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.