By Sonny Aragba-Akpore, Asst. Communications Editor

Barely one month after the Unified Licensing (UL) was introduced, Private Telecommunications Operators (PTOs) have succeeded in raising their investment portfolios by about N80 billion ($600 million), much of which is foreign.

The investments are tailored towards meeting the new conditions for the licensing regime introduced by the Nigerian Communications Commission (NCC).

To qualify for a UL under the new conditions, an operator should be able to spread and expand its services to six geo-political zones of the country.

The new regime is akin to consolidation in the banking sector. Under it, an operator can offer more and flexible multi-services, including mobile and fixed lines, broadband Internet and fixed wireless.

It was introduced at the end of the five-year exclusivity period granted Global System of Mobile Communications (GSM) operators, which ended on February 9, 2006.

The N80 billion new funds, injected in the last one month, came in form of equity participation, Foreign Direct Investment (FDI), Initial Public Offer (IPO) and private placements.

The largest single investor so far is Miko Rwavitare, chairman of Global Vision Telecoms (GV Telecoms), the investment and holding company of Telecel International with operations in 11 African nations, including Egypt.

Rwavitare's company has invested $125 million for 60 per cent equity in Prest Telecommunications Limited (Prestel) based in Benin City and parts of the Niger Delta and $137 million in Intercellular Nigeria Plc in over 70 per cent equity participation.

Both companies, based on this acquisition, have been merged as U. Com.

Another big investment is in 21st Century Technologies Limited. With close to $150 million new investments through private placements and foreign investments, this PTO has begun to expand its services to other parts of the country.

Its executive vice chairman, Mr. Wale Ajisebutu, in an interview with The Guardian, declined comments on the amount of new investments in his company. He, however, confirmed that the company was fully prepared for the new licence, "we have already applied to the NCC for the multiservice licence, including International Data Licence (IDA), a gateway service licence, among others."

He said that 21st Century Technologies hoped to remain the country's number one PTO and declared: "We are sure of getting there."

The chief executive of VGC Communications Limited, Mr. Gbenga Adebayo, said his company had set aside $2 million for the licence and hoped to spend another $150 million for new infrastructure which unified licensing demands.

However, he added that his company had not applied yet. "We are still on the drawing board thinking of where to go to," he said.

Adebayo explained that since the new licensing regime did not have room for micro players, the onus was on the PTOs who did not have the required funds to consider the options of merger or be ready to be acquired.

"Micro-players cannot survive the new regime. It is therefore better for them to come together to form a consortium or bow out with dignity because small players will not survive the next level."

According to Adebayo, unified licensing will be a leveller because many of the current PTOs do not have the infrastructure that could be upgraded to meet the new regime.

"Operators will need to invest heavily in networks to meet the demands of unified licensing."

The executive director of Multilinks, Chief Ezekiel Fatoye, also confirmed that his company had made over $70 million new investments in its new optic fibre ring round the country in preparation for unified licensing.

He said: "We have begun our outward Lagos expansion and we are opening our networks in Ilorin, Abeokuta, Jos, Abuja in preparation for unified licensing."

Fatoye explained that the $70 million new investment was through foreign investment.

Starcomms Limited recently got a lifeline of $20 million from Actis, a venture capital company based in Europe and the Lababidi Group.

Its Chief Executive Officer (CEO), Mr. Maher Qubain, confirmed this in an interview with The Guardian, saying: "It is in preparation for unified licensing."

The $20 million was a follow-up to the $23 million it got from China Export Import Bank (China Exim) brokered by Huawei Technologies and Zenith International Bank Plc.

Although there are strong indications that many of the PTOs may go under, the NCC chief executive officer, Dr. Ernest Ndukwe, told The Guardian that unified licensing was for only those who want to upgrade their network operations.

Ndukwe said that the current licences held by the operators were still valid. "If they like it that way, they could continue but if they must upgrade, then they need the new permits, so they should apply."

He also explained that the unified licence had no deadline, saying: "It is open ended."

The NCC boss also confirmed that at least 10 companies had applied for permits. They include two current mobile operators, five PTOs and some foreign companies.

He would not say for sure what kind of mergers would happen in due course.

"The NCC has not been told by any company about mergers or outright acquisition. Once the licences are issued, such situation may be assessed.

"Market forces will determine all that," Ndukwe added.