NEW OPPORTUNITIES WITHIN MOBILE TELEPHONY CONGOLESE MARKET The mobile telephony market in D.R. Congo has just been endowed with a sixth private telecommunication company AFRICELL after Airtel, Vodacom, Tigo, CCT and Supercell. AFRICELL D.R.C. is a subsidiary company of the Lebanese group Lintel Holding; it is amongst the four companies (the three others being Airtel, Oasis and Vodacom) that bought 3G licence by spending each one USD 15 million. We are focusing on assessing its chances of success in D.R.Congo, the Congolese market attractiveness towards other new telecom companies, attitude of current telecom companies face to new entrants and the best strategy to develop by a new telecom company in the Congolese market. AFRICELL success will widely depend on resources to mobilize AFRICELL will be increasing its chances of success within Congolese market depending on its capability to mobilize great financial, human and equipment resources. To really compete with telecom companies such as Airtel and Vodacom that already have millions of subscribers well established throughout the main DRC cities as well as amongst main centers of people and production (especially mining), it will require to invest great money. The state of disrepair of road infrastructures and the quasi-permanent use of generators for electricity supply of antennas/pylons make the dispatch and exploitation cost in D.R.Congo even more expensive. It will be the matter of mobilizing about hundred millions of dollars to take advantage of the Congolese market opportunities that present a weak market penetration rate (about 17%) with an estimate of 11 millions of regular subscribers in 2011 according to ARPTC (Regulatory Authority of Post and Telecom in Congo) over a total amount of 70 millions of inhabitants. There is still enough room for other new mobile telecom companies in D.R.Congo The Congolese market presents interesting opportunities for new mobile telecom companies. Apart from the weak market penetration rate of mobile telephony in D.R.Congo (about 17%), current telecom companies have difficulties to secure the loyalty of their subscribers and this is clearly revealed through the increasing complaints related to poor quality of services (network interference, difficulties to recharge credit, sometimes inaudible conversation, connection problems…). Mr. Tryphon Kin-Kiey Mulumba, Minister of Post and Telecom, New Technologies of Information and Communication (PT – NTIC) recently gave a formal notice to Airtel and Vodacom regarding poor quality of services; this is to clearly illustrate the current Congolese subscribers’ dissatisfaction with mobile telephony. In the event that a new telecom company could propose service of better quality to Congolese people with a good coverage over D.R.Congo, it will then have great chance of succeeding in snatching from the current telecom companies a great numbers of displeased and dissatisfied subscribers (and note that they are plenty of them amongst Airtel, CCT-Orange, Tigo and Vodacom subscribers). This has already occurred in 2000 at the launching of Celtel that literally snatched CWN GSM and Telecel subscribers. In a short time, Celtel was above 100,000 subscribers and yearly forecasting of Celtel turnover was widely exceeded for the first year while CWN GSM and Telecel started progressively losing their significance in the market. The current telecom companies, namely Airtel, CCT-Orange, Tigo and Vodacom should be worried about the launching of new companies such as AFRICELL Obviously a new telecom company cannot make up for lost time regarding national territory coverage overnight. This might take a lot of time and money to rank with Airtel and Vodacom in terms of DRC coverage. However, any company that is run in DRC should be worried about the issue of succeeding in maintaining its subscribers’ loyalty and if it has really created a true emotional relationship with its subscribers. If customers are using a network for want of anything better, the latter will live with a feeling of frustration so that at the first occasion they will get rid of the SIM card. Whatsoever the telecom company may do (advertisement, promotions, reduced rates…); customers would prefer experiencing their new telecom company. The Current telecom companies such as Airtel, CCT-Orange, Tigo and Vodacom would be well-advised to put themselves into maintaining loyalty of their current subscribers and resolve the sources of their subscribers’ complaints and dissatisfactions. This is the best way of protecting from any new entrant into the market and securing their current market share. Territorial approach as launching strategy into the Congolese market Unless tremendous means are raised in order to set up as soon as possible a good network throughout the country, the new telecom company should use a geographical approach to launch its activities in D.R.Congo, i.e. to focus at first on one province or a part of Congolese territory, well establish the network in that territory and implement an aggressive and effective Marketing to draw the current customers. After being firmly consolidated into this first territory it can now extend over other territories of the country. In terms of offer, all the current telecom companies tend to propose the same services and innovations (Internet 3G, mobile money, Blackberry promotion…). To be a true customer-catching, the new telecom company should display a lot of ingenuity, imagination and innovation. Market research towards current and potential customers of mobile telephony (satisfaction survey, perception of telecom companies, motivational research or consumer insights…) can provide new telecom companies with tools which can help them develop a better launching strategy in D.R.Congo. It will be very careful not to join the queue or bring, in the event of multinational, products or services that are working in other countries. To succeed in Congo, it is a must to first of all control the local context and adapt one’s offer. This analysis was also published in a Congolese website (Mediacongo.net). Click here to accede to the article...