16th October
By Aaron Ukodie, IT.Telecom Editor, Lagos

Such makes it possible for a subscriber to use his or her line acquired in Nigeria in other West African countries without roaming call charges or having to pay to receive calls.

And it may be raised to the continental level.

This is different from existing international roaming all the operators currently offer.

Also, it is not the same as number portability that enables a subscriber retain his number on a given network if he moves to another network.

International roaming service attracts special rates and customers are surcharged for incoming calls.

Like the price slash going on, the aim of regional roaming is to attract more subscribers and retain them. Both MTN and Celtel are in on the act.

Though Celtel, which acquired Vmobile, is yet to react to the price war, it is the first to indicate that the next battle line is drawn on regional roaming.

Free roaming is already possible within Celtel’s East African networks.

Described as the first-ever borderless mobile network in the world, subscribers can make calls at local rates, receive calls free of charge and top-up pre-paid phones with locally-bought airtime cards.

Celtel’s prepaid customers may top up their accounts with airtime cards brought from home networks, whether in Kenya, Tanzania or Uganda.

Regional roaming, the One Network service, is automatically activated upon crossing into one of three countries. Prior registration is not required, likewise sign-up fee.

Celtel Marketing Director, Norman Moyo, said regional roaming would soon be extended to the Nigerian operation.

This may be part of the pricing and competition packages in the offing which the company may announce soon.

MTN would not be left out, its Group Chief Executive, Phuthma Nhleko, quickly riposted.

He confirmed at the weekend that the Nigerian operation is considering roaming and seamless movement of people within West Africa where subscribers do not have to change their number.

Beyond providing backbone for its services in Nigeria, MTN may be able to have, on a commercial basis, some level of resale of capacity to other operators, he added.

He recalled that MTN has put in huge investment into the Nigerian market to give the company its current lead role.

"We do not fear competition at all. In fact, competition stimulates the market; because with the other people, there is now increased penetration and far more traffic. This is good," Nhleko stated.

According to him, the over $300 million invested in the transmission network launched last week forms 10 per cent of total investment in Nigeria.

Without transmission backbone, "you are not going to have any amount of penetration of services you can have while maintaining a reasonable level of quality."

Two processes are at play in the acquisition of the shares of local owners of MTN.

"One is partly local partners that began coming with us as early as 2001. Some wanted to realise part of their investment after five years, which is not unusual.

"What we have also said is that as part of the process we would like to broaden the participation of Nigerians in MTN Nigeria, and there are a number of exercises and processes we are looking at. This helps as there are shares that can now be put into a larger process."

The Group has not decided on when to put MTN on the Nigerian Stock Exchange.

"The principle is, we want to do it and we shall do it; but we really have to apply our minds to how we are going to do it."