Starcomms Announces Growth Startegy

Nigerian CDMA network operator Starcomms is working on two business models in order to enhance the value of investment of its existing shareholders, local newspaper THIS DAY reports, citing a statement from Starcomms’ newly appointed chief executive officer Logan Pather. 


According to the executive, the company is looking to acquire more spectrum to facilitate a complete nationwide rollout of its network and to make it fully ready for Long Term Evolution (LTE) technology. 


To achieve a nationwide rollout, Pather said that Starcomms would require investment of around USD60 million.

Starcomms In Talks To Buy Multilinks

Nigerian CDMA operator Starcomms is reportedly negotiating a deal to acquire rival Multilinks, the local unit of Telkom SA, according to Nigerian newspaper THISDAY. 

Despite Telkom’s board having rejected a proposal by former CEO, Reuben September, to merge its Nigerian business with Starcomms back in January 2010, the pair are currently said to be negotiating a price for Multilinks, which was put up for sale in November 2010.

Since then, Multilinks was reported to have attracted interest from Etisalat Nigeria, but this was later denied by the UAE-owned company’s CEO Steve Evans. 

Telkom acquired a 75% stake in Multilinks on 1 May 2007 for USD280 million, and purchased the 25% it did not already own from Kenston Investments in January 2009 for USD130 million.

However, Telkom has failed to turn around the fortunes of the ailing company, which has struggled to survive in Nigeria’s fiercely competitive market, and wrote down the value of Multilinks by ZAR5.2 billion (USD751 million) in the financial year ended 31 March 2010. Telkom CEO Jeffrey Hedberg has estimated the ‘exit cost’ at anywhere between USD100 million and USD180 million.

Starcomms Loss for H1 Falls

Nigerian CDMA operator Starcomms has reported a pre-tax loss of NGN2.94 billion (USD19.1 million) for the first half of 2010, news agency Reuters reports. The figure represents a fall from a loss of NGN3.68 billion posted in the same period a year earlier.

Meanwhile, the fixed-wireless company’s revenue fell to NGN16.12 billion in the first six months of 2010 from turnover of NGN16.92 billion generated in 1H09.

Starcomms has approximately 3.2 million CDMA customers in Nigeria, with a network covering 31 major cities, 22 States and covering 175 towns.

Starcomms In New Roaming Servive

Nigerian fixed-wireless operator Starcomms has announced the launch of an inter-standard roaming service allowing the company’s CDMA subscribers to roam on the networks of both CDMA and GSM companies in 221 countries across the world.

The new roaming service offers the operator’s customers seamless access to international mobile roaming on all wireless technology networks, greatly expanding Starcomms’ network coverage outside of Nigeria and simplifying the roaming experience of customers travelling abroad.

The launch was made possible through the signing of an agreement with hub-based mobile applications exchange solutions provider MACH, and inter-standard and converged solutions provider Accurius, earlier this year. The vendors’ solutions offer turnkey interoperability between wireless technologies, including CDMA, 1x EV-DO, GSM, GPRS/UMTS, WiFi, WiMAX and, in the near future, Long Term Evolution (LTE).

‘It has been our endeavour to provide our customers with the best services and our focus in providing international roaming opportunities is not just about the service but about the quality of the customer experience whilst roaming with their Starcomms service,’ Tushar Maheshwari, the CCO of Starcomms, commented, adding: ‘From now on we will ensure that our customers who have cause to travel outside Nigeria feel at home with all their contacts having access to them seamlessly.’

MNP To Begin In Nigeria During H2

Nigeria's tele­coms regulator, Nigerian Com- munications Com- mission (NCC) has confirmed that the delayed Mobile Number Portability will be introduced in the second-half of this year, confirming earlier statements about the issue.

Mr. Stephen Bello, the acting vice-chairman of the Commission, told IT News Africa that  it had become necessary to introduce MNP because of the high telecom subscriber base in the country.

Mr. Earnest Ndukwe, former CEO of NCC, had set May 2009 as the date for the announcement of a timetable for MNP takeoff. On the mode of implementation, he said that the NCC would engage the services of an independent company to oversee the process. He also revealed that the local operators were on board and ready.

Earlier this year, the NCC retained the services of KPMG Consultancy Services as consultants for the development of Regulatory and Technical Framework for implementation of number portability in Nigeria.

According to figures from the Mobile World analysts, the country ended last year with 73 million mobile subscribers, representing a population penetration level of 50%. The market shares of the operators are: MTN Nigeria (42.2%), Glo Mobile (22.5%), Zain (20.2%), Etisalat Nigeria (4.7%), Visafone (3.7%), Multi-Links Telecommunications (2.7%), Starcomms (2.3%) and Reliance Telecommunications (1.7%)

Starcomms Reports 53% Increase In Gross Profits

Nigerian fixed-wireless operator Starcomms has announced its financial results for the year ended 31 December 2009, reporting a 53% year-on-year rise in gross profit to NGN18.896 billion (USD124 million), compared to NGN12.385 billion in 2008. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) in 2009 leapt 633% to NGN7.334 billion, up from NGN935 million a year earlier, which Starcomms attributed to a 13% rise in service revenue, operational efficiencies from a greater scale of operations and effective cost control. Cash flows from operations increased to a positive NGN7.803 billion versus a loss of NGN7.142 billion in 2008, which will enable the firm to fund its planned capital expenditure whilst paying down a portion of debt in 2010.

However, the company posted a loss after taxation of NGN7.787 billion, of which NGN4.951 billion resulted from unrealised foreign exchange losses on remaining dollar denominated debt. Any appreciation of the naira will result in these unrealised losses being written back as profit in 2010. The company’s operating loss improved 85% from NGN4.448 billion in 2008 to NGN666 million a year later; if the naira remains constant or improves, Starcomms says it expects to see a much better bottom line performance in 2010.

At 31 December 2009 Starcomms recorded a total active subscriber base of 2.629 million, 26% higher than the 2.085 million reported a year earlier. During 2009 the company succeeded in expanding its coverage from 20 cities and twelve states to 31 cities and 22 states.

Starcomms Wants GSM - CDMA Interconnection Rates Lowered

Nigerian national newspaper Vanguard reports that Maher Quiben, the managing director of fixed-wireless operator Starcomms, has challenged the Nigerian Communications Commission (NCC) to reduce interconnection rates between CDMA and GSM operators.

Quiben said the country’s interconnection rates are high by world standards, adding that a quick reduction would lead to a fairer telecoms industry. The company has written a letter to the NCC compiling interconnect tariff plans of different countries worldwide, with the hope that the regulator will take note.

Starcomms increased its CDMA customer base by 95% in the three months to 30 June 2009, to bring the total to 2.484 million.