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Broad
Communications and Zain Nigeria have settled their differences,
culminating in Oba Otudeko emerging as Zain Nigeria chairman.

Mr. Otudeko,
current chairman of Broad Communications, First Bank, and a host of
other companies became chairman on the day Bharti Airtel, an Indian
company, became the new owners of Zain Africa. A statement issued by
Bharti Airtel, and signed by Sunil Bharti Mittal, the chief executive
officer of Bharti Airtel said, “In line with Bharti’s philosophy of
forging long term, strategic partnerships we are pleased to have joined
hands with our local partner in Nigeria, Oba Otudeko and his family. I
have no doubt that this partnership will ensure leadership for Bharti
in Nigeria for the benefit of all stakeholders.”

Denouement of a saga

This perhaps is the
denouement of a long saga that began years ago. Early this year, NEXT
reported in its 28 February edition, that Broad Communications had
accused the company majority shareholders, Zain Group, Kuwait, of
mismanagement, fraud, and capital flight to the tune of N16.6 billion.
Broad further accused Zain Kuwait of not paying its shareholders
dividend since the Kuwait group started managing the firm.

Further last week,
Broad again filed a suit against the directors of Zain Nigeria over the
five year lease of the company’s head office at Ikoyi for $27 million.
This latest twist is also a continuation of the mixed fortunes of the
telephone firm that started trading as ECONET Wireless in 2001 and also
the first licensed by the Nigerian Communications Commission to operate
a Global System of Mobile communication (GSM). Over the years Zain
Nigeria has been widely known for its many name change from Econet
Wireless (2001), Vodacom Nigeria and V-mobile Nigeria (both in 2004),
Celtel Nigeria (2006) and to its current name Zain Nigeria (2008).

A new dawn?

Meanwhile some
telecommunication experts have expressed the hope that this latest
acquisition and appointment might be the beginning of a new dawn for
the company.

“Well, I want to
believe that what wrong with the Econet share deal has been resolved
before this sale was concluded,” said Deolu Ogunbanjo, president of the
National Association of Telecommunications Subscribers (NATCOMS). For
Kenneth Ugbechie, the secretary of Africa Telecoms Development
Initiative, the welfare of Nigerian staff remains paramount in this
transaction.

“As for Bharti
Airtel, my fear is that they should not send away the Nigerian
employees in the company,” he said. “We want subscribers to be involved
in the drafting of telecom policies because that way we can ensure that
Nigerians are protected. So, the government should look into the
Nigerian content concerning jobs, a certain percentage of Indians
should be allowed into company.”

Zain Nigeria in
2007 faced network congestion problem, and the Nigerian Communications
Commission (NCC) had to direct them to compensate the subscribers along
with other operators.

“If this deal
affects a name-change, then that possibly would portray instability in
business which would definitely affects subscribers confidence in their
network and they might lose five per cent to 10 per cent of their
subscribers,” said Mr Ogunbanjo.

Mr. Ugbechie,
however explained that problem with protecting Nigerian citizens was
based on the poor protective laws in the country.

“I hope, these Indians would behave well but one thing I know about
the Indians is that telecommunication service is cheap in their country
because the competition is very robust. I think this firm would bring
that competitiveness to Nigerians,” he said.