NITEL privatization: MTN bids for SAT-3, Globacom out!

MTN Nigeria has placed a $25 million bid for a stake in the SAT-3 underwater cable in Nigeria’s privatization of Nitel, while Globacom was disqualified from bidding for the conglomerate, including its mobile arm MTEL.

According to Reuters, Nigeria’s Globacom was disqualified on grounds that it already owns a GSM license and cannot bid for the mobile operator MTEL.

“For SAT-3 alone, MTN has submitted a bid of $25 million”, said Taiwo Osiputan of the National Council of Privatization.

Prospective investors were invited to apply to acquire either a 75 percent equity in the entire NITEL conglomerate or a stake in one or several of its components, namely, SAT-3; domestic fixed line telephony; national fibre-optic transmission backbone; CDMA network; and M-TEL (GSM).

Previously, the Bureau for Public Enterprise (BPE) announced that it may disqualify MTN and Globacom’s bids for the former state-owned telecom, if they did not comply with the bidding rules.

Based on the rules, Globacom and MTN cannot bid for MTEL because they already have mobile licenses. The BPE spokesperson added that Globacom, the nation’s second national carrier, may apply for other components of the former telecoms monopoly, except the domestic fixed line and mobile units.

The six successful bidders cleared by the BPE last week were Brymedia (WA), AF21/ Spectrum Consortium, MTN Nigeria Communication, Globacom Nigeria Ltd, Omen International Ltd (BVI) and New Generation Telecommunications Ltd (formerly Telefonica Consortium).