Telkom to invest US$1bn in Nigeria over five years

Telkom acquired Multi-Links Nigeria, the National Unified Access operator, in March 2007 in a deal worth US$280 million.

The Chief Executive Officer of Multi Links, Justina Ramayia, said the investment is expected to take a bouquet of telecommunication services to most parts of the country by the time it is concluded.

Speaking at a media conference in Lagos on Thursday, 23 August, Ramaiya said Multi-Links had embarked on an aggressive rollout program to increase capacity and coverage of all 36 states of the Federation in the next 5 years.

Currently, Multi-Links has a network that covers six states including Lagos and the Federal Capital, Abuja and most of the towns and cities in between.

According to the firm, the new expansion programme would extend Multi-Links' network northwards to reach Kano and Eastwards to reach Benin City in Edo State by the second quarter of 2008.

Ramayia said with the new investment planned the firm would have a network coverage of around 80% of the population.

The rollout will be accomplished with optical fibre and CDMA 2000 1X + EvDo1X+ Rev A wireless fixed and mobile technology.

CDMA 2000 is a member of the 3G family that offers broadband capabilities cost-effectively to both fixed and mobile users. The Rev A technology offers improved bandwidth and download speeds from a common platform, increasing efficiencies and reducing costs. The firm said EvDo rollout would begin in the fourth quarter of 2007.

Ramayia said, "We intend to grow the network and our service bouquet quickly whilst maintaining the highest possible levels of service. We will facilitate this by leveraging our relationship with our shareholder Telkom SA.... Integral to our planning is the improvement of international voice and data capacity."

He noted that at this point, Multi-links was a small company lacking the staff numbers necessary for the planned growth but added that the firm was committed to growing the company with Nigerian talent and "will implement the skills development programs necessary to achieve this, be they formal education or technology specific training courses."

Multi-Links had operated as a fixed wireless PTO since it started business in 1996. It acquired a Unified Access Service licence in 2006, thereby having the permission to provide fixed, mobile, data, long distance and international telecommunications services throughout Nigeria.

Telkom is the largest fixed line operator in sub-Saharan Africa and has 49% stake in Vodacom, South Africa's largest mobile phone operator.

The acquisition by Multi-Links by Telkom was considered strategic as it gave it entry into the second-largest market in sub-Saharan Africa. The firm is also present in several African countries including Kenya, Cote d'Ivoire, Tanzania and Zimbabwe.

On the decision by Telkom to take 85% equity in Multi-Links Nigeria, Ramayia explained that this was based on an assessment that showed that the firm was the its best means of entering the Nigeria market. He said due diligence carried out showed that Multi-Links was very healthy, had good corporate Governance and was well respected in the Nigerian market.

Published courtesy of