Wednesday 9 November 2016

Insufficient financing from local investors ruined most CDMA companies in Nigeria

Most of the Code Division Multiple Access telecommunications companies in Nigeria are financed by local financiers' and this has not really helped the growth and progress of most of them.
These financiers' many a time run to the Bank for loan assistance but are usually turned down by the Banks. They end up using the little they have got to run the business. In no time, a sharp decline is noticed in the quality of services rendered by these companies. One thing leads to the other and before you know it, these companies are already at verge folding up.
This had been the plight of CDMA operators like Nitel, MTel, Starcomms, Reliance Telecoms(Zoom Mobile), Intercellular, MTS First Communications, Disc Communications, Webcom, Xs Broadband, Rainbownet WiTel, O' Net(Odua Telecoms), Monarch Communications and the most recent of them, Visafone communications limited which shocked everyone. We actually thought they were doing well until the news went viral that South Africa's telecommunications giant had acquired them.
Even the Nigeria Communications Commission (NCC) had decided to declare the operations of these companies as inactive so that it could investigate accurate telecom figures in the country.

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