ISPs devise new tactics to boost customer retention, revenues

Internet Service Providers (ISPs) in Nigeria are deploying smart solutions and marketing tactics designed specifically to boost customer retention and consequently revenues, in the face of heated competition in the country’s internet access market, BusinessDay investigations reveal.

With commercial Long Term Evolution (LTE) networks expected to generate $168 billion in service revenue this year alone, according to ReportsnReports.com, ISPs like Smile Communications, Spectranet, Swift Networks, and Mobitel – all LTE networks, are devising new ways to keep users connected to their respective networks always.

Spectranet, weekend, announced a monthly rollover of any unused data when consumers recharge and a minimum of 5GB free data for every new modem purchased. “We understand the needs of our customers very well and have kept on improving services to offer the best internet solution in the country,” said David Venn, CEO of the company.

Speaking with BusinessDay, Venn said: “We have implemented a change in our billing system to ensure rollover of used data.”

Only recently, the 4G/LTE broadband provider entered into strategic partnership with iROKOtv.com, Africa’s premier internet TV provider. The partnership however affords Spectranet cusomers the opportunity to access a wide variety of movies and TV shows for free.

‘SmileON,’ a new service from Smile Communications, helps customers stay online even when their bundle is at zero level. The service ensures that customers connected to the Smile network will remain connected when their data bundle runs out within that bundle’s validity period. “Our vision of becoming the broadband internet provider of choice in Nigeria has guided us in everything from selecting our people and partners to choosing the best technologies and creative, and relevant products,” said Tom Allen, group chief operating officer,of the internet service provider.

According to technology experts, LTE is the most advanced and most flexible global technological standard for wireless data communications. With LTE, users will be able to stream music and video, upload, download and essentially do anything on the web using their phones and tablets almost as fast as if we were at home on a fixed broadband connection.

Many of the ISPs only offer lightening fast services to customers in a hand-full of state capitals and cities like Lagos, Abuja and Port Harcourt. Industry observers are of the view that poor network coverage limits these ISPs from maximising the advantage, which they currently have over larger GSM operators that are still on 3G. Market observers say ISPs need to ramp up subscriber numbers quickly because GSM companies also have their eyes on this new wireless platform (LTE), in view of the need to boost income from data oriented services. BusinessDay gathered that Globacom plans to roll out LTE service this year.

MTN has begun the process of acquiring closely held Visafone Communications Limited, in a strategic move aimed at attaining its LTE aspirations.
“We expect to rollout further year. We are also makng sure that coverage in the major cities is good. In the past month, we have installed 50 base stations in Lagos. We also expect to deploy 100 base stations for Lagos and Abuja in coming months to meet growing customer demands”, stated Venn. Kamar Abass, managing director, Ericsson Nigeria says, in the future, LTE will play a bigger role in broadband delivery than existing 3G.

“It is quite possible that 2G outlast 3G as a radio standard in Nigeria”, said Abass. He says ISPs currently offering 4G service to Nigerians have an edge over GSM operators’ 3G offering because both services are priced the same way. “These ISPs have got a valuable product in 4G broadband, which is more efficient than 3G,” he said.

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