Lagos — Efem Nkanga in this write up examines franchising as an effective tool in the deployment of ICT to rural areas in Nigeria

Have you ever wondered what it would be like, if telecommunications giants like MTN,Vmobile,Globacom,etc have franchise shops scattered all over the nooks and crannies of Nigeria like fast food giants such as Macdonalds,Burger King, KFC etc have done in America and Europe? It would according to Dr Emmanuel Ekuwem, President of Association of Elecommunications Companies Nigeria (ATCON) be an awesome tool for amplifying and accelerating the growth of ICT Infracstructure in the country.

Dr Ekuwem stated in a chat with THISDAY that franchising as an option was the next level in the deployment of ICT for the growth of the emerging sector. The telecoms sector which is projected by the Vice Chairman of the Nigerian Communications Commission (NCC) to grow by four million lines annually over the next five years is the fastest growing sector in Africa and indeed the world. Nigeria with a teledensity that is currently below 20 has room for even more development.The number of subscribers in the telecommunications sector in the past five years has attained 25.3 million subscribers with 24 million as digital mobile lines. It is common knowledge that the massive growth recorded in the sector was enhanced by private sector participation.

Communications Minister, Corneluis Adebayo recently stated that over $ 9 billion has come into the country as a result of direct foreign investment in the telecommunications industry.He called on all Nigerians to take advantage of the beneficial investments in the sector for wealth creation.

He disclosed that the National Rural Telephony programme of the Federal Government was making progress with the construction of Exchange Buildings and the completion of 73 sites in 25 states .He added that switching systems and exchanges in 14 locations in addition to the construction of microwave towers in six locations are underway. This option is a good one to look at given the fact that the Obasanjo administration is currently looking at various ways of deploying ICT to the rural areas. It's desire to bring development closer to the rural communities, through the National Rural Telephony Programme by providing telephony services to all the local Government Headquarters in the country through the deployment of three projects, which will provide telecommunications to a total of 343 Local Government Areas, equitably spread across the country. The enabling environment provided by the Federal Government and its obvious desire for the growth of ICT and its desire to ensure that ICT gets to the rural areas will all be enhanced by the franchise option. Franchisor is a company that grants someone an exclusive license to sell its products or operate under its name in a stated area ,while a Franchisee is a person or small company granted a license to sell a company's product or operate under a company's name exclusively within a stated area. Franchising has long been deployed by major corporations as an effective tool in ensuring market share.Dr Ekuwem asserted that since most operators want a quick return on investments and enormous profits and with the rural populace at 60 percentage largely untapped, franchising if effectively deployed will ensure that the rural areas get to have a taste of the emerging economic explosion of the telecommunications sector. He stated that if someone from the rural area decides to venture into telecommunications,he will be put off by the enormous resources needed to start off with the charllenges of getting a licence a nd all other intricases of operating a telecommunications outfit.

The best option that makes for a win-win situation is for the rural man or company to partner with an existing major operator like Multilinks, Starcomms, REITEL, GLO, Vmobile, Etc that he can get the permission to set up an ICT centre or a service provision centre that will provide the same service that the major operators are known for without having to grapple with the cost implications of getting a license from the NCC before operating. "One of those operators will be seen as officially present through this franchise with the person that will be running the business as it relates to rolling it out within his immediate catchment area.It will be run like a retail shop,which makes the person a dealer, or a distributor, to the existing telecomms operator" he stated.

Dr Ekuwem added that franchisee will use the same logo and name of the major operator so that there will be a proliferation of the franchise of the major operators everywhere in the country.This he reiterated will bring about an avalanche of micro resource centres and rural telephone centres at every nook and cranny of the nation. "If every time we can have a son or daughter who can afford the cost of an ICT Resource centre in every community of Nigeria, we are going to have an avalanche of micro ICT resource centres that will spring up because you don't have to go through the hurdle of having to apply for an operators Licence. I can tell you that those avenues of franchising in the telecommunications industry will accelerate and amplify the growth of ICT in the nation."Dr Ekuwem stated.

Franchising if deployed effectively will put at ICT at the disposal of rural dwellers without extra cost. This option is a good one to look at given the fact that the Obasanjo administration is currently looking at at various ways of deploying ICT to the rural areas. The gains and benefits of franchising cannot be overemphasized. It will help to eradicate poverty in the rural areas because by franchising ICT will penetrate into these areas and in the long run accelerate the development of the rural communities. Franchising will also aid the growth of the small and medium scale enterprises which is an engine growth of the economy. The multiplier effect of this will be more income streams for the franchisee and franchisor as well. Franchising will help ensure necessary expansion of business for the Franchisor needed for growth without much cost.Since most telecommuninications operators as well as most businese project three to five years for return on investments. A franchising option will even help the operatoirs meet their expectations sooner without having to deploy a large capital outlay for growth and expansion purposes. Other gains will be more revenue income streams,stable growth,more market share,and a competitive edge gained over other competitors.