Nigerian subscribers and industry associations have urged the Nigerian Communications Commission (NCC) to allow MTN take over the operating license and frequency spectrum of Visafone’s Code Division Multiple Access (CDMA) operator.
This is coming as Airtel and 9mobile, opposed the transfer of the 800MHz from Visafone Communications to MTN Nigeria, arguing that transferring the spectrum to MTN could result in a monopoly.
Recall that following the acquisition of 100 per cent equity of Visafone by MTN in 2015, Visafone had applied to the regulatory agency for the transfer of its frequency and licence to MTN.
Although the Nigerian Communications Commission (NCC) had approved the acquisition deal, it has yet to approve the transfer of the frequency and licence to MTN.
The 9mobile went to court to challenge the transfer of the frequency to MTN.
A public forum on the matter was held in Abuja, earlier this week to discuss the viability of MTN’s takeover of Visafone license and frequency in the 800MHz.
NCC is yet to make final decision on the matter.
But Chief Deolu Ogunbanjo, president, National Association of Telecoms Subscribers of Nigeria (NATCOMS), insisted that “If MTN can pay the bill, the transaction should be allowed.
“Since MTN is willing, all that would be needed would be for NCC to regulate and monitor the industry critically to avoid any abuse.” Ogunbanjo, added.
Nodding in agreement, Gbenga Adebayo, chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), said that allowing MTN to acquire the license would further fuel the meeting of the 30 per cent broadband penetration target set by the Federal Government for this year.
Adebayo said that currently the industry requires consistent investment.
“As you are aware, currently, not many investors are able and willing to invest in Nigeria at this time, going by current social economic situation and the issue of recession.
FDI into the sector has been slow since the beginning of the year. Our view is that anybody who is willing to invest in this economy should be encouraged.
So, if MTN showed interest in acquiring Visafone, it should be given all the right and privileges’ associated with the acquisition and allowed use of both license and spectrum.”
Elsewhere, Association of Telecommunications Companies of Nigeria (ATCON), said the association believed that any acquisition of asset by one company licensed by NCC of another company licensed by the same regulator should follow the NCA 2003 Act to the fullest, which also state the terms and conditions for the transfer of licenses.
Olusola Teniola, president, said in the case of MTN and Visafone, the latter agreed to sell not only its shares but assets and liabilities, and every other things to the former.
“MTN has entered into a contractual and legal understanding that they will acquire 100 per cent of Visafone, which includes its customers, licenses and other assets and liabilities.
Though, we know that MTN has now obtained 700MHz from National Broadcasting Commission; 2.6GHz from NCC, it also acquired other companies, including VGC Communications in the past, therefore this transaction cannot be treated differently from past precedents set.