Zoom Mobile re-enters telecoms market

To focus on data services

ZOOM Mobile, one of the nation’s Code Division Multiple Access (CDMA) operators, has announced it re-entry into Nigeria’s telecommunications market with focus on data services.

Its Chief Executive Officer (CEO), Mr. Edwin Momife, speaking in Lagos at the re-launch of the brand, said that in the telecommunications business, the voice business had become saturated, affecting revenue of operators and making data services next growth opportunity for Telcos.

He added that by 2016, there would be over 80 million Internet connections in Nigeria, affirming that Zoom Mobile was poised to play a leading role in the nation’s Internet revolution.

With network coverage of over 17 states and over 124 base stations in Lagos alone, Zoom Mobile was off the telecoms scene for some time because “they did not pay attention to the fundamentals when it succeeded at first. So when problems came in the CDMA space, it hits Zoom the hardest,” the CEO said.

He also said: “We have, nevertheless, fixed the company and in six or seven months, we’ll start playing aggressively in the telecoms space. A lot of people expected that by now, there’ll be no Zoom Mobile, but we are up and ready for quality data services provisioning.

“We have the coverage, the solid network infrastructure and strong team to deliver on this promise. Our network in Lagos is already up and running and has good service. The Abuja network would be running from September, while Port Harcourt and Southsouth would be from June.”

While restating the company’s commitment to providing quality and unrivalled Internet services to subscribers, he announced that the Telco had signed managed services deal with Huawei Technologies, MainOne Cable Company for bandwidth capacity and a number of Original Equipment Manufacturers to supply devices that would leverage the company’s data services.

“In affirmation of our commitment to quality services, we have moved away from the SAT-3 cable and signed a contract with MainOne Cable Company for ample bandwidth capacity. We are also partnering Original Equipment Manufacturers and wireless providers to bring in affordable smartphones that even the ‘common’ man can afford.

“Smartphones, very soon, will get in the hands of ‘maiguards’; it will not be the exclusive preserve of the rich forever. To this end, we have commenced procurement of smart devices that will serve as suitable alternatives to high-end devices such as iPads, Androids, BlackBerrys and netbooks.

‘We have Zoompads, Zoom PCs, ZoomBerrys and dongles, all with bundled data plans. These devices will appeal to large demographics,” he said.

He added that the Telco had also mandated financial services companies, Future View Group and Primera-Africa, to help raise operational funding for the company.

Chief Commercial Officer of the company, Ms. Tawa Bolarin, explaining the reasons for focus on data. She said: “Broadband is the ‘big thing’ in the industry now and into the future. This is because data services are minimally competitive in relation to voice. Higher Average Revenue Per User and absence of interconnect expenses ensure that operators keep 100 per cent of revenue.

“Once you pay bandwidth costs, all of the money is yours. For instance, MTN does not take 20 per cent, Etisalat 10 per cent or Airtel, five per cent.”

She was, however, quick to add that the company would still provide voice services “but it will be secondary.”

By The Guardian
(March 15, 2012)