pace of energy-sector reform. On the regulatory side, we are working with the Ministry of Communication and the National Communication Commission (NCC) to reform the legislative landscape. For some reason, we are subjected to charges levied by different bodies—the federal government, state governments, local governments, communities, and others. Telecommunications is basically seen as a source of revenue, which in practice means that, periodically, we are levied arbitrary charges. We are working with Ministry of Communication and the NCC to formulate a more predictable environment. However, we are not shying away from developing local communities; we simply want a predictable and cohesive environment. Sometimes, we do not see any relationship between the rental charges we pay and the value we derive from those communities. At the end of the day, we are a business, hence I would like to see all the stakeholders come together to play a stronger role in addressing this issue. Another area of concern relates to the laying of fiber for our network. For fiber to be laid, one needs access to dig and lay the cable in the ground; a hugely difficult undertaking. If all stakeholders come together, we can work out a solution to these challenges to make it easier for Airtel and other players to achieve their ambitions.

Where do you see the next challenges and opportunities?

Nigeria is a blessed country with a population approaching 170 million people; quite large in relation to a relatively small area, which is a delight for any company or investor. It is not only the sheer size of the population that is of interest, but also its composition, with over 50% of the population less than 25 years old. These are the people who account for the bulk of consumption, and who drive growth in most sectors of the economy. We are beginning to see many Nigerians who had hitherto moved abroad returning home, and many skilled individuals returning with solid skill sets and know-how, which is changing the landscape of Nigeria. I think the best is yet to come.

What advantages does the National Broadband Plan have?

The National Broadband Plan was drafted by stakeholders and the government. There is no requirement for the commitment of any telecoms company; it is a voluntary project to create a connected society. This is a strong value-added service, and the government has avoided creating a sense of obligation as companies voluntarily contribute in the interests of the economy. At the end of the day, practically speaking, there is no option but to ensure broadband connectivity.

© The Business Year – June 2014