Nigeria has awarded the licence for its second national phone service to a domestic consortium.

Globalcom will pay $200m for the licence, after three other firms dropped out of the bidding.

"As there was no competition for the licence... Globalcom was not required to submit a sealed bid and will be awarded the [licence] upon payment of $200m," the Nigerian Communications Commission said.

Globalcom will compete with state telecoms company Nitel for fixed and long distance services, and operate as Nigeria's fourth mobile service provider.

Rival bidders

Globalcom, in which petrochemical company Conpetro is the main shareholder, was set up primarily for the bid.

AFZI, Omnitel and Renic Investments also passed the first technical stage of the bidding

But Globalcom was the only company to pay the deposit and qualify for the final stage of bidding.

The sale of a second licence is the latest attempt to shake up the telecoms sector.

Earlier this year, the government tried to sell a stake in Nitel but this move fell through when the successful bidder failed to meet payment deadlines.

The NCC had greater success in selling the country's mobile phone licences, raising more than $800m for the government in the process.

The Nigerian market offers vast potential.

With a population of 120 million people, yet with a limited landline network, the popularity of mobile phones has surged.