Visafone purchase of Multilinks fails; Telkom walks

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CyberSchuulNews reports that Telkom South Africa has said it will withdraw all funding from Multilinks in Nigeria since its attempt to sell the ailing firm to Visafone has been lost to litigation. Helios Towers had raised charges that the South African firm walked away from a ten-year rental agreement in Nigeria after only three years.

multilinks-telkom

Telkom bought 75% into multilinks for $280million in 2007 and paid up the balance of $130 million in 2009. The South African firm was unable to turn the fortunes of Multilinks around, and put it up for sale.

The Helios charge has ended Visafone’s move to acquire the ailing pioneer CDMA operator in Nigeria.

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7 comments

  1. It is sad how so many ICT / media companies fail to stand the test of time.
    MultiLinks, Triumph Internet Tv (TItv),

    InterCellular, Frontage Internet tv (FItv), DaarSat, TrendTv, Mweb are some examples that come to mind.

    The market seems big enough. Just wondering what can be responsible for these failures. Incompetence? Mismanagement?

    1. I think the cause of their collapse is inadequate patronage. Their business is very capital intensive. More customers result to more fund for business use. When patronage is low, working capital is low and the business suffers. It’s the same for all ICT firms. Wonder why most don’t bother to invest in good advertising.

  2. I believe its capital problem, they dont ve d resources and its kinda gettin too late for them cos the Gsm companies are gettin cheaper daily

  3. I strongly velieve that they are late starters. The Gsm Companies now have lots of years of customer service, experience and headstart.

  4. It still baffles me that our CDMA operators are unable to compete favorably with GSM.

    The thing is that there are lots of opportunity that CDMA can tap into.

    Well, lets see what will happen to Multilinks now.

  5. these CDMA guy seems to be confortable with being users plan-C network cos plan-B of most users is also a gsm network. 1st thing I think needs to be done is get this “OMH cert” that allows users to use their sim in any cdma phone. That way, more phones will come into the market

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