Vodacom, Vee meet in Cape Town to renew pact

Friday this morning in the serene tourist city of Cape
Town, South Africa, Vodacom would be discussing with
Vmobile (Vee Network) to explore ways of investing in
the Nigerian second leading mobile operator after the
South African firm unceremoniously pulled out of a 51%
equity stake in Vmobile some months back.
South Africa's mobile telecom giant Vodacom pulled
out of Nigeria in controversial circumstances barely
two months after officially taking over the management
of former Econet Wireless Nigeria, Vee Network.
Vodacom blamed its action on the non-transparency of
Vee's management.

Now Vodacom, which was in the news weeks back, in an
alleged plan to return to Nigeria through possible 51%
takeover of the public telco Nitel, slated for sale
early next year, is back in the news with talks opening this morning between its CEO Alan Knott-Craig and the newly appointed board chairman of Vee Network,
Gamaniel Onosode.

A likely deal between the the two mobile telcos holds
high prospect for Vodacom to re-achieve its ambition
of becoming the continent's leading telco. Vodacom's
arch-rival competitor MTN has since dethroned Vodacom
as the continent's leader in terms of subscription and
profit because of their investments in Nigeria.
Vodacom earlier pull out of Nigeria May 2004, after
officially taking over the management of Vee Network
Limited ended plans to to inject about $230 million in
equity investment into the company which had been
re-branded Vodacom April 2004. The South African telco
blamed its action on problem that arose from the
payment of the "brokerage or finder's" fees to three
companies which had approached and convinced Akwa
Ibom, Delta and Lagos state governments to make
investments in the former EWN.
Now Vodacom appears keen on pushing MTN to the second place more than anything else. And the Nigerian market is just the window it needs to achieve this. [IT Edge in Cape Town, South Africa to report update}

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