Globacom Wakes Up To Home Competition

Globacom, Nigeria's second-ranked and only privately-owned mobile operator, has finally taken steps to protect its estimated 29.5% market share, with the announcement that it is to award global vendor Alcatel-Lucent contracts worth a total of US$600mn. Globacom's position is currently sandwiched between South African-owned MTN, which has recently acquired a unified license with the acquisition of Nigerian fixed-line operator, VGC Communications, and No3 operator Celtel Nigeria, which is to receive a US$1.4bn (NGN185bn) investment injection from parent company Kuwait's MTC Group. Added to this existing pressure is the imminent arrival of a fifth mobile operator to the market, the UAE's state-owned investment holding company Mubadala Development Company (MDC) winning the license in mid-January 2007, and has also taken steps to acquire a unified license award.

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