- MTN has liquidated Visafone, recognizing a loss of ₦30.3 billion ($18 million) on its 2016 acquisition of the CDMA network.
- The acquisition aimed to improve MTN’s broadband internet services by acquiring Visafone’s 800MHz spectrum licenses, but the transfer was met with resistance from the Nigerian Communications Commission (NCC) and competitors.
- The acquisition was ultimately unsuccessful, highlighting the complex regulatory landscape and competitive dynamics within the Nigerian telecommunications market.
MTN Nigeria has officially liquidated Visafone, the last remaining CDMA network in Nigeria. The move concludes a chapter that began with MTN’s ₦30.3 billion acquisition in 2016, a deal that was ultimately marked by challenges and a struggle to realize its full potential.
MTN’s acquisition of Visafone was driven by its desire to expand its broadband internet services, with its sights set on Visafone’s coveted 800MHz spectrum licenses. However, the transfer of these licenses faced significant hurdles, with the Nigerian Communications Commission (NCC) proving hesitant and competitors Airtel and 9mobile voicing concerns over MTN’s growing dominance.
Despite these obstacles, MTN persevered, driven by the need to compete with Globacom, which had launched 4G LTE services in 2016. The acquisition proved to be a complex endeavor, involving years of regulatory wrangling and ultimately leading to a loss for MTN.
While the Visafone acquisition did not yield the anticipated results, it serves as a reminder of the evolving landscape of the Nigerian telecommunications market and the complexities of acquiring spectrum licenses in a competitive environment.
What you should know
Visafone was a Nigerian telecommunications company that operated a CDMA (Code Division Multiple Access) network, providing mobile voice and data services to customers across the country. It was founded in 2008 and quickly gained popularity, becoming a significant player in the Nigerian mobile market.
Visafone was known for its robust network coverage and its focus on providing affordable communication services. It was particularly successful in reaching rural areas where other networks had limited coverage.
In 2016, MTN Nigeria, the largest mobile operator in Nigeria, acquired Visafone, aiming to leverage its 800MHz spectrum licenses for broadband internet expansion. However, the transfer of these licenses faced significant hurdles, leading to years of complications and ultimately, the decision to liquidate the company.
Although Visafone’s journey ended in a merger, it played a significant role in expanding communication access in Nigeria and introduced innovative services to the market. Its impact on the country’s telecommunications industry is still felt today.
