Telecommunication expansion and challenges in the third world
Tony Lington Eghobor
The Technological sector has obviously, in recent times attracted
unprecedented attention from venture capitalists. In the west, technology is an
indispensable part of everyday living. One of the worlds growing technological
innovation is telecommunications, with its number of punters growing at a
geometric progression. Thereby, escalating the
public financial markets.
This consequently has fired up enthusiasm in investors and hence increased
"going in valuations." However, the third world is not left out of the
spirited approach to this sector. If they must develop, mobile telephony is
inevitable because of the many benefits inherent therein: business enhancement,
conveniences in communication and lot of other
facilities. And if mobile telephony is brought to their doorsteps, would it
survive? To survive is a function of the number of subscribers and palatable
platform to accommodate the companies, Sierra Leone is a country out of a decade
old war.
Investors are certainly scared of recurrence, even with the disarmament
process that ended last year . There are a couple African nations that have
experienced and still experiencing such recurrence many years after quelling an
original inferno.
Liberia is one such country.
CELTEL being a leading Pan-African mobile telecommunications company, with
tentacles spread to most African countries is faced with expansion challenges.
Wayne Taylor, South African Commercial Director CELTEL, Sierra Leone last week
highlighted a few problems they face in trying to get stabilized in a war
ravaged and underdeveloped Sierra Leone. Sierra Leone has remained the least in
the UNDP human development index in the past years and till date.
Amongst the very many challenges is the one encountered in putting up the
structures. First there is the problem of lack of competence with the local
engineers. So they resort to hiring expatriates, which involves some financial
commitments. Secondly, there is the problem of getting the equipments over. In
Taylor's words "we have problems
putting up the antennas, getting the equipments here. It would have been easy if
bulk of the equipments were manufactured in Sierra Leone".
Another challenge is the unavailability of electricity in most of the
provincial areas. So expansion to the suburbs is hell but inevitable, if they
must fulfill their mission, which is to provide communication for the people of
Africa. CELTEL has just launched a new
station at Kono, the diamond city and they had no choice but to install a
generator capable of 24 hours supply. For other companies with low financial
capabilities, this is a major impediment to proliferation.
As much as electricity is a problem, there is also the infrastructural
problem of lack of good roads. This hinders smooth transportation of equipments
to and from the suburbs. They are forced to acquire jeep vehicles to contend
with the hilly, rugged and tattered landscape. So a lot of time and energy are
sacrificially spent to make their dreams crystallize to reality.
The Sierra Leone Telecommunication Company is the national telecommunication
body. So it virtually regulates the activities of other companies. In Nigeria,
it is NITEL, in the Gambia - GAMTEL. SIERRATEL in some way is working towards
going mobile
and so, the mobile phone companies as CELTEL, MILLICOM, MOBITEL are again faced
with the problem they call bias and unfair judgment.
According to Wayne "you cannot have the regulator as a player in the
game, which it referees. When you do, problems certainly set in". These
companies cry out for an independent regulator, which any of them can take
problems to. An unbiased one with a good sense of fair judgment. Wayne says they
are calling on the relevant ministries to set up an independent regulator.
Nevertheless, mobile telephony in spite of all odds still tends to thrive in
the third world. It has been accepted and has come to stay as a necessary
facility of life. In Africa, it is a new craze and status symbol and people who
must showcase their status subscribe to it. Businessmen and elite do as well,
but it is almost unaffordable by the common man which manifests the poverty
level in this part of the world. The market financial level therefore remains
for now, on the low side. Are investors ready ?
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