New Generation stakes $2.5b to win NITEL as MTN offers $25m for SAT-3

New Generation stakes $2.5b to win NITEL as MTN offers $25m for SAT-3
New Generation Telecommunications Ltd (formerly Telefonica Consortium), consortium believed to be backed by Theophilus Danjuma, a former Defence Minister during the regime of ex-President Olusegun Obasanjo, this afternoon staked a $2.5billion winning bid for the Nigerian Telecommunication Limited at the opening of financial bids for the nation’s pioneer national operator in Abuja. Also South Africa’s MTN, the lone bidder for the company’s unbundled SAT-3 business unit, was successful with its $25million offer for the bandwidth business of the ailing telecoms company. New Generation Telecommunications Ltd emerged successful over rival bidders including Brymedia (WA) Ltd; AF21/ Spectrum Consortium; and Omen International Ltd (BVI) in a last-ditch move by government to revive the fortune of the telecoms company. Privatisation agency, the Bureau of Public Enterprises says the bid by MTN will be approved by the National Council on Privatisation subject to meeting the reserve price for SAT-3. Analysts are quick to note that the acqusition of SAT-3 by MTN will further drive tougher competition in the market for data services as mobile operators eye stakes in mobile Internet projected to be the next phase of the telecoms boom in Nigeria. Globacom, the second national operator, which is set to go live with its Glo 1 submarine cable also promotes Glo mobile, the number two mobile operator by subscriber number while MTN is the market leader.