Visafone Communications Limited, a fast-rising telecommunications company, has acquired Independent Telephone Network (ITN) in a deal worth N3 billion ($24 million). The acquisition is part of Visafone’s aggressive strategy to expand its footprint in Nigeria’s telecom sector and position itself as a dominant player in the fast-growing Code Division Multiple Access (CDMA) market.
The deal, which was finalized earlier this year, grants Visafone control over ITN’s infrastructure, subscriber base, and operating licenses, further strengthening its entry into Nigeria’s highly competitive telecom space.
A Strategic Move for Market Expansion
Independent Telephone Network (ITN) has been a key Private Telecommunications Operator (PTO) offering fixed wireless services across various regions in Nigeria. With this acquisition, Visafone gains access to an established network infrastructure, giving it an advantage in the rollout of its telephony, mobile, and data services.
The acquisition comes on the heels of Visafone’s earlier purchase of Cellcom, another PTO, and its successful bid for three carrier licenses in the 800MHz spectrum, awarded by the Nigerian Communications Commission (NCC) for N400 million in 2006.
Industry experts believe that by combining ITN’s assets with Cellcom’s, Visafone is positioning itself to compete directly with larger operators like MTN, Glo, and Celtel in the growing telecoms market.
Visafone’s Growing Influence in the Telecom Market
Visafone, promoted by Jim Ovia, the Managing Director and CEO of Zenith Bank International Plc, has been making bold moves in the industry since it secured its NCC-awarded carrier licenses last year.
With this latest acquisition, Visafone is rapidly emerging as a strong competitor in Nigeria’s unified telecoms market, which now allows companies to offer both mobile and fixed-line services following the end of the GSM exclusivity period in February 2006.
The Impact of Unified Licensing on Nigeria’s Telecom Industry
The introduction of the Unified Access Service Licence (UASL) by the NCC in 2006 changed the telecom landscape in Nigeria. Under the new framework, telecom operators are now able to:
•Offer mobile and fixed-line services simultaneously
•Expand their networks beyond their original license restrictions
•Introduce new value-added services, including wireless broadband and VoIP
This shift has led to a wave of market consolidation, with major industry players acquiring smaller PTOs to strengthen their networks. Other notable deals in the sector include:
•MTN’s acquisition of VGC Communications for $65 million
•Telkom SA’s acquisition of Multi-Links for $280 million
With the acquisition of Cellcom and ITN, Visafone is leveraging the new licensing structure to roll out nationwide services faster and more efficiently than starting from scratch.
Visafone’s Market Reach and Future Plans
Visafone’s carrier license allows it to operate in 26 states and the Federal Capital Territory (FCT), covering key markets including:
•Ogun, Ondo, Osun, Oyo, Ekiti, Kwara, Edo, Delta, Benue, Kogi, and Niger
•Northern states such as Nasarawa, Taraba, Plateau, Bauchi, Gombe, Adamawa, Borno, Yobe, Jigawa, Kano, Kaduna, Katsina, Zamfara, Kebbi, and Sokoto
•Abuja (FCT)
With its expanding infrastructure, Visafone is expected to focus on:
•Accelerating its network rollout to cover more regions
•Enhancing its CDMA technology offerings
•Competing aggressively in mobile, fixed, and data services
Conclusion
The N3 billion acquisition of ITN marks another significant step in Visafone’s rapid rise within Nigeria’s telecom sector. With Cellcom and ITN under its control, Visafone is set to become a major force in the post-GSM exclusivity era, leveraging its growing network and technological capabilities to compete with established operators.
As Jim Ovia continues to push for expansion, Visafone is increasingly seen as one of the most promising telecom companies to watch in Nigeria.
