LAGOS, Nigeria (AP) - To know what it is like to make a
mobile phone call in Nigeria, ask anyone to turn out their pockets or upend
their purses. One, two, three and sometimes even four phones tumble out into
view, all with different carriers in hopes of being able to connect a call
without it dropping out in Africa's most populous nation.
Nigeria's four biggest telecommunications companies have
faced federal fines and complaints from customers for years, though no one
could drop their service out of fear of giving up their number. That changed
Monday, when the Nigerian Communications Commission started a number exchange
between the country's four main carriers, allowing customers to keep their
number and switch carriers every 90 days for free.
Customers and those in the business believe the new
program will force the carriers to provide better service at the risk of losing
their customers. And at greatest risk is South Africa's MTN Group Ltd., whose
long dominance in the market could be challenged as it faces increasing
problems with poor service and attacks on its equipment.
"It means deepened competition, it means freedom for
the subscribers," said Lanre Ajayi, the president of the Association of
Telecommunications Companies of Nigeria. "It means if you're unhappy with
an operator, you can easily move to another one without losing your telephone
number - which is essentially your identity."
Mobile phones are essential for communication in Nigeria,
for consumers and even security forces alike. The state-run telephone company
in Nigeria collapsed years ago. Internet access comes over routers with mobile
phone SIM cards inside.
In Nigeria, there are some 95 million mobile phone lines,
making it one of the world's top markets. In traffic and everywhere else,
hawkers wave mobile phone recharge cards. While voice calls carried the
majority of the network, data is increasingly being used across the country as
well, as many use their phone as their primary device to reach the Internet.
While there are a number of providers, the dominant force
in Nigeria remains MTN, which was one of the first companies to enter the
market when it opened. Today, the company has some 47.4 million customers in
Nigeria and has revenues there into the billions of dollars a year, according
to its 2012 annual report.
However, the market has become more fluid in recent
years. Bharti Airtel Ltd. of India has initiated a price war, slashing call
costs to pennies. Abu Dhabi-based Etisalat also has made a big push for
customers, mostly for their data speeds. Local firm Globacom Ltd. also remains
a force.
Those lower costs, as well as cuts on its fiber lines and
bombings of mobile phone towers by Islamic extremists in north Nigeria, hurt
MTN's quality in the last year, said Brett Goschen, CEO of MTN's Nigerian
subsidiary. Speaking to The Associated Press on Monday, he acknowledged the new
number exchange system likely would see customers leave MTN in the short term.
"The price decreases in the market in the last
couple of years has increased the traffic enormously and it has put pressure on
our network," Goschen said. "I think the market realizes that and
that's why we've been investing so significantly. ... We're slightly behind the
curve from where we want to be, so that is a bit of issue."
Yet it remains unclear how well the service will take
off, as some may believe it costs extra or don't want the hassle. It takes as
long as two days for the number to clear and the new network to begin service.
An AP journalist who attempted to carry his number over to a new provider
Monday also got an error message.
But the competition for the lucrative and growing mobile
market in Nigeria likely will become even more intense, as signaled by company
official after company official who urged an audience in Lagos celebrating the
service's start to switch to their carrier.
"It's a survival instinct," said Segun
Ogunsanya, the CEO of Airtel's Nigerian subsidiary. "You must make sure
your service is good."
Online:
Nigerian Communications Commission: www.ncc.gov.ng
Bharti Airtel Ltd. in Nigeria: bit.ly/HZKjNU
Etisalat in Nigeria: www.etisalat.com.ng
Globacom Ltd.: www.gloworld.com
MTN Group Ltd. in Nigeria: www.mtnonline.com
