The Glo Of Nigeria's Telecoms Industry @ 19

Billionaire entrepreneur, Dr Mike Adenuga Jr., began his eventful journey in the telecommunications industry in 1999.  A company he founded then to pursue his dream was called Communications Investment Limited (CIL) which was issued a licence in 1999 to operate the Global System of Mobile Telecommunications (GSM). Dr Adenuga paid the $20 million mandatory deposit. However, in the process of effecting the release of the balance payment of $265 million, the licence was unfairly revoked and he lost the $20 million deposit.

It was a colossal loss, but the bullish businessman who is renowned for his tenacity was undeterred. The other three winners, MTN, Airtel (then known as Econet) and M-tel proceeded to roll out services.

A couple of years after that experience, Adenuga went on to bid for the Second National Operator (SNO) license and deposited another $20 million. This time, he was lucky. He won the bid in August 2002, through Globacom Limited. Incidentally, the SNO has a wider range of operations as it gave Globacom the right to operate as a national carrier, operate digital mobile service, serve as an international gateway for telecommunications in the country, and operate fixed wireless service.

Globacom was to roll out services a year later, precisely on August 29, 2003. The odds were heavily stacked against Adenuga because by then, the other operators already had a two-year head start over Adenuga’s Glo. Secondly, he was venturing into completely new terrain. Considering that MTN and Econet both had years of experience in the business in other countries, many expected Globacom to stutter.

However, the doubts soon evaporated. Not only did Globacom stun the industry by launching on per-second billing, it also crashed the cost of acquiring a GSM line from N30,000 to N6,999 and later to N200. The older operators who, for two years boasted that it was not possible to launch operations on the billing platform as no operator in the world had done this before, were left playing catch up. Like a rampaging bull (which incidentally is Adenuga’s totem), Globacom embarked on a massive rollout of facilities and operations in several towns and cities across the country, and within nine months amassed over one million subscribers.

Consequently, it established a reputation as the fastest-growing GSM network in Africa.

Since that remarkable feat by Globacom, it has been one endearing success after another for the Nigerian company. In an industry where it was expected to lag behind the established multinational operators, Glo is not just rubbing shoulders with them, it has, indeed, been the pacesetter. It has come to be regarded as a behemoth in Nigeria’s telecom space.

It was the first operator to launch the 2.5 Generation technology, making the convergence of voice, data and multimedia technologies possible. Hence, Glo was able to launch such value-added services as vehicle tracking, mobile internet, mobile banking, multimedia messaging service (MMS), voice SMS, and Text2email before the multinationals who were still running on 2G then. Globacom also pioneered Blackberry Services in Nigeria, and the device was for a long time the rage among business executives and in social circles.

The introduction of the 3G Plus technology marked the second time that Globacom has been in the forefront of pioneering the latest transmission network in Nigeria. With this technology, Glo was able to carry out a much faster transmission of data, voice, broadband internet and multimedia services over a range of frequencies. It also allowed customers to do video calls, video streaming and high-speed mobile internet access, amongst others, from their 3G mobile handsets.

Globacom was not done yet in setting the pace yet as it also become the first network to launch a nationwide 4G-LTE network in Nigeria. The technology offers efficient broadband internet to millions of Nigerians at speeds that are several times faster than the 3G network. Subscribers on the network are able to download ultra-high definition videos in seconds.

But perhaps one of the most audacious projects undertaken by Globacom was the construction of an international submarine cable, Glo 1. Launched in 2010, the project was said to have cost over $800 million. It was the first time a gigantic project of this nature had been undertaken by a single company.

The facility which has brought unprecedented bandwidth from Europe to Nigeria and other West African countries marked the beginning of the crashing of bandwidth costs in Nigeria and the rest of West Africa, thereby facilitating more access to broadband internet. With this intervention by Globacom, almost everyone who can afford a smartphone is able to use data. Also, according to industry sources, Glo 1 is currently providing much-needed connectivity to critical sectors of the economy. Companies in the Oil and Gas, manufacturing, banking, commerce, education and health sectors as well as several multinational companies, including telecom operators and internet service providers (ISPs), are said to benefit from Glo 1.

