Etisalat Nigeria has brought a legal action against MTN Nigeria and Visafone, challenging MTN's use of the 800MHz spectrum following the acquisition of Visafone. Etisalat said the court action is necessary to prevent the use of the spectrum by MTN, as it will entrench the dominance of MTN in the retail data services market, The Leadership reported.
Etisalat noted 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 MTN's purchase of Visafone, held similar spectrum bands as MTN, will further entrench MTN's dominance in the Nigerian telecommunications sector.
In addition and in line with Section 86 of the Nigerian Communications Act, 2003, Etisalat engaged the NCC to understand the basis of its decision to approve the acquisition. NCC's public affairs officer Tony Ojobo could not be reached for comment, but an official of the Commission said that the NCC saw the acquisition of Visafone by MTN Nigeria as a pure business deal that would impact positively on CDMA operations in the country, especially at a time when the CDMA sector is facing serous market challenges; hence it quickly endorsed the deal without reservations.
MTN Nigeria confirmed that it was served with a court summons based on a lawsuit filed by Etisalat Nigeria over the acquisition of Visafone. According to MTN executive Amina Oyagbola, MTN has filed the appropriate processes before the court for necessary determination. She declined to comment further as the matter is sub judice, CommunicationsWeek reported.
