Dangote Weighs Options for Alheri’s 3G License

Alheri Engineering, a subsidiary of the Dangote Group promoted by Aliko Dangote, billionaire businessman has laid a stack of cards on the table for its third generation technology (3G) license including outright sale, license farm out and/or partnership to safeguard the license awarded in March, 2007 for $150 million, Nigeria CommunicationsWeek can now reveal.
Dangote’s company is the only company yet to launch 3G services, almost 27 months after it got the license alongside Zain, Globacom and MTN Nigeria Communications.
3G refers to near future development in personal and business wireless technology and is an enabler of mobile communications, ushering in many benefits such as roaming capability, broad bandwidth and high speed communication upwards of 2Mbps.
The technology represents a shift from voice-centric services to multimedia oriented such as video, voice, data and fax services.
Though the Nigeria Communications Commission (NCC) did not impose roll out obligations on the licensees because of the huge implementation cost, one of the terms of the concession however stated that winners had to keep the public abreast of developments, and Alheri Engineering has done little of that.
Nigeria CommunicationsWeek gathered that Alheri is now weighing a number of options for its 3G license and has signed none disclosure agreements with three prospective suitors for the license.
Two of the suitors are telecommunications operators in the country but do not have 3G license, while the other is hoping to use the license as a springboard into the country’s lucrative telecom market.
Discussions with the suitors have reached advanced stage and might crystallize in possible outright sale, license farmout or partnership.
For outright sale, Alheri may consider an operator which can match MTN, Globacom and Zain for a reasonable sum. It is also weighing farmout agreement where the other party must operate for a certain period and then transfer back the license.
There is the possibility of Alheri trading under a brand name in partnership with a successful suitor.
However the deal swings at the end of the day, Alheri hopes to concentrate in the provision of long distance services.
Nigeria CommunicationsWeek also gathered that Alheri has Universal Access license and has started rolling out fibre optic network in collaboration with Phase 3 Telecom and PHCN.
Alheri and Phase 3 are jointly to create a ‘One Network’ of over 14, 000KM of aerially deployed fibre optics cables in Nigeria using PHCN power lines.
Elsewhere, Dancom Technologies, also a subsidiary of the Dangote Group has partnered with Huawei Technologies to construct a fibre optic network that will cover the eastern part of Nigeria.
As Alheri waits for its Universal Access license to kick into operations, Dangote Group and Globacom sealed a deal where the latter now becomes the sole telecoms service provider for the Dangote Group of Companies, one of Nigeria’s largest conglomerates with substantial interests in manufacturing, oil and importation.