Competitive analysis of the Nigerian telecoms industry

Competitive analysis of the Nigerian telecoms industry I shall discuss the Nigerian Telecoms industry with particular reference to mobile telephony and data transmission via handhelds. My emphasis would be on the period post liberalization of the industry from the monopoly of the state owned carrier , Nitel. I focus on the structure, the key players in it and the competitive forces at play in the industry, leading to a discussion on how best a new entrant can come into this industry and a summary of recommendations. Structure of the Market Since the mid 80s, M-Tel, a subsidiary of Nitel the national carrier has enjoyed a monopoly of the Nigeria Mobile telephony industry, providing just 40,000 connected lines to subscribers nationwide (Doyle McShane, 2001, p. 10). The establishment of the sectors independent regulator, the Nigerian Communications Commission (NCC) in 1999 (Corporate Nigeria, 2010, p. 152)and the award in January 2001, via an auction, of three GSM spectrum licenses to MTN, CIL ( aka GLO) and Econet Wireless Nigeria Ltd liberalized the market. Today the market is made of primarily the five GSM companies, GLO, M-Tel, MTN, Airtel ( formerly Zain), Etisalat and 4 key CDMA companies, Visafone, Starcomms, Multilinks and Zoom. Last week, Visafone announced the takeover of Multilinks and have commenced their post-merger integration exercise. There are indications that further consolidation especially within the fringe CDMA companies is imminent. Fig 1 below highlights the relative market share within the key pl ayers. PESTLE Analysis of the Market; Political: Nigeria is in the middle of an election that has attracted so much interest (Mordi Versi, 2011, p. 24) initial signs indicate the process will be fairest in the history of the country (Asante, 2011)and could lead to emergence of a more stable, progressive democracy (Obayiuwana, 2011). An active and free media continues to challenge the politicians to higher standards of governance. Economic The local currency the naira has held steady against the dollar at N150 to USD 1, curbing inflationary tendencies (Corporate Nigeria, 2010, p. 34). However, inflation continue to be in double digits. GDP is estimated at $357.2 billion PPP , no. 32 in the Global table of PPP. Listed on Goldman Sachs Next Eleven world economies in 21st Century, Nigeria is a country with huge growth potentials. (Corporate Nigeria, 2010). Debt relieve through the Paris Club significantly increases the countries ability to invest in much needed infrastructure e.g power, roads, education and health (BMI, Q1-2011, p. 9) Socio-Cultural At 923,000 sq km of land, 250 ethnic groups, 521 languages, approximately 150million people (Corporate Nigeria, 2010, p. 12), Nigeria is huge and diversed and this diversity comes with its challenges with ethnic violence and sectional unrest. The country is also struggling with a poor reputation with corruption and internet fraud. The country has taken steps towards laundering her image with the set up of the Economic and Financial Crimes Commission (EFCC) which has arraigned 18 fraud syndicates, shut down 800 fraudulent websites, and over 5000 emails working in collaboration with Microsoft. (Corporate Nigeria, 2010) . With over 80% of the population below 40 years and 40% below 15 years, Nigeria is a young market. However, official unemployment rate is quoted as 19.7% , arguably, the real unemployment figures are much higher. Technology; With the arrival in Nigeria of MainOne, and Glo 1, two submarine fiber-optic high bandwidth cables linking Nigeria to Europe, complimenting the already existent SAT-1, data transmission becomes more affordable and easily accessible (BMI, Q1-2011, p. 23). The recent issue of four WiMAX licenses by NCC and existing 2.5G, 3G, CDMA2000, GPRS and UMTS technologies, wireless access will grow dramatically in the next 2-3 years. (Hosn, 2011) Legal and Regulatory The main law governing the Nigerian telecoms industry is the Nigerian Communications Act of July 2003 amending the Act of 1992 (Hosn, 2011, p. 7), this act ended the monopoly enjoyed by Nitel, created the regulatory body National Communications Commission ( NCC) and enabled the entry of more players into the market, leading to increased competition and a downward pressure on prices for mobile telephony services (Hosn, 2011, p. 17) Respect for Intellectual property (IP) rights is low and Legal protection is weak (BMI, Q1-2011, p. 10) Porter 5 Forces Model Analysis : The barriers to entry into this market are medium, with the key consideration being the liscense fees to be paid and potential investment in buildout of the network , depending on the model the entrant adopts, The Buyer Power is high, as intense competition and the choices now available to the customers lowers prices. The Regulators very aggressive drive to drive these prices even lower gives the customer more power. There are very few substitutes to mobile telephony in Nigeria, as the fixed lines are few and not widely adopted. Supplier power is as potential buyers of their goods is few and most of the telcos already have their prefered suppliers and its hard to unseat an