According to reports, Sir Richard Branson is in talks to acquire a stake in Vmobile, currently the second largest mobile phone operator in Nigeria, with roughly two million subscribers.
After South African, Nigeria is thought to be the next large market for mobile operators. This is because there are only one million working fixed-lines in Nigeria, compared with five million mobile phone lines.
However, it is unlikely that Branson will have things all his own way because there is a potential rival in the form of the South African mobile giant, Vodacom (Pty) Ltd, in which Vodafone Group Plc has a 35% stake.
Last June, Vodacom pulled out Nigeria, citing a breach of trust between the South African-based mobile operator and its Nigerian partner, Econet Wireless Nigeria (since renamed Vee Networks Nigeria Ltd, or Vmobile).
Vodacom is unlikely to allow a move on Vmobile to pass unanswered, and the prospect of a fight for control Vmobile remains a possibility.
Some observers have expressed concerns over the levels of corruption in Africa’s most populous country. Yet Branson already has experience of the Nigerian market via Virgin Nigeria, a regional airline he setup last year.
Virgin Group is also thought to be in advanced talks with an established mobile operator in China, and is looking at launching mobile operations in India and Mexico.
Branson is also thought to be considering a flotation of Virgin Mobile USA, the mobile operator jointly owned by Virgin Group and Sprint Corp. This follows $230 million flotation of Virgin Mobile UK in July last year.
