Nigerian telecommunications company Reliance Telecom has concluded a joint-venture agreement with South African empowerment group Nextcare, an associate of 3rd Cellular bidder Nextcom Holdings.
The joint venture will fast-track the implementation of a telecommunication projects in both countries and take advantage of the deregulation of the industry in Nigeria and South Africa.
Reliance Telecom, which holds national licenses in Nigeria to provide wireless local loop services and international VSAT, has recently signed a multi-million dollar contract with Nortel Networks for the implementation of an advanced fixed wireless CDMA network. In addition, the company has fulfilled all requirements to supply CDMA fixed wireless networks and radio transmission kinks.
Malcolm Bayes, Vice President Nortel Sales, sub Saharan Africa, said the decision by Reliance Telecom to select Nortel Networks as its preferred supplier was testimony to the success of the company`s focused strategy in which Nigeria was identified as a core growth point for its business in Africa.
The joint-venture company will initially rollout a 1900MHz fixed wireless network covering the major cities in Nigeria, including Lagos, Onitsho, Abuja and Port Harcourt. The network will be launched in May 2001 with service offering leading to voice, data, video and virtual private networks for corporate customers
Chief Annie Okonkwo of Clemco Industries, holding company for Reliance Telecom, said that he was delighted to be the first company to take advantage of the strengthening economic ties between Nigeria and South Africa. "The partnership between Reliance and Nextcare will significantly enhance the development of Telecommunication in both countries." He added that the new network would see a potential of a million people subscribe in the early stages of the project.
Lawrence Petersen, Chairman of Nextcare, said: "The Afro-partnership will not only increase telephone penetration in Nigeria, but create a strong company to compete in a truly deregulated competitive industry in South Africa."
Peterson added that the partnership had finalised plans to bilaterally undertake developmental projects in their two countries, in areas of housing, transportation and tourism.
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