incumbent. Competitive Intensity: The SIM Registration regulation passed by Nigerian perliament and the number portability planned for later in the years will significantly increase competition and increase churn, as it eases customers flight to quality service without the inconvinience of lossing your number (BMI, Q1-2011, p. 61) The table above highlights the fact that the Telecoms market in Nigeria is quite concentrated with HH Index of 2904.90 and a Concentration Ration of the top four player (CR4 )exceeding 90% which suggest that industry is susceptible to collusion and price fixing. In reality, this is not the case as the competition is intense and in fact there is an ongoing tarrif war in the Nigeria Telecoms market (Adebayo, 2011, p. 36) (Daniels, 2011, p. 64) however this predominately in the voice services (Ammar, 2011, p. 38). This competitive intensity has resulted in significant drop in cost of services and a corresponding drop in Average Revenue Per User ( ARPU), a key indicator of market profitability even as the customer base has grown dramatically as indicated in Figure 4. below. However, the downward trend of ARPU matches the upwards trend of growth in subscriber base for both voice and data services as shown in Figure 5 below. Although the penetration fo the voice service is very high, data service penetration is still in its infancy and growing much faster than voice services as evidenced by the growth of 3G phone and internet subscriptions. This trend is collaborated by Figure 5 in the trending up of data ARPS. Figure 6 also highlights the trending up of churn, which is likely to continue with the implementation of number portability planned for 2012 by the regulator. Number portability will significantly increase both incidental churn e.g. due financial contingencies, location or life style changes and deliberate churn e.g due pricing, poor customer service or network problems (Jahanzeb Jabeen, 2007, p. 122). Strengths and Weaknesses typically characterize internal situations of a business, but I shall discuss them from an industry structure perspective here. Strengths The mobile telecoms industry has continued to grow even with the introduction of compulsory SIM registration. By liberalizing the licensing scheme, NCC has made it easy for new fixed-wireless operators to enter the market even as it continues to keenly invest to achieve widespread connectivity in rural areas. An active and fairly free media is playing a key role in the transition to democracy, contributing to the ongoing peaceful election which has also been adjudged as the freest and fairest so far in the history of the country. With the country virtually debt free having benefited from the Paris Club debt relief initiative, there is real hope that with the right leadership, the countries infrastructure challenges will be addressed. A large, young population means a huge telecoms market and an abundant supply of cheap (albeit unskilled) labour, Weaknesses Poor state of infrastructure in the country increases the cost of building out networks and achieving optimum spread with resultant poor network quality and negative impact on customer growth and service usage, thus rural communities are poorly served. Price wars from intense competition have put downward pressure on ARPU rates. Country image is negative and corruption levels are high as Nigeria is placed at 134th out of 180 countries worldwide. Respect for Intellectual property rights is also low. Couple with this is the recent physical security risk to foreign workers in some regions of the country. Opportunities With no heavy debt servicing costs, Nigeria has the capacity to invest heavily in crucial infrastructure which will significantly lower the cost of doing business and eventually lower the cost of goods produced in country. A free and fair election and dividends from the ongoing efforts to tackle fraud and corruption will gradually improve the attractiveness of the Nigerian market and attract foreign investments even as the major operators continue to invest in developing the quality and reach of their network infrastructures, thus addressing service quality problems. The landing of several new submarine cables will make international bandwidth much cheaper enabling lower priced broadband services. New WiMAX licences and other technologies will make it easier to access the rural communities and unlock that market. Despite stepped up investment, the broadband penetration level is low. Mobile Telephony penetration at 50% still leaves significant growth potentials available to new entrants. The launch of mobile number portability will ease the ability of customers to change their service provider. Threats The introduction of compulsory mobile SIM registration for new customers in October 2010 will slow the growth experienced today in the sector. Probable removal of tax breaks for cellular operators will remove the incentives enjoyed by early-movers. Competition and regulatory measures are bringing down prices even as institutional invest continue to invest in the Nigerian market (e.g. South-Africas MTN, Indias Bharti Airtel and Etisalat of the UAE.) High levels of unemployment of a very young population