Etisalat Sues MTN Over Acquisition Of Visafone

ETISALAT Nigeria has filed a suit against MTN in the Federal High Court challenging its acquisition of Visafone which it stated that its use of the 800 megahertz spectrum would have adverse effects on other service provider in the telecommunication sector.

The fourth licensed GSM services provider stated that the action has become necessary to thwart the likely domination of the retail data services market by MTN through the acquisition if unchecked.

In a statement by the Head of Media, Etisalat Nigeria, Chineze Amanfo yesterday, the company as a stakeholder in the sector frowned at the sudden acquisition of Visafone by MTN which implies that a level playing ground which boosts competition towards efficiency will cease to exist.
He explained that by the acquisition, the beneficiary would obviously dominate the sector to dictate the tone rather than the completion which had existed and benefitted both the subscribers, stakeholders and improved the economy.  

The statement also frowned at the Nigerian Communications Commission, NCC for giving approval to the acquisition without due regards to the provisions of the Nigerian Communication Act 2003 which is inconsistent to the action adding that the Commission is accordingly listed as a defendant in the suit so as to explain the rationale behind its approval.

“You will recall that MTN Nigeria was declared dominant by the Nigerian Communications Commission (NCC) in 2013 and remains dominant in the wholesale leased line and retail voice markets.

“The use of the 800MHz spectrum to deploy broadband services ahead of its competitors, particularly those who prior to MTNs purchase of Visafone, held similar spectrum bands as MTN, will further entrench MTN’s dominance in the Nigerian telecommunications sector,” Amanfo reportedly said.

It would be recalled that MTN is also in a legal battle challenging the fine of N1.04tn imposed on it by the Nigerian Communication Commission following its default to meet up with the deadline to deactivate unregistered subscribers identity module, SIM in its network.