By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Tingo Mobile, Nigerian mobile phone manufacturers has said it will acquire 51 percent stake in cable network firm, Mass Telecom Innovation Nigeria Plc (MTI) according to a report by Bloomberg.

The 51 percent stake in MTI is worth about N4.0 billion which Tingo Mobile is ready to commit in order to develop rural broadband in Nigeria.

According to the report, Dozy Mmobuozi, chief executive officer (CEO) of Tingo Mobile said MTI will be rebranded and still remain listed on the Nigerian bourse.

He affirmed that MTI is leveraging on the acquisition to reach out to the mass market, “assets from base stations to license and goodwill and other things, will help penetrate rural Nigeria,” Mmobuozi.

The report further affirmed that telecom firms such as China’s Huawei Technologies Company and MTN Group Limited are expanding in Nigeria to tap into a growing market for mobile and data usage. It quoted the Nigerian Communications Commission as saying that mobile phone subscription as at March 2014 had hit 169 million users.

“With many users owning more than one phone, subscriber numbers are expected to grow to more than 200 million in 2017, according to London-based research company Informa Telecoms & Media,” the report said.

Mmobuozi said Tingo Mobile will start selling three (3) smartphones in Nigeria, the first time its devices will be made available to the public rather than to government or corporate customers. “The Tingo T5, T500 and T561 models cost 10,000 naira to 18,000 naira and are made locally,” he said.

He disclosed that Tingo is making GPS tracking systems and mobile point-of-sale devices that can be attached to its phones as it looks to expand its Internet-based services business. “New products include a chat application that localises emoticons, using Nigerian cultural references” Mmobuozi affirmed.

According to him, in the next two (2) months, Tingo Mobile must have hit a 10 million subscriber base for its Tingo Chat app.