By PRINCE OSUAGWU
WHEN the telecom operators started business in Nigeria, the issue of reduction in tariff was a no-go area. They would readily hand out reasons why it could not be possible. Chief among the reasons was the poor power generation which saw them operating at a huge cost running on self generated power source.

NCC Executive Vice Chariman, Engr. Eugene Juwa...leading telecoms operators in tariff reduction

Other reasons included the vandalisation of their facilities as well as leaving necessary telecom facilities and infrastructure entirely for them to build from the scratch. However, insistence by the government that tariff reduction is a must, may have started yielding positive fruits. In the last few months, telecom operators in Nigeria, including MTN, Globacom, Airtel and Etisalat have been locked in a fierce price war.

All the efforts are geared towards getting the next subscriber to their networks as voice services are predicted to be nearing saturation.

Former Minister of Information and Communications, Prof. Dora Akunyili, while  introducing Eng. Bashir Gwandu as the second Acting Executive Vice Chairman of the Nigerian Communications Commission, NCC, early June, 2010 had reiterated the need to ensure that operators reduce their call tariffs. Gwandu’s determination to carry out that assignment saw him immediately set plans in motion, holding a couple of meetings with the operators in Lagos and Abuja.

When Gwandu left, his successor, Engr Eugene Juwah, immediately after his appointment insisted that there was no going back in the decision to have operators reduce their tariff. He was later to read the riot act to the operators, promising to wield the big stick, should any operator be found wanting. Now, the operators on their own have decided to readjust their earlier stance. Although, not all the operators may have reduced their tariffs across board, competition has, however, also seen them introducing innovative services through them, marginally dropping tariffs to either retain subscribers and or battle for the soul of the next prospective subscriber.

Etisalat Nigeria, was the first to spark off the war dropping its call tariff  last year September, from 50k per second  to 25k per second and N15 per minute, across all networks. The move created a somewhat upset in the equation of things in the market and in November, after rebranding from Zain, Airtel Nigeria, followed suit, reducing its own tariff to 20k per second and N12 per minutes, across all networks.

However, ripples of these challenges sent big networks, Globacom and MTN back to the trenches, particularly with the intense advert campaigns that followed each development.  But almost immediately, Globacom, late November, responded with a launch of four new packages, Glo More Classic, More Power, More Prime and More business, all targeted at different strata of subscribers, giving them attractive incentives. For instance, the Glo More Classic was said to have Uniform, low tariff of only 49K/sec to any network, opportunity of Friends & Family users making calls on up to 5 Glo lines at only 25K per second.

These were also said to be in addition to 20 free Glo-to-Glo SMS per month and about 10 to 20 percent free Glo-to-Glo Bonus Talktime on every recharge of N 500 and above, 35 hours free Glo-to-Glo Talktime per week, from 12 midnight to 5 am, upon usage of N 500 in previous week

The plan according to Glo, also gives users up to 10 to 12 percent savings on monthly spend, as compared to prevailing competitive market rates.

Meanwhile, last week, MTN Nigeria, also replied to the challenges, with the introduction of three new packages and through them, reduced its call tariff plan. The packages Vanguard gathered, automatically replaced MTN Happy link and Pro link which were only launched six months before, giving a possible sign that fierce  competition in the industry was driving the way operators should play.

The three new MTN packages are MTN Friends and family; MTN TalkOn and MTN Magic number.

The packages have different call tariff plans but respectively give MTN subscribers a marginal call cost reduction among other benefits.

Unveiling the packages in Lagos, at the Protea Hotels Ikeja, the company’s Chief Marketing Officer, CMO, Mr Bola Akingbade explained that the MTN Friends and family package allows subscribers to make 4 local on-net (MTN to MTN) calls, 1 international and 1 inter network (MTN to other networks) calls at the rate of 20k per second from the first second of call initiation.

This means that the user must register 6 preferred numbers which he or she wishes to enjoy this package on. He explained that existing MTN subscribers can migrate to this platform dialling a short code.

The MTN TalkOn, according to Akingbade, allows users to make the first minute call at the rate of 50k per second and continues at the rate of 25k per second for the rest of the day.

Opportunity for free night calls

For him, that was the company’s way of compensating most business people, amongst others who spend more time on phone.
He also added that this package gives its user the opportunity of a free night call as well as free access to the Magic number package which Akingbade also explained to have the capability of allowing subscribers  free calls to and from one special registered number for 30 days period.

He also said that once a subscriber registers one special magic number at the rate of N250 per month, such a subscriber stood to gain a whole lot including free day time calls, free all Night calls amongst other benefits for 30 days.

Interestingly, it is not only in voice calls that the price competition is raging. When MTN about three months ago dropped the price of its Blackberry connection from N5000 to N3000, it was only to take a few months before others joined the cue. Between December 2010 and this January, Etisalat and Globacom have also dropped their Blackberry connection costs to N3000 from the initial N5000 respectively.

It is only left to be seen however, where the next line of competition would spring from and who would initiate it. The benefit of all the war, is that the Nigerian mobile subscribers are gradually becoming the King they are supposed to be in this economy.

Glo  Classic

Uniform, low tariff of only 49K/sec to any network
Friends & Family: User can call up to 5 Glo lines @ only 25K/sec
20 FREE Glo-to-Glo SMS per month
10% to 20% FREE Glo-to-Glo Bonus Talktime on every recharge of N 500 & above
35 Hours FREE Glo-to-Glo Talktime per week upon usage of N 500 in previous week
N3000 Blackberry connection

MTN Friends and family
4 local on-net (MTN to MTN) calls,
1 international and 1 inter network (MTN to other networks) calls at the rate of 20k per second .
6 preferred numbers to enjoy the package .
N3000 Blackberry connection

ETISALAT
25k per second across all networks
N15 per minute, across all networks
Free Etisalat-to-Etisalat SMS and other benefits
N3000 Blackberry connection

AIRTEL
20k per second across all networks
N12 per minute across all networks
20 free Airtel-to-Airtel SMS and other benefits