NATCOMS urges NCC to transfer Visafone”s 800mhz Spectrum to MTN

The National Association of Telecommunications Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) to approve the transfer of Visafone licences and 800MHz spectrum to MTN for immediate deployment of services in the interest of telecom subscribers across the country. This was contained in a letter to the commission signed by the NATCOMS’ national president, […]

The National Association of Telecommunications Subscribers (NATCOMS) has urged the Nigerian Communications Commission (NCC) to approve the transfer of Visafone licences and 800MHz spectrum to MTN for immediate deployment of services in the interest of telecom subscribers across the country.

This was contained in a letter to the commission signed by the NATCOMS’ national president, Chief Adeolu Ogunbanjo, a copy of which was obtained by our reporter in Lagos.

The group said it backed MTN because telecommunications subscribers want good and qualitative telecommunications products and services adding that “only an operator that is willing to invest to support optimal deployment of the Visafone assets of 800mhz will be able to provide new and sustained services for telecom subscribers.”

“From a precedent perspective, there has been at least two previous similar transactions – in 2007, Visafone Communications Limited acquired the licenses and frequency spectrum of Independent Telephone Networks Limited, Bourdex Telecommunications Limited and Cellcom Limited, the commission duly approved the three acquisition transactions.

“Visafone then consolidated the assets and went on to roll out the largest CDMA network in Nigeria.

“Also in 2010, Emerging Markets Telecommunications Services Limited, (then trading as Etisalat and now 9mobile) acquired the 2100mhz frequency spectrum that had been assigned to Alheri Mobile Limited and proceeded to deploy same to provide 3G services. Again, the NCC approved these transactions.

“For consistency and the precedents that has been set and affirmed by the industry regulator, the NCC should assent to the transfer of Visafone assets to MTN, in order not to be seen as not setting a “level playing field and standards of predictability on matters relating to acquisitions in the industry,” it stated.

It further noted that “if MTN is untimately determined to be dominant under the process as prescribed by the NCC Competition Regulations, the international standards and best practices is for special obligations to be imposed on it to arrest any possible abuse/manipulation of the market by virtue of its position. Pending this occurrence, competition considerations should not in any way apply in determining MTN’s entitlement to the Visafone assets.”

“Putting it succinctly, and in order to ensure optimal deployment of the very valuable 800mhz, a willing investor should be encouraged to own same since the two companies have agreed. Optimal deployment will also go a long way towards the attainment of the penetration milestones stated in the National Broadband Plan of 2013, especially the 30% target for 2018.

“As presently seen, MTN has shown itself to be that investor and so deserves to be allowed the use of assets in issue,” the letter read.