Brymedia, the consortium that emerged
second reserve bidder in the aborted 2010 privatisation of the Nigeria
Telecommunications Limited (NITEL), has launched fresh bids to buy the assets
of the ailing national carrier and a broadband licence.
The 2010 bidding experience, analysts say, will give it an advantage in the
ongoing phased liquidation of assets of the pioneer national operator.
second reserve bidder in the aborted 2010 privatisation of the Nigeria
Telecommunications Limited (NITEL), has launched fresh bids to buy the assets
of the ailing national carrier and a broadband licence.
The 2010 bidding experience, analysts say, will give it an advantage in the
ongoing phased liquidation of assets of the pioneer national operator.
Chief Executive Officer of Brymedia, Mr. Adrian Wood, who made
the disclosure in Lagos in an interview with THISDAY, assured Nigerians that
his company would turn around NITEL and make it the true national carrier that
it ought to be.
the disclosure in Lagos in an interview with THISDAY, assured Nigerians that
his company would turn around NITEL and make it the true national carrier that
it ought to be.
Brymedia’s renewed interest is coming on the heels of the
planned auction of a 2.3GHz frequency spectrum that would see the eventual
winner, the wholesale broadband service provider for the Nigerian telecoms
market.
planned auction of a 2.3GHz frequency spectrum that would see the eventual
winner, the wholesale broadband service provider for the Nigerian telecoms
market.
The Nigerian Communications
Commission (NCC) had already announced a N3.6 billion reserve price for the
auction billed to be completed by March this year.
THISDAY gathered that Brymedia would also join other interested operators like
MainOne, and Glo 1, for the planned auction of the 2.3GHz frequency.
Commission (NCC) had already announced a N3.6 billion reserve price for the
auction billed to be completed by March this year.
THISDAY gathered that Brymedia would also join other interested operators like
MainOne, and Glo 1, for the planned auction of the 2.3GHz frequency.
Woods specifically said the revived bid for NITEL is part of a
two-pronged plan for the acquisition of dual stakes in the Nigerian telecoms
sector.
two-pronged plan for the acquisition of dual stakes in the Nigerian telecoms
sector.
The Bureau of Public Enterprises (BPE), the government
privatisation midwife, had opted for a phased liquidation of NITEL after the
unsuccessful privatisation programme in 2010, a process that would have
resulted in the divestment of up to 75 per cent stake in the public-owned
telecoms company to willing buyers.
privatisation midwife, had opted for a phased liquidation of NITEL after the
unsuccessful privatisation programme in 2010, a process that would have
resulted in the divestment of up to 75 per cent stake in the public-owned
telecoms company to willing buyers.
In the 2010 exercise, New Generation Consortium, made up of
China Unicom of Hong Kong, Minerva Group of Dubai and Nigeria’s GiCell Wireless
Ltd emerged preferred bidder for NITEL and its mobile subsidiary, M-TEL with an
offer of $2.5 billion; Omen International, emerged reserve bidder with
$956,996,091 while Brymedia emerged second reserve bidder with $550 million in
the botched transaction.
China Unicom of Hong Kong, Minerva Group of Dubai and Nigeria’s GiCell Wireless
Ltd emerged preferred bidder for NITEL and its mobile subsidiary, M-TEL with an
offer of $2.5 billion; Omen International, emerged reserve bidder with
$956,996,091 while Brymedia emerged second reserve bidder with $550 million in
the botched transaction.
Under its comeback bid, Brymedia is reported to have opened
talks with the liquidation manager appointed by the BPE with eyes on key assets
of NITEL to drive an ambition of transforming the moribund telecoms company
into the wholesale broadband provider of broadband in the Nigerian market.
talks with the liquidation manager appointed by the BPE with eyes on key assets
of NITEL to drive an ambition of transforming the moribund telecoms company
into the wholesale broadband provider of broadband in the Nigerian market.
To complement the plan, Brymedia is joining the race for planned
auction of a 2.3GHz frequency spectrum that will make the eventual winner the
wholesale broadband service provider for the Nigerian telecoms market.
auction of a 2.3GHz frequency spectrum that will make the eventual winner the
wholesale broadband service provider for the Nigerian telecoms market.
Reacting to allegations that Brymedia turned down the offer
given to it to take over NITEL when the first and second winners were not
willing to pay the amount that they bid to acquire NITEL, Wood told THISDAY
that “it is not true that Byrmedia was approached to pay for NITEL. We
came out third in the biding exercise and when the first winner was not showing
interest to pay for NITEL, the Bureau for Public Enterprises (BPE) called the
second winner to pay and take up NITEL, but we noticed that the second winner
was also reluctant to pay, we voluntarily offered to pay for NITEL and acquire
it, but that opportunity was not given to us by the BPE.”
given to it to take over NITEL when the first and second winners were not
willing to pay the amount that they bid to acquire NITEL, Wood told THISDAY
that “it is not true that Byrmedia was approached to pay for NITEL. We
came out third in the biding exercise and when the first winner was not showing
interest to pay for NITEL, the Bureau for Public Enterprises (BPE) called the
second winner to pay and take up NITEL, but we noticed that the second winner
was also reluctant to pay, we voluntarily offered to pay for NITEL and acquire
it, but that opportunity was not given to us by the BPE.”
According to him: “What BPE did after
the first two operators declined making payments, was to write all bidders and
informed us that it was going to cancel the whole auction exercise and then introduce
the ‘Willing Buyer, Willing Seller’ approach.
