VISAFONE ACQUISITION: NCC stops MTN as Airtel, 9mobile oppose move

The Nigerian Communications Commission (NCC) on Monday stopped moves by South African mobile giant, MTN Group, to acquire the only surviving Code Division Multiple Access (CDMA) operator, Visafone.

In 2016, the MTN Group had announced its acquisition of Visafone Communications Limited following the signing of a deal by both companies.

NCC said for MTN to make the acquisition, the company should organise a public inquiry to enable stakeholders determine the future of Visafone in the overall interest of the industry.

Speaking at a stakeholders meeting at the NCC headquarters on Monday in Abuja, the Executive Vice Chairman of the NCC, Prof Umar Garba Danbatta, said the public inquiry is important in order for the stakeholders to make informed decision on the matter.

According to him, NCC under the law can take decision on the transfer of licence and resources, including the 800MHz Spectrum from Visafone Communications Limited to MTN Nigeria Communications Limited.

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“In order to reap the benefits of effective utilisation of spectrum as well as improve operational efficiency and regulatory excellence, the Commission in accordance with its mandate as enshrined in the Nigerian Communications Act NCA 2003 embarked on re-planning of some of its Frequency bands,” he said.

Meanwhile, the representatives of Airtel and 9mobile in the country opposed the plan to transfer the licence of Visafone to MTN, insisting that such move could create a monopoly for MTN in the industry while a lot of telecommunications companies could be permanently disadvantaged.

The Head of Regulatory Affairs of 9mobile, Chidozie Arinze, said spectrum is a scarce national resource which cannot be leased to only MTN at the detriment of other operators.

On his part, Airtel’s representative, Lucky Ubani, urged the commission not to allow MTN acquire the spectrum, he stressed that it could spell doom for the industry.

But, the Senior Manager, Regulatory Affairs and Corporate Relations, Johnson Oyewo, said the telecoms operators drew their conclusions based on presumptions and lack of data.

Oyewo noted that the desire for the acquisition was not driven by selfishness but to help the country achieve its 30 percent broadband coverage by end of 2018.

 

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