TheCable

Ntel, formerly known as NITEL, says it is seeking more than $1 billion to invest in 4G mobile broadband by 2020.

The network, which launches in Lagos and Abuja on Friday, says it wants to take advantage of a rising number of smartphone users in Africa’s most populous country.

Kamar Abass, chief executive officer of ntel, was quoted by Bloomberg as saying “we are speaking to investors and to banks who are interested in a growth story for Africa”.

“We are seeing the very beginnings of a shift from a voice-oriented communications market in Nigeria to one that will be dominated by mobile broadband,” Abass said.

“Nigeria’s population is forecast by the World Bank to reach almost 207 million by 2020 from about 170 million now, and ntel expects Nigeria’s mobile-broadband customer numbers to rise significantly by 2020.”

According to Bloomberg, Sub-Saharan African mobile Internet companies are attracting investment because of a lack of fixed-line infrastructure to support rising demand for online access.

Smile Telecoms Holdings Ltd. Was reported to have raised $365 million in August to expand its wireless Internet network in Nigeria, Uganda and Tanzania, while Lagos-based MainOne Cable Co. said in July it plans to raise $300 million.

Nigeria had about 149 million active mobile-phone lines as of end January, according to the Nigerian Communications Commission.

Much of these users are restricted to 2G voice and text messaging due to the low penetration of smartphones and internet technologies.

MTN Group Ltd., Nigeria’s biggest mobile-phone operator, recently bought Visafone Communications Ltd to expand Internet services.

ntel’s investment target includes the $252 million that the company paid to acquire NITEL and its mobile unit MTel in 2015.

It is owned by Nigerian investors including Olatunde Ayeni, the chairman of Skye Bank Plc, and has a partnership agreement with closely held Hong Kong Telecommunications Ltd., according to the company.