NITEL faces NGN14 billion damages bill over failure to supply SAT-3 bandwidth

7 Nov 2007

A Nigerian Federal High Court has judged against beleagured incumbent Nigerian Telecommunications (NITEL) in a lawsuit brought by bandwidth provider Interstella Communications. NITEL was ordered to pay a total of NGN14 billion (USD117.9 million) in damages to the plaintiff for breaches of contract. Interstella had complained that NITEL had failed, refused or neglected to provide the services it had contracted when NITEL leased out its 36 E1 switched ports, nine E1 transmission links and half an STM1 circuit on the SAT-3 (South Atlantic 3) submarine cable system to Interstella. The plaintiff further successfully contested that it had lost reputation and revenue as a result of NITEL’s breach. The court also ordered NITEL to provide Interstella with the half STM1 circuit on SAT-3 that it had been paying for since October 2006, forthwith.