NITEL draws up plans to offload M-Tel

29 May 2007

Transnational Corporation (Transcorp), majority owner of beleagured incumbent Nigerian Telecommunications (NITEL), has mapped out strategies to ‘unbundle’ the company to other investors. Under the arrangements, which were mooted at a board meeting held in Abuja last week, NITEL’s exchanges will be handed to smaller companies to manage, while the network will be shared with vendors. One source told the News Agency of Nigeria that the company had already started discussions with private telephone operators. NITEL has been having problems managing its ailing PSTN and has not been able to generate enough money to ensure its revival. The source said the company had decided to go into partnership with international telecoms vendors for the maintenance of the network. It is not known whether the SAT-3 submarine cable link will be one of the assets leased out to other operators.

Nigeria, ntel (formerly NITEL/M-Tel)