South Africa-based Telkom, says its acquisition of a remaining 25 percent stake in Nigeria’s Multi-Links has provided it with an opportunity to expand its mobile capability.
Telkom, which held a 75 percent stake in the Nigerian firm, announced on Thursday it was now the sole stakeholder in Multi-Links.
“Our 100 percent ownership of Multi-Links, therefore, not only meets Telkom’s broader investment criteria but also provides us with the opportunity to expand our mobile capability,” said Telkom chief executive officer, Reuben September.
“We remain focused on pursuing growth by diversifying our revenue streams into African markets with high growth potential. With its low penetration and demand for voice and data services, Nigeria is such a market and we have seen Multi-Links make significant progress over the past year.
“The prospects for the company are strong and by capitalising on Telkom’s access to international data connectivity and the quality of such connectivity, Multi-Links is well positioned to service corporate, wholesale and retail customers in Nigeria,” said September.
He said Telkom was working towards becoming the continent’s leading ICT solutions provider.
“We are investing in and enhancing our long-term future by accelerating our drive towards becoming the preferred telecommunications provider and partner in Africa as Telkom’s expertise allows us to provide the full spectrum of ICT solutions on the continent including voice, mobile, data, video and internet services,” he stated.
In May 2007 Telkom acquired 75 percent of Multi-Links.
Multi-Links has a universal access licence that allows it to provide fixed-mobile, fixed-wireless, international and data services in one of the fastest-growing telecommunications markets in Africa. It also owns an ISP licence.
It is Nigeria’s pioneer national Private Telecommunications Operator (PTO) and was the first telecommunications operator in Nigeria to introduce Code Division Multiple Access (CDMA) technology, a digital fixed-mobile technology that enables the provision of more efficient and cost-effective wireless solutions.
Multi-Links’ mobile subscriber growth since its 75 percent acquisition by Telkom nearly two years ago has been impressive. Since September 2007, the company has grown its customer base from 262 431 to more than 1.7 million subscribers as at September 30, 2008. At the same time, Multi-Links has effected network and capacity improvements that will bolster its ability to provide quality data products, especially to the corporate market.
