MTN Nigeria has officially closed the chapter on its acquisition of Visafone, recognizing a significant loss of ₦30.3 billion ($18 million) as the liquidation of the country’s last CDMA network concludes. This marks the end of a strategic move initiated in 2016 when MTN acquired Visafone to bolster its broadband internet capabilities through the company’s valuable 800MHz spectrum licenses. “Following the absorption by MTN Nigeria, Visafone is now fully liquidated. The liquidation process was completed during the period, and all remaining assets and liabilities of Visafone have been transferred,” it said in its H1 2024 financial statement. The acquisition initially seemed poised to give MTN a competitive edge, particularly in the race to deliver 4G LTE services, a sector where rivals like Globacom had already made strides. Visafone’s 2.2 million registered subscribers and its spectrum made it a key asset. However, the deal faced stiff opposition from other telecom operators and regulatory delays. Concerns were raised that the acquisition would significantly increase MTN’s share of the available spectrum, prompting the Nigerian Communications Commission (NCC) to hesitate in approving the spectrum transfer. Despite these challenges, MTN moved forward with the acquisition, seeing it as crucial for maintaining its leadership in the Nigerian market. The company had previously shown a willingness to invest heavily in spectrum assets, as evidenced by its $70 million (₦9.3 billion) purchase of VGC Communications Limited (VGCCL) in 2006. While the exact terms of the Visafone deal were not initially disclosed, MTN’s recent financial filings indicate a total investment of ₦43 billion in the acquisition. The write-off highlights the risks associated with such high-stakes moves in the fiercely competitive telecom sector. Yet, for MTN, this loss is part of a broader strategy to secure its position in Nigeria’s rapidly evolving digital landscape.
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