Business

Spectranet’s market share under siege

Published

8 years ago

April 26, 2018

By Odunewu Segun

With a control of about 50 per cent of Nigeria’s 4G LTE internet services, Spectranet leadership of the market is being challenged by strong competitors like mobile operators, regulatory agency, infrastructural and operational factors.

Asides competing with one another, the ISPs also compete with Mobile Network Operators such as MTN, 9mobile, and Glo, etc. All of which altogether control about 95 million users.

Spectranet Limited came to Nigeria in 2009 after being awarded an operational license by the Nigerian Communications Commission (NCC).

As an internet service provider, Spectranet basically offers internet boxes (i.e., Wifi and Mifi modems/routers), as well as different data packages. Examples of its Mifi and Wifi products include Spectranet Portable Mifi, Spectranet Outdoor Modem, Spectranet Indoor Wifi, and Pebble MIFI 2017.

Others are Spectranet’s Wifi router starter pack, TOZ Indoor CPE and Freedom Mifi 2017.

Spectranet has over the years struggled with many challenges ranging from regulatory, infrastructural and operational. This has severally prompted the company’s management to join other stakeholders in the sector to decry what they perceive as unfavourable regulatory policies, especially the government’s unfavourable data pricing policy.

Last year, the company’s former Chief Executive Officer, David Venn, called on regulators to ensure sanity in the sector and most importantly, make provision for a data floor.

According to him, there is a lot of prevailing anti-competitive behaviour in the market which is affecting the sector.

In his words, “since the botched data floor policy of Nigerian Communications Commission, it has become difficult for ISPs and Telcos delivering internet service to operate profitably. We are seeking the review of that policy by the authorities to enable operators to deliver quality service and continue to be in business.”

Speaking further, Mr. Venn stated that “another biggest challenge we are facing today is the cost of tower rentals which has continued to increase over the years. It is funny, that international capacity cost has reduced by 50 percent while tower rental cost is increasing unabated. Imagine a situation where the cost of tower rental in three times our salary cost.”

The company also faces other infrastructural challenges, including epileptic power supply and occasional vandalisation of their facilities.

Most customers’ complaints centre on the constant letdowns they experienced – the poor nature of the network, and irresponsive customer service.

These customers feel cheated by Spectranet whom they say parades itself as the best ISP in Nigeria while selling products and services that do not work. Some even go as far as calling the firm “fraudulent” for parading themselves as a 4G lite provider, even though their internet service can at best be classified as a 3G network.

Spectranet is present across many Nigerian cities, including the major ones such as Lagos, Abuja, Port Harcourt, and Ibadan, etc.