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HomeUncategorizedNCC stops MTN from acquiring Visafone

NCC stops MTN from acquiring Visafone

The Nigerian Communications Commission (NCC) yesterday halted moves
by South African mobile giant MTN to acquire the only surviving Code
Division Multiple Access (CDMA) operator, Visafone.
It said the acquisition cannot be done without a public inquiry to
enable stakeholders determine the future of Visafone in the overall
interest of the industry.
The regulator’s stance followed a heated debate on the matter by
representatives of major telecoms firms in the country who made
presentations during the stakeholders meeting at the NCC headquarters in
Abuja.
Present at the meeting were MTN Nigeria, Airtel Nigeria Limited, Glo
Mobile Nigeria, 9mobile Nigeria Limited and other operators.
The Executive Vice Chairman of the NCC, Prof Umar Garba  Danbatta,
said the NCC as a regulatory body for the industry considered it
imperative to hold the public inquiry to give room for active
participation and deliberations  that would facilitate informed decision
on the issue.
He drew the attention of stakeholders to the enabling law which
empowers NCC to take decision on the transfer of licence and resources,
including the 800MHz Spectrum from Visafone Communications Limited to
MTN Nigeria Communications Limited.
Prof. Danbatta said: “The Commission seeks your active participation
in the deliberations that would lead to an informed decision consistent
with our mandate to create an enabling environment for effective
competition in the industry as well as to ensure the provision of
qualitative and efficient telecommunications services throughout the
country.
“As you may all be aware, the demand for spectrum has increased due
to the emergence of disruptive innovations such as mobile broadband, web
applications, cloud computing, Internet of Things (IOT) and the
proliferation of smart devices among others.
“Consequently, in order to reap the benefits of effective utilisation
of spectrum as well as improve operational efficiency and regulatory
excellence, the Commission in accordance with its mandate as enshrined
in the Nigerian Communications Act NCA 2003 embarked on re-planning of
some of its Frequency bands
“Specifically in 2013 the commission re-planned the use of 800Mhz
band to accommodate technology development in the telecom industry and
new Frequency Assignments were conveyed to the operators according to
their frequency holdings in the 800MHz band.
“Visafone is one of such incumbents on the spectrum that got 10MHz
FDD Assignments. Subsequent to the re-planning of the band, Visafone
wrote to the Commission requesting for transfer of its licence including
the 800MHz spectrum to MTN.”
However, during their presentations, the representatives of Airtel
and 9mobile opposed the plan to transfer the licence of Visafone to MTN ,
insisting that MTN already had over 38 per cent of spectrum holding in
the industry.

They argued that should the NCC concede to the transfer, the
development would not only create a monopoly for MTN, but make
competition difficult among industrial players while a lot of
telecommunications companies would be permanently disadvantaged.
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