Upon its launch in August 2003, Globacom faced a competitive telecom market, lagging behind industry leaders like MTN, Econet, and MTEL. However, the company swiftly gained traction by introducing per-second billing, a departure from the norm of charging per minute. This move disrupted the market and compelled competitors to follow suit.
In October 2004, Globacom further shook the industry by offering free SIM cards, undercutting rivals selling theirs for ₦2,000. This aggressive pricing strategy, coupled with extensive marketing campaigns featuring top Nigerian celebrities, marked a bold approach by the late entrant to the market.
While other telcos were focusing on voice services, Globacom recognized the importance of data early on. By 2004, the company was already providing 2.5G internet to thousands of subscribers. Its investments in infrastructure, such as a submarine cable in Lagos, demonstrated a commitment to connecting Nigerians to the internet.
Despite its initial success, Globacom has faced challenges in maintaining its momentum. With a dwindling market share and subscriber base, the company is grappling with issues of stagnation and reputation. A recent audit revealed discrepancies in subscriber numbers, leading to a reassessment of active users.
Globacom’s decline has been attributed to factors such as unreliable service, governance issues, and underinvestment. The company’s corporate culture, characterized by a centralized decision-making process and lack of innovation, has hindered its progress. Regulatory challenges and financial obligations have also posed significant hurdles for Globacom.
Looking ahead, there is hope that with a new CEO and board in place, as well as increased regulatory oversight, Globacom can reverse its downward trend. The company’s infrastructure assets and national operator license provide a foundation for growth, but a renewed focus on corporate governance and innovation will be essential for its future success.