When Celtel launched in Uganda in the early 1990’s, it was free fall. The cellphone company as the pioneer had no competition. Their marketing department didn’t need to push so hard. Cellphones were the rich and elite to the point that for a long time all cellphones were called “celtels”. Come 2016 and the number of cellphone companies stands at over 7 all jostling for the 15 million Ugandans that can afford a mobile phone.
Promotions in the telecom industry are the game changer. Airtel unleashed “Yoola Amajja” two weeks ago, MTN has “kithuffu”, Africell is running on “Tokota” while Vodafone is throwing around free whatsapp’s. K2, Uganda Telecom and Smart on the other hand seem to be on a lull thriving on old promotions. The biggest competition seems to be among the top three-MTN, Africell and Airtel.
Creativity dies as prices fall
First to launch the “cash chamber” that Airtel unleashed two weeks ago under their new “Yoola Amajja” promo was Africell under their “kings of the bundle” campaign. With daily winnings of about 2m cash and a countrywide tour where they racked in millions of subscribers, the other telecoms picked heed, went back to their drawing boards and tasked marketing to counter the scheme.
Next was the 3shs per second pricing that was announced by MTN in October last year. This sent shivers down the other telecoms marketing departments. Airtel also announced the same pricing tag a week later before Africell, which has always positioned itself as the low cost mass market telecom threw a spanner in the works with a 0.5shs per second rate that was six times cheaper than their two biggest rivals. Not to be outdone, Vodafone announced free whatsapp for all their subscribers-who total about 100,000 while UTL brought on a new MD to change their dwindling fortunes.
Agencies overworked and brains hunted down
All the top three telecoms hired the services of creative, digital and PR agencies to take care of their brand communication needs. While MTN tasks South African owned Metropolitan Republic to oversee their brand image, Airtel settled for Kenya owned Scanad while Africell went in for locally owned Brand Vision. Artworks are churned out on a daily and creative meetings have become the order of the day as agencies work in overdrive keep their clients happy.
The overworked agencies are even poaching brains they believe are valuable to keep their telecom client brands in the lead. For example, Brand Vision took on renowned PR guru Steven Douglas Baryevuga to consult and give strategic direction on the Africell account with experience picked out of having worked at Scanad on the Airtel brand while Metropolitan Republic settled for Colin Asiimwe who was picked from Tonic-the Dubai agency that formerly handled a dying Aga Khan owned Smart telecom.
Who is gaining?
As the competition and battle for subscribers rages, customers are smiling while calling away. With rates as low as 0.5 shillings from Africell, free whatsapp from Vodafone, free cellphones from Africell on purchase of data, 99% discounts from MTN and free cash bonanzas from Airtel, it is happy times for the customers.
Airtel and Mtn led the charts in 2015 with a combined media expenditure of over 40bn
The other winners are media owners. With campaigns cropping up on a daily and full page spaces booked, tv slots being jostled for, call and win promotions, sponsorships of television programs and radio bookings, media houses are smiling all the way to the banks.
Also, service providers are minting money. Africell has from last year been doing countrywide activations with giant rig trucks under their king of the bundles campaign, distributing the cheapest simcards at just 500shs while owners of mobile trucks, dancers, Mc’s, hotels and printers make money from these promotions.
The year 2016 will also be an interesting one as the telecom battle takes shape. Some like Africell will have a good year with their affordable for all approach while Vodafone is not taking the data battle for granted. Pack leader MTN and closest rival Airtel are also expected to put up a relentless fight.