Celtel

1. What are the challenges in serving the rural consumers

● 65% of the population in Nigeria was poor and lived in Rural areas making it crucial to
tap the Rural Markets.
● To protect base stations from theft and vandalism, security guards were required to be
employed resulting in additional costs
● Handset ownership was very less among the Nigerian Rural and hence it was also a
vital factor
● The absence of a reliable national electricity grid meant high fuel and maintenance cost
for the company
● Lack of availability of a proper distribution network in the rural areas/ countryside
resulting in higher purchasing costs for the end users
● Often considered as an expensive necessity, affordability of cellphones remained an
issue
● Rural areas would also opt for low recharge values and hence the potential for revenue
generation would be hindered
● The land clearance from authorities and tribal leaders were big red tap mechanism
leading to delays and issues
● Purpose of cellphone usage was very different in rural areas with only 49% using it for
personal purposes