- Title: NIGERIA: Etisalat to raise $500 million debt this year
- Date: 12th April 2013
- Summary: LAGOS, NIGERIA (APRIL 11, 2013) (REUTERS) VARIOUS OF ETISALAT EXPERIENCE SHOP VARIOUS OF ETISALAT SUBSCRIBER BEING ATTENDED TO BY A CUSTOMER SERVICE AGENT VARIOUS OF ETISALAT BUILDING EXTERIOR VARIOUS OF WAEL AMMAR, COMMERCIAL OFFICER, ETISALAT NIGERIA, WORKING IN HIS OFFICE (SOUNDBITE) (English) WAEL AMMAR, COMMERCIAL OFFICER, ETISALAT NIGERIA, SAYING: "We are now at 15 million subscribers, 15 percent market share and we see this as a very successful fourth entrance into markets compared to worldwide global benchmarks because Etisalat despite the fact that they came like seven years after strong and established telecom operators in the Nigerian market has been there and operating for over a seven years period, we are still able to come with a major differentiating offerings and major differentiating strategy to attract subscribers for its network to reach 15 percent." ETISALAT BANNERS ON ELECTRICITY POLES (SOUNDBITE) (English) WAEL AMMAR, COMMERCIAL OFFICER, ETISALAT NIGERIA, SAYING: "Looking today at the level of investment we have done into Nigeria which is over 2 billion dollars since we have started this in terms of infrastructure network and other assets that we have invested into, to support our operations. This year only, we are putting over 500 million dollars additional in 2015 to expand our network and expand our services to the Nigerian consumers and the Nigerian market in general." ETISALAT LEAFLETS (SOUNDBITE) (English) WAEL AMMAR, COMMERCIAL OFFICER, ETISALAT NIGERIA, SAYING: "Nigeria as a market itself is still not fully penetrated, we are estimating that the penetration has reached around sixty percent of addressable population which means there's still a forty percent opportunity for growth. Now, this growth is coming from two factors; definitely the populations that are yet to be covered with telecoms services and also existing populations in urban and dense urban areas, cities already exposed to telecom but are coming from a younger age so we are very focused on the youth as a segment from our perspective and making sure that we have a good offering for the youths segment in Nigeria because we see that the second wave of growth is coming from that segment." LAGOS, NIGERIA (RECENT) (REUTERS) WOMAN USING MOBILE PHONE VARIOUS OF PEDESTRIANS
- Embargoed: 27th April 2013 13:00
- Keywords:
- Location: Nigeria
- Country: Nigeria
- Topics: Economy
- Reuters ID: LVAAEXVIU0LWOLAUGVT2HV8JEIX7
- Story Text: Etisalat Nigeria, an affiliate of the No. 2 Gulf Arab operator Etisalat, says it plans to raise 500 million US dollars in debt from local banks to expand its network this year, its commercial officer said on Thursday (April 11).
Wael Ammar told the Reuters Africa Investment Summit that the investments will enable the mobile phone carrier grow the market share of Etisalat Nigeria, which is 40 percent owned by its parent company, to 17 percent this year.
Ammar said the company aimed to add 4 million subscribers to its existing 15 million in 2013.
"We are now at 15 million subscribers, 15 percent market share, and we see this as a very successful fourth entrance into markets compared to worldwide global benchmarks because Etisalat despite the fact that they came like seven years after strong and established telecom operators in the Nigerian market has been there and operating for over a seven years period, we are still able to come with a major differentiating offerings and major differentiating strategy to attract subscribers for its network to reach 15 percent," said Ammar.
The company's mobile market share of 15 percent is behind MTN's 43 percent and Globacom's 22 percent.
Airtel, a subsidiary of India's Bharti Airtel, has a 20 percent share.
Ammar also said the company was working on expansion plans even though he expected average revenues for voice traffic across the industry to continue to decline to around 5 dollars per user over the next 3-5 years, from around 6-7 dollars per user currently. Average revenues per user was 10 US dollars per user in 2008.
"Looking today at the level of investment we have done into Nigeria which is over 2 billion dollars since we have started this in terms of infrastructure network and other assets that we have invested into, to support our operations. This year only, we are putting over 500 million dollars additional in 2015 to expand our network and expand our services to the Nigerian consumers and the Nigerian market in general," he said.
Etisalat entered Nigeria's fast growing market as a start-up operation seven years ago, facing more established rivals like South Africa's MTN and Globacom, owned by billionaire tycoon Mike Adenuga.
Ammar said Etisalat would be able to grow its subscriber base without having to poach large numbers of customers from rivals because some 40 percent of Nigerians, tens of millions of people still did not own a phone.
"Nigeria as a market itself is still not fully penetrated, we are estimating that the penetration has reached around sixty percent of addressable population which means there's still a forty percent opportunity for growth. Now, this growth is coming from two factors; definitely the populations that are yet to be covered with telecoms services and also existing populations in urban and dense urban areas, cities already exposed to telecom but are coming from a younger age so we are very focused on the youths as a segment from our perspective and making sure that we have a good offering for the youths segment in Nigeria because we see that the second wave of growth is coming from that segment," he added.
The International Telecommunications Union forecasts Nigeria will have 120 million mobile subscribers by end 2013, out of a population of 170 million.
The number of mobile users in Africa's most populous nation crossed the 100 million subscriber base in the first half of last year, adding six million new callers from 2011.
Analysts say average revenue per user is falling behind, owing to increased competition and the fact that the new subscribers tend to be poorer. - Copyright Holder: REUTERS
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