presents a high risk of civil unrest which could be triggers by the current tension in the country as a result of the political wrangling and electioneering going on even as industrial action remains commonplace, and can disrupt normal business activity. Recommendations to potential new entrants Take a long term view Entrant into the Nigerian telecoms market at this time is a late-mover and would be exposed to a more informed and stronger regulator, tough competition from the early-movers and other late-movers, and a high cost of entry into the market (Ramamurti, 2000, p. 168) and as such should be cautious and not tempted to be too optimistic by the huge returns the early-movers made in Nigeria. Seek Alliances and Coopetition Opportunities. An entry strategy that seeks to create asset-light-virtual-operators (Turner, 2009, p. 449) by reducing significant investment in passive infrastructure e.g. towers, air-conditioning, generators and instead focuses on sharing these infrastructure with competition and shifts differentiation to quality of service and reach has been proven by Bharti Airtel (Prahalad Mashelkar, 2010, p. 136)to be quite a unique business model for developing economies, enabling cheaper cost of services and thus greater reach. Intensity of competition in the voice services will significantly reduce ARPU, however, the ongoing conversations around infrastructure sharing, the new licenses for the WiMAX technologies , the landing of MainOne and Glo1 submarine cables (BMI, Q1-2011, p. 49) all point to data, mobile broadband and value-added services being the next frontier of high growth in this market. MTN and Western Union have joined forces to introduce international remittances services to 21 countries in Africa excluding Nigeria (African Business, 2010, p. 6). The importance of this service in developing Africa is emphasized by Prof. Ophelia Mascarenhas et al quoted in (African Business, 2011, p. 6)as saying mobile phone firms should take a more serious approach to mobile banking servicesà ¢Ã¢â€š ¬Ã‚ ¦there is great potential for banking the unbankedà ¢Ã¢â€š ¬Ã‚ ¦it is of no use to the poor if the remittance of cash cannot be made because the services is still not available in both the urban and rural areas . The Central Bank of Nigeria is also churning out several policies and regulations to steer Nigerian banks towards inclusion of the unbanked population through electronic payment system. (Chima, 2011) Differentiate and Price Creatively Mobile applications with potential for social economic growth e.g. social networking applications, mobile banking, m-healthcare, m-education, m-policing, can help operators diversify their product base, generate extra revenue, attract new subscribers and lower churn rates (Kechiche, 2010). NCCs wire Nigeria (WiN) and State Accelerated Broadband Initiative (SABI) when completed will high bandwith broadband network throughout Nigeria, accelerating growth and ease of deployment of these mobile applications (Corporate Nigeria, 2010, p. 39). Value added services via mobile phones, e.g traffic policing in india (The Economist, 2009, p. 73)remain a huge opportunity in Nigeria (Nkanga, 2011) Prices will not fall as quickly with additional entry if customers value the differences enough to pay more to the firm that more closely serves their particular needs (Greenstein Mazzeo, 2006, p. 327) Make Pricing flexible and Price according to zones in Nigeria and ability to pay, offering combination of services and better matching prices and goods to the needs of the customers (Greenstein Mazzeo, 2006, p. 328). Look for opportunity to partner with equipment manufacturers to offer after sale services on user-end equipments, provide packages solutions that is viewed as a value added service and differentiates you from competition (Lal Strachan, 2007, p. 23) and possibly rental of infrastructure for transmission. Competing on price alone is not sustainable, there is often scope for differentiation based on quality of service, brand and support services and the inevitable flight to quality creates opportunity for premium pricing (Turner, 2009, p. 442). These are all benefits that come directly from a concentrated focus and deep understanding of a target market and response to their needs. Focus and Innovate Technology is one of the major determinants of change in the telecoms industry, along with the iterative liberalization in emerging markets that fuels aggressive competition, there is a need for key players in the industry to continual review their strategy for market and customer relevance (Lal Strachan, 2007, p. 22). This strategic adaptation is crucial in an emerging market characterized by environmental discontinuities, rapid changes and unpredictability. (Eunni, Post, Berger, 2005, p. 88) (Ramamurti, 2000) Late movers may quickly use newly available advanced technologies to their advantage (Kam, 2006, p. 502), not having the burden of sunk cost in built up network infrastructure, however the pace of changes in technologies in the telecom industry emphasizes the fact that these sort of advantages are short term and that enduring advantage would truly come from differentiation on quality of service.

