Monday, August 20, 2012

Starcomms suffers setback, shares put on hold by NSE


Despite claims by Starcomms plc to have reached 3.2 million customers, the acclaimed leading Code Division Multiple Access (CDMA) operator, may be facing some hard times, the latest of which was the news last weekend that its activities at the Nigerian Stock Exchange (NSE) have been fully suspended.

Information reaching DigitalSENSE News shows that NSE may have taken the decision to suspend Starcomms activities fully due to its inability to prove the existence of the telecom operator’s presence at the Exchange beyond mere listing. It is also speculated that the full harmer of suspension by NSE was due to plans by Starcomms to merge with operations with some two other ailing CDMA operators, namely MultiLinks and MTS 1st Wireless.

It was further gathered that following the suspension, Starcomms shares at the Exchange will not be accessible via trading pending the completion of the current merger deal likely to give birth to a new consortium to be known as CAPCOM with anticipated new investment of $200 million, about N315,400,000,00.

Industry observers blamed the near collapse of CDMA operators in Nigeria to overwhelming acceptance of the Global System for Mobile (GSM) communication technology, despite the fact that CDMA first arrived Nigeria’s shores, but was slow in deployment and suitability for Nigerian market.

DigitalSENSE News recalls that Starcomms, commercially launched in 1999, it is the first telecom operator in Nigeria to be listed on the domestic Exchange on July 14, 2008. 

Currently, Starcomms customers-base is 3,200,000  from Lagos, Ibadan, Port-Harcourt, Maiduguri, Kano, Aba, Onitsha, Abuja, Asaba, Zaria, Benin, Kaduna, Abeokuta, Calabar, Warri, Owerri, Uyo, Ilorin, Shagamu, Ijebu Ode, Calabar, Sapele, Umuahia, Awka, Nnewi, Rano, Ogbomosho,  Katsina, Jos, Bauchi,  Enugu, Agbor, Suleja, Jaji, Gwagwalada, Ikot ekpene, Oron and Eket - a subscriber base that continues to grow in leaps.

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