Globacom still eyes NITEL

Despite the order by the Bureau of Public Enterprises (BPE) banning Globacom Nigeria, the second national carrier, from bidding for the Nigerian Telecommunication Limited (NITEL), the firm still longs to acquire the assets of the company.

Speaking at the launch of Globacom’s landline telephony service, Dave Salako, chairman House of Representatives Committee on Communications, expressed his support for the company to take over NITEL.

“I know that Globacom wants NITEL, we would support you,” he said.

The launch of the landline service has still not deprived the firm from bidding for NITEL.

Adewale Sangowawa, the Executive Director, Human Resources of Globacom, confirmed that if given the opportunity to take over NITEL, the firm would be effective. “We never lose out and when we win, we would not disappoint Nigerians,” he said.

A source at Globacom told NEXT that the firm was interested in the bidding for the fixed telephony of NITEL because of its large infrastructure but not sure if the firm is still interested in it after the ban.

According to a statement from the privatisation bureau, “Given that Glo and NITEL hold Second National Operators (SNO) licences, the Nigeria Communication Commission (NCC) ruled that Glo is disqualified from purchasing a bundled NITEL as it would leave Glo with two SNO licences and would hence, be anti-competition.”

Experts in the telecom sector have stressed that Globacom should not be given the opportunity to bid for NITEL.

Emmanuel Ekuwem, the president, Association of Telecommunication Companies of Nigeria (ATCON), said, “That should not be allowed, if they do that they become a monopoly. We can see what other operators are doing now, competition is driving the reduction in tariff, more value added service, promos, etc; that’s what competition does. If they allow Globacom to buy NITEL, the company becomes a monopoly and there is nothing as dangerous as a private monopoly.

“We, in the industry would not support it. It is anti-competition, anti-trust; it is not good for the nation. It is not that we are against Globacom but it is not good for the sector for one company to be an almighty service provider,” said Mr. Ekuwem

Broad Access

The broad access (landline telephony) is to provide triple play service such as voice, data/internet and cable television for subscribers.

Mohamed Jameel, the Group Chief Operating Officer of Globacom said, “The broad access is an emergence of telecommunication convergence that would benefit not only individuals in their home but also small scale business which is far better than the Global System for Mobile communication (GSM).”

He added that, “As technology is developing, the possibility in the telecommunication sector is developing and as such more and better way of communication service has emerged.”

Before the inception of the GSM in 2001, NITEL was the only operator that rendered landline service until its ownership disputes began in 2002.

According to Aliyu Bilbis, the Minister for State, Information and Communication, “Fixed telephony has remained undeveloped after NITEL shut down. This innovation is a pedigree of the growth of telecom sector and to compete with the leading age GSM technology in Nigeria, Globacom has raised its status to the root of global telecommunication industry.”

Supporting the new innovation of landline service Mr. Ekuwem explained that the firm is working in regard to its licence. He said, “Globacom is doing its work as a second national carrier, its business was not just GSM network so, with its comprehensive licence Globacom is allowed to run all telecommunication service.”

Asked if this recent launch by Globacom would further aid in the deterioration of NITEL, Mr. Ekuwem said, “Globacom’s fixed line cannot be compared to NITEL as NITEL has been redundant for years; they are supposed to be competitors. Well, there is nothing anybody can do about the delay to sell off NITEL in order to begin operation. Globacom ought to have started its landline, since they probably have begun generating revenue from the GSM network.”