Telecom giant, Etisalat has filed a legal action against MTN Nigeria over the acquisition of Code Division Multiple Access (CDMA) operator, Visafone Communications.
Emirates Telecommunications Corporation, is challenging MTN’s use of Visafone’s 800MHz spectrum.
Etisalat said it considered the action necessary as it will entrench the dominance of MTN in the retail data services market.
A statement released by Etisalat’s Head of Media, Chineze Amanfo reads in part;
“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.
“We have, in addition and in line with Section 86 of the Nigerian Communications Act, 2003, engaged the NCC to understand the basis of its decision to approve the acquisition. As you are aware, the matter is already in court; as such, we are restrained from commenting further on the matter.”
MTN Nigeria on Thursday January 7 2016, announced the acquisition of Visafone, Nigeria’s only surviving Code Division Multiple Access (CDMA).
In a statement, the company’s executive, Ms Amina Oyagbola, noted that Visafone acquisition was in line with a continued commitment by MTN to improve the quality of broadband services for its subscribers.