SWOT Analysis

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Lead in broadband provision will be attained with the three guiding principles of affordability, accessibility and reliability. As the business type is infrastructure management, which form most part of our key resources and also constitute most of the cost structure and key activities.

The idea of choosing broadband becomes eminent as this entire infrastructure can easily help Gamtel realize a lot of value through ACE and the NGN. We therefore discuss this on section 4.8 of this chapter to elaborate on the reason for broadband.

4.7. SWOT Analysis

Apart from the general telecom industry, it is important to scale the strength and opportunities Gamtel as a company have in the broadband sub segment that will help it to be more productive and know what kind of strategies to apply and also the weaknesses and threat pose by some internal factors and competition in the more external environment in the midst of five competitors.

The figure below shows the SWOT analysis of Gamtel in the telecommunication market and broadband in particular.

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 Experienced and talent work force

 Existing infrastructure

- internet backbone on an IP-MPLS network - fiber optic network (most safe and secure

broadband connection)

 Strong brand and large distribution network.

 No competition on the fixed broadband – DSL, leased lines VPN and fiber

 Good relation with suppliers of data CPEs and equipment

 NGN network on the verge of finishing

 Over staff

 Oversight of talent utilization for broadband skills

 Low cash flow

 Limited mobility and coverage

 High rate of skilled labour turnover

 Too much bureaucracy

 Lack of sense of priority on projects

 Management skills deficiency (mostly technically oriented)

Opportunities Threat

 Development partners support - ECOWAN, World Bank, ITU etc.

 Good relation with equipment suppliers and manufacturers like Huawei and Alcatel

 ACE submarine cable (one of the biggest opportunity)

 Increasing need for new technology especially data related by consumers.

 High inflow of used computers and accessories

 Government tax incentive especially on universal access

 Possible argument on ACE management within the country. ( who controls the international call termination)

 Government interference and influence

 National and international economic situation

 Frequent fiber cut

 Unhealthy competition leading to price war and low average return per user

 Influence of grant providers (fund) World Bank, ADB and ITU

 Regulation

 Greener pasture Figure 4: SWOT on telecoms and broadband for Gamtel

ECOWAN is a project for the West African region ECOWAS to help facilitate the connection of all capitals and cities on broadband in the region.

Strength: Gamtel continue to train its employees on both existing and new technologies as and when required to be able to man and manage the network and its associated peripherals especially on its soft switches that tries integrate and help old and new technology integration and compatibility very easy. Strong national backbone running on an IP-MPLS network and the still monopoly of the fixed line network for fiber, leased lines and DSL services which can guarantee more stability in connection than any other medium. Next generation network

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(NGN) gives the opportunity for the provision of many service including, voice, data, video and IP-TV.

Weaknesses: Too many staff as a state own enterprise. This was also highlighted on an interview with the CFO of the company, raising the concern that Gamtel spend too much on staff salaries, allowances, medical schemes and overheads; until we can control that it will be difficult to maintain a healthy cash flow said the CFO. As a state own enterprise bureaucracy becomes the order of the day with little attention on what projects to prioritize to which government consent is needed.

Opportunities: Great opportunities as the develop world and the development agencies focuses their attention to the development and affordability of broadband internet in the world and to the developing world in particular. Gamtel being a national company and most development agencies work with government stands a better chance to gain and develop its broadband. Such is manifested by the ECOWAN project and the World Bank grant for the ACE project. This with increasing changing need of individuals towards faster and more reliable broadband service and the influx of more used electronic device that utilizes broadband like computers and mobiles is a real opportunity that not only Gamtel will grab.

Threats: Possible misunderstanding among members of the ACE consortium, the Gambia Submarine Cable, could lead delay in realizing the benefit ACE in the provision of broadband speed and reliability (see detail of ACE structure and respective connections in appendix 1).

Government interference is the most visible threat for Gamtel and the state of the economy as it is affected by the current world economic recession. Frequent fiber cut as it used to be and unhealthy rivalry and price war among competitors could lead to possible low average return per subscriber. Depending on donor agencies means sacrificing your independence to operate freely. There is going to be some form of influence on projects operation as some of Gamtel project could be finance by government through donor funding and grants.

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