Multilinks

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Multilinks Ltd. was one of the eight companies to receive a basic local service license from Nigerian Communications Commission (NCC) in 1995. The license allowed the company to provide its phone services through Wireless Local Loop (WLL) technology. The main owner of the fully private company was the local Kenston Investment. The company was the first private WLL provider to start commercial operations beginning in December 1997 when it signed the first ever interconnect agreement with NITEL, the incumbent national operator. Multilinks offered services only after two years follwing its license award due to factors such as bureaucracy, slow spectrum allocation, and the need to raise financing hampered network deployment. The main coverage area of Multilinks was Lagos, the capital city, and surrounding areas by 1998. Multilinks competed with state-owned Nitel and the private operator Intercellular by July 1998. Multilinks encountered more competition by late 1998 when additional companies entered the Nigerian market. Under a supply agreement signed in June 2002, Nortel Networks was selected as the sole supplier of CDMA2000 1X radio and IP (Internet Protocol) core infrastructure equipment to Multi-Links. The Wireless Data Network was to enable Multi-Links to significantly boost network capacity to accommodate a greater number of voice calls. The initial capital outlay was US$30 million. By 2003, Multi-Links was expanding its network to increase capacity in Lagos to 500,000 subscribers and was installing independent networks in six other cities. By end 2004, Multi-Links reported a subscriber base of 130,000. In March 2007, Telkom SA acquired 75% stake in Multilinks Nigeria for US$280 million. In July 2011, Telkom South Africa announced the sale of Multi-Links to Helios Towers Nigeria for the modest sum of $10 million. Helios Towers had been suing Multi-Links for $250 million over claims of broken contract. Telkom was to continue operational funding to Multi-Links.