Nigerian Telco To Raise $150 M From India; Scouts For Strategic Partner

Mumbai | Updated: May 31 2004, 05:30am hrs
Nigerian wireless player RelTel is on the lookout to raise around $150 million from the Indian market.

RelTel director Sunil Pathak told mediapersons that the funds are required for network expansion. This will be a combination of debt and equity, he said. RelTel today has 80,000 subscribers in the CDMA market and is in the process of expanding capacity to 1.4 lakh lines by the end of this year. Nigeria is said to be a fast-growing wireless market with 2.5 million GSM subscribers and 1 million CDMA subscribers.

We are looking for a strategic partner to ensure that expertise on the sector is also obtained, he said. RelTel has mandated Strategic Capital Ventures Ltd as its financial advisor to raise funds. The fund raising exercise is expected to be concluded over a two-month period. CDMA players like Reliance and the Tatas are likely to be approached.

RelTel has an average revenue per user of $54 per month, Mr Pathak said.