How Nigeria’s CDMA operators built a market, then lost it

Before the rise of MTN, Airtel, and Globacom, Nigeria's first real taste of accessible mobile communication came through CDMA operators like Multilinks, Starcomms, and Visafone. Licensed by the Nigerian Communications Commission (NCC) in the late 1990s, these companies used Code Division Multiple Access technology to offer reliable fixed and mobile phone services when NITEL's landlines were failing and wait times for connections could stretch for years. Multilinks launched in December 1998 as the first CDMA operator, followed by others including Intercellular, Starcomms, and Visafone, which was founded in 2007 by Jim Ovia and quickly grew by acquiring three existing CDMA providers. CDMA offered better call quality and faster data speeds than early GSM networks because it used spectrum more efficiently. Starcomms became the first CDMA company listed on the Nigerian Stock Exchange in 2008 and launched EV-DO high-speed broadband, a first in Africa. At its peak in 2008, Starcomms had 2.7 million subscribers. Visafone reached one million users within six months of its 2008 launch and hit 2.5 million by January 2009, eventually growing to about three million—more than any other CDMA operator. Despite this momentum, the arrival of GSM networks changed everything. MTN had 40 million subscribers by 2006, and Globacom reached 15 million by the same year, leveraging aggressive pricing and wider coverage. Although CDMA was initially cheaper—GSM SIMs cost as much as ₦30,000 at launch—this gap closed as GSM prices dropped and networks expanded.