Wireless Federation

New Generation telecoms bright about meeting NITEL payment deadline

On 11.25.10, In Mobile, By Editor

New Generation Telecommunications, the consortium which emerged as the preferred buyer for state-run incumbent telco Nigeria Telecommunications (NITEL, has reportedly claimed that it is confident it will meet the December deadline to pay a US$750 million bid security for the ailing operator.

Accordig to Usman Gumi, managing director of Nigeria’s GiCell Wireless a member of the New Generation consortium, the company is working tirelessly to meet the deadline despite the challenges they are facing.

Last month President Goodluck Jonathon approved the consortium’s bid of US$2.5 billion for a 75% stake in NITEL and its mobile arm M-Tel, after an eight month delay.

New Generation which comprises Minerva Group of Dubai, GiCell Wireless and technical partner China Unicom was asked to pay a bid security of US$750 million within ten days of 25 October, and was given 60 days to pay the remaining USD1.75 billion. However, earlier this month GiCell requested a 30-day extension, after the consortium failed to come up with the funds in time.

Gumi added that New Generation had missed the deadline because some of the consortium’s financial partners had developed â€˜cold feet’ since the firm was announced as the winning bidder back in February.

China Unicom plans to buy 75% stake in Nigerian Telecom

On 10.19.10, In Mobile, By Editor

If sources are to be believed, China Unicom (Europe) Operations Ltd, subsidiary of China Unicom (Hong Kong) is planning to buy a 75% stake in Nigerian Telecommunications Ltd, or Nitel, for US$2.5 billion.

According to China Unicom (Hong Kong), its subsidiary will provide technique solutions and operation management to Nitel.

According to sources, Nigerian President has approved the deal. The New Generation Consortium, which includes GiCell Wireless Ltd, China Unicom (Hong Kong) and Minerva Group, is required to pay US$750 million in ten days as deposit, while the remaining US$1.75 billion will be paid off in 60 days.

The New Generation Consortium to purchase the 75% stake in Nitel and the latter’s wireless unit M-Tel.

Filed under:Mobile Tagged with: China • China Unicom • Europe • GiCell Wireless Ltd • Hong Kong • M-tel • Minerva Group • Mobile • Niger • Nigeria • Nigerian Telecom • NITEL • The New Generation Consortium

Zamtel shortlists three companies for its privatization bid

On 03.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: A step ahead has been taken in the privatization bid of Zambia’s telecommunications operator Zamtel. The step has been taken after the Zambia Development Agency (ZDA) short listed three companies to continue the bidding with Indian state owned telco BSNL withdrawing from the bidding.

Angola’s Unitel, Libya’s LAP Green Networks and Russia’s Altimo are now the three shortlisted companies by Zamtel. BSNL withdrew after carrying out due diligence on the company.

According to ZDA privatization manager Henry Sakala, the bids will be subjected to an evaluation by the ZDA and after the evaluation they will be presented to the ZDA board, which will make a decision on which companies with which to negotiate.

The negotiation with the bidders will be done by an independent team to be appointed which will try and avoid the political problems that have bedeviled privatizations in other countries.

Filed under:Mobile Tagged with: Africa • Angola • ASIA • BSNL • India • Libya • NITEL • operator • Russia • Zambia • Zambia Development Agency • ZDA

Nigeria’s acting Prez orders review of Nitel sale

On 03.15.10, In Mobile, By Editor

www.WirelessFederation.com/news: A review of the recent sale of state-run telecoms operator Nitel has been ordered by Nigeria’s Acting President Goodluck Jonathan following controversies surrounding the deal. The bidding for Nitel was won by the New Generation Telecoms Company, a consortium of local and foreign firms last month with an offer of USD 2.5 billion. Later, consortium’s technical partner denied any knowledge of the deal.

A seven-member panel has been set up by Jonathan headed by Justice Minister Adetokunbo Kayode to review the sale. Recurrent issues surrounding the sale would be investigated by the panel and it will report back to the NCP (National Council on Privatisation) by March 20.

Previous attempts to sell off the government’s stake in under-performing Nitel and its mobile subsidiary Mtel has already ran into hitches. In 2006, sale of 51 percent of the company to a local firm for USD 500 million was decided but it was cancelled last year after the government accused the buyer of failing to turn around the debt-ridden and mismanaged company.

Filed under:Mobile Tagged with: Africa • Niger • Nigeria • NITEL • operator

Minerva Group emerges top bidder for Nigerian Telecommunications

On 02.23.10, In Mobile, By Editor

www.WirelessFederation.com/news: With a bid of USD2.5 billion, the main financial backer of New Generation Technology, Dubai’s Minerva Group has emerged as the preferred buyer for ailing incumbent telco Nigerian Telecommunications (NITEL).

New Generation is a consortium involving China Unicom, Minerva and local firm GiCell. According to GiCell’s managing director, Usman Gumi, the company has a firm commitment from its investors and partners, the Minerva Group, that it is working with and also believes that NITEL is worth the amount because of the infrastructure and potential that it has.

