Etisalat challenges NCC over MTN, Visafone deal

Telecommunications operator, Etisalat says the Nigerian Communications Commission (NCC) was wrong to approve the acquisition of Visafone, a Code Division Multiple Access (CDMA) operator, by MTN Nigeria, a Global System for Mobile Communications (GSM) operator.

Etisalat contests, that the deal would give MTN undue advantage, and dominance over other GSM operators, especially in MTN’s use of Visafone’s 800 MHz spectrum in rolling out its broadband services.

The company has therefore instituted legal action against MTN Nigeria and Visafone Ltd., challenging MTN’s use of the 800 MHz spectrum following the acquisition of Visafone.

Etisalat also insists that NCC gave approval to the MTN, Visafone deal in error, and called on the regulator to to reverse the sale.

Etisalat in a statement said the action was considered necessary to prevent the use of the spectrum by MTN at this time, as it would entrench the dominance of MTN in the retail data services market.

Read also: MTN, Visafone deal: Concerns over an emerging monopoly

This is because MTN Nigeria was declared dominant by the NCC in 2013 and remains dominant in the wholesale leased line and retail voice markets,

According to the statement, “the use of the 800 MHz spectrum to deploy broadband services ahead of its competitors, particularly those who prior to MTN’s purchase of Visafone, held similar spectrum bands as MTN, will further entrench MTN’s dominance in the Nigerian telecommunications sector.

“We have in addition and in line with Section 86 of the Nigerian Communications Act, 2003 engaged the NCC to understand the basis of its decision to approve the acquisition”, the statement further said.

 

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