Does God Use “Evil”? Essay

In the history of Christianity, the problem of evil, or theodicy, has been one of the more vexing questions. It derives from the issue between God’s omnipotence on the one hand, and the manifestation of radical (i. e. unexplainable) evil on the other, that is, evil that does not admit of a â€Å"satisfying† explanation. As a matter of course, Christian history has used to specific and distinct models for explaining the problem of evil. They go by many names, but in this book they are called â€Å"blueprint† and â€Å"warfare† models of evil. Hence, this review will explain both world views (which, in reality, are holistic views of God as such), and then seek to use the one the author accepts, the â€Å"warfare† view, as a basis for Christina worship. 1. The Blueprint view refuses to accept the problem of evil as such. In the blueprint view, there is no evil as radically considered. Good is all present since all is part of God’s will, that is, under His power. On the other hand, evil is relative, not absolute, since its purpose in creation and history is to bring God’s people to a knowledge of Himself and a dependency upon Himself. Evil, in this understanding, is only apparent and transitory. There are two versions of the blueprint view that are worth mentioning: a strong and a weak version. The strong version is known to most Calvinists, and it is a complete determination of global history. This is to say that there is a strong deterministic view, with God as the first, and active cause, whose power is a completely adequate explanation for all events. Free will is denied, and the only will that is free is God’s. he is above moral blame or praise, things are done because He willed it. If one cannot see the cosmic reason for a event of â€Å"evil,† then it is the fault of the person, who is so blinded by sin and egotism that he cannot fathom why evil can befall humanity, as if they were so wonderful and deserving of paradise. The weaker version holds that free will exists and is real, but that God freely permits man’s will to bring about evil so that the same blueprint is realized. In short, man as freely laying God’s blueprint is the weak version, God beginning it about though and only though his own power is the strong version. What they both have in common is the â€Å"blueprint,† the determined form of human history (and all the persons) in it that explains evil as the â€Å"working out† of God’s preordained plan. Therefore, the consolation that believers feel when faced with crisis and pain is that there is good behind the apparent evil, and hence, â€Å"God’s will be Done† is the slogan of this thought (50ff). There are problems with the view that the author carefully lays out. In the most general terms, Boyd holds that this view of evil is completely unacceptable, and holds that God is playing some kind of â€Å"game† with his human subjects. Generally speaking, Boyd seems to appeal to a â€Å"common sense† moral position that to ask modern people to accept radical evil, purposeless death of children, slaughter of innocents, agonizing birth defects, etc. is too much for people. God is seen as â€Å"playing† with humanity, torturing them at will, and all for some â€Å"secret plan† known only to Him. How can one worship such a being? (80ff). 