When Visafone launched in August 2007, it quickly positioned itself as a dominant force in Nigeria’s Code Division Multiple Access (CDMA) telecom market. That same year, it acquired Cellcom, one of the 13 registered CDMA operators, also known as Fixed Wireless Operators. By 2008, Visafone further expanded its reach with the acquisition of Bourdex Telecom, a major player in the Eastern Nigerian telecom market with coverage in nearly ten southeastern states.
Determined to build a nationwide CDMA network, Visafone went on to acquire Independent Telephone Network (ITN), a key CDMA operator in Lagos, one of the most lucrative telecom markets in Nigeria. The company assured its subscribers that it would leverage its 800 MHz spectrum licence to roll out nationwide telecom services across all 36 states.
However, despite its ambitions, Visafone faced mounting market challenges that ultimately led to its acquisition by MTN, a leading Global System for Mobile Communication (GSM) operator, on January 5, 2016. This acquisition marked the final chapter in Visafone’s once-promising dominance in Nigeria’s CDMA space.
CDMA’s Decline and the Road to MTN Acquisition
The acquisition of Visafone by MTN was a direct result of the declining fortunes of the CDMA sector in Nigeria. Once home to several players, the CDMA space saw a steady collapse, leaving Visafone as the last major operator, struggling with fewer than 2 million subscribers. Other fixed-line operators had exited the market entirely, leaving only MultiLinks, which was barely offering skeletal services.
MTN’s acquisition, however, brought much-needed relief to Visafone’s struggling subscribers. The company announced plans to migrate all Visafone customers to its 4G LTE network, which was set for a commercial rollout in July 2016.
A Shift in Strategy: From CDMA to 4G LTE
At the time of the acquisition, the Nigerian Communications Commission (NCC) had initially mandated that MTN must continue operating Visafone as a fixed wireless operator to help revive the dwindling CDMA sector. NCC’s Executive Vice Chairman, Prof. Umar Danbatta, had emphasized the importance of fixed wireless operations in his 8-point agenda, which he presented during an international press conference in Lagos in February 2016.
However, within two months of acquiring Visafone, MTN abandoned its initial plan. The telecom giant explained that the CDMA technology used by Visafone was fundamentally different from its GSM technology, making the integration complex. Faced with stiff market realities, MTN opted instead to migrate Visafone’s subscribers to its GSM network and integrate them into its planned 4G LTE service.
Speaking on the acquisition, Amina Oyagbola, MTN Nigeria’s Corporate Services and Human Resources Executive, stated:
“The acquisition reflects MTN’s commitment to deepening broadband penetration across Nigeria in line with the National Broadband Plan. Visafone is one of the leading CDMA/ICT companies in Nigeria, offering voice, high-speed data (3G), and business solutions to SMEs and corporate organizations. This acquisition will enable us to provide faster data speeds and enhanced service quality for Nigerians.”
Migration to MTN’s 4G LTE Network
Two months after finalizing the acquisition, MTN officially announced plans to migrate Visafone subscribers to its GSM network. This move was significant as it allowed existing Visafone customers to:
•Retain their Visafone numbers while switching to MTN’s network.
•Gain access to high-speed 4G LTE data connectivity.
•Enjoy additional GSM services that were previously unavailable under CDMA.
To ensure a smooth transition, MTN organized a series of stakeholder forums in Abuja, Port Harcourt, and Lagos, attended by representatives from NCC, Visafone dealers, and corporate customers.
During the Abuja forum, Richard Iweanoge, General Manager, Consumer Marketing at MTN Nigeria, assured subscribers that the migration process would be seamless. He stated:
“We appreciate the patience and understanding of our subscribers during this transition. Our goal is to make the process as seamless as possible. These forums allow us to engage directly with customers and address their concerns before the final migration is completed.”
Justifying the Migration Decision
MTN further justified its decision by explaining that migrating Visafone subscribers to GSM would offer them better value. Notably:
•Subscribers retained their Mobile Station International Subscriber Directory Number (MSISDN).
•They received double airtime bonuses as compensation.
•A four-week window was provided for all active Visafone subscribers to register new SIMs, in line with NCC’s directives.
•Over 400 customer service outlets were opened across Nigeria to assist subscribers with the transition.
•Visafone’s customer care number (222) remained accessible for inquiries and complaints.
A New Hope for Visafone Subscribers
Although Visafone’s acquisition by MTN marked the end of CDMA operations in Nigeria, industry experts argue that it ultimately saved Visafone from total extinction. The move allowed the company’s subscribers to remain connected, with improved service offerings under MTN’s GSM network.
Initially, the acquisition had sparked concerns over job losses and the fate of Visafone as a business entity. However, those fears were eased as MTN successfully migrated and integrated Visafone’s subscriber base.
Today, what once seemed like the death of a telecom operator has instead become a strategic transformation, ensuring that Visafone subscribers continue to enjoy seamless communication in Nigeria’s evolving telecom landscape.
