Telco brands jostle for market leadership
The battle for market share leadership in Nigeria’s competitive telecoms sector seems to have reached a new height in recent times as operators have been aggressively deploying various innovative strategies in a bid to outwit one another.
According to the latest report from Nigerian Communications Commission (NCC) MTN holds the leadership position in the industry with a 40 percent market share. The telecommunication giant looks comfortable at the top of the ladder. Airtel is at a distant second with 26 percent, while Glo is hot on the heels of Airtel with 25 percent share. The fourth largest network is 9Mobile with nine percent share.
However, while MTN’s lead looks seemingly unassailable, Airtel and Glo are continuously lurked in intense battle for second placement. In the first nine months of this year, both GSM brands have exchanged positions three times. Much unlike MTN, neither Airtel nor Glo seems to have control of the second position.
Airtel started the year as the second largest network behind MTN, but that was only for two months as it was overtaken by Glo in March. Glo held unto the second position for five consecutive months- March, April, May, June and July. Airtel was finally able to reclaim it August and have held on until September.
Also, in the past nine months, NCC data has shown that Airtel Nigeria added over four million new subscribers to its network. This pushed Airtel’s total subscribers base to 41.3 million. Meanwhile, Glo gained over two million new in the same period to put its total subscription at 40.9 million.
Much of the battle between both networks for market leadership have been fought on the marketing arenas, with the deployment of various marketing communications and consumer promo initiatives with the aim of gaining top of the mind awareness and drive sales.
Both brands have rolled out generous airtime and data bonuses for consumers. In July this year, Airtel Nigeria introduced a 100 per cent bonus to new customers on any data bundle purchased and eight times the value of any recharge.
Under the new offer, new customers get 100 per cent bonus on every data bundle of N100 and above, and also get eight times bonus on any recharge, which will be split along the main account, 100 per cent; voice, 250 per cent; data, 250 per cent; social, 100 per cent and family and friends, 100 per cent.
In the following month, Globacom also launched ‘Oga SIM’ targeted at new subscribers and offering 125 per cent bonus to new data subscribers and existing subscribers, who have not used their data services in the last three months on the Glo network.
Also in the same month, Globacom offered tariff reduction on international calls to over 200 countries for subscribers on its network by 85 per cent.
A former President, Association of Telecommunications Companies of Nigeria, Mr Lanre Ajayi, said the strategies that would increase the market share of the mobile network operators include improved quality of service, clarity in tariff and offers, and ease of accessing service.
He said, “Clarity of pricing is also important. Your pricing may be cheap but may not be clear. There may be complexity around it. When there are free offers that are not clear, people get confused. It is not just a reduction in tariff that is important, clarity is equally important.
“Also, if the pricing is cheap and people cannot access the service on the network, they will move to another one. Availability of service is also key. There are some networks without coverage in certain areas of the country. Once people move to certain places, their network is not available. You can be sure that customers that travel around will not be happy with that.”
Additional report from the punch newspapers.
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