Glo 1 has also played a major role in Nigeria’s broadband penetration which currently stands at 44.5 per cent. The penetration is principally driven by major players in the telecom sector, such as Glo 1. Globacom has also invested generously in the infrastructure to deliver the last mile to end-users, while also breaking the cost barrier by introducing affordable tariffs.

While commenting on the impact of Glo 1, Globacom sources said, “With the 4G expansion to tier 2 and 3 cities, Glo1 acts as the catalyst in propagating broadband penetration in Nigeria and acts as an enabler for enterprise customers to provide world-class connectivity to all their offices and factories across Nigeria. Many cloud computing companies that cater to Small and Medium Enterprises (SMEs) are setting up shops within the Glo partnered data centres. Using Globacom’s robust terrestrial infrastructure, Glo1 has seized this opportunity to backhaul their traffic to other data centres across the world.”

It is remarkable that it is a Nigerian company that has pulled off this ambitious project. One of Adenuga’s close associates said the idea of building a submarine cable berthed when the entrepreneur went on a business trip to Paris, the French capital, sometime around 2008. While there, he found out that telephone calls to Nigeria were epileptic unlike the connection between France and other parts of Europe. When he made enquiries about what could be done to solve the problem, he was told it was to have an international submarine cable. There and then, Dr Adenuga decided to build Glo 1, and the rest is now history. The project is a testament to the entrepreneurial spirit and foresight of the man behind Globacom.

For those who know Adenuga well, it was not surprising that Glo was able to quickly establish itself as the pacesetter in the industry, despite commencing business two years after MTN and Airtel (then called Econet).

Other areas Globacom has effectively set itself apart are customer-empowerment, sustainability and promotion of Nigeria’s arts and cultural heritage.  From 2003 when it commenced operations to date, no company has affected the lives of its subscribers and, indeed, the Nigerian people the way the telecommunications company has done.

Over the years, the company has launched a series of promos through which different types of empowerment prizes including millions of naira in cash prizes, luxury cars, tricycles, sewing machines, generators, television sets and grinding machines have been won by Nigerians across the country.

For so many years, it supported the development of Nigerian sports through the sponsorship of the Nigerian Premier League and the national football teams of Nigeria when no other corporate organisation wanted to touch the assets. The company spent billions of naira in developing the Nigerian league and national teams, and this culminated in Enyimba Football Club winning the prestigious Champions League twice in a row, while the Super Eagles won the Nations Cup in 2013. 

Nigeria’s entertainment industry has also received a massive boost from the telecom operator. It has so far brought two of the world’s biggest reality television shows to the country. They are X-Factor, which produced DJ Switch as a winner, and the Battle of the Year which was held between October last year and April, this year.

In addition to this, Globacom has over the years also held its own music and comedy shows across different cities and campuses across the country. The shows, including Rock ‘n’ Rule, GloNaija Sings, Laffta Fest, Slide and Bounce concert, and Glo Mega Music, were some of the platforms through which Globacom entertained and delighted Nigerians. But more importantly, they helped deepen the entertainment industry by giving budding talents in music and comedy and a platform to showcase their abilities.

Similarly, the nation’s art and culture have also been positively touched by Globacom. From Ojude Oba in Ijebu-Ode, Ofala in Onitsha, Lisabi in Abeokuta, Imeori in Abriba, Oru – Owerri in Imo state, amongst others, the company has through sponsoring the festivals not only brought them to international limelight but has also turned them into major tourist attractions.

 There is hardly any aspect of life that has not been positively touched by the telecommunications company.

Looking back at the gigantic milestones it has recorded, one would find it difficult to believe that it is just 19 years old. But would any less be expected from a company founded by Dr Mike Adenuga? He made clear his intention from the beginning with a very bold vision statement, “Building Africa’s biggest and best telecommunications network”. He is known to think and dream big – a very tenacious and dogged entrepreneur who likes to grow his businesses to dominate the sectors he operates in. Globacom has not only matched the multinational operators pound for pound, but it has, indeed, dominated Nigeria’s telecommunications sector these past 19 years.