Telecom

Niger: State to merge Sonitel and Sahel Com to withstand competition

Tuesday, 20 October 2015 07:43

Abdou Mani, the Nigerien Minister of Telecommunications, declared on 16 October 2015 that the State will merge the Nigerien Company of Telecommunication (SONITEL), the state operator, and it's mobile branch Sahel Com, in order to better withstand competition in the national telecom market. Actually, the two companies belonging to the State are in bad shape in terms of market share and revenues. Foreign mobile telephone operators dominate the market. With Airtel as leading operator, followed by Orange and then Moov of Etisalat.

According to Abdou Mani, the merger of Sonitel and Sahel Com will result in the pooling of their telecom infrastructure. This will increase the coverage area of the newly formed operator, unify the investments, reduce maintenance costs and staff salaries. The new company, born of the merger between Sonitel and Sahel Com, should complete the deployment of optic fibre across the country to possess very high debit infrastructure which will give them an advantage over the competitors.

Nationalised in 2012, after their privatisation undertaken by the State with the China-Libya consortium Dataport failed in 2001, Sonitel and Sahel Com, which even benefitted from a monopoly in the Nigerien telecom sector until 2004, did not shine from quality services, accessible to all and everywhere. Opening the market to private mobile telephone operators sounded the death knell for their overwhelming power. The two companies have lost many subscribers, attracted by more advantageous prices, the possibility of contacting friends and family in the remotest areas, innovative services....

The FCFA 85 billion investment ($146 million) provided by the government in 2012 to improve offers and service quality did not change anything.

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