Nigerian CommunicationWeek

NCC Warns Starcomms Over Merger Delays, May Revoke Approvals

Eugene Juwah, EVC, NCC

Nigerian Communications Commission (NCC) has said it might revoke approval for the merger of MTS, Multi-Links and Starcomms, all CDMA networks as Capcom, the investment firm trying to tie knots seems to be struggling to complete the deal.

Cellular-news, a leading wireless telecoms online publisher that focuses on the mobile/cellular market last night quoted Dr. Eugene Juwah, executive vice-chairman as saying that “NCC has the mandate as a regulator to withdraw the approval in principle, if it discovers that Capcom can no longer conclude the transaction it started since 2012 to acquire Starcomms and merge it with MultiLinks and MTS First Wireless.”

The news of the merger of surviving CDMA operators was greeted with high hopes and great enthusiasm in November 2012 after Capcom, touted as a special purpose vehicle created for the purpose of making an investment into Starcomms and related transactions promised to inject about $210million fund into the new company from the merger.

But the deal has experienced perpetual delays. Quite what is holding up completion of the deal is unclear, although it is understood to be a delay at the Starcomms side of the business.

With the benefit of the 20MHz of contiguous 1900MHz spectrum to be held by the consolidated operations, Starcomms had been expected to migrate its network over to LTE services.

“If we are certain that Capcom cannot continue with the transaction, then we as a regulator, will be willing to give licence to any other interested company that has the capacity to buy the companies and run them effectively,” Juwah added.

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