• Thursday, March 28, 2024
businessday logo

BusinessDay

Telcos chases e-biz opportunity as voice revenue plummets

businessday-icon

Telecommunications companies in Nigeria, are chasing fresh opportunities inherent in the electronic business landscape amid falling revenues from voice oriented services, market observers have said.

Average Revenue per User (ARPU) for voice services is expected to decline steeply to $5 over the next five years, down from $6-$7 in April 2013 and $10 in 2008.

This new direction, according to them, has become imperative, in view of the need to continuously maintain customer loyalty whilst delivering growth in the face of fierce competition and new market entrants.

The emergence of powerful new players that successfully leverage or bypass network operators such as Apple Incorporated and Google Corporation, with their smartphone and applications ecosystem, has become a matter of grave concern for telecommunications companies and the sector, particularly from a revenue generation standpoint.

In view of this, many telecoms companies are currently engaging in new initiatives, including acquisition of digital businesses and content distribution. Others are forging stronger ties with the mobile applications community by opening up their networks to software developers.

India’s Airtel, recently, launched an entrepreneurial initiative tagged ‘Catapult-a-Startup,’ a platform which aims to inspire innovation and assist start up mobile app developers towards actualising their business goals and dreams.

With this, Airtel is offering a platform for budding mobile app developers to receive advanced mentoring from industry veterans, funding, marketing, and also improve their skills to become successful using their creativity.

Speaking during the launch in Lagos, Segun Ogunsanya, chief executive officer, Airtel Nigeria, explained that the firm is encouraging innovation and empowering young Nigerians by creating a platform for them to bring their business ideas to fruition.

“At Airtel, we are passionate about building a community for young talented Nigerians. We are aware of the abundance of young people who are blessed with the skills to develop relevant apps with most of them not having the opportunity to showcase or develop their skills.

“Behind the intent of Airtel with regard to creating employment opportunities, industry observers are of the view that the operators is also looking at driving up mobile data traffic through the initiative.

The apps and services developed by these start-ups will ride on Airtel’s 3.75G network and take advantage of its over 25 million customer base.

Earlier in the year, MTN acquired a 33.3 percent stake in African Internet Holding (AIH), an Internet business group co-founded by German e-commerce conglomerate, Rocket Internet and Millicom International Cellular.

Rocket Internet is also the parent company of Jumia, Africa’s leading online retailer. The acquisition deal was expected to enable the operator extend online retail and other essential digital services on the African continent.

Ben Uzor