Essay about African Communications Group

Satisfactory Essays
Strategy Assignment 1 – African Communications Group

Business Case Projections
The business case presented focuses on insatiable demand amongst a growing population for a service built on dilapidated, poorly maintained infrastructure, against a backdrop of government deregulation in the telecoms sector. As of 1992, there were a mere 78k telephone lines for the 27m people living in 4.7m households (a population set to double over the coming 24 years), with users suffering success rates of just 25%. Demand was forecast to grow to 500k subscribers by 1996. The recent deregulation of the telecoms sector (via the break-up of TPTC into TPC and TTCL) and the formation of a regulator (TCC) had
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| * Card phones * Activated by a pre-programmed card for the holder making calls lasting a specific number of minutes * Paging and voice mail services * Allowed subscribers to receive and leave messages for other subscribers * New telecom infrastructure using radio transmission between outstations and central platform * Central platform routed calls to TTCL, which would direct calls to local, long-distance and international. TTCL levy a charge for directing each call | How? | * Card phones installed in public areas, where were carefully chosen to maximize phone usage * Organized a large multi-media campaign for pay-phone launch with public demos * Retail dukas could sell the cards at 14% margin * Set competitive pricing, 50% lower than most of the other service providers * Trained technicians to provide quality services and recruited professionals to better manage the company * Selected durable equipment and replaced them in 5 years to ensure quality |

Evaluation of Choices Choices | Evaluations | Tanzania / Dar es Salaam | * Politically stable, high telecom demand, 8-year tax exemption, telecom licenses in issuance * 80% phone lines and 71% payphone users concentrated in Dar es Salaam | Public payphones | * Private phones and mobile phones were hardly affordable by most people * Fit for highly mobile people like couriers, truckers, travellers * Coin-phones (mostly defectively)
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