“The BPE wrote Brymedia Consortium on August 2011, to inform us of its new
approach to sell NITEL. Brymedia was never asked to pay for NITEL after the
first and second winners declined to make payments.”
the first two operators declined making payments, was to write all bidders and
informed us that it was going to cancel the whole auction exercise and then introduce
the ‘Willing Buyer, Willing Seller’ approach.
“The BPE wrote Brymedia Consortium on August 2011, to inform us of its new
approach to sell NITEL. Brymedia was never asked to pay for NITEL after the
first and second winners declined to make payments.”
Giving insight as to why NITEL privatisation has remained
endless, Wood said: “As at 2001, when GSM operators were licensed to compete
with the existing NITEL, the NITEL has no basic experience in digital
telecommunications. Where I think government went wrong was in its inability to
bring in experts with proven years of telecoms experience to run NITEL as at
that time.”
endless, Wood said: “As at 2001, when GSM operators were licensed to compete
with the existing NITEL, the NITEL has no basic experience in digital
telecommunications. Where I think government went wrong was in its inability to
bring in experts with proven years of telecoms experience to run NITEL as at
that time.”
Government however later tried to do that with the management
services agreement strategy by choosing Pentascope of Netherlands as a consortium
group to manage NITEL for five years, and to turn it around and reposition it
for competition with GSM operators.
services agreement strategy by choosing Pentascope of Netherlands as a consortium
group to manage NITEL for five years, and to turn it around and reposition it
for competition with GSM operators.
“It later turned out that the consortium never worked in Africa
before and did not have the African telecoms market experience. Eventually they
could not manage NITEL successfully and government had to withdraw the
agreement it had earlier signed with Pentascope before the end of the five
years agreement plan,” Wood said.
before and did not have the African telecoms market experience. Eventually they
could not manage NITEL successfully and government had to withdraw the
agreement it had earlier signed with Pentascope before the end of the five
years agreement plan,” Wood said.
According to him: “NITEL still remained a viable operator
because of its assets in the area of National Spectrum licence, the SAT 3, GSM
towers, transmission towers, and technical properties in all major cities in
the country.”
because of its assets in the area of National Spectrum licence, the SAT 3, GSM
towers, transmission towers, and technical properties in all major cities in
the country.”
He insisted that NITEL remained the only national operator that
could fast-track the whole exercise of national broadband rollout.
could fast-track the whole exercise of national broadband rollout.
Wood said in a separate interview with Technology Times that
Brymedia is back in the race for the two niche telecoms market stakes because
they both align with the consortium’s original and strategic plan to play in
the wholesale market space that will transform NITEL into a “carrier’s
carrier.”
Brymedia is back in the race for the two niche telecoms market stakes because
they both align with the consortium’s original and strategic plan to play in
the wholesale market space that will transform NITEL into a “carrier’s
carrier.”
Unlike the 2010 privatisation programme, which saw Bidders
bidding for a pegged 75 per cent stake in NITEL, Brymedia is refocusing
its direction in the area of key assets of the pioneer national operator under
the new liquidation plan.
bidding for a pegged 75 per cent stake in NITEL, Brymedia is refocusing
its direction in the area of key assets of the pioneer national operator under
the new liquidation plan.
Wood outlines that to achieve its
strategic drive to use NITEL to transform the broadband fortunes of Nigeria,
the consortium eyes key assets of the moribund telecoms company
One of them is what he cited as NITEL’s “spectrum portfolio” that includes the
frequency bands used to offer fixed, mobile, CDMA services as well as “quite
some few microwave frequency.”
strategic drive to use NITEL to transform the broadband fortunes of Nigeria,
the consortium eyes key assets of the moribund telecoms company
One of them is what he cited as NITEL’s “spectrum portfolio” that includes the
frequency bands used to offer fixed, mobile, CDMA services as well as “quite
some few microwave frequency.”
Another category is NITEL’s special infrastructure, which Wood
reckons include about 554 GSM towers and some 251 transmission systems across
the country, which though had non-functional electronics but could still be
reactivated.
reckons include about 554 GSM towers and some 251 transmission systems across
the country, which though had non-functional electronics but could still be
reactivated.
According to him, NITEL also has “technical properties with some
form of switch or some forms of cable termination in every state and every
major city in Nigeria and these are places where you put in fiber termination
point and fiber access equipment.”
form of switch or some forms of cable termination in every state and every
major city in Nigeria and these are places where you put in fiber termination
point and fiber access equipment.”
He added that when NITEL spread is added to SAT-3 and the first
undersea cable in Nigeria, which it part-owns alongside a consortium of African
incumbent operators and equipment suppliers, reflects the rich value of NITEL.
undersea cable in Nigeria, which it part-owns alongside a consortium of African
incumbent operators and equipment suppliers, reflects the rich value of NITEL.
Wood, who is the Founder and Director of Brymedia Group, and
once the managing director of MTN Nigeria, believes that the broadband
programme being championed by President Goodluck Jonathan, will deliver on its
promises.
once the managing director of MTN Nigeria, believes that the broadband
programme being championed by President Goodluck Jonathan, will deliver on its
promises.
He, however, reckons that GSM network operators may not deliver
true broadband, if that vision is to be realised.
true broadband, if that vision is to be realised.
Source: Thisday
