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Internet boom ahead, set to drive development skyward

The national operator has brought in the big guns in an ambitious bid to recover former prestige

Gambians can’t get enough of modern communications and are behind a soaring demand for new services

If there is one thing that Neneh Macdouall-Gaye, Michael Tenn (INTERVIEW) and Rein Zwolsman (INTERVIEW) have in common it is the belief that telecommunications will play a pivotal part in the development of The Gambia, and that Gambians are hungry for connectivity. Neneh Macdouall-Gaye, Secretary of State for Communications, Information and Technology, a new state department set up by President Jammeh to oversee the sector’s growth, calls it “a catalyst for development, underpinning the growth of all sectors, social or economic, public or private.”

“The power of ICT as an engine of growth cannot be stopped and delaying it only puts us at the back of the global race. ICT is critical for competitiveness just as the combustion engine was during the industrial revolution, when the countries that embraced it are recognized today as the developed world,” says the Secretary.

Rein Zwolsman, who heads up the finance department for the national operator GAMTEL, says there is a huge demand for Internet connection in the country, and although rates are reasonable, it really wouldn’t matter. Gambians are determined to have access, and this can mean only one thing – there is an Internet boom on the horizon, and one that is going to propel economic development in a way that has not been witnessed before.

“There is a huge demand for CDMA, which allows people to get online. Computers are getting cheaper by the day. There is high potential demand, and rates are not very high so it is affordable to a lot of people. Of course, the amount of money people spend is not the same but people are able to find the money to make those calls, one way or the other, because it increases the quality of their lives, even if they are small farmers. If they want to sell their product, they need to know what the market price is. There is always a demand for information. The moment that people can access the information they need from other places, their income and the quality of their lives will increase,” he says.

Michael Tenn
CEO of GAMTEL
INTERVIEW

Consequently, the correlation between income, revenue and telecommunication density is a straight line, according to Zwolsman, who adds, “Everywhere on the continent, tele-density is rising. People need to access this information and they are prepared to pay for it.”

Michael Tenn, GAMTEL’s CEO and also head of Spectrum International, a Beirut-based telecommunications giant which bought 50% of GAMTEL last year, says that strong telecoms infrastructure also benefits development by creating a better environment for investors.

He remarks, “Telecommunication is surely a main driver for any economy and it’s a key indicator of its growth. The better telecom infrastructure you have and the better services you provide encourage investors to come in, as this is a main necessity nowadays. It facilitates their establishment and operation within the country.”

For this reason, Spectrum’s participation in GAMTEL was one of the most newsworthy events of 2007 in the country. Indicative of the government’s emphasis on the importance of ICT development, the move was intended to bring GAMTEL up to international standards, and to improve accessibility throughout the country. It followed on the heels of the outsourcing of the company’s management to Detecon International, one of the world’s top consulting firms for management and technology and a subsidiary of T-Mobile, Deutsche Telekom’s cellular arm.

“The government made the decision to liberalize and divest 50% of the company, and to outsource the top management to a reputable company. Detecon are experts in managing telecom companies. It is a big company with offices in Johannesburg, South Africa and Sydney, Australia, which are run by highly recruited teams of leading consultants and software and telecom engineers. Detecon is active in many African countries either as consultants or managers. Here at GAMTEL, we have the responsibility to run the company for the next two years,” explains Zwolsman.

The injection of new capital and new know-how came at an opportune time for GAMTEL. The company, which once enjoyed regional prominence, had begun to suffer from its incumbent status. As the sector liberalized, it lost ground to newer companies entering the market. This is a trend that CEO Michael Tenn plans to put an end to.

He states, “GAMTEL is a key company in the country. Years back, it was known to be the number one in the region. We do not want to brag much about a success until we have credibility behind it. When we tell the customer that we are going to provide them good services, it means we are committed and ready to answer to their needs. When we say that we will gain market share that means I can back it up with real facts and figures. We are housecleaning first, getting things in shape, then we will get our message across loud and clear.”