The Nigerian Communications Commission (NCC) has granted Capcom interim approval to operate as a Code Division Multiple Access (CDMA) operator, ahead of its July rollout date.
The Nigerian Communications Commission (NCC) has given Capcom, a new company formed from the merger of CDMA operators Starcomms, Multilinks and MTS Wireless, initial approval to operate in the country’s telecoms sector as Capcom.
NCC said the approval became necessary, following the formation and determination of Capcom, which recently emerged from the merger of Starcomms, Multi-links and MTS Wireless.
‘The commission granted Capcom an interim approval for its rollout because it is confident in its formation and organisational plan, based on the presentation it made to the NCC’ ThisDay quotes NCC executive vice chairman Eugene Juwah as saying.
He added that the deal is still subject to approval from the Security and Exchange Commission (SEC), after which the NCC would give Capcom final authorisation to offer services in the Nigerian telecoms market.
As previously reported, Capcom reached an agreement late last year to invest USD210 million in Starcomms in return for a 90.5% stake. Capcom – a special purpose company created for investing in Starcomms and related transactions – comprises a number of investors, including MBC, a private trust with a focus on investing in emerging markets, and Pan African Capital through its asset management division, PACAsset Management.
As part of the agreement, Capcom aims to create a national broadband operator by acquiring the spectrum licence of MTS and the CDMA business of Multilinks, and it will provide USD98 million in cash to finance their integration with Starcomms, in a bid to improve its competitiveness in the country’s overcrowded telecoms market.
In return, Capcom has received shares in Starcomms equating to 90.5% of the operator’s restructured share capital. The deal received the go-ahead from Starcomms shareholders on 28 December 2012.