Nigerian-based conglomerate Transnational (Transcorp) has acquired Nigerian Telecommunications (Nitel) and its subsidiary mobile telecom operator, Mtel, for $750 million.
The deal signifies a milestone in the privatisation process of the dominant fixed-line operator, Nitel, says Transcorp corporate communications officer Adedayo Ojo.
He says the telecom operator has control of 77% of the total market share in Nigeria, with a presence in all 36 states. In addition, Transcorp takes on Mtel`s one million subscribers.
"Through the ownership and transformation of Nitel and its subsidiary, we believe we can create ubiquitous telecom coverage for the Nigerian population."
There are about 19 million telephony subscribers in a potential addressable market base of between 30 million and 50 million, says Ojo. "There is huge potential growth in the market."
BT mentors
According to a statement released by the company, Transcorp will spend up to $1 billion in the next two years to increase Nitel`s capacity and growth.
Transcorp intends to turn Nitel into a more effective and efficient provider in the wireless, broadband, video, voice and data markets, says Ojo.
Transcorp has entered into a memorandum of understanding with British Telecom (BT) to utilise its services in the management and operation of Nitel during the turnaround, says Ojo.
The company has chosen BT because of its experience with setting up the type of telecoms infrastructure envisaged for Nitel.
BT will also be able to advise Transcorp on how to implement a smooth privatisation process. "BT went through a similar privatisation process in 1984 and has grown from strength to strength since then," Ojo comments.
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