MTN Nigeria

completed

MTN Nigeria is a relatively new company, created for the purpose of constructing, owning, maintaining and operating a GSM cellular telecommunications network in Nigeria. In January/February 2001, MTN Nigeria won 1 of 3 new 15-year licenses awarded through an open auction process as part of an ongoing liberalization of the telecommunications sector assisted by the World Bank. MTN Nigeria began operations in August 2001. As of February 28, 2002, the company had approximately 250,000 subscribers, and is currently adding on average about 2,000 subscribers per day. The project will expand the coverage and capacity of MTN Nigeria''s network, and by February 2006, the company expects to have over 1,500,000 subscribers in accordance with its license requirements.As is the case in many other emerging markets, cellular telecommunications in Nigeria is quickly becoming the primary means of communications in the country. While there are only approximately 400,000 wireline telephones in service in a country of over 125 million people, in just over 6 months of operations, the cellular operators have built a total base of over 500,000 subscribers. This trend is expected to continue, and as cellular services expand nation-wide, the improved telecommunications infrastructure is expected to benefit all segments of Nigeria''s economy, as businesses become more efficient and productive simply because they can communicate and conduct basic business transactions more easily.IFC''s role in this project is two-fold: (i) to foster competition in the Nigerian telecommunications market in general, and the cellular market in particular, which is expected to lower tariffs and make cellular telecommunications services more affordable to a larger segment of the Nigerian population, and improve the quality of telecommunications services and customer responsiveness; and (ii) to support the liberalization and private sector development of the telecommunications market in Nigeria, started with the World Bank''s assistance of the government in this area, and continued by MIGA''s recent guarantee facility to Econet Nigeria, MTN Nigeria''s primary competitor.