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Technical note
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Reference no. 507-128-6
Subject category: Marketing
Published by: Lagos Business School
Published in: 2007

Abstract

Before the introduction of the global system for mobile phone communications (GSM) into the Nigerian market in August 2001, the Nigerian tele-density was far below the minimum level stipulated by international standards. Owning a telephone was largely a luxury reserved for the rich and privileged few. This situation was partly due to the monopoly and inefficiency of the government carrier, NITEL, charged with providing telecommunication services to the generality of Nigerians. The Nigerian Communications Commission granted GSM licenses to three players: (1) MTN; (2) Econet; and (3) NITEL in August 2001. The two main players MTN and Econet faced phenomenal growth despite a public outcry on the high call rates and poor services received. By August 2002, the second National carrier was awarded a four-pronged license to provide a gateway, mobile, fixed line and Internet services to Nigerians. Globacom eventually launched its GSM services under the subsidiary Glo Mobile on 29 August 2003, two years after the entry of Econet and MTN. This note is an evaluation of the entry strategy of Glo Mobile. It will present the totality of Glo Mobile''s entry strategy as well as evaluate its appropriateness considering its micro-environment. It will also review its performance in its first year of operations with the view to analysing the strengths and weaknesses of its entry strategy.
Industry:
Size:
Large
Other setting(s):
2001-2006

About

Abstract

Before the introduction of the global system for mobile phone communications (GSM) into the Nigerian market in August 2001, the Nigerian tele-density was far below the minimum level stipulated by international standards. Owning a telephone was largely a luxury reserved for the rich and privileged few. This situation was partly due to the monopoly and inefficiency of the government carrier, NITEL, charged with providing telecommunication services to the generality of Nigerians. The Nigerian Communications Commission granted GSM licenses to three players: (1) MTN; (2) Econet; and (3) NITEL in August 2001. The two main players MTN and Econet faced phenomenal growth despite a public outcry on the high call rates and poor services received. By August 2002, the second National carrier was awarded a four-pronged license to provide a gateway, mobile, fixed line and Internet services to Nigerians. Globacom eventually launched its GSM services under the subsidiary Glo Mobile on 29 August 2003, two years after the entry of Econet and MTN. This note is an evaluation of the entry strategy of Glo Mobile. It will present the totality of Glo Mobile''s entry strategy as well as evaluate its appropriateness considering its micro-environment. It will also review its performance in its first year of operations with the view to analysing the strengths and weaknesses of its entry strategy.

Settings

Industry:
Size:
Large
Other setting(s):
2001-2006

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