MKTG209
Mobile Telecommunications Questions 1. What was the fundamental opportunity that Adesemi and Celtel saw prior to entry into African markets? The fundamental opportunity that Adesemi and Celtel saw prior to entry in to Sub Saharan African (SSA) markets was namely to serve a market with astronomical and pent up demand. In 1995 there were 12 mobile phone subscriptions for every 100 people in the U.S but only one per 1000 people and one fixed telephone line for every 100 people in SSA. (Exhibit 1) These markets prevented a massive opportunity for companies looking to access more than 600 million people by bringing affordable telecommunications, while at the same enriching the lives of the poor.
A large growing population, already 512 million in 1990, rose to 854 million by 2010. Access to fixed line telephones was rare, a decade later on 1.4 per 100 people. Most telephone companies were owned by the state and were under-funded and in the 2000s the wait list for a phone connection could be upwards of 10 years.
Adesemi saw the lack of effective telecommunications in SSA and believed that mobile technology was the way forward. Tanzania appeared to be ideal, as the country was privatizing it’s economy and looking for foreign investors to improve its infrastructure, and had nearly 30 million people but only 120,000 phone lines.
Definitely use some sort of industry report here to back these stats up etc
“FDI FLOWS TO SUBSAHARAN AFRICA”
“TELECOMMUNICATIONS AND ECONOMIC GROWTH”
These are just some of the sources they already found most of the articles in that email are relevant to this
2. What were the key obstacles to Adesemi’s success in Tanzania? Why was the company facing these obstacles? What were the roles of government officials, competitors, and partners?
There a number of obstacles that hindered Adesemi’s success in Tanzania:
Low income and correspondingly low capacity to pay for goods and services
In 2000, average GDP per capita was $1,565, 20% lower
A large growing population, already 512 million in 1990, rose to 854 million by 2010. Access to fixed line telephones was rare, a decade later on 1.4 per 100 people. Most telephone companies were owned by the state and were under-funded and in the 2000s the wait list for a phone connection could be upwards of 10 years.
Adesemi saw the lack of effective telecommunications in SSA and believed that mobile technology was the way forward. Tanzania appeared to be ideal, as the country was privatizing it’s economy and looking for foreign investors to improve its infrastructure, and had nearly 30 million people but only 120,000 phone lines.
Definitely use some sort of industry report here to back these stats up etc
“FDI FLOWS TO SUBSAHARAN AFRICA”
“TELECOMMUNICATIONS AND ECONOMIC GROWTH”
These are just some of the sources they already found most of the articles in that email are relevant to this
2. What were the key obstacles to Adesemi’s success in Tanzania? Why was the company facing these obstacles? What were the roles of government officials, competitors, and partners?
There a number of obstacles that hindered Adesemi’s success in Tanzania:
Low income and correspondingly low capacity to pay for goods and services
In 2000, average GDP per capita was $1,565, 20% lower