M-Tel Business News

Brymedia West Africa Bids to Build Overland Fiber Cable (OFC) from Nigeria to Tunisia; Telecom Italia Indicates Interest in Landing Cable on Mainland Europe

Fiber Optic CableBrymedia West Africa, one of the firms bidding to take-over Nigeria’s NITEL and MTel is planning to build an overland fiber cable (OFC) from the Nigerian state of Katsina through to Tunisia.

The source said the overland fiber cable would pass through two countries instead of 13 countries. This will be achieved with the aid of tails to be laid into land-locked countries, such as Chad, Niger, Burkina Faso, and Mali.

Sources close to the project said that Telecom Italia, one of the biggest operators in Europe, has already indicated interest to land the overland fiber cable into mainland Europe.

The sources further disclosed that the proposed cable would outperform existing cables, like the SAT-3, and the upcoming Glo-1. The overland fiber cable is estimated to be half as expensive as SAT-3 or Glo-1, allowing savings to be passed on to customers via lower tariffs. Read the rest of this entry »

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Nigerian Operators Blocked from Buying NITEL Mobile Assets

NITELThe Nigerian government has decided that the country’s GSM network operators will not be allowed to buy the mobile assets of state-owned NITEL when it is eventually privatized. Although the government was originally looking to sell the company as a single entity, the government has now agreed to split the company into its component divisions and sell them separately.

Director-General of the Bureau of Public Enterprises (BPE), Dr. Christopher Anyanwu, said that the decision was based on the advice of the National Communications Commission (NCC).

The four GSM networks, MTN, Etisalat, Zain, and Globacom will be allowed to bid for NITEL’s land line assets, although Glo will only be allowed to bid for the CDMA and international gateway assets and licenses as it already holds a land line license. Read the rest of this entry »

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Transcorp Nigeria Loses Bid to Stop Resale of NITEL

Transcorp NigeriaA Federal High Court in Abuja on Thursday refused the request by Transcorp to stop the resale of 51% of NITEL and its mobile arm, M-Tel. Transcorp had initially acquired the shares, but the government revoked the sale amid allegations of mismanagement of the incumbent telco.

Defendants in the suit filed by Transcorp are the Bureau of Public Enterprises (BPE), Federal Attorney General, National Council on privatization (NCP), Finance Ministry, and seven members of the interim board of NITEL. Read the rest of this entry »

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Nigeria Says 13 Investors Interested in NITEL Privatization

NITELNigeria has received expressions of interest from 13 potential investors in the sale of, at least, 75% of NITEL, the former state telecommunications monopoly which it has been trying to privatize for years.

The Bureau for Public Enterprises (BPE) said it would evaluate interest from companies including the Nigerian arms of South Africa’s MTN and Emirates Telecommunications Corp (Etisalat), MTNL India, a group involving Spain’s Telefonica and Nigerian firm Globacom.

Nigeria, Africa’s most populous nation, is one of the world’s fastest growing mobile markets, adding 7 million new subscribers in the last quarter of 2008 alone, and has overtaken South Africa to become the biggest on the continent. That could make it attractive to foreign investors, particularly if NITEL’s M-TEL mobile unit can be bought at the right price. However, the Nigerian government has struggled to sell NITEL, largely because of the state of its fixed line infrastructure. Read the rest of this entry »

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Nigeria Sets Two-Month Deadline on NITEL (Nigeria Telecommunications) Privatization

NITELNigeria’s government has set a 60-day deadline for the privatization of the state-owned incumbent telco NITEL, including its mobile subsidiary M-Tel. The announcement came on Monday as the Nigerian Vice-President, Goodluck Jonathan, appointed a new board to the company to oversee its stabilization.

NITEL is in financial difficulty and faces intense competition. The firm’s employees have taken strike action this year over unpaid salaries and severance packages, with workers in some instances going without pay for eight months.

Local press reports quoted Goodluck Jonathan as telling the board: “There are a lot of issues at stake since NITEL is a critical infrastructure not only for government but for all Nigerians. Your task is, therefore, very challenging as all of us want to see how NITEL will be properly privatized to yield the expected benefits.” Read the rest of this entry »

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Etisalat Nigeria Passes One Million Subscriber Mark (+ Market Shares of Telecommunications Companies in Nigeria)

EtisalatEtisalat Nigeria, the country’s newest GSM mobile network operator, has announced that it has passed the one million subscriber mark – less than nine months after the company launched its services in Nigeria.

According to the CEO, Steven Evans, “The swift and steady growth in our subscriber numbers is an evidence of the acceptance we have enjoyed from our customers and the superior service quality we offer. We are delighted to have been able to hit such a figure under a year of commercial operations despite our position as the fifth entrant into the dynamic Nigerian telecoms market”.

Based on figures from the Mobile World, at the end of Q1, the market shares for the operators in Nigeria were:

Of the country’s CDMA networks, their respective market shares are:

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NITEL Sale to Transcorp Suspended

Nigerian newspaper Vanguard reports that the federal government of Nigeria has deferred the sale of the country’s incumbent telco NITEL and its mobile arm M-Tel, opting instead to introduce a project team charged with bringing the two back to life before they are sold to a new core investor. Additionally, Lagos-based Daily Independent writes that the chairman of the technical management board of NITEL, Alhaji Abubakar Mohammed, has tasked the staff of the company and its wireless unit to ensure their networks are in operation within ten weeks. Staff have called upon the technical board to address the problem of funding, theft, and vandalisation of equipment as well as the payment of outstanding salaries.

According to TeleGeography’s GlobalComms database, the federal government sold its 51% stake in NITEL to local company Transcorp for USD750 million in November 2006, retaining a 49% interest. Since then the telco’s initial 500,000 fixed lines in service have dropped to about 45,000; its workforce has declined from 12,000 to just 2,000; and the company is USD500 million in debt. In February 2009, Transcorp agreed to divest part of its shareholding in the telco and in late March the Bureau of Public Enterprises (BPE) announced it was offering a 51% stake in the fixed line operator and 100% of its mobile unit. In late May Nigeria’s anti-corruption police charged the head of Transcorp and two other employees with fraud for embezzling around USD110 million belonging to NITEL and the following week the government revoked the sale of NITEL to Transcorp.

Visit Transcorp’s website …

From TeleGeography

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Zain Nigeria Signs Contract with Ericsson for Managed Services

ZainMobile operator, Zain, and Ericsson have entered a five-year strategic managed services agreement under which Ericsson will operate Zain’s nationwide GSM/WCDMA networks in Nigeria. Under the agreement, Ericsson will be responsible for the network operations, field operations, including optimisation, third-party vendor management for Zain’s GSM/WCDMA networks, and business support systems.

Ericsson will serve more than 4,000 sites across Nigeria on behalf of Zain. As part of the agreement, about 450 employees will be transferred, under their existing terms and conditions of service, from Zain to Ericsson, where they will undergo further training in the latest wireless technologies.

The contract gives Ericsson its first major managed services footprint in Africa, and reflects its continued focus on high-growth markets, where most subscriber growth is expected to take place during the next five years.

EricssonLars Lindén, President, Ericsson Sub-Saharan Africa, says the agreement will deliver significant financial and operational efficiencies for Zain over the five-year term. “Managed services is one of the fastest-growing areas in telecoms and Nigeria is demonstrating strong growth and increased levels of investment and competition,” he says. “The synergies between the two companies will ensure best-in-class network stability and market support.” Read the rest of this entry »

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