Zain Nigeria is expanding its 4,000-kilometer fiber-optic cable backbone network in Nigeria in order to consolidate its market share in West Africa.
Zain said that it is extending its contract with Nokia Siemens Networks to expand its fiber network by 600 kilometers. Be extending its fiber cable, Zain hopes to increase the number of subscribers and double its profits.
The announcement comes only a week after French telecom company Vivendi halted its bid to buy Zain's African operations, claiming a deal would not be profitable.
The expansion of the fiber network means that Zain Nigeria will grow to become the company's biggest operation in Africa. Zain also has operations in the Middle East.
Due to an increase in subscribers, Zain has experienced network congestion problems that forced the Nigeria Communications Commission (NCC) to penalize the company last year.
Zain said that it is creating the fiber capacity to handle Nigeria's growing number of subscribers who are demanding high quality broadband services.
"Zain will now be able to maximize network security and will greatly improve the quality of the network and services," said Ahmed Othman, Nokia Siemens Network business team head.
The first phase of the project was awarded to Nokia Siemens Networks in 2007 and was successfully completed in February this year. Nokia Siemens Networks is expected to complete the second phase of the project within six months.