Abuja — A new guideline has been released for the privatisation of the Nigerian Telecommunications Limited (NITEL), which bares current GSM operators from bidding for M-TEL, the GSM component of NITEL.

At a press conference addressed by the Director General of the Bureau of Public Enterprises (BPE) Dr. Christopher Anyanwu at the conference hall of the BPE in Abuja yesterday, he said this was as a result of an advice given to them by the regulatory body, the Nigeria Communication Commission (NCC).

Following this development, MTN, Globacom, Zain and Etisalat which have submitted expression of interest to acquire NITEL, have been effectively blocked from doing so. He also announced that NITEL is going to be unbundled into units and each sold separately with all bidders free to buy any combination of units subject to the new conditions approved for the sell of NITEL.

Said he: " The present GSM license holders (that is MTN, Etisalat, Zain and Glo) are disqualified from buying the mobile arm of NITEL (that is, M-TEL) if NITEL is sold as a single unbundled unit given that they are presently holders of GSM licenses."

He said that NCC insisted that the purchase of M-TEL by any of the present GSM holders would present competition challenges and will conflict with the regulator's guidelines and licensing conditions.

He also disclosed that given that Glo and NITEL hold Second National Operators (SNO) licenses,"NCC ruled that Glo is disqualified from purchasing a bundled NITEL as it would leave Glo with two SNO license and would hence, be anti-competition."

He assured however that any of the local operating firms can purchase NITEL alone without M-TEL and SAT3, stating further that 'a reserved price tag should be placed on each unbundled unit of NITEL in proportion of its potential market value and asset base."

Advantage of the new arrangement, according to the boss of BPE, is that each buyer will likely pay a higher price for the component it values most important for its strategic plan, noting that 'it will thereby enable government to make more money from the entire privatization process.'

He said that small and medium-size operators "can participate in the process, thereby increasing the number of players and increasing the probability of getting a buyer for each component part," pointing out that the more the number of participants, the more the competition for the purchase of the items.

The unbundling of NITEL, means that NITEL, M-TEL, and SAT3 will be advertised as separate units, unlike when they were treated as one entity under NITEL. The BPE DG also said that staff of NITEL who are currently owed about 10 months salary, will be settled before the processes of privatising the NITEL is completed.

It will be recalled that after the advertisement for expression of interest from investors for the acquisition of at least 75 per cent equity in NITEL in July this year, about 14 companies which includes Glo, MTN, Etisalat, Omen International, Summit Croup, Finetek, Telefonia, Galxy Backbone, etc, including the latest company to join the race, Dansacom, submitted their applications.