World Report

The official launch of Odu’atel services in Ibadan, Oyo State, in 2004

ICENSED to operate in an area with an estimated population of 40 million people, the Nigerian-registered wireless broadband service provider Odu’atel has access to a potentially huge market. Now the company is looking for core investors to take it to its next stage of development.

A subsidiary of Odu’a Investment Company, Odu’atel was established in 2002 when it was awarded five of 62 wireless licenses auctioned by the National Communications Commission.

The heart of Odu’atel’s operation is the ClearBurst-MB broadband wireless access system, which has the capacity to accommodate voice, data and video conferencing and virtual private network. The small antenna size, ease of installation and low maintenance make the system an excellent choice for multi-service applications to offices, homes, medium and large enterprises.

The technology has been supplied by the Harris Corporation of America, deploying services on the 3.5 GHz spectrum, the frequency for which Odu’atel owns licenses in the 5-state region of Oyo, Ogun, Ondo, Osun and Ekiti in southwestern Nigeria. The system has been installed successfully in several other countries, including Canada, Malaysia, Sri Lanka, Mexico and Greece.

To this, Odu’atel has added CDMA (Code Division Multiple Access) technology, supplied by Huawei Technologies of China. This has the capacity to reach a wide area network and the facilities for mobile services.

“We have commenced a serious revaluation and have come to a decision that the data aspect of 3.5 is what we are going to focus on, as well as the internet services,” says Adebayo Jimoh, Odu’a Investment Company’s Group Managing Director.

“Data and the internet are big strengths and we have got the backbone for that. To achieve the mileage, we are now bringing in the CDMA to complement that aspect.”

Odu’atel is looking for investors to provide financing and technical know-how. Mr Jimoh stresses that the telecommunications business is booming in Nigeria, and that the southwestern region of the country that Odu’atel covers is an economically strong area.

“We have been able to put in place the basic infrastructure to enable the company to connect right from Ota, which is at one end of Ogun State to the end of Ondo State,” says Iyabode Apampa, Odu’a Investment’s Chairman. “Now we are seeking core investors who have the history and the strength in telecommunications to take equity. We want to keep just 40 per cent and we want international investors to take the rest.”

Starcomms attracts FDI

Launched in 1999, Starcomms is the number one private telecom operator in Nigeria, with a subscriber base of 150,000. It has developed the largest network coverage in three of the major commercial areas, Lagos, Kano and Borno states.Starcomms offers services using CDMA technology that provides high quality, 3G-type technology. A consortium of two of the leading international private equity investors in emerging markets, Actis and the AIG African Infrastructure Fund (AAIF), managed by Emerging Markets Partnership (EMP), have recently acquired a majority stake in the company for a record $43.2 million. Actis has currently $1.1 billion under management in Africa, and is a significant investor in leading African telecoms operators Celtel and Orascom. EMP is also an experienced investor in Africa with a current total investment of $407.6 million on the continent.