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Nigeria: Hope for Embattled CDMA Sub-Sector, As Starcomms Gets U.S.$210 Million Lifeline

09 January, 2013
 
By Emma Elebeke, 9 January 2013:

Since liberalization of the Nigerian telecommunications sector in 2001, the sector has unarguably become the most competitive in the entire sector of the economy. The four major GSM operators: MTN, Airtel, Globacom and Etisalat have since dominated the stage claiming over 90% of the entire market.

This is against the usual tradition when the Code Division Multiple Access, CDMAs and then national carrier, NITEL dominated the stage.

Today, the CDMA market which comprises players like MultiLinks, Reltel, Starcomms, GTE, Intercellular,and Visafone is today struggling to find its fit with les than three players in the ever competitive market already overtaken by the GSM operators.

The declining fortunes of the sector includes: falling average revenue per user, increase in the cost of operation, sharp drop in the subscriber base.

However, with the recent stakeholders approval of $210 million investment into the new bigger Starcomms by the CAPCON limited, it appears Starcomms is now ready fight a good share of the market.


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