MTN Nigeria has acquired the CDMA operator Visafone after a protracted negotiation period.
The market-leading operator confirmed that the buy was aimed at improving the quality of its broadband services. Negotiations have been ongoing since at least April last year, when it was reported that MTN had almost finalised a deal to acquire Visafone.
MTN Executive Amina Oyagbola stated that the acquisition would leverage resources to augment service offerings and support the roll out of broadband services in the country. It will also be used to push mobile data services.
“As we work to maximise our data capabilities towards achieving broadband of international quality, our objective is to ensure that Nigerians experience a boost in the quality of broadband internet services”, she said. “This will translate to the much needed enhanced data speeds and value to enhance personal and business productivity.”
Visafone is the country’s sole remaining CDMA operator, founded in 2008. In addition to providing mobile services, the firm also has a fixed wireless offering.
While the deal can be seen as a positive development for MTN Nigeria, the operator still faces a local court hearing over a $3.9 billion fine issued by the country’s government for failing to comply with security regulation.