Wednesday 17 February 2016

Etisalat lawsuit has no base

It would be recalled that last week, Etisalat Nigeria filed in a lawsuit against MTN Nigeria preventing it from using the 800MHz spectrum which it inherited from its acquisition of Visafone communications. Visafone and other Code division multiple access (CDMA) networks operate on this spectrum.
Etisalat should be aware that whenever a company acquires another company, it inherits all  on ground equipment and infrastructure of the firm and has the right to do with it whatever it pleases in its totality.
Therefore, Etisalat getting a court injunction refraining MTN from using this spectrum is baseless. The earlier Etisalat sees this new development has one of the numerous benefits that MTN stands to gain by acquiring Visafone and drop all lawsuits concerning this issue, the better for them. They should be thinking of strategies to adopt to compete favorably with MTN rather than nursing the fear that the usage of this spectrum by MTN would further enhance MTN's dominance of the telecommunications industry in Nigeria.
The move by MTN to acquire Visafone began sometimes in April last yaer. By January 2016 it was already a done deal. Nigerians expectations are high as they expect to see a newer, stronger and better Visafone limited whose capacity to deliver high qulaity voice and data communications is undoubted.


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