ADVERTISING AS A STRATEGIC INSTRUMENT IN THE MARKETING OF MTN’S COMMUNICATION SERVICES
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ADVERTISING AS A STRATEGIC INSTRUMENT IN THE MARKETING OF MTN’S COMMUNICATION SERVICES
Chapter one
INTRODUCTION
The world has become a global village, as Marshal Maduban predicted, with tele-communications playing an important role” (www.Nigeriabusinessinfo.com) and (Okwunna, ed. 2002:225).
The Wireless Global System for Mobile Communications (MTN) is a significant development. MTN began operations in Nigeria in 1886, albeit on a shaky foundation due to the colonial administration’s focus on administrative functions rather than the country’s socioeconomic development.
The sector was poorly underdeveloped before being deregulated in 1992 by General Ibrahim Babangida’s military dictatorship, which established a regulatory body, the Nigeria Communications Commission (NCC).
The total number of telephone lines upon independence in 1960 was just 18,724 for a population believed to be around 40 million, resulting in a teledensity of 0.5 telephones per 1000 people.
Between 1960 and 1985, the MTNs sector was made up of the Department of Post and MTN Limited (NET), which was in charge of external MTNs services. The installed switching capacity at the end of 1985 was approximately 200,000 lines,
compared to the aim of 460,000. Telephone penetration remains low, with the International MTNs Union (ITU) recommending one telephone line per 100 residents in poorer countries.
In January 1985, the Post and MTNs were separated into the postal and MTN Department Divisions, which were later amalgamated with NET to form Nigeria MTN Limited (NITEL), with the goal of standardising the planning and coordination of internal and external MTN services.
NITEL held a monopoly in the sector and was associated for epileptic services and poor management. By the beginning of 1999, there were roughly 500,000 lines available for a population of over 120 million Nigerians.
According to Sylvester Ebhodaghe in the Guardian on July 16, 2002, before Zain (previously Econcet/Vmobile) and MTN were on the scene, there were less than half a million phone lines for around 120 million Nigerians.
In other words, the overwhelming majority of Nigerians were phone-starred.” Beginning in May 2000, President Olusegun Obasanjo’s administration shifted gears to make complete deregulation a reality by initiating the privatisation of NITEL.
This has further led to the expansion of connectivity through private investment and the entry of new private operators, resulting in enhanced service quality, expansion of rural access, and more reasonable rates, due to competition
According to Sylvester Ebhedaghe in the Guardian on July 23, 2001, “before the arrival of MTN, despite NITEL being the only service provider that had reached many sections of the country, several state headquarters could not brag of NITEL facility penetration.
Wireless technology required to be utilised in order to quickly address shortcomings and allow Nigerians to participate in the ongoing global digital revolution.
On February 9, 2002, the NCC gave one national operator and two private businesses, MTN and Zain, a licence to operate a digital mobile MTN Network in Nigeria. The licence fee was US $200 million. They first started their services in Lagos, Abuja, and Port Harcourt, providing over one million lines one year after MTN’s introduction.
In addition, on August 12, 2002, the NCC granted Globacom another licence for a second national operator (SNO) for US $200 million. The goal is to develop an alternative network to the government-owned NITEL due to its poor service. The Act expanded the NCC’s powers, decreasing the minister’s role in communication and policymaking.
The Act gives the NCC nearly complete independence in developing industry regulations.However, as of now, nearly 5.5 million Nigerians have switched to MTN phones. There are currently more mobile phone subscribers than fixed line users.
MTN currently offers a wide range of services in the country, including telephony, telex, cellular mobile, radio trunking services, maritime mobile services, voice cast press receipt, data communications, shipshere, gentex (telex terminal extension to rural areas), value added services, and so on.
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