The Right Recipe for Profitability

Convergence has created multi-tasking IT companies, each cloning the other. With no clear distinction between service providers, it is important to have the right business model, in order to maintain profitability, in an increasingly competitive ICT space.

As an alternative provider, Suburban has been able to take advantage of the value created by convergence.  The company is made of multiple subsidiaries, each focused on different segments of the telecommunications value chain.

Suburban operates a Cost Center and Profit Center business model.  Support services such as corporate services, marketing, legal and finance are provided by the holding company, enabling the subsidiary units to reduce their overall costs and increase profitability. This lean management structure and integrated business model is a winning recipe for success for telecommunications both in emerging markets and globally.

Suburban is now actively exploring emerging markets other than Nigeria, such as Ghana, where we acquired a long distance operator, similar to our own Suburban Telecom.  This acquisition will enable us to expand our fibre network from Ghana back to Nigeria via Togo and Benin.  Suburban has an aggressive ambition for transforming the telecommunications space not only in Nigeria and West Africa, but in Europe with further network extensions into the rest of the globe.