2. The real response is in the â€Å"warfare model† of God’s power relative to evil. In its most basic form, th reality of God’s omnipotence in no way implies that God uses this to its full capacity. Since freedom is a good in itself, God permits free actions to intertwine with the radically complex causality of the natural world to bring about events. Hence, God does not bring them about, he permits his creation, which He has equipped with its own â€Å"engine,† so to speak, to work out its own tale in history. God, in this model, is not the cause of evil, but exists as a deliverer from evil. God’s will is not being accomplished on earth, and therefore, is not in his power. This is not a weakness in God, but a â€Å"decision† of His to let things run its course and permit human beings to have recourse to Him in their trials. God does not â€Å"use evil,† he delivers from evil. The implications for Christian worship are powerful and stunning. The â€Å"blueprint† view, as a matter of course, seems to reject the concept of â€Å"petitionary prayer. † In other words, if all is in God’s power, and all events (whether freely chosen or all part of God’s manifesting in the world), come from God’s eternal will, then there is no good reason to ask God for anything, and hence, that sort of â€Å"parental† relationship between man and God is eliminated. In the blueprint view, all one can do is seek to praise God, his power and goodness, and to seek communion and unity with Him. Hence, the warfare view rescues and makes sense out of petitionary prayer. Boyd uses several examples where God â€Å"changes His mind,† in order to listen to a prayer. God of course does not â€Å"change his mind† as a human would, but He has deliberately â€Å"shrunk† his power in order to permit human will to be paramount. In other words, creation in the warfare view is about man coming closer to God, and not the other way around, as is implied by the blueprint view (cf. 125-130). But the centerpiece of the book and the â€Å"warfare† view towards worship is Christ as the image and icon of God. Christ is the expression of God, and hence, should be the center of worship. Christ as god does not cause evil: both the determined course of physical nature and the free will of human beings to this in a series of massive and unexplainable causal chains that are beyond the human capacity to understand. God has given creation its own method of movement, and evil results (to be abstract) from constant conflicts within these two roads of movement: free and determined. Christ, on the other hand, came to earth in order to save believers from these clashes, to suffer with those afflicted and to draw them closer to Him. There is no necessary plan being unfolded by this, but human beings have recourse to God in times of stress. Jesus’ mission on earth, therefore, is to free humanity from evil. To see the transitoriness of the world and its massive complexity and to both accept suffering and to work against it (suffering can be worked against because it is not necessary). The blueprint view seems to demand a mere acceptance of evil without any action to be taken against it: hence the lack of intercessory prayer. Hence, at the center of all this is the free approach to Christ. Love can only be based on freedom. In either the Calvinist or weaker view of determinism in the blueprint view, there is no real freedom: God has arranged all, including the worship of Him. But this is clearly incompatible with love: love must be chosen freely (152-155ff). But even more, evil is the result fo the misuse of human freedom: this is the final point. God permits mankind to make mistakes in the same sense that a loving father permits children to make errors, so that they learn. He withdraws Himself in order to let human freedom reign, not some divine plan decided before the creation of the world. The very existence of human freedom is incompatible with the blueprint view. God sets his face against those who use this freedom for evil, and provides grace and solace for those who are victimized by it. But this warfare will not last for eternity, Christ’s taking on human nature becomes the final victory of God’s union with mankind. Jesus does not cause evil, he heals from evil. He sees those using their freedom for evil as ignorant, as not fully knowing what they are doing. God then, as his final word, seeks forgiveness and reconciliation.