A search for a buyer for a minimum 75% of NITEL and 100% of its mobile unit M-Tel had been started by the Nigerian government in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year.

Filed under:Mobile Tagged with: Africa • China • China Unicom • Dubai • M-tel • Middle East • Niger • Nigeria • NITEL

China Unicom expresses interest in Nigerian telco, Nitel

On 02.23.10, In Mobile, By Editor

www.WirelessFederation.com/news: China Unicom has changed its denial in which it showed its non interest in the long winded privatisation of Nigerian telecoms network operator, Nitel. The company has clarified that a UK-based subsidiary has indeed been in talks with other groups about joining a consortium in a joint bid.

According to China Unicom, Unicom Europe has indicated its interest in the provision of technical and managerial support services in relation to the proposed privatization and it has also indicated that, subject to certain conditions being fulfilled, it would be interested in exploring the possibility of equity investment in Nitel.

A consortium, New Generation Telecommunications was named by Nigerian govt last week as the preferred bidder for the 75% stake in the dominant landline operator. However, it was later clarified that China Unicom’s UK subsidiary might take a 20% stake, although it was not clear if that was 20% of the consortium, or 20% of Nitel.

Filed under:Mobile Tagged with: Africa • ASIA • China • China Unicom • consortium • Europe • Niger • Nigeria • NITEL • operator • UK

China Unicom denies involvement in Nigeria telcom sale

On 02.18.10, In Mobile, By Editor

www.WirelessFederation.com/news: The denial of China Unicom’s involvement in a $2.5 billion bid for Nigeria’s former state telecoms monopoly by the company has shadowed the African country’s biggest privatization bid. China Unicom made it clear in a statement that there is no involvement of this project from the parent company, the listed company or any subsidiary of the company.

Earlier, it was reported that a consortium involving China Unicom was the preferred bidder with a bid far higher than any of others or than many had expected. As per the National Council on Privatization, New Generation Telecommunications Ltd had become the preferred bidder for Nitel, which Nigeria has struggled to sell since liberalization in 2001 made it uncompetitive against rivals.

Nigerian government has not made any comment on China Unicom’s denial.

Filed under:Mobile Tagged with: Africa • ASIA • China • China Unicom • Niger • Nigeria • NITEL

China Unicom bid $2.5 billion to buy Nigerian telco

On 02.17.10, In Mobile, By Editor

www.WirelessFederation.com/news: $2.5 billion has been bid by China Unicom to take control of suffering Nigerian telco Nitel in partnership with Dubai-based telecom distributor Minerva and local CDMA player GiCell in a group called New Generations Telecommunications.

If the deal materializes, it would be one of China’s biggest investments in Africa, even though the bidding price is said to be too high for the under-performing business, which the Nigerian government has been trying to sell for ten years.

The consortium has 10 days to pay 30% of the price, and a further 50 days to pay the balance if it is to secure a 75% holding in Nitel.

Filed under:Mobile Tagged with: Africa • ASIA • CDMA • China • China Unicom • Dubai • GiCell • Niger • Nigeria • NITEL

Nigerian Telecommunications offered N350b from new investors

On 02.17.10, In Mobile, By Editor

www.WirelessFederation.com/news: Nigerian Telecommunications (NITEL) Plc has been put up sale for the first time in a decade by the Bureau of Public Enterprises (BPE). New Generations Telecommunications Consortium has emerged as an investor offering to pay about N350 billion ($2.3b) for all the components of NITEL, including the mobile unit, M-Tel; the CDMA network; transmission backbone, the fixed line and SAT- 3.

$1.3 billion for the enterprise was offered by a United Kingdom – based firm, ILL Limited, earlier in 2001 but failed to meet up with payment schedules, leading to the termination of the deal. Management deal with Pentascope met the same fate.

In the year 2006, Transnational Corporation, (Transcorp) which offered to pay $750 million ended up paying $500million for 51 percent of the national carrier.

Filed under:Mobile Tagged with: Africa • CDMA • Europe • M-tel • Niger • Nigeria • NITEL • United Kingdom

Six operators to bid for NITEL privatization (Nigeria)

On 02.10.10, In Mobile, By Editor

www.WirelessFederation.com/news: The privatization bid of fixed line operator Nigerian Telecommunications (NITEL) its mobile arm M-Tel will be opened by Nigeria’s Bureau of Public Enterprises (BPE) on February 16, 2010. Out of 14 pre-qualified consortia, only six met met the 5 February deadline for the submission of technical and financial proposals, and will therefore be able to submit bids for the minimum 75% stake.

Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications (formerly known as Telefonica Consortium) are the successful candidates.

The original deadline for the submission of technical and financial bids was October 2, 2009, but this was pushed back to October 26.

Filed under:Mobile Tagged with: Africa • Globacom • M-tel • MTN • MTN Nigeria • Niger • Nigeria • NITEL • operator • Telefonica