Texting (sending/receiving SMS) has become mainstream in Nigeria.

In June 2005, Mobile Africa published an article in which Mr. Tayo Ajakaye raised issues (and some very valid ones too) about the quality of value added services being provided by GSM network operators (see: Value Added Services: Who Uses Them?

I followed that article with a rejoinder, RE: Value Added Services: Who Uses Them?, in which I faulted Mr. Ajakaiye’s argument, though I agreed with him that quality of service needed (and gasp – still needs) improvement.

Who uses value added services? Let’s look at two popular ones: Mobile Internet and SMS.

Mobile Internet
Let’s take WAP (mobile internet): Opera’s State of the Mobile Web report for 2008 says that Nigeria was the 2nd fastest growing mobile internet community in the period under review (with 1854% growth), and is currently globally number 12 on the mobile internet usage scale.

An incredibly large number of Nigerians must be using value added services. As far back as 2006, the BBC had reported that in July of that year, 61% of its international traffic from mobile devices (a whopping 13.2 million page views in one month alone) was from Nigeria.

SMS
Let’s not go there. The SMS market is so rich today that there’s no point flogging the statistics. TV reality shows run interactive SMS campaigns, businesses and non-profit organisations use SMS notifications to reach their target audiences, and there are already interactive SMS applications deployed for instance in banking, financial, and web hosting services.

An incredibly huge amount of Nigerians have been using value added services for years.

Are these services perfect yet? Dream on. It is a long road ahead, but warts and all, value added services by GSM (and CDMA) operators have made a huge difference in the Nigeria before GSM and Nigeria after GSM.

Mobile value added services are here to stay.

Two weeks ago, carrier Multi-Links Telecommunications flipped the switch on a new cell phone network in Lagos, Nigeria, that’s capable of handling hundreds of thousands of more calls at a time than existing cell networks and of downloading e-mails or Web pages at dial-up modem speeds.

And in about three months, Nigerian carrier Rel-Tel will introduce a similar next-generation cell phone service not just to Lagos, but to other parts of the country. Starcomms, another Nigerian carrier, plans to have a similar network in place by year’s end.

Network-equipment seller Nortel Networks, which is supplying Multi-Links with network gear, and Ericsson, which won the Rel-Tel contract, see huge potential in Africa. Less than 10 percent of the population of even the most technologically developed countries has telephone service of any kind. In Nigeria, the figure is less than half of 1 percent.

That translates into hundreds of millions of potential customers. And although trying to sell mobile phones to people who don’t even have old-fashioned landline models might seem like folly, business and infrastructure concerns may give cellular the edge.

Of the two kinds of telephones–traditional landline and cell phones–the wireless variety appears to be a bigger business in Africa, according to Ericsson spokesman Per Altan. The Swedish telephone equipment giant supplies network gear and cell phones to carriers in 30 African nations, and landline phone equipment to carriers in only 20 nations, he said.

The reasons are both economic and regulatory. It’s cheaper for a carrier to lay down a few miles of cable to a base station filled with cellular antennas than to string traditional phone lines to every house and business. Also, the landline phone business in Africa is a near monopoly, with each country having usually just one carrier. Although governments aren’t letting rival landline phone companies in to do business, they are giving licenses to cell phone providers, said Stephan Beckert, research director for market analysis firm TeleGeography.

That means cell phones may indeed win out in the long run. In Morocco, for example, there are already 4.8 million cell phone users among a population of 29 million–four times the number of fixed-line phone users, according to statistics provided by TeleGeography.

But just as in China, a huge untapped population doesn’t necessarily mean instant jackpot-size revenue for phone sellers, Beckert said. Poverty is certainly one of the biggest obstacles keeping phones out of Africa’s hands.

“Look at how many (customers) are in China, then look at the average income,” Beckert said. “You’re seeing factory workers making 60 cents per day. They aren’t going to buy cell phones anytime soon.”

By Ben Charny; Staff Writer, CNET News.com

However, that article gives the impression that the right thing for those operators to do is to ignore value-added services altogether until they are in a better position to make them work right. I may be wrong on that impression, and stand to be corrected, but I am of the opinion that there is a better approach. Permit me to comment on a few things touched in that article, as someone who has used a number of those services regularly for years.

Mr Ajakaye says, During the early stages of its operation in Nigeria, MTN in collaboration with a IT solution provider launched the Wireless Application Protocol (WAP). The service did not really fly. Not many people could perform the smallest task online, like checking e-mail, through the system. The fault might not be that of the telecom operator.

It just is not true that not many people could use MTN’s WAP and CSD platform. It was (and still is) rather a case of many people not being able to afford to use it. The tariff was (and still is) madness, in my opinion. However, I used it consistently, browsing WAP and managing my office mails at home and on the move. As a matter of fact, MTN’s CSD service is one value-added service that was (and still is) more reliable than the core services of many ISPs in Nigeria that I know of.

Mr Ajakaye further says, What Okoruwa did not include is that the problem might be with the inefficent way these VAS are offered in Nigeria. And after trying one out with money gone and no results found, Nigerian subscribers are learning to restrict themselves to just the basic use of the phone as much as they could.

Inefficient service delivery is not news to Nigerians, and so Value-added services should not be singled out when this is concerned. Many institutions and sectors are inefficient in the delivery of both their core areas of competence and value-added services: banks, insurance companies, ISPs, press and media organisations, religious organisations. It has been a general problem our society needs to address.

For example, when VSAT and other internet access technologies were first introduced to Nigeria, those of us who are in the know can attest to the fact that internet access inefficiently delivered to end-users. Terribly long downtimes were (and in a number of cases, still are) the order of the day. Internet access is not a value-added service for ISPs, who were licensed for that purpose, yet they delivered poorly. We did not condemn internet access in Nigeria to the graveyard because of those experiences. Today, things are slightly better. I submit that service delivery of value-added services will get better with time, with experience, and as competition grows.

Like I mentioned earlier, I have tasted of the bitterness of disappointment from some of these operators, but I must admit that my life and work has had real value added to them because those services exist at all. That’s why I say, Let the show go on.

I liken this issue of value-added services (and all modern services in general) to the relationship called marriage. In the early years, those involved may have to do a lot of shaving off the rough edges of each other, and with some tolerance, balanced confrontation and determination to make things work, the relationship not only lasts but gets better… and better… and better.

Mr Ajakaye wrote, A telecom consultant who spoke with THISDAY on phone Tuesday night said “I cannot immediately think of one that has added value to what service.”

If THISDAY had spoken with me, they would have had a different answer. I have a fast-growing list of a number of people who are able to work better, more efficiently and more conveniently as a result of the value-added services on both GSM and CDMA networks in Nigeria. These crop of people see an opportunity and are taking advantage of it daily. And that, I believe, answers the all-important question that Mr Ajakaye asked, “Who uses them?”