Former Virgin Mobile SA (VMSA) CEO Steve Bailey says he is looking forward to “seeing things from the other side” as he takes up the role of chief commercial officer at Nigeria's second biggest mobile operator, Glo Nigeria.
Bailey stepped down after three-and-a-half years as CEO at VMSA, following the shareholder dilution of the company, announced last week, in which Africa's first and only mobile virtual network operator (MVNO) partnered with Dubai-based MVNO, the Friendi Group.
On Wednesday, Bailey will head to his new home in Nigeria to head up Glo Nigeria's sales and marketing division. Globacom (Glo), owned by the Mike Adenuga Group, is the second-largest mobile service provider in Nigeria, after MTN.
The telecommunications company has over 25 million subscribers, almost a third of the country's total mobile phones in use (90 million). In the top 10 most densely populated countries in the world, Nigeria has a population of about 140 million people and a cellphone penetration of 60%. Nigeria also features in the top 10 in terms of mobile phones in use, globally.
Turned tables
Bailey says the transition of going from being a small player in SA's hugely competitive mobile market (VMSA has a subscriber base of 360 000) - to being “a big player with the smaller ones trying to catch up” - will be interesting and he looks forward to the challenge. “While VMSA is relatively big - in terms of an MVNO - I will have to wear another hat now, being part of a company that is so big and established.”
Bailey feels he is leaving his former company with the sound knowledge that it has a good foundation. “I brought the company from a loss-making to a break-even business - even though we had limited resources. When Virgin Mobile started out in 2006 it had just 60 000 subscribers. Now there are 250 000 postpaid subscribers - which is good considering it is a niche business.”
He says he sees a bright future for VMSA in its new partnership, which will have “a fresh pair of eyes” and a good foundation to work from.
In terms of his new venture, Bailey says the African market is alive with possibilities. “The telecoms industry in SA is saturated and Nigeria is part of a rapidly growing African industry. So, from a professional point of view, I believe it is a good move to make.”
Nigeria's mobile operator market share is divided between MTN, Glo Nigeria, Airtel and Etisalat - with MTN and Glo Nigeria enjoying the lion's share.
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