Going for the Look Essay

Going for the Look Times continue to change and today people tend to judge a person on how they look. Companies are becoming more competitive and are looking for ways to attract customers. More retailers and companies are using the approach to hire based on appearance rather than work capability. Hiring should be based on work ethic, rather than appearance which can be discriminating. Companies all over the United States are denying people employment based on their physical appearance. In the United States people are told that everyone is given equal opportunity; which is untrue because there are people being denied employment due to how they are dressed, piercings or tattoos they have, and even weight. It is not our choice to decide what we look like. We do not decide to be tall, short, have small or big eyes, or what skin we are. People should not base hiring on physical appearance. Most retailers are now looking to hire people that look like models, characteristics being tall, slim, pretty face, & y oung. Retailers such as Abercrombie & Fitch, whose approach is to have an attractive sales force. Being a customer of Abercrombie, I have not seen an employee at Abercrombie being overweight. There employees look like beach models walking around the store. According to Mr. Serrano a former manager assistant at Abercrombie employees are told to approach and offer a job to someone who fits their store look. If someone walked into their store and they have a pretty face; employees are supposed to approach them and offer them a job even if they don’t have any retail experience. I believe that is wrong because if an older lady with retail experience were to apply for a job at Abercrombie she wouldn’t be the one hired. Statistics show that people who look better get paid more. More and more companies are using the approach to hire on appearance because they believe it attracts more customers. So many people are unemployed and looking for a job, yet retailers decide to hire on looks rather than work ethic. It’s understandable for a modeling agency to hire on appearance and looks, but a retail store like Abercrombie should not have that hiring strategy. How are older people supposed to have hope of being hired and retail stores when retailers are looking to hire young attractive people. Not everyone is born to be beautiful. Some people have better features than others. People should not be compared. Humans should be given equal employment opportunities and not be judged on how they look. AÂ  person can be beautiful on the outside and yet have an ugly personality. What is the point on hiring a pretty looking person when they can have bad customer service. I personally believe that a person should not be judged based on looks. Hiring based on physical appearance is discriminating and should stop. People around the United States are not having an equal employment opportunity. Hiring is not being based on job qualifications it is now being based on appearance. People deserve to be hired based work ethic. It is important for retailers and companies to realize everyone deserves an equal opportunity no matter how a person looks.

Heritage Assessment - 1503 Words

Running head: THE HERITAGE ASSESSMENT OF HISPANIC, ASIAN AND The Heritage Assessment of Hispanic, Asian and African American Families B.Cohran Grand Canyon University The Heritage Assessment of Hispanic, Asian and African American Families The Heritage Assessment Tool (HST) is used to â€Å"investigate a given patient’s or your own ethnic, cultural, and religious heritage†¦it can help determine how deeply a given person identifies with a particular tradition†. (prenhall.com). This assessment of 29 questions based on family, social, cultural, religious and immigration history can be very helpful in identifying the individual’s health traditions and beliefs, which can promote a more culturally competent R.N. Cultural competency is†¦show more content†¦This individual/family reports that she regularly speaks to her family in Taiwan via Skype, Facebook and cell phone. She grew up as a Buddhist but does not attend any religious services on a regular basis but does admit to occasionally meditating. Meditating is a central Buddhist practice; it is a â€Å"form of mental concentration that leads to enlightenment and spiritual freedom.† (religionfacts.com). Although this individual didn’t fully scribe to traditional beliefs on health and illness, she did give a few insights to the interviewer. Reputations are very important to Asians, being embarrassed or having something personal told to an outsider is a huge deal. Confidentiality is very important and medical-health issues are not discussed with outsiders. (Centers for Disease Control and Prevention [cdc], n.d., ∂ 4)). Asian culture beliefs include the mind-body-spirit balance or yin and yang.† Yin and Yang are dynamic and complementary, not oppositional forces, for every action there is an equal and opposite reaction, one can’t exist without the other and imbalance leads to illness.† (cdc,n.d). Traditional types of Chinese medicine include herbs, massage and acupuncture and acupressure; these remedies offer preventative and restorative properties. Acupressure is believed to â€Å"manipulate the flow of energy or Qi†; it is believed to be both preventative and rest orative. (acupuncture benefits). In addressing health protection, promotion and restoration, thisShow MoreRelatedHeritage Notation Assessment4283 Words   |  18 PagesThe affects of Heritage notation orders Detailed analysis 23rd April 2012 Contents Abstract Introduction What is Heritage Significance? What is a Heritage notation order? What are the benefits of heritage listing? What does a heritage listing entail? How is the community affected? What are the disadvantages of heritage listing? The role of local government planning. The role of the Commonwealth. The positive impact of heritage listing on value. 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