Competition calling
Globacom’s interest, reported in ThisDay in Nigeria, is bad news for Telkom. Though Telkom opted out of the bidding process for the operator late last year, it remains interested in the asset.
Nitel offers a footing in the competitive mobile market through its M-Tel mobile operation. Globacom already operates in this field through Glo Mobile, the second-biggest mobile service in Nigeria after SA’s MTN.
Globacom chairman Mike Adenuga is reported to have written to government expressing his interest in taking control.
He argues that Globacom "will change the fortunes of the loss-making Nitel to profitability" and that it will "use the synergies of investments by the two companies to bring world-class telecommunication services to Nigerians at affordable tariffs".
But Globacom’s efforts could come unstuck. A spokesman for Nigeria’s Bureau of Public Enterprises told the newspaper he doubted Globacom would be able to take over its rival as the Nigerian Communications Commission had made it clear that no operator would be allowed to have two mobile licences.
This view could change if the government becomes desperate to sell.
This is the third time that Nitel has been put on the block.
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