GiCell in partnership with the World Bank is making an in road into the Nigeria telecommunication market next month with the cheapest tariffs ever, the company's Chief Executive Officer Usman Abubakar Gumi says in this interview.
Can you give us a highlight of your mobile network?
We are rolling out a CDMA 450 network to provide voice and data services, with our debut in five states namely Adamawa, Borno, Cross River, Kwara and Oyo, with our main switch in Abuja. In Adamawa we are launching our services in Jimeta, Girie, Song, Wuro Daudu, Song, Gombi and Garkida. While in Borno we are in Hawul and Biu, In Calabar we will lunch in Calabar, Akampka, Akpet, Ugep and Obubra, in Kwara we are in Ilorin, Bode Saadu, Kaima and Koso bosu while in Oyo we are launching the services in Igbeti, Igboho and Kishi.Also as a Unified access licensee we intend to cover the country within the shortest possible time.
We are taking off from these five states to meet the World Bank requirement having been selected as the first Universal Access Service provider in Nigeria; to provide telecommunications service to un-served and under-serve areas. It is a World Bank supported programme through the Nigeria Communication Commission (NCC.
Why CDMA and not GSM?
CDMA the short for the Code-Division Multiple Access is a digital cellular technology that uses spread-spectrum techniques. Unlike competing systems, such as GSM, that use TDMA the short for the Time-Division Multiple Access, CDMA does not assign a specific frequency to each user. Instead, every channel uses the full available spectrum. Individual conversations are encoded with a pseudo-random digital sequence. Therefore CDMA consistently provides better capacity for voice and data communications than other commercial mobile technologies, allowing more subscribers to connect at any given time, and it is the common platform on which 3G technologies are built.
On CDMA you can have an internet speed of up to 156kbps while on the GPRS the maximum you can attain is 9 kbps. That is why we chose the CDMA.
When do you intend to roll out and are you not concerned about the existing GSM networks and the issue of competition?
We intend to launch in the second week of February, and our strategic advantage will be to provide the lowest tariff to our subscribers as well as superior voice quality and wide Coverage. We intend to cover as much areas as possible.
Do you think there is enough market in these five states you intend to start with?
Nigeria, with a population of over 140 Million, is the most populated country in Africa. Like many other Sub-Saharan countries, it has a young and rural - based population with youth under 35 years old occupying the main parts of the population. Despite the 50 million subscribers, according to the current statistics, there are still additional 55 million addressable markets.
How do you intend to cope with the issue of erratic power supply?
There are lots of challenges but we would do it the way others are doing it and also as much as possible maximize the use of alternative source of energy such solar panels. We have notice a lot of improvement in power supply by the PHCN.
What is your source of funding?
We got a subsidy from the World Bank supporting the Universal Access program to the tune of $5 million. We also got supports from our bankers and Investors.
What is your vision in the next few years?
Our vision is to be the dominant telecom operator in Nigeria. Our primary objective is not quick return on investment but to provide affordable services to Nigerians irrespective of where they resides. In the next 100 years people will still be communicating through devices, we intend to be always there to provide a cost effective alternative to our teeming population.
Is there any humanitarian motive behind this, looking at the World Bank involvement?
Yes according to World Bank the Universal access project is set to provide every individual the right to have access to telecommunication services irrespective of the population density or the topology of the area he is living, it coincides with our zeal to provide services to humanity in whatever form. This is probably an opportunity to do so.
What experience do you bring into this work?
As a graduate of physics from the Ahmadu Bello University
Zaria and with eighteen years experience in the private sector out of which six years are in the telecoms industry and also with the support of the best hands in the industry, we will achieve our objectives.
As an investor what are your greatest challenges?
Our greatest challenge is funding because the Nigerian banks are short term lenders and the industry is very capital intensive.
What is your assessment of telecoms in Nigeria?
Nigeria continues to be one of the fastest growing markets in Africa with triple-digit growth rates every single year. It passes Egypt and Morocco in 2004, and South Africa in 2008 to become the continent's largest mobile market.
Subscribers have grown from almost nothing in 2001 to exceed 53 million as at June 2008 and expected to cross 77 million by 2013 with a penetration rate of 28% and revenue of more than $10 billion per annum.
Is it a lucrative sector?
It is very lucrative if you get it right. I think it is the most lucrative economic sector today.
You said you secured a $5 million grant from the World Bank for this project. What is the involvement of the Bank in terms of its stake or role?
The role of the World Bank here, and through the direct supervision of the NCC, is to cushion the cost of the deployment of services in those area and to maintain the services for at least five years whether is profitable or not, but based on our study it will be profitable.
How comes you are the first to be given this type of grant in Nigeria?
We passed through a highly competitive and transparent process which led to our emergence as the first Universal Service Provider in Nigeria. On this note, I would like to commend the leadership of Nigerian Communication Commission (NCC).
When the Globacom made an in-road into the Nigerian market, they offered Nigerians per second billing which was a unique selling point for them. What is your unique selling point?
Our unique selling point will be low tariff, quality service and wide coverage.
What is your message to Nigerians?
Nigerians should expect the cheapest and the best telecommunication network next month.

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CDMA is better than GSM in security,better handoff,no restriction of users in a particular BTS, all the channel used by UMTS expect RACH are all CDMA Channels, i can assure Gicell by coming in with CDMA is a better idea if and only if they can solve the problem of existing CDMA operators.They should look for well trained CDMA guys not supervisors of CDMA that claim they have 5years experienc, make your interview open for trained and supervisors you will see a great change expecially from people like us that have full training for 7months in india in the domain of GSM,GPRS,CDMA,UMTS,EGPRS. Dumbi NDJTELECOMS@GMAIL.COM